Bank watchdog the Financial Conduct Authority on Tuesday clamped down on overdraft fees in what it called the biggest market shake-up “for a generation”. Consumer groups cheered the moves, which mean banks won’t be able to charge higher fees for unarranged overdrafts. Banks will be forced to charge a single interest rate on overdrafts, with no fixed daily or monthly fees. Last year banks made £2.4 billion in profits from overdrafts, of which a third came from unarranged deals when cash-strapped consumers stray into debt. The FCA says people in deprived areas are worst hit by the bank charges and that unarranged overdrafts can be 10 times dearer than payday loans. Banks have tended to argue that the fees they charge the few who overspend allow them to offer “free” banking to those who remain in credit. Critics point out that free banking is a myth anyway, since banks always pay less on deposits than they charge for loans, a fee in effect.
Kromek to break-even for the first time since its float. A biological attack may feel like something that only happens in sci-fi films but trying telling that to anyone living in Salisbury. Could the attack have been prevented and the nerve agent detected in advance? Perhaps AIM-listed Kromek Group (KMK) equipment could have. The firm was spun out of Durham University and listed in 2013, selling equipment which can detect nuclear radiation. Since floating, it has won plenty of work with the US Department of Defense and last week it was awarded a £1.6 million contract to develop a vehicle capable of quickly identifying the pathogens used in any biological attack. The medical sector also uses Kromek. Its probes can evaluate whether cancer is spreading and highlight conditions ranging from osteoporosis to heart disease. Kromek is working with top medical suppliers to make its products available in hospitals. Though the firm’s tech is impressive, a major criticism is that orders tend to be lumpy in nature, and therefore difficult to forecast. Nevertheless, the firm is on course to break even this year, which analysts believe will be a pivotal moment for the company’s share price. Robin Byde, analyst at Cantor Fitzgerald, says: “The group is well capitalised and extensive R&D is now being converted into strong sales with blue-chip customers. “Kromek is on track to achieve break-even this financial year, the first time since [it floated] in 2013. We forecast strong growth thereafter reflecting a well-invested manufacturing platform, a healthy contract pipeline and high operational gearing.”
Property giant Land Securities Group (LAND) got an early Christmas present on Tuesday, as it landed a tenant for the final bit of remaining office space at its huge Nova development in Victoria. Nord Anglia Education, which operates 56 international schools across the globe, has signed a 10-year lease for 10,000 square feet it will use for its new headquarters. The deal at the Nova South building means the total development, comprising some 480,000 square feet across two properties, is fully-let for the first time since construction completed in April 2017. The latest letting will be welcome against a backdrop of Brexit-induced jitters in the commercial property market, as some businesses freeze or scrap office moves until there is more political certainty in Britain.
