Shaftesbury hit with fresh attack from Hong Kong billionaire shareholder. West End landlord Shaftesbury’s largest shareholder, Hong Kong billionaire Samuel Tak Lee, reignited his feud with the property firm on Tuesday in an audacious bid to curb the board’s power. In a letter published by the Chinatown and Carnaby Street property owner, 26% shareholder Lee slammed directors for being “reluctant” to engage with him, and expressed concerns about delays at a new development. The tycoon, who owns the sprawling neighbouring Langham Estate north of Oxford Street, claimed his stake had been diluted by a recent Shaftesbury (SHB) share placing and called for investors to vote against resolutions at next week’s annual meeting. He plans to oppose votes allowing the board to issue shares or carry out a share placing without consultation. Brian Bickell, chief executive of Shaftesbury, hit back at Lee, saying he has not met the board despite numerous invitations. He told the Standard: “A constructive dialogue [face to face] would be much more productive for both parties rather than endless legal letters.”
Logistics specialist NWF boosted as customers start to stockpile for Brexit. Tea importers are among businesses which have started stockpiling goods ahead of Brexit, logistics expert NWF Group (NWF) said on Tuesday. Chief executive Richard Whiting said he has seen some clients, including tinned fruit and tea firms, up storage requirements before Britain leaves the EU in March. His foods arm, which provides transport and warehousing to manufacturers, has 5000 “Brexit protection pallets” which companies are using to store extra products.
Royal Mail (RMG) shares sink to new low after letters alert. Royal Mail’s shares on Tuesday slumped to a new record low after it warned that Brits are likely to send fewer letters. The business has seen its share price collapse by more than a third since new boss Rico Back joined last June. On Tuesday it said that profits will come in between £500 million and £530 million this year and added that letter volumes are set to deteriorate more than anticipated and parcel deliveries will also slow. The City had expected profits of £500 million to £550 million. The stock plunged 10%, or 31p, to 269p — falling to as low as 250p in early trading. The alert followed a profit warning in October.
Mike Ashley ‘has not made a move on collapsed Patisserie Valerie’. Mike Ashley has not spoken to Patisserie Valerie’s administrators to make a bid for the collapsed cafes chain. The Sports Direct tycoon had been linked to a takeover of the bust cakes stores chain. But sources said there has been no contact with KPMG, which is tasked with finding a suitor for its remaining 122 shops. Patisserie Holdings (CAKE) went into administration last week after a £40 million accounting fraud brought it to its knees. Since then, it has shut 71 outlets and axed 920 jobs.
Domino’s boss rules out bigger slice of the profits for chain’s angry franchisees. The boss of Domino’s Pizza Group (DOM) on Tuesday ruled out overhauling how earnings are shared with franchisees. Domino’s boss David Wild has been at loggerheads with franchisees, who have formed an association and threatened to open fewer stores unless they can keep more of the profits. Wild said Domino’s UK franchise network was “the most profitable” in the world and the board was “very happy” with the present framework. “We’re not planning to change that. We’re confident the structure is right.” He said franchisees can open more branches if they wish. Revenues grew 5.5% to £339.5 million for the 13 weeks to December as more Brits gorged on pizza in the run-up to Christmas.
Crest Nicholson warns of Brexit hitting ‘passion’ for costly homes. Brexit has been a “passion killer” at the more expensive end of the housing market, the boss of Crest Nicholson Holdings (CRST) admitted on Tuesday. The housebuilder is pulling out of a struggling central London property market, where sales rates have broadly halved amid high stamp duty and affordability constraints. Discretionary buyers of the firm’s bigger houses in the home counties are also sitting on their hands, according to chief executive Patrick Bergin. “We have seen the market steady but Brexit has been a bit of a passion killer at the higher price points,” he said. Crest’s revenues rose 9% to £1.14 billion in the year to October 31 but pre-tax profits were off 15% to £176.4 million. Bergin expects the market to continue to be “difficult” in the approach to Brexit day on March 29.
