Unilever pledges to maintain its eco evangelism as former boss Paul Polman laps up the plaudits. Unilever (ULVR) new chief Alan Jope yesterday announced during Unilver’s disappointing quarterly results that the company remained focused on growth as well as sustainability. The latter, of course, was a long-held obsession of Scots-born Jope’s lyrical predecessor Paul Polman, whose environmental evangelism frustrated shareholders but won him celebrity admirers such as Bono. Globe-trotting Polman was busy yesterday collecting an award from Prince Albert of Monaco.
Investors cheer bidding war at plastics firm RPC Group (RPC) with US private equity giant Apollo going head-to-head with Berry Global. Just a week after the US private equity giant Apollo had its 782p-per-share offer accepted, RPC confirmed it is talking to Berry Global. Analysts always thought Apollo’s £3.3billion bid was a little stingy. But few expected a rival deal to emerge and investors were resigned to accepting an offer well below the year-high for the stock.
Standard Life Aberdeen (SLA) has seen around £4billion wiped off the value of the business in the 18 months since the merger that created ‘Staberdeen’. Yesterday, heavyweight City shop Morgan Stanley prompted a further 4.5% decline in the value as it downgraded its recommendation. It reckons the shares are worth 255p after cutting its target from 330p.
Advanced Medical Solutions Group (AMS) has deployed some of an estimated £80million cash pile, splashing £19million on Sealantis, an Israeli start-up offering a tissue adhesive technology. AMS shares rose 4.6%, or 13.5p, to 304.5p following the news. This valued the business at just shy of £650million. Broker Numis thinks the stock has further to run. Its share price target is 320p. Numis analyst Peter Cuddon pointed out it gives the AIM listed med-tech group access to a market worth £760million.
Metro boss fights for his future: Bank could face Parliamentary inquiry after we reveal truth about accounting error. Metro Bank (MTRO) could face a Parliamentary inquiry after the Mail revealed that its boss misled markets about an accounting error. The lender’s chief executive Craig Donaldson had claimed the mistake was discovered through an internal review. But the Mail yesterday told how the problem was in fact found by regulators at the Bank of England who then ordered the firm to act. Shares slumped another 136p, to close at an all-time low of 1087p as investors digested the news. The bank has lost 132.5m of its value since the accounting error was first made public last week. Donaldson is under pressure to quit. And MPs could raise questions about what happened with the Prudential Regulation Authority, a part of the Bank of England, which oversees the stability of large lenders.
Now suspicion falls on Qatar: Barclays (BARC) fraud trial judge warns jury on conviction. Qatari investors who saved Barclays from a government bailout in 2008 must be just as dishonest as the Barclays bankers on trial for fraud for the jury to convict, the judge said yesterday. Former boss John Varley, and three senior executives, are accused of funnelling £322million in secret payments to Qatari investors to sweeten two capital raising deals in 2008. The Serious Fraud Office alleges the side deals, struck with the prime minister and sovereign-wealth fund of Qatar, were ‘shams’, the court heard.
AO World’s Steve Caunce steps down as chief executive with immediate effect in bid to ‘re-balance his lifestyle’. The boss of electricals retailer AO World (AO.), Steve Caunce, has decided to step down from the company ‘with immediate effect.’ The founder of AO, John Roberts, will be taking over from Mr Caunce, 50, who has decided to ‘step back to a less demanding business role and re-balance his lifestyle.’ Mr Caunce will take on a part-time role at the firm as an adviser to the chief executive and the board. The move comes after AO posted an £11.7million operating loss for the six months to 30 September amid a challenging UK and German market.
London-focused estate agent Foxtons Group (FOXT) laments ‘toughest property market ever’ in the capital and braces itself for an 80% earnings collapse. Stamp duty hikes, jittery market conditions and off-putting sky-high prices in the capital continue to take their toll on London’s property market. In a trading update today, Foxtons admitted this year will be a ‘challenging’ one for the group, adding that last year was one of the ‘toughest sales markets’ ever in London. The estate agency expects its earnings to come in at around £3million, compared with £15million in 2017 due to a fall in sales volumes and higher costs. Nic Budden, chief executive of Foxtons, said: ‘2018 was one of the toughest sales markets we have ever had in London with transactions falling from last year’s historically low levels.
BT fearful that ‘no-deal’ Brexit could damage consumer and business confidence as telecoms giant’s new boss Jansen takes the reins. Telecoms giant BT Group (BT.A) has warned that a disorderly exit from the EU could have a ‘damaging impact on consumer and business confidence.’ The FTSE 100 listed group said it had been ‘making the necessary changes to our contracts and processes so that we will continue to be able to transfer customer data to and from the EU.’ In the event of a no-deal Brexit, BT said its contingency planning centred on ensuring it can provide ‘uninterrupted service to our customers including sufficient inventory to protect against potential import delays.’
Investors delight as Royal Dutch Shell tops expectations to reveal bumper profits thanks to higher oil prices. Royal Dutch Shell ‘B’ (RDSB) shares are in demand today after the oil giant lifted the lid on its biggest profit haul for four years – beating City expectations. It said earnings spiked 36% to £16.3billion in 2018, thanks in part to higher oil prices throughout the bulk of last year. As the price of oil came down in the last few months, Shell was boosted by higher gas prices.
Unilever (ULVR) shares in the red after the Marmite and Colman’s Mustard-maker’s new boss warns the year ahead will be tough. Unilever’s new boss kicked off his tenure on a gloomy note today, warning that market conditions in 2019 are likely to remain ‘challenging’. Alan Jope, who stepped into Paul Polman’s shoes at the consumer goods giant a few weeks ago, said he expects full-year sales to be towards the lower end of its target. The firm, which makes products like Dove Soap, Coleman’s Mustard and Ben & Jerry’s ice cream, and has a market value of £199billion, recently came under pressure when a plan to move its headquarters out of London to Rotterdam was rebuffed by shareholders. The embarrassing climb down prompted Polman to quit his role as Unilever chief at the end of last year, after more than a decade with the firm
