BT Group (BT.A) boss repeatedly refused to rule out cutting its prized dividend to fund investment in broadband. Philip Jansen said the payout to shareholders – worth about £1.1 billion – was safe for this financial year. But it could be cut in future. BT is preparing to ramp up its rollout of cutting-edge broadband across the UK. But the firm has not yet decided how the plans would be funded. It plans to connect fibre cables, which provide faster internet speeds and are cheaper to maintain than existing copper wires, to 4m homes and businesses by 2021. But Jansen said this could rise to 15m by the mid-2020s if regulator Ofcom and the Government agree to ease taxes on broadband wires and relax pricing restrictions.
Meditor, which is headed up by former Old Mutual fund manager and poker player Talal Shakerchi, said it would be willing to pay 5p a share for Carpetright (CPR), which values it at just £15.2million. Carpetright, which is grappling with a £56million debt pile, has been seeking alternative financing as its existing facilities near expiry. It said it requires around £80million to repay lenders, meet ongoing payment requirements and execute its recovery strategy. Last year, it turned to Meditor for two short-term loans, and in August the investor took control of Carpetright’s revolving credit facility of £40.7million from previous lenders NatWest and AIB. The move was broadly interpreted as a show of confidence in the struggling chain.
Lloyds Banking Group (LLOY) yesterday revealed it had been forced to set aside another £1.8 billion to compensate customers who had rushed to make a claim before the August 29 deadline imposed by the City watchdog. This takes its total tally to just under £22 billion – more than half of its current market value. One leading analyst called the results for the three months to the end of September a ‘nightmare’ as the mis-selling of payment protection insurance continued to haunt the High Street banking group. Profits were virtually wiped out, revenues fell, and losses from bad loans increased. The spiralling PPI bill at Lloyds echoes the extra money set aside by rivals in recent days.
Royal Dutch Shell ‘B’ (RDSB) has experienced a large fall in third-quarter profits due to weaker oil prices. Earnings after stripping out fluctuating expenses fell 15% to £3.7billion, well below estimates it might reach almost £5billion. Shell was able to charge an average of £43.25 per barrel of oil it produced in the quarter, down from £52.69 in the same three months last year. It was even more than a dollar lower than the second quarter price. This combined with slightly lower production, at 3.56million barrels of oil equivalent a day, to give the oil firm a bloody nose. Chief executive Ben van Beurden said: ‘This quarter we continued to deliver strong cash flow and earnings, despite sustained lower oil and gas prices, and chemicals margins. ‘Our earnings reflect the resilience of our market-facing businesses and their ability to capitalise on market conditions, including very strong trading and optimisation results this quarter.’
Foxtons Group (FOXT) stumbled after revenues were hit by the slowdown in the capital’s property market. Revenue between July and September fell 7% to £32.5m, though it said it grew its share of the lettings market after it decided not to increase fees to landlords. Chief executive Nic Budden said it was a ‘resilient’ performance given the current downturn, which has been put down to Brexit uncertainty and slower economic growth making people warier about selling their houses.
Future (FUTR) surged after it revealed plans to buy TI Media, which owns Marie Claire, Horse & Hound and Country Life, for £140m. It announced the acquisition after the market closed on Wednesday.
