BP saw profits more than double last year thanks to a rise in oil prices, an uplift in production and previous cost cutting measures coming through. Underlying replacement cost profits rose 65% to $12.7billion from $6.16billion in 2017 and above consensus forecasts of $11.9billion. BP (BP.), which recently acquired BHP’s US shale assets for $10.5billion, said the acquisition helped its fourth quarter underlying profit jump 6.7% to $3.5billion. It said it would go ahead with $10billion in disposals over the next two years, however, net debt jumped by over $6 billion to $44.1billion, partly as a result of the acquisition. The Gulf of Mexico oil spill is also still soaking up billions of dollars, with BP having paid some $3.2billion in 2018, bringing the total bill for the natural disaster to $67billion. But the company has also embarked on a number of new projects, which have been boosting production and are helping counter off the recent slowdown in oil price rally.
Carpetright (CPR) said today that sales have continued to fall in the last three months, a sign that the challenged floorings firm is not yet out of the woods. The retailer, which is part way through an urgent restructure and dramatic store closure programme, warned that the trading environment remains ‘volatile’ with economic uncertainty still plaguing shopper confidence. But the rate of decline has slowed, it said, from the 12.7% drop in sales it recorded in the previous six month period. Carpetright said: ‘Trading patterns have remained volatile week to week, against a backdrop of uncertainty and weak consumer confidence.’ The firm’s international operations, meanwhile, are ‘consistently’ ahead year-on-year, it said, thanks to a strong performance in the Netherlands.
Ocado Group (OCDO) saw revenues and customer numbers increase last year, but losses have widened as it was weighed down by investments in its warehouses and the logistics technology it licenses to retailers. The online grocer, which is shifting its focus to become a provider of technology after striking deals with a raft of international retailers, said it expects a further decline in underlying profit in 2019 because of the costs of setting up customer fulfillment centres.
Ex-Stobart boss faces probe over private jet hire: Andrew Tinkler accused of breaching aviation rules by charging his former firm £594,000. Stobart Group Ltd. (STOB) former boss is being investigated for a potential breach of aviation rules over his private jet. Court documents allege a company controlled by Andrew Tinkler, 55, charged Stobart £594,000 to use his plush Dassault Falcon 900B aircraft. The plane was owned by WA Developments International (WADI), a firm 100 per cent controlled by Tinkler. The aircraft was based on the Isle of Man, where rules stipulate that planes registered on the island cannot be used on a commercial basis. Authorities on the Isle of Man are looking into whether any regulations have been broken.
Metro slump hurts billionaire backers: Investor embroiled in insider trading row loses £80m. A hedge fund billionaire once embroiled in an insider trading row has lost more than £73million from a share price slump at Metro Bank (MTRO). Steven Cohen, Metro’s largest shareholder with an 8.12% stake, was banned from looking after investors’ money for two years in America following a criminal probe which saw several of his lieutenants jailed. He is among a star-studded list of investors to lose out at Metro, including former New York mayor Michael Bloomberg, Boots owner Stefano Pessina and Roger Farah, the chairman of jeweller Tiffany’s.
M&S told to take a leaf out of Next’s book and stock outside brands to halt declining sales. City broker Liberum accused Marks & Spencer Group (MKS) of failing to go far enough with its transformation plan, warning that sales were likely to continue falling for the foreseeable future. Analysts said M&S should follow Next (NXT) lead and stock outside brands to boost business. Next, which posted a 14% rise in sales over the Christmas period, sells brands including Superdry, Hugo Boss, Joules and Ralph Lauren as well as its own-label line of clothing.
Shake-up at Ryanair Holdings (RYA) as it suffers £19m loss: Chief exec Michael O’Leary to remain in control for another five years. Chief executive Michael O’Leary said he will remain at the top of the airline for another five years, but in a different role. And American billionaire David Bonderman is stepping down as chairman in summer 2020 after more than 20 years in the job. The shake-up came as Ryanair swung to a ‘disappointing’ £19million in the final three months of 2018, its first quarterly loss since early 2014. The loss was down from a profit of £99million in the third quarter of 2017. The firm was hit by a 6% fall in air fares amid stiff competition in the short-haul market in Europe. Ryanair said this overcapacity was unlikely to change – meaning it cannot raise ticket prices – and that more airlines were likely to fail this year as a result.
Cyber security specialist ECSC Group (ECSC) on the rise as firms grapple with threat of theft and GDPR rules. Cyber criminals are stealing £190,000 per day from the UK public, according to police force data. Businesses and other institutions face even greater threats. Dixons, TalkTalk and the National Health Service have all recently been subject to high-profile breaches of security. For cyber security specialist ECSC Group, the silver lining is that these headlines are generating a stream of revenue that is rising strongly. ECSC recently reported sales growth of 30% for 2018 helped by a record level of trading in the fourth quarter. Business is growing as more companies take steps to protect themselves, said Ian Mann, the AIM-listed firm’s chief executive. ‘We are seeing really strong demand,’ Mann said. But it’s not just the threat of theft that companies need to deal with. The introduction of new data protection rules last May (GDPR), means the financial cost of a business being careless with customers data can be punitive. The CEO added: ‘People have to keep data secure while the legal requirement to report breaches means that they are taking it much more seriously.’ Mann points to telecoms firm TalkTalk’s £400,000 fine for the hack of 157,000 customers in 2015. Under GDPR penalties, that penalty might have been anywhere between £100million-200million or up to 4% of annual global turnover as set out in the guidelines. That’s in addition to any commercial and reputational damage a hack might cause.
Car sensor business Transense Technologies (TRT) shot up after revealing its technology would be used by the US army. GE Aviation, which uses Transense’s technology under licence, was selected to help re-engine the army’s Boeing AH-64 Apache attack helicopters and Sikorsky UH-60 Black Hawk utility helicopters. The army is planning to replace more than 6,000 engines, which will all include Transense’s Surface Acoustic Wave sensor.
Iron ore miner Ferrexpo (FXPO) tumbles 8% after auditor finds ‘discrepancies’ in its Ukrainian charity arm. Ferrexpo’s auditor Deloitte has found ‘unexplained discrepancies’ in the bank statements of Blooming Land, a Ukrainian charity which was set up to manage the miner’s corporate and social responsibility programme. This involves providing medical and social services to communities across Ukraine, though Blooming Land is not managed by Ferrexpo. The FTSE 250 iron company said it donated £7.3million to Blooming Land in the first half of last year, but is launching an independent review to determine why the charity’s bank statements do not seem to align with its own. The auditor warned its discovery of the potential errors might prompt it to qualify, or even modify its audit opinion relating to Ferrexpo’s 2018 accounts, which are due on March 20.
Mixed results from a well at the Brockham Oil Field, south of London in Dorking, pushed down shares in its owners Angus Energy (ANGS) and Alba Mineral Resources (ALBA). Angus said that the well had been deepened from 960 metres to 1,155 metres, after delays throughout December and January due to component failures. But it hit water during the drill, and will now need to engineer a work-around to isolate the water and produce undiluted oil. Chief executive George Bingham, who is Lord Lucan’s son, said: ‘The water zone is obviously an unexpected hindrance but, with natural flow to surface and evidence of oil, we remain quietly optimistic of achieving commercial success at Brockham.’ Previous boss Paul Vonk stepped down ahead of a vote on his removal, which had been put forward by two secretive shareholders. Angus had claimed one of them was connected to its previous chairman Jonathan Tidswell-Pretorius, who left the company last year.
Firestone Diamonds (FDI), which operates the Liqhobong Diamond Mine in Lesotho, said it had treated less ore in the last three months of 2018 and recovered fewer carats. Though it was still on track to meet full-year guidance.
Drugs company Indivior (INDV) – which makes treatments for heroin addiction – slipped 1.5%, or 1.75p, to 113.15p after announcing a pair of deals. First it said it was selling its rights to the Sai Bo Song tablet in China to Zhejiang Pukang Biotechnology, for up to £94million. Secondly, it had stopped its competitor Alvogen Pine Brook from selling a copycat version of its dissolvable film dug in the US. Alvogen agreed not to import or sell the treatment until US courts dropped the injunction that had already been granted against Indivior’s rival Dr Reddy’s Laboratories.
