Doorstep lender Provident Financial (PFG) claims it has ‘substantially resolved’ all its outstanding regulatory issues with the Financial Conduct Authority. The Bradford-based sub-prime lender’s Vanquis bank and Moneybarn car and van financing arms have been subject to probes by the FCA into lending practices which have weighed on the group’s profits and share price. But, today Provident said over 99% of refunds have been made in relation to the repayment option plan offered by Vanquis that was subject to an FCA probe. It added that Moneybarn has made significant progress with the FCA on the redress to be paid to resolve the issues arising from the investigation into affordability. Last week, Provident rejected a £1.3billion hostile takeover bid from rival Non-Standard Finance (NSF). The proposed deal was backed by several of Provident’s major shareholders including fund manager Neil Woodford.
Just Eat (JE.) appears to be holding its ground against newer rivals Deliveroo and Uber Eats in the hotly fought food delivery war. The firm, which is pipped to rejoin the FTSE 100 later this month, has stuck to its profit forecasts for 2019 and said it is targeting sales of £1billion after last year’s numbers beat expectations. Revenue jumped 43% to £779million in 2018, thanks to a particularly strong performance in Canada and in the UK, where it was helped by the integration of newly acquired Hungryhouse. In Canada, where it operates SkipTheDishes but is not yet profitable, revenue rocketed 186%. The group served up profits of nearly £102million, compared with a £76million loss the year before when it was hit by a one-off charge. On the downside, earnings from its Australian arm have gone backwards, as has its international arm which includes France and Spain. The firm also flagged concerns about the Government’s incoming digital sales tax, which could cost it £10million.
Legal & General Group (LGEN) said it has become Britain’s first £1trillion investment management firm, after reaping the benefits of surging annuity sales and shifts in the rate of improvement to life expectancy. The group booked record annuity sales of £10billion in its pensions business, while its insurance arm saw gross written premiums rise 3% to £2.62billion. Within the UK, the rate of improvement in life expectancy is slowing, giving insurance firms like Legal & General the chance to release some of the reserves they hold to pay future pensions. Nigel Wilson, Legal & General’s chief executive, said: ‘2018 saw political uncertainty, asset market declines and slowing economic growth, but we are resilient and performed strongly. ‘We became the UK’s first £1 trillion investment manager, executed a record £9 billion of pension risk transfer deals and invested billions in the UK’s future infrastructure and cities.’
Betting giant has unveiled plans to change its name to Flutter Entertainment. At the group’s annual general meeting on 18 May, the group’s shareholders will be given the chance to vote on whether or not the name change should go ahead. In its annual results, the group said the proposed new name was designed to reflect the ‘increased diversity of our brands and operations.’ The group added: ‘There are no plans to use this historical name for consumers, and we will seek shareholders permission for the change at our forthcoming AGM.’ Michael Hewson, an analyst at CMC Markets UK, said: ‘I wonder which marketing whiz came up with that one? It will certainly give rise to all manner of puns around having a flutter, I can’t wait!’ Peter Jackson, Paddy Power Betfair’s chief executive, said: ‘I’m really pleased with the way that the group performed in 2018 in what was a challenging year for the sector with regulatory and tax changes. ‘Our collection of challenger brands are well positioned in their local markets. Paddy Power has regained its mojo, taking share following product improvements and some of our ‘classic’ marketing.’
Debenhams is rocked by fourth profits warning as shares dive 89% in a year as sales fall, with losses set for £30m in 2019. Debenhams (DEB) future is ‘hanging in the balance’ after a fourth profit warning in just over a year. The struggling department store could now plunge to a £30million full-year loss, according to analyst estimates, as sales continue to fall. In a surprise trading update, Debenhams said sales in the UK tumbled 6% in the 26 weeks to March 1, meaning it will now miss full-year profits targets. It is the fourth profit warning since January 2018 as it fights for survival. Debenhams had been expecting to post full-year profits of around £8million but said this was ‘no longer valid’. Analysts now expect a loss, predicting a range from £22million to £30million.
Sainsbury’s named the worst performing supermarket in Britain as it lags its Big Four rivals. Sainsbury (J) (SBRY) has been named the worst performing supermarket in Britain just days after it suffered an embarrassing blow to its planned £14billion merger with Asda. Sales at the grocer, which is the second-biggest in the UK, fell 1% in the 12 weeks to February 24, data from shopper behaviour experts Kantar Worldpanel revealed. Sainsbury’s was the only supermarket chain to suffer a fall in sales over the period, with Big 4 rivals Tesco, Asda and Morrison all growing. The latest figures are a further setback for Sainsbury’s after the Competition and Markets Authority effectively blocked its tie-up with Asda. The likely collapse of the Asda deal and falling sales have raised questions over the future of Sainsbury’s chief executive Mike Coupe. The 58-year-old has denied taking his eye off the ball, despite criticism over messy stores, empty shelves and disappointing sales. But analysts at Jefferies said the latest figures revealed ‘a fairly extreme underperformance of other UK grocers’.
GoCompare chairman Sir Peter Wood buys £11m of shares in the price comparison website. Millionaire Sir Peter Wood has spent £11.3million on stock in price comparison website Gocompare.com Group (GOCO) in a major vote of confidence for the business. The entrepreneur, the company’s chairman, snapped up 17.8m shares for 63.7p each, taking his stake in the firm from 25.6% to 29.9%. Wood made his £781million fortune from insurance after founding Direct Line and Esure, which owns women’s car insurer Sheilas’ Wheels. GoCompare, whose adverts feature operatic mascot Gio Compario, was spun out of Esure in 2016 but shares have failed to take off. Wood, 72, said: ‘My purchase underlines my view, shared by my fellow board members, that the current price does not fully reflect the operational and strategic momentum.’ Wood said he is particularly excited by Weflip, a new product aimed at helping customers cut energy costs.
Interserve snubs rescue plan from US hedge fund which calls for most of the board to be sacked. Ailing outsourcer Interserve (IRV) has attacked a rogue investor plotting a boardroom coup. It poured cold water on a rescue plan cooked up by US hedge fund Coltrane, its largest shareholder with a 27% stake. The outsourcer is trying to push through a rescue deal which would hand control to its creditors, who are owed £807million, and leave existing shareholders with nothing. In return debts will be cut by £300million, giving it a better chance of survival. Coltrane’s plan would see Interserve raise £110million from shareholders, and allow Coltrane to retain more of its stake. The hedge fund has also called for most of the board to be sacked. But Interserve said Coltrane will not allow details of its plan to be shown to lenders, who would need to sign off on any agreement.
Scottish broadcaster STV Group (STVG) has signed a deal with two media companies to provide programming for its new online video service. It comes after the firm launched advertising-free STV Player last week, with partners including Sky and Virgin. Yesterday the firm said Flame Distribution, behind Recipes That Rock and Grand Tours of Scotland, and The Pet Collective maker Jukin Media had both signed up as well.
Vodafone shares buzz as bond deal raises £3.4bn to fund takeover of Liberty Global’s European cable asset. With shares languishing at nine-year lows and a £26billion debt pile, Vodafone Group (VOD) had to get creative in its latest money-raising scheme. To fund its takeover of Liberty Global’s European cable assets, the UK telecoms giant plans to issue £3.4billion of bonds that will convert to stock from 2021. Vodafone said it would cushion the impact by buying the stock back when the bonds mature. This will be funded, it said, by raising debt when its balance sheet is healthier.
Tool hire firm Ashtead Group (AHT) shares were down despite reporting a 17% rise in third-quarter earnings. The firm revealed profits of £240.9million for the three months to January 31, up from £194.3million a year previously, thanks to strong growth in the US and Canada. That was after sales surged 20% higher to £1.1billion. But shares dipped 1.4%, or 29p, to 2037p with analysts noting the pace of the company’s growth was slowing. Hargreaves Lansdown’s Nicholas Hyett added that a construction boom in America was being led by Donald Trump’s ‘erratic’ administration, and called for the company to keep its debt under control in case there are sudden changes.
Restructuring group Begbies Traynor Group (BEG) said sales and profits grew in the first nine months of its financial year. In a trading update for the three months to January 31, the firm said it had secured a good flow of insolvency appointments and that its property consultancy arm was performing well. The company pointed to data from the Insolvency Service showing the number of firms in financial distress last year increased by 10% to 16,090. Begbies said it had completed a takeover of Croft Transport Planning & Design in January and of KRE (North East) – a Newcastle insolvency practice – in February. Executive chairman Ric Traynor said: ‘We have had a busy few months with a good third-quarter performance and the completion of recent acquisitions that further develop our core businesses.’
