Ted Baker’s efforts to draw a line under a harassment scandal involving its founder were undermined after the company appointed an insider to the top job. Ray Kelvin, 63, who set up Ted Baker (TED) in 1988, resigned following a string of allegations by staff of inappropriate behaviour including ‘forced hugging’. Ted Baker insisted it had learned lessons from the scandal and has said it will send staff on training courses to teach them about appropriate workplace conduct. But the decision to promote former chief operating officer and interim chief executive Lindsay Page to the top job full time may have undermined its attempts to move on.
Barclays has unleashed a furious broadside against the corporate raider seeking a seat on its board – branding him disruptive, inexperienced and damaging. In a brutal takedown released last night to the stock market, Barclays (BARC) said activist investor Edward Bramson did not understand how banks work and could wreak havoc. Bramson – who controls a 5.51% stake in the lender through his fund Sherborne Investors – is campaigning for investors to vote him on to the board at Barclays’ annual meeting next month. He has been critical of the company’s prized investment bank and is thought to favour deep cutbacks. The outcome of the power struggle could determine the future of one of Britain’s largest banks with 24m UK customers and 30,000 UK staff. Its shares are held in the pension funds and Isas of millions of savers.
WH Smith (SMWH) saw its operating profit fall by 21% to £65million after splashing the cash on its acquisition of US-based airport retailer In Motion. The stationary and book chain’s profit from its travel arm increased by 7% to £44million in the six months ending 28 February, while total revenue in the division rose by 18%. Trading profit from the High Street fell from £50million to £48million, while revenue across this part of the company’s operations, as expected, fell by 1% in total and 2% on a like-for-like basis. Looking ahead, the group said its hospital stores ‘will have overtaken our rail channel, by revenue, as our second biggest channel this financial year.’ WH Smith said it plans to open around eight new hospital years in its current financial year. At the end of February this year, the retailer had 133 hospital stores open. It believes there are around 300 more hospitals ‘that have the potential to support one of our store formats.’
Mike Ashley launched a fresh attack on Debenhams (DEB) as his firm unveiled plans to buy £15million of shares back off investors. Just days after failing to seize control of Debenhams, Sports Direct said it will purchase 5m of its own shares in a bid to boost its market value. The company said the buyback was to thank shareholders after the tussle over Debenhams. The department store crashed into administration and was taken over by its lenders this week in a humiliating setback for Ashley, 54, who had seen numerous rescue attempts rejected.
Indivior (INDV) salesmen were told to send doctors articles about baby deaths to boost sales of a new drug, US prosecutors claim. It was allegedly part of an aggressive marketing campaign to push a film version of its Suboxone opioid addiction drug. A list of ‘best practices’ to get doctors to switch from tablets included ‘baby death articles’. But US prosecutors say the company had no evidence to back up its claims and had fraudulently made billions from Suboxone film. They say the firm put ‘profits over the health and well-being of patients’. They also say Indivior sales reps put opioid addicts in touch with doctors they knew were ‘carelessly’ prescribing drugs.
Adhesive maker Scapa Group (SCPA), which manufactures the sticky part of bandages and plasters as well as industrial tape and cable casing, rose after delivering record sales and profit. The healthcare side of the business did particularly well, helped along by two acquisitions. The industrials branch suffered from a slowdown in the car manufacturing and cable markets, but overall revenue was still up 7% to £311.8million.
Airline stocks were soaring after Brexit was pushed back to the end of October. The new deadline, which prevents Britain from leaving the EU with No Deal today, helped brush away fears that Brexit uncertainty might deter the UK’s holidaymakers from booking their summer escape to the Costa del Sol. Travel agent TUI AG Reg Shs (DI) (TUI) jumped by 8.3%, or 59.2p, to 775.4p, helped along by a note from analysts at BNP Paribas’s Exane branch who predicted the stock would begin to outperform the market. easyJet (EZJ) revved up by 8.4%, or 88.5p, to 1144.5p, while British Airways’ parent International Consolidated Airlines Group SA (CDI) (IAG) lifted by 5.9%, or 30.4p, to 545.4p. Airlines have experienced a turbulent time over the past year, as fuel cost pressures have pushed budget operators like Flybe Group (FLYB) to the brink of disaster and a scorching summer last year persuaded Britons to stay on their home turf. Investors who stuck with the companies will be glad for the respite, and may hope that the UK’s eventual split from the EU will end on a cordial note to ensure bookings don’t take another dive.
Metals miner Fresnillo (FRES) fell 62.2p, to 798.4p as it revealed production results for the first quarter of the year. Silver production at the Mexico-focused firm slid 14.8% compared to the same time last year, due to lower ore grades being pulled up from its mines. Gold production was also down, by 8.8%, as less ore was processed at one site and delays weighed on another. Chief executive Octavio Alvidrez confirmed that the results were ‘slightly weaker than anticipated’, but did not reduce the full-year guidance. He emphasised that the company was taking a number of measures to polish up its dulled performance, including improving coordination between its teams and investing in new equipment. Analysts at Jefferies said the disappointment piled more pressure on the second half of the year, but added that they believe Fresnillo still offers the best growth among London-listed precious metals miners.
Grafton Group Units (GFTU) cemented a £113million deal to acquire Dutch ironmongery business Polvo. Grafton’s boss Gavin Slark said the acquisition would increase the firm’s presence in the fast-growing Dutch market, and shares jumped by 50p, to 868p.
Shared office business IWG (IWG) was building up the gains as analysts at Peel Hunt endorsed its new strategy of franchising. At the end of last year, after walking away from private equity bidders who boss Mark Dixon claimed were undervaluing his business, IWG set out the new approach. It involves granting other parties the rights to use IWG’s brand names to run shared office spaces, in return for management fees and upfront cash. Peel Hunt said that if successful, Dixon’s idea could see the share price more than double.
Hvivo (HVO), the business backed by fund manager Neil Woodford which is developing new ways to test drugs, suffered a wobble as it revealed losses had widened last year. Though revenue climbed 10.5 per cent to £13.6million, losses increased from £14.8million to £18.9million as Hvivo was forced to write down the value of some of its assets. The company, whose shares have swung wildly over its seven-year life on the stock market from highs of 375p to lows of 14.2p, said its turnaround was progressing well.
