The brother-and-sister team that set up Stagecoach Group (SGC) is vacating the driving seat after the transport group showed declining revenues in the last six months. Sir Brian Souter, 65, will step down as chairman but stay on the board, while Dame Ann Gloag will retire from the board. The siblings grew the business into what is now claimed to be Britain’s biggest bus, coach and tram operator, employing 24,000 people, and with more than 8,300 vehicles. Souter said: ‘The time is right for me to step down to spend time on my other interests and with my family.’
Mark Barnett, the former protege of fallen fund manager Neil Woodford, has been fired from running a £1.1billion investment trust. The independent board of the Edinburgh Inv Trust (EDIN) said yesterday that it had sacked Barnett after ‘another weak result’. It comes as a further humiliation for the 48-year-old fund manager, who has been shunned in the City following the downfall of his former mentor Woodford. Glen Suarez, the Edinburgh trust’s chairman, said: ‘I am disappointed by another weak result for the company in the interim results, extending the period of underperformance to beyond three years.’ Barnett’s employer, US fund house Invesco, revealed last month that it was scaling back his role. Formerly the sole head of UK equities, Barnett will share the role with a colleague from next year.
JD Sports Fashion (JD.) was the biggest loser on the FTSE 100 after the retailer’s top shareholder cut its stake in the company. Pentland, which is still a majority owner with a 55% stake, said it is committed to remain a ‘long-term majority investor’ despite the sale. ‘Pentland is committed to remaining a long-term majority shareholder in JD at the same time as growing our portfolio of sports, outdoor and fashion brands through organic investment and acquisitions,’ said chairman Stephen Rubin. ‘Today’s share sale enables us to further this strategy by realising a small portion of our shareholding in JD to fund future investment activity, as well as increasing the free float to meet the increasing interest expressed in JD by other shareholders.’
Software provider Sopheon (SPE) fell after it said several contracts it expected to ink in the fourth quarter have been pushed back to 2020. The company, whose existing clients include Siemens and Pepsico, still has the same pipeline of work despite the ‘shift in timing’. It is the selected bidder for some of this work already – and could pin down another £7.5million worth by the end of this year.
The departures of co-founder Maurice Saatchi, House of Cards author Lord Dobbs and two other directors sent M&C Saatchi (SAA) into reverse. The boardroom exodus came just days after the advertising company issued its second profit warning in three months due to an accounting scandal. The board originally wanted chief executive David Kershaw to step down. But after taking soundings, it was clear major shareholders would be keen to see him stay to fix the £11.6million black hole in its accounts. On that advice, executive director Saatchi and non-executive directors Dobbs, Sir Michael Peat and Lorna Tilbian all quit, M&C Saatchi revealed on Tuesday.
Business has been booming so much at the AA (AA.) that it is intending to use some of the cash it has generated to buy back some bonds – ‘imminently’. CMC Markets chief market analyst Michael Hewson said the news ‘appears to be predicated on the basis that, having had a torrid year, the outlook appears to be stabilising’.
Revenues at DWF Group PLC (DWF) rose 10% to £147million in the first half, though profits fell 12% to £5million as costs grew. DWF also announced it has expanded into Spain with the purchase of Rousaud Costas Duran for up to £42.5m in a cash-and-shares deal. It is DWF’s biggest takeover so far and will add 40 new partners to the group.
IG Group Holdings (IGG) edged lower after it appointed a new chairman. Robert McTighe, who also chairs BT Openreach, will take over from interim chair Jonathan Moulds on February 3.
