Almost £1.6billion was wiped off the value of the UK’s three biggest telecoms companies after Labour’s latest nationalisation pledge. Party leader Jeremy Corbyn has unveiled plans to create a ‘British Broadband’ public service, which would take BT Group (BT.A) fixed-line network under state control. It would also mean the Government would have to come to arrangements with broadband providers such as TalkTalk Telecom Group (TALK), which use BT’s infrastructure. BT’s shares had a rollercoaster day before closing at 193p, wiping £221million off its market value. Vodafone Group (VOD) dropped to 154.6p, losing £1.3billion in the process, while Talk Talk shed 3p, to close at 105.6p. Talk Talk boss Charles Dunstone lost more than £10million as the company’s shares stumbled, as he owns a 29.6% stake in the firm. As well as causing general alarm, Labour’s plan has stalled discussions Talk Talk has been having with interested parties to buy its Fibre Nation business. Corbyn’s announcement overshadowed Talk Talk’s half-year results, which showed it swung back into the black with profit of £1million, compared with a £4million loss last year.
Non-Standard Finance (NSF) shares dived to a record low of 26.6p after a poor third-quarter performance, weighed down by one of its branches in Buckinghamshire, meant its annual profits could be as much as 13% lower than expected.
Fuller Smith & Turner (FSTA) warned the market its full-year profit before tax will be about the same as last year, when it made £31million – far short of forecasts it would make more than £40million this year. It said the costs associated with selling its brewing business to Japan’s Asahi had been much higher than it anticipated.
Almost 6,000 Lloyds Banking Group (LLOY) shareholders who claim they were ‘mugged’ by the bank’s takeover of HBOS at the height of the financial crisis have suffered a High Court defeat. Some 20 months after the trial in London ended, a judge finally dismissed the £385million case brought by a group of 5,803 former Lloyds TSB shareholders who were hit by heavy losses. The investors – many pensioners and Lloyds employees – claimed bosses recommended the deal in September 2008 without disclosing that HBOS was riddled with bad mortgage debt.
Kier Group (KIE) was given a bloody nose as investors staged a major revolt over executive pay. Almost 54% of shareholders voted against the salaries the troubled construction group handed to top staff during the last financial year at the company’s annual general meeting. The contractor paid its board a total of £2.1million in the year to June, when the firm reported losses of £245million. This was down from £5.5million the year before, because Kier did not pay any bonuses in 2018-19. Investor advisory groups ISS and Glass Lewis had both urged shareholders to vote against approving executives’ pay.
Midas: Put some power in your portfolio – with the North Sea’s oil and gas. Midas verdict: Rockrose Energy (RRE) has come a long way in a short time and should continue to make progress. Austin is a 27% shareholder too so he is committed to success and keen to triple the size of the business over the next few years. At £17.35, the stock is a buy.
MIDAS SHARE TIPS UPDATE: Storage giant has growth plans all locked up. Midas verdict: Midas recommended Lok’n Store Group (LOK) in 2015, when the shares were £3.07. They have more than doubled since then but there should be more gains to come. Peal has been a director since 2007 and clearly believes the stock has potential. Jacobs founded the business in 1995 and still owns 18 per cent of the shares. Brokers believe they should rise to nearly £7. A strong hold.
