Former Tesco (TSCO) finance chief attacks Serious Fraud Office after being cleared over £250m accounting scandal. Tesco and the Serious Fraud Office (SFO) suffered an embarrassing defeat after the supermarket’s former finance boss was cleared over a £250million accounting scandal. Carl Rogberg had been accused of manipulating Tesco’s figures to meet targets and make the firm look more financially robust than it was. But the SFO dropped their case yesterday. In a searing attack on the steps of Southwark Crown Court, Rogberg, 52, said: ‘The trial has had enormous consequences on my health and exemplary career, as well as for my wife, my son, my family and my friends. I have serious questions for Tesco and the SFO about the way this case has been handled. The circumstances were never properly investigated by Tesco from the outset.
Debenhams rocked by the collapse of Patisserie Valerie as cafe chain closes outlets at the department store. The collapse of Patisserie Holdings (CAKE) has dealt a fresh blow to Debenhams (DEB) as the cafe chain closed outlets at the department store. Just hours after parent company Patisserie Holdings crashed into administration following an accounting scandal, the shutters came down on 71 cafes, with the loss of 920 jobs. The closures included 27 Patisserie Valerie cafes, all 19 Druckers stores and 25 Patisserie Valerie concessions, including 17 in Debenhams, four in Next and four in service stations. Analysts said the closures in Debenhams were a further blow to the struggling department store chain. Russ Mould, investment director at AJ Bell, said: ‘What Debenhams has been trying to do is create an experience and be a one-stop shop where you can eat, drink and shop. If those concessions go then Debenhams has even more floorspace that isn’t earning any money.’
‘WH Smith’s focus on travel is a masterstroke’, City analyst claims as the retailer enjoys soaring sales from airport and railway station shops. WH Smith (SMWH) saw total sales across its branches in railway stations and airports rise by 16 per cent in the five months to 19 January. 8% of the group’s travel arm sales boost came from InMotion, the US travel business it acquired in the autumn. Same-store sales were up 3%, excluding InMotion. On the High Street, WH Smith’s sales slipped by 2% on a like-for-like basis over the period. Overall, the group’s like-for-like sales remained flat in the 20-week period. Chief executive Stephen Clarke said that despite seeing sales fall, its High Street performance was still the third best performance in the last 15 years. Mr Clarke said that consumer spending and confidence was ‘as challenging as it has been.’ He added: ‘It’s been challenging now for around five years and we didn’t see it was any different this Christmas.’
Budget boozer chain Wetherspoon (J.D.) (JDW) warns higher costs mean profits will fall short as its Brexit-backing boss Tim Martin ups the ante against Remainers. Pub group JD Wetherspoon has warned its investors that its pre-tax profits for the first half of its current financial year will be lower than expected. The group, run by Brexit-supporting boss Tim Martin, said its labour costs had increased by £30million in recent months. As well as higher costs for staff, the group said it had also been forking out more for interest repayments, utility and repair bills, and had been affected by depreciation. The pub chain reported a 7.2% rise in like-for-like sales for the 12 weeks to 20 January, with total sales up 8.3%.
Family fashion firm Joules Group (JOUL) defies the retail gloom to post huge revenue rise. Family fashion firm Joules posted soaring sales as it defied the retail gloom. The chain, which is famous for its polka dot wellington boots and colourful raincoats, posted a 17.6% rise in sales to £113.1million in the six months to November 25. Higher sales pushed half-year profits up from £9.3million to £10.7million. Joules said more than 50% of its business is now online. Sales continued to rise over the Christmas period, up 11.7% in the seven weeks to January 6. Neil Wilson, chief market analyst at trading platform Markets, said: ‘Just goes to show that if you have a good brand and get the online side right, then consumers will come.’
Packaging giant RPC Group (RPC) has sparked anger among shareholders after urging them to accept a £3.3billion bid from US private equity firm Apollo. RPC, the latest British company to fall prey to a foreign buyer, yesterday agreed a 782p-per-share bid with Apollo, and encouraged shareholders to sell. But not all investors were impressed with the price tag, even though the deal has taken several months. David Cumming, chief investment officer at top 15 shareholder Aviva Investors, said: ‘We do not agree with the justifications put forward by the board for their acceptance of an offer by Apollo.’ The price underestimates future earnings, he said, and the value of predicted growth will fall to Apollo and RPC managers.
Metro Bank sees almost a third of its stock market value wiped away in minutes as it warns profits will fall short of expectations. The challenger bank said it now expects underlying pre-tax profits to come in at £50 million for 2018 rather than the £59 million it had been banking on before. This still represents a healthy rise of 138 per cent on a year earlier, but the forecast miss has clearly spooked investors. Metro Bank (MTRO) also said it will be stung by an adjustment in the risk level of its commercial loans secured on properties and on some of it specialist buy-to-let loans. The trading update also revealed assets increased 32% to £21.7 billion in 2018, while its total loan book swelled 48% to £14.2 billion. Deposits reached £15.7 billion, an increase of 34%. The bank’s rollout of new branches continued at pace during the fourth quarter of 2018 with new sites opened in Bath, Crawley, Northampton, Putney, Ashford, Piccadilly and Moorgate, taking the total to 66. Despite the darkening picture boss Craig Donaldson struck an upbeat tone: ‘2018 was another strong year of growth for Metro Bank as we continued to invest in both new stores and digital capabilities to win customers, deposits, assets and to create fans.
Burberry Group (BRBY) shares slip despite fashion brand shrugging off China woes and claims it has ‘built brand heat’. The luxury fashion retailer said it had successfully ‘built brand heat’ over its campaigns and attracted endorsements from ‘key influencers’ for its clothing lines. The group said like-for-like global sales rose by 1% over the period, with mainland China seeing a ‘mid-single’ digit increase.The welcome sales boost from the Chinese market comes amid slowing growth in China and fears of a sharp correction as the threat of a trade war with the US weighs on consumer and market sentiment. Chief executive Marco Gobbetti said: ‘I am pleased with our progress in the quarter as we continued to build brand heat around our new creative vision and shift consumer perception of Burberry. ‘Excitement is growing ahead of next month’s launch of Riccardo’s debut collection. We will continue to manage the business dynamically as we reposition the brand. We confirm our outlook for the full year.’
Computacenter (CCC) the IT consulting company, whose customers have included the NHS and Heathrow Airport, exceeded the slow-and-steady expectations it guided towards a year ago. Profits for 2018, set to be reported in March, would be ‘marginally ahead’ of predictions. It has been a bright spot on London’s tech scene, as cybersecurity firm Sophos warned of subdued performance last week and numbers from Micro Focus next month are expected to be lacklustre.
Sanne Group (SNN) was a big loser, as it said it would wave goodbye to ‘exceptional’ boss Dean Godwin. The business, which helps investment firms with their administration, said he would step down after seven years at the helm to retire from the sector. Under his tenure, both Sanne’s revenue and profit grew by over 600%.
A sparkling update from digital education business Learning Technologies Group (LTG) has done little for its share price. It said on Tuesday that revenue would be up from £52.1million to £94million in 2018, while profit would be significantly ahead of expectations at £26.5million. There was some weakness in the content and services branch, where revenue slid 8%, but it noted prior year results had been particularly strong.
