Breakdown at the AA: Bosses blame former private equity owners as £100m is wiped off firm… but sacked chief exec says it’s all their fault. The sacked former boss of AA (AA.) has launched an extraordinary attack on the current management after £100million was wiped off the company’s value following a profit slump. Bob Mackenzie, 65, who was kicked out last year for gross misconduct after allegedly punching a colleague, is suing his ex-employer for £225million. He, and the AA’s previous private equity owners were blamed by new chief Simon Breakwell, left, for the poor performance.
Murdoch wins big from Sky takeover: Fox sells out of broadcaster after Comcast victory. Media tycoon Rupert Murdoch is in line for a windfall from Comcast’s £30bn takeover of Sky (SKY). The 87-year-old and his family’s 21st Century Fox had fought Comcast for control of the broadcaster but last night gave up in the face of their rival’s overwhelming offer and decided to sell up. Fox has now agreed to sell its 39% stake in Sky to Comcast for about £11.6billion. The Murdoch family own about 17% of Fox, putting them in line for as much as £1.9billion.
A ‘focus on frugality’ set to keep Hornby on track despite the troubled toymaker’s slipping sales. Model train maker Hornby (HRN) has said it is still on track despite reporting its sales have missed expectations. As the company prepares for its annual meeting today, it said an excess of stock, less discounting and late deliveries meant its finances took another hit over recent months. Despite this, Hornby said putting a ‘focus on frugality and doing more with less’, has lowered its operating losses compared with last year.
Lloyds is accused of blocking police efforts to interview a whistleblower over a massive fraud case. Lloyds Banking Group (LLOY) blocked police efforts to interview a whistleblower over a massive bank fraud, it is claimed. The lender allegedly ignored a request by investigators to speak to Lloyds staff member Sally Masterton, author of a bombshell report about criminal bankers who were later sent to prison. Instead, she was forced out by the bank and the interview is thought not to have gone ahead.
Boohoo shares rocket after the British online fashion favourite reveals sales have jumped 50% as it becomes a global success. Boohoo.com (BOO) has fashioned a record sales performance and claims there’s more success to come. It reported today that half-year sales had rocketed 50% to almost £400million, as it continues an astonishing rise set against the backdrop of a struggling UK high street. Boohoo, which was founded by a family in Manchester in 2006, now sells clothes in more than 100 countries and has more than 11 million customer accounts.
Turbulence at Thomas Cook Group (TCG) brought an opportunity for its chairman this week, who bagged some cheaper shares after the price crashed following a profit warning. The travel company revealed yesterday that 66-year-old Belgian national Frank Meysman, who is set to step down as chairman once a replacement has been found, bought 150,000 shares on Tuesday worth £89,495. One day earlier, before Thomas Cook said hot weather in the UK had dented its profits, the shares would have cost around £116,775.
Crawshaw Group (CRAW) managed to pull more investors on-side even as it conceded its first-half results were ‘disappointing’. Its High Street outlets were struggling, Crawshaw said, as it joined other businesses in complaining about reduced spending and excessive business rates. The firm said it was reviewing its investment in traditional high street locations. Instead, Crawshaw will focus on factory shops located where it processes and packages meats.
The world’s first graphene-enhanced road is now being built, which has driven up shares in materials company Directa Plus (DCTA). The business, which makes products containing tiny particles of graphene, is one of the companies which has helped to create Ecopave asphalt to resurface a road in Rome. Directa Plus ended yesterday up 75%, or 30p, at 70p, as its chief executive Giulio Cesareo decided to buy £14,520 worth of shares.
Mitie Group (MTO) shares were down 9.2%, or 14.2p, at 139.8p after it admitted operating profit could even be lower than last year, and debt would be higher.
Shares in Ashley (Laura) Holding (ALY) slumped 8%, or 0.4p to 4.62p, after it rushed out a statement to investors before markets closed. The homeware and clothing retailer admitted it had made a technical error in the payment of historic dividends, meaning shareholders will now need to meet for a vote on the retrospective payments.
Miners such as Hochschild Mining (HOC), Kaz Minerals (KAZ) and Fresnillo (FRES) were among the index’s biggest losers as base metals prices edged away from recent highs.
In a late business update that came out just before the market close, FTSE 250-listed drugs company Indivior (INDV) finally revealed just how bad it was expecting its results to be. The addiction treatment manufacturer has been battling with Indian rival Dr Reddy’s Laboratories, which it has accused of infringing its patents. Sensing the lower revenues would be a bitter pill for shareholders to swallow, Indivior added a sweetener. It said it would save between £61million and £76million in 2019, by reducing administrative costs, cutting ‘support’ jobs such as lawyers and statisticians, and focusing again on research.
Losses were racking up at loo roll manufacturer Accrol Group Holdings (ACRL), which revealed it had swung from a £10.1million profit last year to an £11.2million loss. The cost of materials and labour, an inability to agree price increases with customers and bad exchange rates hit the business.
