Wizz Air has revealed its quarterly profits fell by nearly 90%, even though its customer numbers rose sharply. The Hungarian airline, which operates across Europe including the UK, said its costs jumped by 25% in the three months to 31 December. The group said that while it has maintained its full-year profit guidance, it is keeping an eye on the UK amid ‘Brexit uncertainty.’ Wizz Air said it was granted a UK route licence to enable it to continue flying to non-EU destinations from Britain after Brexit. It set up Wizz Air UK in May 2018 as part of Brexit contingency plans and said it was granted a UK route licence by the transport minister in its third quarter.
Over a third of shareholders at CYBG (CYBG), the company that owns Clydesdale and Yorkshire Bank, have voted against the bumper pay packages of the group’s bosses. The investor rebellion comes after CYBG revealed plans to boost payouts and bonuses for chief executive David Duffy and chief financial officer Ian Smith. Under the pay proposals, Mr Duffy’s potential bonuses would rise to 118% of his salary, while his long-term share payout would rise to 177% – meaning his total maximum payout would jump from £1.8million to £4.2million if all targets are met. At its annual meeting held in Australia, over 34% of investors voted against the executive pay plan proposals. While the pay motion was still passed by a majority, the group said it ‘recognises the large number of votes opposing the resolution’ and plans to hold further talks with investors on the issue.
Top Barclays banker ‘begged for his bonus’ just hours after shareholders signed off fraud trial investment deal. A Barclays (BARC) executive begged senior bank boss Rich Ricci for a bonus hours after shareholders signed off the investment deal at the heart of a major fraud trial, a court heard. Roger Jenkins, 63, is on trial with three other executives, accused of secretly funnelling a £322million commission fee to Qatari investors to sweeten a deal. The former investment banking chief said his role as negotiator had ‘saved our a**** and jobs’, Southwark Crown Court heard. A draft agreement of March 2009, showed Jenkins was to be paid £25million as a ‘special award’ for his role.
Lord Lucan’s son takes charge at Angus Energy (ANGS) after managing director is ousted in a boardroom bust-up. Lord Lucan’s son has taken the helm at a Home Counties-focused oil and gas company after its managing director was ousted in a boardroom bust-up. George Bingham, 51, the eighth Earl of Lucan, is interim managing director and executive director at AIM-listed Angus Energy. Former managing director Paul Vonk, who led the company through its initial public offering in 2016, has resigned with immediate effect, amid other board changes. Earlier this month two nominee shareholders called for an extraordinary general meeting, which would include a vote on Vonk’s departure.
Now takeover crazed tycoon Mike Ashley plans a bid for online furniture chain Sofa.com. Mike Ashley is weighing up a multi-million pound bid for an online sofa firm as he continues to add to his retail empire. The tycoon is said to be in a battle with sofa giant SCS Group (SCS) to snap up Sofa.com, one of the UK’s largest online furniture retailers. It comes a day after the Mail revealed that Ashley is also eyeing troubled cafe chain Patisserie Valerie. Ashley, 54, is thought to be interested in Sofa as it has concessions in House of Fraser stores, which are owned by Sports Direct. The department store’s administration last year is understood to have hit Sofa, forcing it to shut outlets and put expansion plans on hold. ScS last night confirmed it was also looking at buying Sofa.
West End landlord Shaftesbury (SHB) rejects attack from Hong Kong property billionaire. West End landlord Shaftesbury is under a fresh pressure from its largest shareholder, Hong Kong billionaire Samuel Tak Lee, who has launched a renewed attack on the firm. Lee, 79, who has a 26% stake, is calling on investors to oppose resolutions at its annual meeting next week allowing the firm to issue new shares. The property mogul accused Shaftesbury of attempting to dilute his stake after a share placing in 2017 that raised £265million. Lee has been increasing his stake, edging him closer to the 30% required to make a bid.
Royal Mail shares crash to record low: Stock plunges more than 13% amid slump in volume of letters delivered. Royal Mail (RMG) shares crashed to a record low yesterday in a major blow to postal workers and savers with money tied up in the company. On another bleak day for the 503-year-old firm, the stock fell more than 13%, to 260.8p, leaving it 59% below last year’s peak of 631p, and 21% below the 330p the shares listed at in 2013. The latest slump came as Royal Mail warned it is handling fewer letters than expected – the volume of letters in the first nine months of the year fell 8% while revenues from this arm fell 6%
Housebuilders’ boom loses more steam: Crest Nicholson Holdings (CRST) profits fall amid Brexit uncertainty and slower London market. Housebuilder Crest Nicholson said profits fell 15% as a slowdown in the London market and Brexit uncertainty have taken their toll. The housebuilder said pre-tax profit fell to £176.4million in the year to the end of October from £207million a year earlier. This comes after the company warned on profits in October in an unscheduled update, when it said it had seen a slowdown in property sales in London and the South during the traditionally strong autumn months.
Domino’s forced to trim down its profit forecast despite popularity of ‘cheeseburger’ pizzas as it is held back by floundering international business. Domino’s Pizza Group (DOM) sold more than 535,000 pizzas in the UK on the Friday before Christmas, helped by the popularity of its cheeseburger pizzas, but it has struggled to have the same success abroad. The company said in the UK, where it opened 59 new stores, like-for-like sales rose 4.5% in the last quarter of 2018, helped by a spike in orders on the night of Strictly Come Dancing Final and during the week before Christmas. But its international division, which however counts for just 10% of the sales, is expected to post annual losses of between £3million to £4million due to ‘growing pains’, especially in Norway.
Investing supermarket Hargreaves Lansdown bemoans ‘uncertainty and weak confidence’ as it reveals a slip in assets on its platform. Hargreaves Lansdown (HL.) bemoaned ‘geopolitical uncertainty, market volatility and weak investor confidence’ as it reveals the total amount of assets under its watch has slipped. For the six months to 31 December, assets under administration slipped 0.2% compared to the same period a year earlier and saw a 6% fall since 30 June to sit at £85.9 billion.
Veterinary chain CVS Group (CVSG) saw nearly 40% wiped off its value after a profit warning amid a shortage of vets. Shares fell after its underlying earnings for the 12 months to the end of June this year are set to be lower than expected as it faces surging costs for locums to cover vet and nurse vacancies. The company is now cutting costs across the group and overhauling its employment tactics for locums.
Auto Trader Group (AUTO) has come a long way since its creation over 40 years ago by entrepreneur Sir John Madejski. Realising early on that the future of publishing was digital it invested heavily online, dropping the print edition in 2013. Today it is one of the world’s premier car sites with a market worth of £4.2billion, a valuation that might just stick in the craw of the Guardian Media Group, which netted a ‘mere’ £600-£700million from the sale of its 50.1% stake back in 2007. In the last year the shares have advanced around a quarter in value, while those investors lucky enough to buy ahead of the company’s float four years ago are sitting on a 94% profit. As of last Friday, Auto Trader was ranked as the UK’s 99th largest stock market business. It will be promoted to the FTSE 100 automatically if it can clamber past the likes of Direct Line and Severn Trent.
