 | Flybe Group (FLYB) is preparing to launch services on the lucrative route between Heathrow and German industrial heartlands, threatening to enrage further airline executives left fuming by a Government rescue last week. The planned Dusselfdorf service is part of a route overhaul that includes an additional service between Newquay and Amsterdam, according to industry sources. The Exeter-carrier revealed last week that it would switch a taxpayer-funded service between London and Cornwall from Heathrow to Gatwick from the end of March. |
 | Detailed information about the job performance of more than 900 employees of Regus owner IWG (IWG) was accidentally published online after the shared office business conducted a review of sales staff. A spreadsheet which lists the names and work addresses of hundreds of Regus sales managers alongside detailed reviews of their performance was made accessible to anyone using a simple Google search, The Telegraph has found. IWG hired Applause, a mystery shopping business, to audit its sales staff through covert filming using “spy pens” fitted with miniature cameras. Employee performance data was then published to a page on task management website Trello which had been made public, allowing the files to leak into Google search results. |
 | Capita (CPI) is planning the £200m sale of a clutch of businesses including translation services and events management as it tries to boost margins by focusing on more profitable operations. Sources close to the firm said a £200m-plus price tag has been put on its “specialist services” division. Capita aims to offload it in a single deal, although a break-up is being considered. It is understood to be seeking buyers for nine businesses, which employ about 4,000, before the half-year mark as chief executive Jon Lewis continues his turnaround of the sprawling company which has more than 60,000 staff. |
 | A high court showdown between four rail firms and the Government over a decision to bar them from bidding to run train lines starts today. Stagecoach Group (SGC), Virgin Trains and divisions of French and German state operators SNCF and Arriva say ministers acted unlawfully by concluding their bids were “non-compliant” and kicking them off a tender process. The decision by former transport secretary Chris Grayling ended the running of rail services in the UK by Virgin and Stagecoach after more than two decades. The landmark case is expected to lift the lid on the commercially sensitive and opaque world of rail franchising for the first time since privatisation in the mid-Nineties. |
 | Nick Jones, the new boss of Joules Group (JOUL), the fashion chain known for its countryside chic style, was on a mission to boost morale. On a walking tour of one of its warehouses, he wanted to ensure workers were not too disheartened by the stock blunder that this month triggered a profit warning from what had been one of the high street’s few resilient chains. A spreadsheet error meant Joules sent too many of its brightly coloured wellington boots and patterned blouses to its 124 UK stores from the warehouse and it ran out of its staple items online. |
 | Premier Foods (PFD) enjoyed a festive sales boost as customers bought more than 200 million Mr Kipling mince pies over the Christmas period. Sales at the company, which also owns Ambrosia, Bisto and Angel Delight, grew 2.6% during the 13 weeks to Dec 28 compared with a year earlier. Premier was boosted by demand for cakes and other sweet treats, which grew sales by 8%. Mr Kipling alone generated growth of 10%. Premier Foods also launched a range of vegan grain pots as part of its new Plantastic brand and is preparing to roll out a vegan version of its Oxo beef stock cubes. Chief executive Alex Whitehouse said: “Our biggest brand, Mr Kipling, has again been instrumental to this continuing momentum, with increased sales supported by TV advertising and new product ranges.” |
 | Questor: Travis Perkins (TPK) makeover is bearing fruit and stamp duty reform would help too. Buy. Questor share tip: the builders’ merchant is getting rid of Wickes, the DIY chain, to focus on better opportunities |
   | Britain’s biggest construction companies have warned Boris Johnson that scrapping HS2 would cause “irreparable damage” to the sector and would jeopardise an “industrial renaissance” in the Midlands and northern England. The chief executives of Balfour Beatty (BBY), Skanska, Morgan Sindall Group (MGNS), Costain Group (COST), Mace and Sir Robert McAlpine are among signatories of a letter to the prime minister seen by The Times urging him to approve construction of the full high-speed rail project. The business leaders argue that no alternative “shovel-ready” infrastructure projects exist that can sustain the tens of thousands of skilled workers needed to maintain Britain’s engineering and construction capability. HS2 also represents a crucial opportunity to train the workforce in modern methods of construction, such as offsite manufacturing, that could strengthen the sector and make British engineering “even more exportable”, they said. |
| New evidence that the housing market has been boosted by Boris Johnson’s emphatic election victory has emerged in a survey that suggests property prices have started to increase at a record rate. House prices have risen by 2.3% since the general election on December 12, adding £6,785 to the value of the average home, according to Rightmove, the property search website, which reckons that the average asking price now stands at £306,810. It is the largest monthly price rise for this time of year that Rightmove has recorded since it began its surveys in 2002. The findings chime with those of other recent indicators. This month Halifax said that house prices had risen by 1.7% in December. Nationwide recorded a 0.1% growth in prices over the same month. |
 | Intu Properties (INTU) wants to launch a huge rights issue either alongside its full-year results at the end of February, or shortly afterwards. In a trading statement in November, Intu said fixing its balance sheet, which is loaded with £4.7bn of debt, was its “No 1 priority” and flagged that an equity raising was “likely”. The move will test whether investors believe the full extent of the retail property crisis is now “priced in” to the stock market valuations of big landlords. Intu, which rejected a takeover bid worth 425p a share, or £3bn, in 2010, has seen its share price tumble to 22.9p, valuing it at £311.6m — a fraction of the £8bn at which its properties are officially valued. |
 | Lenders to Premier Oil (PMO) have reported its biggest creditor to the City watchdog. A group of creditors have urged the Financial Conduct Authority (FCA) to investigate the Hong Kong hedge fund Asia Research & Capital Management (ARCM) over claims that it broke rules by failing to disclose it had built a £132m bet against the share price while blocking attempts by the FTSE 250 explorer to restructure its £2bn of debts. ARCM disclosed that it had secretly built a 17% short position on Premier Oil shares on December 4. A source said it was a “massive conflict of interest” for ARCM to hold debt as well as bet against the shares. The position is thought to be the biggest on the London market as a percentage. A source close to ARCM said the hedge fund had reported itself to the FCA last month after being made aware of the rules on disclosing short positions. ARCM started shorting Premier Oil’s shares three years ago. |
 | KPMG is facing legal action over its auditing of Goals Soccer Centres (GOAL), months after the chain collapsed following an accounting fraud going back almost a decade. Deloitte, which acted as administrator to Goals, is understood to be chasing KPMG over an alleged misdeclaration of the company’s VAT liabilities for several years. It is also pursuing the former finance chief, Bill Gow, who set up Goals with chief executive Keith Rogers in 2000. Sources said HM Revenue & Customs was also preparing to prosecute the directors over a £16.3m tax bill. |
 | Legal & General Group (LGEN) is embroiled in a row over a property development amid claims that a council will underwrite it and is avoiding scrutiny. Discontent about the Temple Island scheme in Bristol is growing as a decision looms on whether to let the insurer develop the site. Opposition councillors have accused Marvin Rees, the Labour mayor, of withholding documents that spell out the deal’s terms. It threatens to become an embarrassment for L&G chief executive Nigel Wilson, who has embarked on a series of developments in cities such as Cardiff and Newcastle. As well as 400 homes, the Temple Island plans include a 345-room hotel and offices. Anthony Negus, a Liberal Democrat councillor, said the terms of the deal meant that Bristol taxpayers would, in effect, be “underwriting” the scheme for 40 years if tenants cannot be found. |
 | A pay row looks set to erupt at Virgin Money Holdings (UK) (VM.) over bonuses paid to executive directors, despite the lender reporting a loss and dropping its dividend. Institutional Shareholder Services (ISS), a proxy group, has urged investors to vote against the remuneration report at its annual meeting on January 29. David Duffy, 59, chief executive, could pocket as much as £5.1m this year — exceeding the pay taken by John Flint, the former boss of the much bigger HSBC, who took home £4.6m in 2018. Duffy’s package includes £1.2m for salary, cash benefits and pension. He could earn £3.9m in bonuses if he hits targets including boosting the Virgin Money share price by 50% over the year. ISS said it viewed the “overall quantum of pay for the year excessive”. Another proxy agency, Glass Lewis, recommended supporting the report. |
 | Carphone Warehouse risks sliding into irrelevance. Exorbitant prices and a lack of product innovation mean that consumers are hanging on to their mobiles for longer, leaving Carphone short of the minimum sales targets set in its contracts with networks and plunging the division to an expected loss of £90m this year. It is a headache for Alex Baldock, the cerebral boss of Dixons Carphone (DC.). Analysts at Goldman Sachs expect a Christmas trading update this week to show a 1% drop in like-for-like sales for its electricals division, which includes Dixons, Currys and PC World. Baldock is likely to accelerate store closures at Carphone Warehouse, where leases on average have two years to run. “Alex has to re-engineer that business quickly,” an industry source said. “He needs to reduce their number of stores to about 150. If he can do that in the time available to him, then he will have a business.” |
 | HSBC Holdings (HSBA) is preparing another round of branch closures, as the bank draws up broader plans to make sweeping cost cuts next month. HSBC is aiming to shut more than 10 high-street locations this year in an attempt to slash its bloated cost base and boost profits. The move will shrink its 621-strong network, which suffered five closures last year. The first closure is expected in the next few weeks, ahead of the annual results in mid-February, according to a source. HSBC declined to comment. Although shutting branches will help HSBC shave some costs, caretaker boss Noel Quinn, 57, tipped to be named chief executive next month, is expected to take the knife to other parts of the bank, including its investment banking division. |
 | A year ago, Greggs (GRG) launched its vegan sausage roll and jumped on the craze for plant-based food. It was a bold move for a company known to many for its old-fashioned sausage rolls, but it appears to have paid off. Ned Hammond, an analyst at Berenberg, said the launch produced a “massive brand-awareness spike”. Last week it moved into home delivery by announcing a tie-up with Just Eat — the latest effort by chief executive Roger Whiteside to transform what was once a staid bakery business. Nigel Parson, leisure analyst at Canaccord Genuity, said: “This is driven by Whiteside after they took the view that if you are going on a weekly bread shop you’re probably going to buy it at a supermarket. That was historically their custom. That led to a transformation.” Hammond said expanding into coffee — Greggs is now No 3 in the market — and moving into breakfasts, where it is second only to McDonald’s, plus a healthier range of products, also helped. “The big question is can Greggs sustain this positive performance,” said Parson. A vegan steak bake and doughnut have already been launched this year and it is trialling late opening in a number of locations. This signals potential for further momentum. Sales of those vegan products and some of its newer items are still only a small proportion of total sales, which rose 13.5% last year. “If you look at what’s really caused the big jump in sales it’s actually been — albeit some from the vegan versions — a lot of old-school bakery products,” said Hammond. The shares were within a whisker of their record high on Friday, closing at £24.24, valuing the chain at £2.5bn. Hold. |
  | Flybe Group (FLYB) faces a backlash over its decision to switch its taxpayer-funded domestic flights between London and Cornwall away from Heathrow, in a move that rivals fear could benefit Virgin Atlantic, one of its principal investors. The airline has moved its four-times-a-day Newquay-to-Heathrow route to Gatwick from March 29, freeing up valuable slots at Heathrow, one of the world’s busiest airports. Michael O’Leary, chief executive of Ryanair Holdings (RYA), a rival, yesterday raised concerns about the arrangement, which he warned could boost Virgin’s core transatlantic business at Heathrow and also could reduce “connectivity”. Mr O’Leary, 58, said that the slots were much more lucrative and were worth about £60 million. He demanded to know whether they could benefit Virgin and questioned whether Flybe needed government support. International Consolidated Airlines Group SA (CDI) (IAG), the owner of British Airways, said the “government must ensure that agreements between Flybe and its shareholders’ airlines are on normal commercial grounds that protect Flybe’s interests”. |
 | GVC Holdings (GVC), the gambling group behind the Ladbrokes and Coral brands, said yesterday that it expected to report full-year earnings towards the top end of its upgraded guidance after strong online growth. GVC Holdings, which raised its underlying earnings guidance in October to between £670 million and £680 million, said that its online net gaming revenues had grown by 11% in the fourth quarter, while it was making “good progress” in America. Although its British betting shops are being cut back after a government crackdown on lucrative fixed-odds betting terminals, the fall in revenues of 11 per cent was ahead of initial guidance, partly helped by William Hill’s rapid exit from all 700 of the shops it had earmarked for closure. |
 | NMC Health (NMC) has appointed a former FBI director to investigate claims of financial irregularities levelled against it by an American short-seller. NMC Health said that Louis Freeh, 70, and Freeh Group International Solutions, his company, would examine the allegations by Muddy Waters. Muddy Waters has built a reputation for researching allegedly overvalued companies and then publishing hard-hitting reports to drive down the share price and turn a profit. |
| Higher motor claims costs have been blamed for a profit warning by that shocked the insurance market yesterday. Earnings are set to be 42% lower and the dividend will be cut, the insurer said, adding that trading this month had been “in line with expectations”. Hastings said that claims expenses had risen in the fourth quarter because of increases in repairs and third-party credit hire, winter claims that were slightly higher than expected and a small number of larger-range bodily injury losses. |
 | Michael O’Leary, chief executive of Ryanair Holdings (RYA), wrote to Sajid Javid, the chancellor, yesterday threatening action if the government did not clarify what support had been given to Flybe Group (FLYB) and whether the duty “holiday” would be extended to other airlines, including Ryanair, easyJet (EZJ) and BA. Mr O’Leary said Ryanair was deeply concerned and shocked by the bailout, which “distorts fair competition between airlines, clearly constitutes illegal state aid, and represents a badly thought-out bailout of a chronically loss-making airline model in the UK”. He told The Times that it was a scam, dubbing it state support for a “bunch of billionaires”, including Sir Richard Branson, the Virgin Atlantic tycoon. Ministers have said Flybe is important to the UK’s regional connectivity and economies. The government has defended the rescue deal and a government spokesman said that ministers had “not given any state aid to Flybe”. The carrier is the UK’s largest regional airline and operates just over half of domestic flights outside of London, carrying eight million passengers last year. It flies between 71 airports across the UK and Europe, including Southampton, Exeter, where it is based, and Aberdeen. The deal has triggered a backlash from the industry with International Consolidated Airlines Group SA (CDI) (IAG) claiming that it constitutes illegal state aid. IAG has filed a complaint to the EU. Willie Walsh, the outgoing chief executive called it a “blatant misuse of public funds”. |
 | One of the world’s biggest law firms advised Lekoil Ltd (DI) (LEK) on a supposed deal with the Qatar Investment Authority that turned out to be fake, The Times has learnt. Norton Rose Fulbright is understood to be the “retained UK legal counsel” that gave the Aim-quoted Nigerian oil explorer advice before it signed the bogus $184 million loan deal. The disclosure that such an established law firm did not spot the apparent fraud may be embarrassing for Norton Rose Fulbright but adds new intrigue to the emerging scandal. Sources say the fake representatives of the QIA conducted a highly sophisticated operation including numerous meetings in the Middle East and their authenticity was not questioned by anyone involved in the deal. |
 | Whitbread (WTB) Boris bounce juddered to a halt yesterday after a warning over rising costs and continuing economic uncertainty sent the Premier Inn operator’s shares tumbling by more than 5%. The 250p fall to £45.87 follows a 20% jump since October on the back of optimism that the British-based budget hotel chain would be a beneficiary of any rise in consumer confidence resulting from a Tory majority in the election. The group was buoyed by the £3.9 billion sale a year ago of the Costa coffee chain to Coca-Cola, enabling it to return £2.5 billion to shareholders, but trading at its budget hotels has proved tough and last year it launched a £220 million three-year cost-saving programme. Alison Brittain, the chief executive, admitted the political and economic environment and the continuation of “sustained industry inflation” meant it remained “difficult to predict business confidence in the short term and its impact on the market”. However, she insisted the company had the financial strength and business model to tap into the “significant structural growth opportunities in the UK and internationally”. |
 | Pearson (PSON) is in danger of losing its place in the FTSE 100 for the first time after it warned that profits will fall again this year and its finance director resigned. The publisher lost up to 14% of its value yesterday after admitting that the downturn at its American higher education arm was gathering pace. Revenues at the division fell 12% last year as sales of textbooks tumbled 30%. The business accounts for a quarter of Pearson’s turnover and has been struggling as students ditch print for cheaper online alternatives. The turmoil at its largest division will reduce adjusted operating profits to between £500 million and £580 million this year, Pearson said in a trading update. Earnings for last year would be £590 million, at the bottom of a forecast range the group cut three months ago. |
 | A surge in festive sales could push Primark to a record £1 billion profit this year as it puts its struggling high street rivals in the shade. The low-cost fashion retailer, owned by Associated British Foods (ABF), said sales rose 3% in the 16 weeks to January 4, boosted by new store openings. Like-for-like sales increased for the first time since 2017 after an overhaul of its business in Germany and an improved performance across Europe. Sales in Britain rose by 4%, helped by its new stores, but like-for-like sales dropped marginally. John Bason, ABF’s finance chief, said he was “pleased with the UK performance because we demonstrated that we outperformed the wider market”. Primark’s like-for-like sales fell by 0.5 per cent but Britain’s clothing, footwear and accessories market was down by between 1 per cent and 2 per cent, according to Kantar figures, meaning that the UK’s biggest retailer continued to gain market share. Primark said that it had a “huge” rise in gift sales, particularly boosted by its Harry Potter licensed products that included a wooden advent calendar based on the Hogwarts Express train. |
 | Hays (HAS) blamed Australian bush fires and French strikes as it warned shareholders to expect a £24 million slide in profits for the six months to December. Shares fell after it said operating profits would be about £100 million for its first half, less than the £105 million expected and down from £124 million reported for 2018. Alistair Cox, chief executive, said: “Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election.” Total fees in the three months to December fell 7%, while the decline was 4% after adjusting for currency movements. |
 | BT Group (BT.A) and other telecoms companies yesterday pressed the government to ease business rates on new broadband networks at a meeting in Downing Street. Philip Jansen, BT’s chief executive, as well as bosses from Virgin Media and smaller providers met Boris Johnson and Baroness Morgan of Cotes to discuss ambitious plans to meet the prime minister’s pledge to provide “gigabit” speed broadband to all premises by 2025. They are understood to have urged ministers to reduce business rates on the building of new broadband infrastructure by extending an exemption “holiday” from five years to 20. The companies hope the government will include the measure in the budget in March. The meeting comes after the regulator last week outlined proposals to increase competition in broadband infrastructure. market. |
 | Shares in Brown (N.) Group (BWNG) lost a quarter of their value yesterday after the owner of the Jacamo fashion brand issued a profit warning, blaming a “highly promotional” retail market and fewer credit customers. The business said its profits would now be between £70 million and £72 million, down from its previous forecasts of £78 million to £84 million. It also warned that profits were unlikely to grow in 2021. The company said it had reacted to “wide sweeping regulatory intervention” across the financial services sector by making changes to the way it managed its debtor book. This brought lower debtor balances and a fall in fees as fewer customers entered into arrears. Last year it made 35% of gross profits from financial services. |
 | Diploma (DPLM) shareholders have revolted against the pay package for the engineering company’s new boss, who earned a full bonus last year despite being in the role for only seven months. As a result ISS, the shareholder advisory group, recommended that investors vote against the remuneration report, which 44.2% of those who voted did at Wednesday’s annual meeting. The other point of contention among shareholders was that Diploma also tweaked its long-term bonus scheme. Before, its chief executive could earn up to 1.75 times their salary in share options which would vest over the next three years if certain targets were met. However, Mr Thomson, 47, has the chance to earn shares worth 2.5 times his salary. ISS acknowledged that the change was made to attract a high-calibre candidate but it raised concerns that new joiners would also want improved bonus schemes, called long-term incentive plans. |
| Sensyne Health (SENS) closed down 12p at 39½p as the selloff continued. It floated at 175p in August 2018 when it was valued at £225 million. The Aim-quoted biotech company has been hit by governance concerns after it emerged last year that it had paid about £1 million of undisclosed executive bonuses. It has also been exposed to the crisis at Woodford Investment Management, which was a leading shareholder, and suffered turmoil in the boardroom where a number of directors have departed. Sensyne Health uses artificial intelligence algorithms to analyse anonymised patient data to generate intellectual property that can be licensed to pharmaceutical companies for the discovery of medicines. One market source said the fall had been exacerbated by thin trading and the stock being tightly held by Lord Drayson, 59, and his wife, who own a combined 29%. | |
 | Tempus – Croda International (CRDA): Hold. Company is resilient but markets are going to be tough probably for at least a year |
 | Tempus – AO World (AO.): Avoid. With profitability at least two years away risks are high |
| Banks are reining in lending at the fastest rate since the global crash as fears rise of an economic slowdown which could spell chaos for high-risk borrowers following a years-long debt binge. Business loans suffered their toughest squeeze on availability since the 2008 financial crisis in the final three months of 2019, amid a slump in appetite from lenders. At the same time a crackdown on access to credit cards intensified, according to Bank of England data, with availability falling for three straight years following warnings from regulators that a risky bubble has blown up. The figures will intensify speculation that an interest rate cut is needed to boost the flagging economy. | |
| Brussels will use the British government bailout of Flybe Group (FLYB) to extract trade concessions from the UK, as the European Commission looks to tie Britain into EU rules long after Brexit. London insisted that the bailout of the airline is not state aid after rival International Consolidated Airlines Group SA (CDI) (IAG), the owner of British Airways, made a complaint to the EU executive on Wednesday. Whether or not there is eventually found to be a breach of competition rules, the EU will point to Flybe to help justify its demands for “level playing field guarantees” in the post-Brexit trade deal. Brussels is seeking British pledges to not undercut EU tax, state aid, environment or labour standards as part of the agreement that will form the basis of the future relationship. |
| Ryanair Holdings (RYA) boss Michael O’Leary has launched a stinging attack on billionaire Virgin founder Sir Richard Branson over the bailout of cash-strapped regional airline Flybe Group (FLYB). Mr O’Leary – whose airline has threatened to sue the Government after it allowed Flybe to delay a tax payment – accused Sir Richard of rushing to claim credit for business successes but hiding at his Caribbean estate on Necker Island when problems struck. Virgin Atlantic, the airline Sir Richard founded, is one of Flybe’s three shareholders. Mr O’Leary said: “There’s no better billionaire to duck bad news than Branson. Branson is only around for the good news days. “For the flotations and the press conferences. When yet another of his businesses fails or loses money you won’t see Branson for dust, he’ll be over in Necker.” |
| A raft of store openings and a strong performance on the Continent drove up total sales at Primark over Christmas. Sales jumped 4.5% in the 16 weeks to Jan 4 compared to a year earlier, partly due to a marked upturn in its Eurozone market. Trading was particularly good over November and December, the chain’s owner Associated British Foods (ABF) said, although there was an expected squeeze on profits amid a blizzard of price cuts across the high street. But in the UK there was a small decline in like-for-like sales, which strip out the impact of new store openings and are seen as a better measure of true health. Britain is Primark’s most important market. John Bason, ABF’s finance director, said he was pleased with trading in the quarter. He added that Primark had a “sensational” Christmas period. |
 | The boss of Magners cider owner C&C Group (CCR) has stepped down with immediate effect after revealing plans to leave the business. Stephen Glancey, 59, who has been chief executive of the drinks firm since 2012, will leave next month following a handover period with chairman Stewart Gilliland taking on an executive position in the interim. Mr Glancey joined C&C Group as chief operating officer in 2009 and has been a board member since 2008. It is thought he plans to retire from executive roles permanently following his departure. |
 | A surge in demand for bicycles and scooters drove Halfords Group (HFD) sales higher over the festive period. The company built 86,000 bikes for pick-up in the week before Christmas and reported a 1.3% increase in like-for-like sales, which strip out new stores, for the 14 weeks to Jan 3. This increase was mostly down to its cycling business, up almost 6pc, but offset by motoring, which fell 2.7%. Electric scooters were particularly popular, as well as custom bikes where buyers build their own model from a range of parts. The retailer is trying to offer more services such as MOTs under chief executive Graham Stapleton and not rely as heavily on product sales. |
 | Questor: ready for both fear and greed – why this ‘wealth preservation’ trust is a hold. Questor investment trust bargain: Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) has made minimal gains since we tipped it in 2016 but should come into its own if markets implode |
 | Questor: our Royal Mail (RMG) replacement is a more resilient business and has better scope for dividend rises. Questor Income Portfolio: a firm that offers a perennially popular form of family entertainment is a better bet than a delivery business struggling to reinvent itself |
| Booming sales of electric bikes in the run-up to Christmas have helped Halfords Group (HFD) stick to its full-year profit guidance. The car equipment and bicycle retailer said it sold 96% more electric bikes in the 14 weeks to January 3 than the same time last year, and that one in five bikes and scooters sold are electric. Chief executive Graham Stapleton said the rise in sales was powered by customers’ efforts to be more environmentally friendly, as electric bikes are a greener way to travel short distances than diesel cars or motorbikes. Stapleton said: ‘Customers are responding to what they’re seeing on climate. ‘There’s just no doubt that electric is now here – it’s no longer an emergent small trend. It’s becoming a very significant part of our business in both cars and bikes.’ Older customers who wanted to return to cycling were also boosting sales of electric bikes, Stapleton added. |
| Pearson (PSON) is fighting for its place on the FTSE 100 after a bleak warning about its prospects sent shares tumbling. More than £411million was wiped off the publisher’s market value yesterday as the company, once a titan of the business world which now sells text books, said profits for 2019 would total around £590million. This was at the lower end of its September guidance, of £590 million to £640million. Pearson added that profits in 2020 were likely to fall to between £500million and £580million. The rout has left Pearson, formerly owner of publishers Ladybird and Penguin, with a market value of just £4.4billion – right at the bottom of Britain’s blue-chip index. |
| Ryanair Holdings (RYA) boss Michael O’Leary has threatened to sue the Government over its £106million plan to bailout struggling airline Flybe Group (FLYB). Mr O’Leary said Ryanair, easyJet (EZJ) and other budget airlines could ‘step in’ to cover routes to regional destinations including Exeter and Southampton if Flybe goes bust. He said the Government’s multi-million pound plan to rescue the air carrier ‘breaches state aid and competition law’ before branding it a ‘nasty cover up’. Describing Flybe as a ‘subsidised billionaire boys club’ he urged Chancellor Sajid Javid to give Ryanair and other rival airlines the same tax holidays as them. The Government’s plan has been met with staunch opposition from other UK airlines, with British Airways submitting a formal complaint to the EU’s competition watchdog over what it calls a ‘blatant misuse of public funds’. BA’s owners International Consolidated Airlines Group SA (CDI) (IAG) today wrote to the Government accusing it of a ‘lack of transparency’ and asking for further details on the deal. Whatever the outcome of IAG’s complaint to the EU Directorate-General for Competition, officials in Brussels could use the Flybe crisis to their advantage in post-Brexit trade talks, according to The Telegraph. |
| TheWorks.co.uk plc (WRKS) boss has stepped down after nearly nine years at the helm – just two months after a shock profit warning sent its shares tumbling. The retailer said chief executive Kevin Keaney has been replaced by chief financial officer Gavin Peck. Shares soared as investors welcomed the change at the top and the group’s Christmas update showed like-for-like sales growth of 1.5% over the crucial trading weeks. Interim results on Thursday showed underlying pre-tax losses at The Works more than doubling to £8million in the 26 weeks to October 27 from £4.4million a year earlier. | |
| Shares in Brown (N.) Group (BWNG) have dropped over 20% after the group issued a profit warning. Blaming a ‘highly promotional’ retail market and less money coming through from shoppers via credit revenues, N Brown said it now expects its annual pre-tax profit to come in between £70million and £72million, against previous estimates of between £78million and £84.1million. Worse still, N Brown said it even expects profits for the year after to now come in at a similar level to this year. Steve Johnson, chief executive officer of N Brown, said: ‘This has been an encouraging period of peak trading for the business in a highly promotional market, as we delivered digital revenue growth across both womenswear and menswear with particularly strong digital growth from Simply Be and Ambrose Wilson as customers responded well to our ranges. ‘Financial services revenue was down, reflective of our strategic approach to the retail business and continued tightening of our lending criteria. ‘Our expectations remain that the retail market will continue to be challenging and promotional, but we are focused on our clear strategy of delivering profitable digital growth.’ |
| A company that claimed to represent Qatar’s huge sovereign wealth fund may have been struck off at the time it allegedly duped a Nigerian oil firm, it has emerged. Seawave Invest, which calls itself an ‘independent consultancy firm’ specialising in Africa, received a consultancy fee from petroleum company Lekoil Ltd (DI) (LEK) in return for a $184million (£142million) loan agreement from the Qatari Investment Authority (QIA). But Lekoil said on Monday that the Bahamian-registered firm had deceived it after the QIA said no such loan exists. Now, the PA news agency reports that Seawave Invest might have had its business licence revoked before the deal was announced on January 2 this year. |
| Primark suffered a dip in same-store UK sales in the last quarter, its owner Associated British Foods (ABF) revealed in a trading update today. But, taking into account new store openings, Primark’s UK operations actually saw sales rise 4% in the 16 weeks to 4 January. With this is mind, Primark is poised to open 18 new shops in the current financial year, including its first outlet in Slovenia and a second store in Poland. The fashion retailer’s owner gave no actual figure for the fall in like-for-like UK sales dip, which is a measure of business recorded by the same number of stores a year ago. But, Primark said it saw ‘particularly good’ trading over November and December in the UK. On the back of this, the group said it ‘delivered a further increase in share of the total clothing, footwear and accessories market.’ Primark is one of the few retailers sticking to its bricks-and-mortar roots, and plans to continue expanding its store portfolio to give shoppers cheap and fast fashion. |
| Whitbread (WTB) has been hit by a fall in trade at its regional hotels. Total like-for-like sales at the leisure and hospitality firm fell by 1.3% in the 13 weeks to November 28, as it expects its losses in Germany to be around £10million next year. Another 20 hotels comprising 4,500 rooms across the UK, Ireland and Germany, are planning to open in the coming year, although Whitbread says that higher national living wage and utility costs will negatively impact its margins. The Beefeater and Brewers Fayre operator says that despite the ‘uncertain’ political and economic environment in the UK, it remains optimistic of its future performance. They write: ‘Whitbread’s strong balance sheet, efficiency programme, resilient business model and ongoing investment puts it in a strong relative position to benefit as the environment improves. |
| The popularity of online stories about presenters Ant and Dec and the royal family have boosted profits at the owner of celebrity news site Entertainment Daily. , which also owns satirical news site The Daily Mash, said its 2019 profits would be ahead of expectations after the number of those clicking on Entertainment Daily stories from Google searches grew by 127%. The Daily Mash’s audience levels also rose 15%. | |
 | Wood Group (John) (WG.) shares surged after it said 2019 profits would be well ahead of the previous year’s figures and that it is making solid progress paying down its debt pile. It now expects to bring in up to £658million, up from £531million, though this was below a company-compiled forecast of about £661million and revenue is expected to fall from the previous year. Investors warmly welcomed the news that it has trimmed net debt – which had been mounting since its £2.2billion takeover of smaller rival Amec Foster Wheeler in 2017 – down from £1.4billion at the end of June to £1.1billion. |
 | Rank Group (RNK) was also on the up as it bet on profits being higher than expected in the year to the end of June. The Mecca Bingo-owner reckons it will make as much as £115million, up from an earlier estimate of £103million. |
 | Kier Group (KIE) released a reassuringly mundane update that said trading was ticking along as normal and it is still progressing with plans to cut costs, dispose of its housebuilding business and working out what to do with another property division. |
| Lombard – Pearson (PSON) failings must be consigned to the history books. Publishing group has suffered from management and strategic mis-steps |
| Ryanair Holdings (RYA) O’Leary wades into Flybe Group (FLYB) debate. Part-owner Stobart says EU delays contributed to need for airline’s rescue |
| Lex – Wood Group (John) (WG.): sun worshipper. Investors will be rewarded if the company can reinvent itself |
| Whitbread (WTB) hobbled by UK uncertainty. Premier Inn owner blames higher costs and weak confidence outside London as room sales fall |
| Associated British Foods (ABF) – Primark sales rise helped by US growth and German overhaul. UK market suffers small decline but total revenues climb on new store openings |
| Consultancy Seawave investigating Lekoil Ltd (DI) (LEK) loan scandal. Bahamas-based group accused of helping to arrange a $184m loan that proved fake |
| Halfords Group (HFD) bolstered by boom in electric cycles and scooters. E-bike sales almost double in third quarter to keep retailer on track after three warnings |
| Pearson (PSON) warns of profit fall as leadership contender quits. Educational publisher’s finance chief to follow chief John Fallon out the door |
| Hays (HAS) warns on profit as economic uncertainty stifles recruitment. Group disrupted by events ranging from the Australian bushfires to UK election |
| Ryanair Holdings (RYA) has demanded that the government extend any “tax holiday” granted to Flybe Group (FLYB) to other airlines or be in breach of competition and state aid laws. In the growing industry backlash against the rescue of the regional carrier, the Dublin-based airline said that it had written to the chancellor, Sajid Javid, to request the same treatment as Flybe’s “billionaire owners” – who include Sir Richard Branson and Delta Airlines. Ryanair’s chief executive, Michael O’Leary, warned that Flybe would “undoubtedly fail once the subsidy ends”. The details of the rescue agreement have been kept under wraps since Tuesday evening, when ministers led by Javid announced that Flybe had been saved. The package is understood to involve the short-term deferral of an outstanding air passenger duty (APD) tax bill of £106m, a possible loan, and the promise to review APD levels before the March budget. |
  | Sales at Primark’s UK stores went backwards at Christmas in a further sign of the toll taken on fashion retailers by grim market conditions over the traditionally lucrative trading period. The no-frills fashion chain suffered a “marginal” decline in underlying sales and said it would open only one store in the UK this year – the lowest number in decades – as it turns its financial firepower overseas in search of growth. The Primark update came as high-street suits specialist Moss Bros Group (MOSB) said it would make a loss of £1m in the current financial year. The chief executive, Brian Brick, said “intensive discounting” by rivals and a big dip in shopper numbers on the high street were behind a 3.2% drop in like-for-like sales in the 24 weeks to 11 January. The plus-sized online specialist Brown (N.) Group (BWNG), which owns Simply Be and JD Williams, also blamed wall-to-wall discounting in December alongside problems in its finance arm for a profit warning that knocked nearly 25% off its shares. Its sales finished 5% down in the 18 weeks to 4 January, a performance that shaved £10m off pre-tax profits, which are expected to come in at £71m. Many retailers, including big high-street names such as John Lewis and Marks & Spencer Group (MKS), struggled to get shoppers to part with their cash in 2019 as political instability and worries over Brexit weighed on consumer confidence. Many retailers resorted to price cuts, and last week Steve Rowe, the chief executive of M&S, complained of “unprecedented discounting” between Black Friday and Christmas. Analysts said Primark fared better than other UK clothing chains, with sales at established UK stores down by about 0.5% compared with a drop of as much as 2% across the market in the 16 weeks to 4 January. John Bason, finance director at Primark’s owner, Associated British Foods (ABF), said the retailer had won business from rivals with its low prices. |
| Halfords Group (HFD) enjoyed a surge in bicycle and scooter sales over the Christmas period, bolstered by the popularity of electric models and its partnerships with Disney and Trunki, with a record number of children’s bikes sold. The UK’s biggest bike retailer said sales of electric bikes and scooters jumped 96% year-on-year in the 14 weeks to 3 January. They now make up 13-14% of total sales. Overall bike and scooter sales rose 5.9% at established stores. Halfords built 86,000 bikes in the week before Christmas alone. The firm developed a new range of Trunki folding children’s scooters and balance bikes and launched 48 children’s’ bike models overall in the past quarter. The popularity of cycling has soared in Britain in recent years. Graham Stapleton, the Halfords chief executive, said: “People want to get healthier. People are looking for alternative modes of transport with the climate on their minds.” |
| Donald Trump has signed the first phase of a new trade agreement with China after two years of tension between the two superpowers that have rattled economies around the world. Trump said: “Today, we are taking a momentous step towards a future of fair and reciprocal trade. Together we are righting the wrong of the past.” “At long last Americans have a government that puts them first at the negotiating table,” he said. “This is the biggest deal anybody has ever seen.” Trump and China’s chief trade negotiator, Liu He, signed the deal at a packed press conference, attended by Ivanka Trump, much of Trump’s cabinet, Henry Kissinger, and media and business leaders including Stephen Schwarzman, the chairman of Blackstone, and Ajay Banga, the president of Mastercard. The signing came hours after Democrats named the team that will prosecute Trump in an impeachment trial that starts early next week. | |
 | Greggs (GRG) has partnered up with Just Eat (JE.) to offer home delivery across the UK after a successful trial last year. The bakery firm said it would begin making deliveries in Bristol and Birmingham this week and continue its expansion in London, Newcastle and Glasgow, where there were trials with a variety of delivery firms, including Deliveroo and Uber Eats as well as Just Eat. Deliveries are expected to kick off in Manchester, Leeds, Sheffield and Nottingham in the spring, with a plan to achieve national coverage by the end of the year. Greggs and Just Eat will choose future destinations for expansion depending on customer demand. Customers can vote for their local area to receive delivery and the rollout plans will be reviewed every few months based on the poll. |
 | Sales at Persimmon (PSN) have fallen as the housebuilder scrambles to improve build quality and restore its tarnished reputation, after a barrage of criticism over its poorly built homes and huge executive payouts. After a deluge of complaints from customers, the company commissioned an independent review last year. The report, which was published a month ago, accused Persimmon of a “systemic nationwide failure” to install fire-stopping cavity barriers that left customers exposed to an “intolerable” fire risk. The damning review said the failure to meet minimum building standards was “a manifestation of poor culture” at the firm. Persimmon completed 15,855 homes last year, down 4% from the previous year when it built 16,449 and made an annual profit of £1.09bn – the biggest ever reported by a UK housebuilder. Revenues fell 2.4% to £3.65bn in 2019, and City analysts are forecasting a small drop in pre-tax profits to £1.04bn. At that level of profit the firm is still making nearly £66,000 on every home it builds. The firm’s forward sales were down 3% to £1.4m at the end of the year. |
| Seawave boss says it will address Lekoil Ltd (DI) (LEK) loan scandal. Bahamas-based group is alleged to have been paid $600,00 for brokering a loan that proved fake |
| UK housebuilders optimistic but quality concerns linger. Persimmon (PSN) and Vistry Group PLC (VTY) to continue focus on customer satisfaction |
| Greggs (GRG) deal with Just Eat (JE.) heats up UK delivery wars. Boost for British app in battle with Uber Eats and Deliveroo for exclusive restaurant tie-ups |
 | Tullow Oil (TLW) set for $1.5bn hit after cutting oil price forecast. Explorer’s writedown warning follows repeated cuts to production outlook |
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