 | A fall in Ocado’s stock has wiped more than £79million off co-founder Tim Steiner’s share-holding. Ocado Group (OCDO) shares have slipped more than a fifth in the past five trading days as investors worry that rivals’ technology is catching up. The 21% stock price fall from 1360p last Wednesday to 1074.5p yesterday dented the chief executive’s holding of 27.6million shares. Ocado is valued at £7.5billion, meaning £2billion has been wiped off its market capitalisation in a week. Steiner’s stake is now worth about £296million. The decline started after it was said relations with its key client in the US, Kroger, were cooling – claims that Ocado has dismissed. At the same time, taxi-hailing app Uber said it plans to keep investing in grocery and food delivery and did not rule out acquisitions to move into the grocery sector. Shareholders also worry that US rival Takeoff, which works with Tesco, could disrupt Ocado, especially in America. |
 | Britain’s sweet tooth set Mr Kipling-maker Premier Foods (PFD) on the road to recovery in the first half, with cake sales rising 8%. The company, which also makes Oxo cubes and Ambrosia custard, performed better than expected in the six months to September 28, says new chief executive Alex Whitehouse. Compared with two years ago, the brand is selling an extra 22% more cakes across the UK. Group revenue was up 2.4% to £366.7million, while profit rose 5% to £31.7million. |
 | The chairman of IT group Softcat (SCT) has offloaded another £12.3million of stock – taking his share sales so far this year to more than £36million. Martin Hellawell sold 1m shares for 1046p each and 170,000 for 1096p each, taking his holding from 3.4% to less than 3%. He and a charitable group he is connected to had already sold almost £24million of shares in January and March. |
    | The ‘big four’ supermarkets are facing a tough Christmas after their sales fell again over the autumn – while Co-op and the German discounters soared. Tesco (TSCO), Sainsbury (J) (SBRY), Asda and Morrison (Wm) Supermarkets (MRW) all lost market share in the 12 weeks to November 4, as did Waitrose, according to data company Kantar. At the same time, Aldi, Lidl and the Co-op saw sales jump, along with Iceland and Ocado Group (OCDO). The ‘big four’ are also being squeezed by Marks & Spencer Group (MKS), which has switched strategy to focus on families doing one big weekly shop. Leading supermarkets are gearing up for a Christmas price war with big savings expected, particularly on fresh produce. The German supermarkets claim to undercut the big players in the UK on price by as much as a quarter, but the ‘big four’ are responding with cuts to the price of their basic ranges. In the Christmas period the average family spends £380 on groceries in December, and there has already been £17million spent on mince pies and £3million on Christmas puddings this year. Fraser McKevitt, head of retail and consumer insight at Kantar said: ‘The starting gun has been fired on the race to be Christmas number one. Shoppers will spend nearly £11bn in that month, showing how it’s a crucial period for retailers.’ |
 | ITV (ITV) received a shot in the arm from the England rugby team’s run to the World Cup final and its popular TV show Love Island, which helped to reel in advertisers once again. The broadcaster said the final of the Rugby World Cup, where ITV benefited from being the exclusive broadcaster in the UK, attracted 12.8million viewers. That helped advertising revenues rise 1% in the third quarter – at the top end of the company’s previous guidance – while online revenues rose 23% in the first nine months. |
 | Land Securities Group (LAND) posted a £147million first-half loss as the crisis on the High Street battered the value of its properties. The landlord, which owns the Trinity Leeds and Westgate Oxford shopping centres, was hit by a £368million writedown on its portfolio in the six months to September 30. Retail landlords have seen the value of their portfolios drop dramatically as shops, struggling with crippling business rates, sky-high rents and brutal competition from internet rivals, have sought rescue deals that almost always seek to cut their rent obligations. |
| Alien Metals Limited (UFO) surged after the miner published results from a series of rock samples. The AIM-listed firm said an analysis of samples from two iron ore projects it is on the brink of buying in Australia were high grade, and fit the criteria allowing them to be shipped without being processed. The projects could produce ore comparable to that mined by other firms locally. Alien has until next Monday to decide if it will buy a 51% stake in both sites. |
 | Los Angeles hedge fund has wrestled control of Domino’s Pizza Group (DOM) boardroom overhaul as the takeaway firms fights to end a long-running row with its franchisees. Activist investor Browning West was handed a seat on the board and will lead the search for the company’s top two jobs of chairman and chief executive alongside Domino’s senior independent director Ian Bull. In a move that could delay a resolution to the crippling row with franchisees, chief executive David Wild is to stay on longer than previously thought. Domino’s has bowed to shareholder pressure and agreed to find a new chairman before he leaves, who can then pick Mr Wild’s successor. |
 | B&M European Value Retail S.A. (DI) (BME) has vowed to maintain its assault on the retail market despite profits at the discounter chain tumbling by 70%, its boss said. Simon Arora, who set up the business with his brothers Bobby and Robin in the late 1970s, said: “We’re in the same fast lane as Aldi, Lidl and Primark. The march of the discount retailers continues unabated. “Shoppers are not embarrassed to shop smart and save money. They are tired of high-low pricing and promotional activity by retailers – they are much more drawn to everyday low prices.” The chain plans to open more than 300 new stores over the next five to six years, bringing the total to 950. |
| Nervous investors are dumping shares in online grocer Ocado Group (OCDO) amid fears that its online rivals are catching up. The jitters have sparked a 20% fall in the company’s share price since Wednesday last week following claims from industry observers that Ocado’s relationship is cooling with Kroger, the largest supermarket chain in the US and a key client. Meanwhile fledgling US competitor Takeoff has also unsettled the British firm’s shareholders. Takeoff, which works with grocers Ahold Delhaize and Tesco, boasted about its technology at a meeting with investors in New Jersey. Although it is best known in Britain for grocery delivery, Ocado boss Tim Steiner has staked the firm’s future on robotic warehouse technology which is meant to save money and make grocers more efficient. |
 | Vodafone Group (VOD) has raised its annual profit guidance despite posting a €1.9bn loss for the six months to September that was largely caused by problems in India. The Supreme Court of India last month ruled in favour of a government demand to pay at least $4bn in levies and interest within three months. Vodafone Idea, its joint venture with Idea Cellular that has debts of $14bn, said at the time that the “judgement has financial implications, which we are reviewing”. Chief executive Nick Read warned on Tuesday that the company could pull out of India due to the “critical” situation. “We are India’s largest foreign direct investment investor and I think there’s a moment where you have to say we’ve been commercially successful and our brand is strong. What we need is a supportive regulator environment and prices that are sustainable,” he said. “It’s been a very challenging situation for a long time and, if you look at the share price in India, it is effectively has zero value.” |
 | Questor: the Prudential (PRU) has been split in two. M&G is a buy but what of the other half? Questor share tip: the insurance arm has established a strong presence in fast-growing markets in Asia and has great long-term prospects. Hold. |
| Vodafone Group (VOD) has written off the entire value of its troubled Indian offshoot, sending the mobile phone provider to a €1.9 billion loss and raising questions about the ability of overseas investors to do business in the world’s second most populous nation. The group warned yesterday that a dramatic ruling in the Indian supreme court last month could scupper its Indian operation. The decision leaves Vodafone Idea liable for an estimated $4 billion in backdated fees, fines and interest. Nick Read, chief executive, said that the Indian operation is likely to go under unless the government offers operators some relief from the fines. Vodafone has a 45% stake in the separately listed Indian company. |
 | Royal Mail (RMG) has lost its appeal against Ofcom’s finding that it was guilty of market abuse designed to quash Whistl, a letter-handling rival. Sixteen months after the original verdict, when Royal Mail was fined a record £50 million by the regulator for anti-competitive behaviour, the Competition Appeal Tribunal found against the letters and parcels group. After the tribunal handed down its decision, an Ofcom spokesman said: “We found that Royal Mail pursued a deliberate strategy of pricing discrimination against Whistl, which was its only major competitor for delivering business mail. “Royal Mail had a special responsibility to ensure its behaviour was not anti-competitive. We hope that our fine, which has been upheld in full by the tribunal, will ensure that Royal Mail and other powerful companies take their legal duties very seriously.” Royal Mail has indicated that it may yet take the case to the Court of Appeal. It has claimed previously that Ofcom’s case was “fundamentally flawed”. |
| ITV (ITV) has warned that its advertising revenues will fall by 2% this year, despite enjoying a ratings boost from England’s progress to the final of the Rugby World Cup. The broadcaster’s coverage of the rugby tournament in Japan boosted advertising income by 1% between July and September, with a peak audience of 12.8 million people tuning in to see England beaten by South Africa. However, Britain’s stagnant economy has prompted companies to rein in their marketing budgets and advertising sales fell by 3% to £1.25 billion over the first nine months of the year. Britain’s largest free-to-air broadcaster said that its advertising sales would be down by 2% for the full year. |
| A shake-up is on the cards at Domino’s Pizza Group (DOM) after an activist investor who recently acquired a 6.5 per cent stake secured a seat on the troubled pizza takeaway chain’s board. Shares in Domino’s rose after news broke that Usman Nabi, founder and managing partner of Browning West, a Los Angeles-based hedge fund, would be joining as a non-executive director. Mr Nabi, 44, who is also a director of Six Flags Entertainment, the American theme parks operator, will become a member of Domino’s Pizza nomination committee, giving him a say in the recruitment of a chairman and a chief executive over the coming months. |
| Land Securities Group (LAND) reported a half-year loss yesterday as the “voracious storm” in the retail sector hits property valuations. The company suffered a six-month, pre-tax loss of £147 million, down sharply from a £42 million profit for the same period last year. This was driven by a writedown in the value of its retail property portfolio. The value of Land Securities’ regional shops and shopping centres fell by 9.4% to £1.9 billion, while its retail park valuations fell by 11.1% to £523 million. However, like-for-like rental income at its retail parks and shopping centres declined by a slower rate of 1.5% to £136 million in the period. Empty shops in its mainstream retail portfolio fell to 3.6%, from 4% in March. |
| Loss-making German business has taken a heavy toll on B&M European Value Retail S.A. (DI) (BME), forcing the discount retailer into a heavy writedown of the division, prompting a strategic review and dragging overall group profits 70% lower. Simon Arora, B&M’s chief executive, blamed “over-optimism” within the company’s German management team, which had led to too much stock being ordered while trading at the Jawoll chain remained weak. About half of Jawoll’s £12 million losses were caused by a jump in warehouse and transport costs. B&M, which bought the German business for £80 million in 2014, said that as a result of the poor trading it would take a £59.5 million writedown on the struggling division, dragging group pre-tax profits down by 70.5% to £32.2 million for the six months to September 29. |
| Exceedingly good cakes have lifted sales at Premier Foods (PFD) as a relaunch of its Mr Kipling brand ushered the business back into the black. The maker of Bisto gravy and Ambrosia rice pudding yesterday announced £15 million of pre-tax profits for the six months to September 28, compared with a £2.2 million loss last year. The results were boosted by 8% growth of its Mr Kipling range and a doubling of Nissin noodle sales. Premier Foods recently made a big television advertising push to drum up demand for its new upmarket range of Mr Kipling cakes, including After Dinner Mint Fancies and apple, pear and custard crumble tarts, along with three new varieties of Cadbury Dairy Milk cake slices. It will start selling its new vegan range of Plantastic flapjacks in Tesco stores this month as the brand adapts to changing consumer tastes. |
| Britain’s four biggest supermarkets suffered a slide in sales last month as discounters lured their shoppers. Grocery sales grew by only 1.1% over the past month, according to Nielsen, the data provider, with sales for Tesco (TSCO), Sainsbury (J) (SBRY), Asda and Morrison (Wm) Supermarkets (MRW) all falling. Aldi and Lidl, the German-owned discount retailers, accounted for almost three quarters of the £500 million of extra sales, with increases of 9.5% and 13.8%, respectively. In contrast, Morrisons’ sales fell by 1.5%, while Asda’s dropped by 0.6% and Sainsbury’s and Tesco both reported declines of 0.2%. Marks & Spencer Group (MKS) increased its food sales by 2.1% over the four weeks, ahead of Waitrose, its rival, which suffered a 0.3% fall. Clive Black, a retail analyst at Shore Capital, said that the grocery data showed consumers were in a “recessionary mood”, despite virtually full employment and rising wages. |
 | DCC (DCC) has snapped up a maker of health supplements in a takeover that pushes it further into the American nutritional market. DCC said yesterday that its healthcare division had bought the Florida-based Ion Laboratories for $60 million, including debt. Ion, which has revenues of $80 million, makes dietary and pet supplements and skincare products. Last year DCC bought Elite One Source, another nutrition business, which marked its entry into the US health and beauty market. |
 | The liquidation of British Steel has dealt a £10.4 million blow to Electrocomponents (ECM) and dragged down its first-half earnings. The engineering group’s shares retreated after it reported the multimillion-pound writedown. That, in turn, weighed on profits of £89 million in the six months to September 30, down from £93 million in the same period in 2018. British Steel, which employs 5,000 staff at sites including Scunthorpe, was placed into compulsory liquidation in May. Jingye, a state-backed Chinese company, agreed this week to buy it from the government for £50 million and a promise of £1.2 billion of investment over the next decade. Outstanding payments from Electrocomponents’ dealings with the steelworks operator amount to £7.2 million, while it also attributed £3.2 million “against inventory recovered from British Steel”. |
 | Investors cheered Experian (EXPN) after the world’s biggest credit data company reported an encouraging performance in the United States. Shares in the company climbed after it unveiled a 2% rise in first-half pre-tax profit to $480 million on revenues that increased 6% to almost $2.5 billion. City analysts were impressed by the credit-scoring group’s consumer division in America, which Brian Cassin, chief executive, has overhauled and where organic revenue growth accelerated to 16% in the second quarter, from 9% in the first. |
 | Aggreko (AGK) has reported a 2% drop in revenues for the first nine months of the year. Aggreko said that it had suffered a drop in revenues in its rental business and its power solutions utility division, which focuses on powering longer-term projects for utility customers in emerging markets. Aggreko said that its underlying revenues were flat year-on-year after stripping out fuel costs, currency movements and the effect its contracts for various Olympic Games. Its power solutions industrial unit, which makes up about 53% of revenue, was down 1% in the first nine months of 2019. Robert Plant, an analyst at Panmure Gordon & Co, kept a “sell” rating on the stock |
| The chairman of Softcat (SCT) sold off another big chunk of his stake in the IT group. He banked £12.3 million after selling 1.17 million shares in the company. Since stepping down as chief executive of Softcat in April last year, Mr Hellawell, his wife, Mandy, and charitable foundations linked to the family have cashed in shares worth just over £57 million. Last July, the couple disposed of shares worth more than £23 million, while more recently they disposed of stock worth £21.3 million. The money should help him to find a better work-life balance, which was one of the reasons he stepped back from the day-to-day running of the business. |
 | Oxford Instruments (OXIG) rose after it reported a 55% jump in profits. The company was spun out of Oxford University 60 years ago and its scientific tools are used in laboratories around the world. China has been a key market for the group and sales there jumped 14% in the opening six months of its financial year, while total revenue climbed by 13.1% to £166.3 million. Pre-tax profit leapt to £18 million from £11.6 million a year ago as the company’s Horizon strategy, which was brought in a couple of years ago to improve margins, did just that. |
  | OnTheMarket plc (OTMP) shares climbed after the online property portal struck a deal with Persimmon (PSN). The housebuilder, which sold more than 16,000 new homes last year, will list all of its residential developments on On The Market’s website. A similar deal was reached with Barratt Developments in September. |
| Tempus – Vodafone Group (VOD): Buy. The company is on a steady footing ahead of its masts spin-off |
 | The company behind plans for a giant fertiliser mine under the North York Moors hopes to rescue the struggling project by raising $600m (£465m) from new investors by March. Sirius Minerals (SXX) has revised plans to finance the world’s largest potash mine of its type after the $5bn project was thrown into doubt in September when it abandoned a bond issue, blaming a lack of government support and Brexit uncertainty. The London-listed company said on Monday it was already in talks with potential investors to fund the first phase of the project’s development. The funds could provide an 11th-hour lifeline for what could prove to be the largest mine developed in the UK for a generation. |
 | Greggs (GRG) has raised its profit guidance for the fourth time this year as the bakery chain continues to buck the high street slowdown. The company’s shares rose by more than 15% after reporting that total sales for the six weeks to 9 November were up 12.4%. The firm, which has more than 2,000 stores across the UK, has thrived despite the malaise afflicting many businesses. Sales in 2018 exceeded £1bn for the first time and the successful launch of its Quorn-filled vegan sausage roll has underpinned another strong year. Greggs’s market value has surged by about three quarters in the past 12 months. “Sales growth continues to be driven by increased customer visits and has been stronger than we had expected,” said Greggs in a trading update on Monday. “The board now anticipates that full-year underlying profit before tax will be higher than our previous expectations.” |
| Lombard – Sirius Minerals (SXX). Endless optimism puts Sirius boss in class of his own. Ex-banker pushing for a mine in Yorkshire says the company has reworked its financing needs |
 | Vodafone Group (VOD) strikes deal with BT Group (BT.A) to expand broadband coverage. Mobile group takes advantage of Openreach discounts to widen fledgling full-fibre network |
| Greggs (GRG) lifts profit forecasts for fourth time this year. UK bakery chain sees benefits from new products and later opening |
 | The battle over Just Eat (JE.) has intensified after one of the suitors lowered the bar on its hostile takeover offer. Investment firm Prosus said it now needs to win the backing of 75% of the food delivery group’s shareholders – down from the previous target of 90%. Prosus is attempting to hijack a previously agreed deal that would see Just Eat bought by rival Takeaway.com. Prosus chief executive Bob van Dijk said there was no need to increase his 710p-per-share offer, or £4.9 billion, in order to win over investors. ‘We believe it offers fair value and gives shareholders certainty,’ he said, contrasting his company’s cash bid with Takeaway’s offer, which will be paid in shares. However, Just Eat’s board stuck to its guns, once again rejecting van Dijk’s bid to win its business because the offer ‘fails to appropriately reflect the quality of Just Eat’. |
| Greggs (GRG) has raised its profits forecast for the fourth time this year – sending its valuation soaring to over £2 billion. More customers are visiting the bakery chain’s stores, and a total sales increase of 12.4% in the past six weeks compared to the same period last year pushed shares up. The Newcastle-based company’s £2.1 billion market capitalisation is bigger than outsourcer Serco’s and self-storage company Big Yellow Group. Greggs had previously been expecting full-year profits to be around £107m on revenues of £1.16 billion, according to its house broker. But the business said it anticipates profits ‘to be higher than our previous expectations’. |
 | Union Jack Oil (UJO) took a 16.67% stake in West Newton at the end of 2018 ahead of a drilling programme designed to prove what was believed to be a sizeable gas discovery. Results in June from the A2 appraisal well indicated there was a sizeable gas discovery, but subsequent work has also indicated an additional bonus. Analysis from the operator suggests that the Kirkham Abbey reservoir at West Newton might prove to be among the largest oil discoveries so far made onshore in the UK. According to the latest update, Kirkham Abbey contains 146.4million barrels of oil in place and 211.5billion cubic feet (bcf) of gas on a base or most conservative estimate. ‘The estimated resource volumes therefore firmly categorise West Newton as having significant ‘company maker’ potential in our view,’ according to SP Angel, Union Jack’s broker. |
| A recovery could be on the way for Aston Martin Holdings (AML), according to HSBC. Analysts at the bank are encouraging investors to snap up Aston’s cut-price stock, upgrading it to ‘buy’ from ‘hold’ and lifting its target price from 533p to 550p. After a disastrous first year as a public company, the recent third-quarter results were a relief to investors and the future looks brighter for the struggling luxury car maker. Although it published a third-quarter loss of £13.5m, it left its full-year guidance unchanged – pleasantly surprising the City, which was widely expecting another downgrade. The upcoming James Bond film No Time To Die, featuring four Astons, will provide a boost, HSBC says. And the launch of its family-targeted SUV, the DBX, could be ‘a turning point for the equity story’. ‘After months of underperformance and the future of the company at stake, we believe the launch of the DBX is potentially game-changing,’ HSBC analysts said, adding that it’s ‘no time to die’ for Aston just yet. | |
 | Rolls-Royce Holdings (RR.) tumbled after Societe Generale analysts downgraded it to ‘hold’ from ‘buy’ and cut its target price to 825p from 930p. Last week Rolls cut its outlook and said it will take a £1.4 billion one-off charge this year amid engine issues. |
 | Beazley (BEZ) fell 33p, to 544p, after UBS kept its ‘buy’ rating on the company but trimmed its target price back from 650p to 630p. Analysts believe Beazley is better prepared than most firms for an expected downturn in an area of the market that looks after vehicle and theft insurance. But they also think it will need to keep building up buffer funds to protect itself well into next year. |
| Greggs (GRG) faces a hit from an African swine fever epidemic which is pushing up global pork prices. The firm could be among the businesses stung by the outbreak, which has infected 100 million pigs in China alone and wiped out a quarter of the animals worldwide, analysts at Peel Hunt said. Despite that, Greggs’ shares shot up by more than 17% after it raised profit forecasts for the fourth time this year. Greggs now expects full-year profits to be higher than previously expected, with in-house broker Edison previously forecasting earnings of £107m. |
| Shoppers Down Under will soon be tasting the difference after Sainsbury (J) (SBRY) struck a deal to sell its own-label products through Coles, one of Australia’s biggest supermarkets, in a bid to drive up revenues from wholesale after the failed Asda takeover. It will be the supermarket’s biggest wholesale deal so far, but it is playing catch-up with rivals. The tie-up will put Sainsbury’s food and groceries in more than 2,400 stores in Australia as well as online from next year. |
 | Dignity (DTY) is seeking to cash in on a trend for mail order funerals as relatives seek alternative ways to remember their loved ones. Dignity has seen a surge in sales of direct cremations – in which the funeral provider collects and cremates the body, then returns the ashes. Chief executive Mike McCollum speculated direct cremations could eventually account for 20pc of the overall market from just a few percent now. The service is much cheaper – typically less than half the average funeral cost in the UK of £3,757- but Mr McCollum said attitudes rather than cost was driving the trend. |
 | Questor – IP Group (IPO): as investors run in fear from ‘incubators’, the brave may scent the chance of treasure. Questor share tip: firms that seek to commercialise intellectual property are heavily out of favour – and that gives rise to opportunity |
| Urgent reform of business rates and the apprenticeship levy is “essential” to help retailers to navigate the challenges posed by changing shopping habits, the industry has warned. The British Retail Consortium yesterday called on political parties to consider the plight of physical shops in their election manifestos. With high rates of closures and job losses, the group said that action must be taken “to ensure the industry can continue to support local communities up and down the country”. The consortium, which represents more than 5,000 businesses, said that business rates were “accelerating store closures, job losses and declining high streets and hindering the industry’s ability to invest in the stores of the future and in new technology which will benefit UK shoppers”. | |
| Sirius Minerals (SXX) is trying to breathe new life into its £5 billion fertiliser mine under the North York Moors National Park by touting for a “strategic investor” to help to provide $600 million to get the project back on track. Sirius is being watched closely by its army of 85,000 retail shareholders, many of them locals, who have been backing the project. Politicians in North Yorkshire say that the government should intervene to kick-start the project, to create hundreds of jobs, a new industry and boost a regional economy affected by the decline of the steel sector. The company is constructing the Woodsmith Mine, close to the coastal town of Whitby. The deep mine is seeking large deposits of polyhalite, a type of potash used in fertiliser. However, progress to secure the project’s future stalled in September when the issue of a $500 million junk bond, key to unlocking much greater investment, was withdrawn. |
 | Informa (INF) has bought a stake in a networking business for entrepreneurs set up by one of the co-founders of Lastminute.com. Informa said yesterday that it had made a minority investment in Founders Forum and had started a joint venture with the organisation, which holds events that bring together investors, chief executives and technology entrepreneurs. The forum was co-founded by Brent Hoberman, 50, who with Baroness Lane-Fox of Soho, 46, was behind Lastminute.com, an online travel agent that epitomised the dotcom boom at the turn of the century. |
| A string of partnerships to provide international money payments has made Finablr PLC (FIN) “highly confident” about its prospects. The global payments platform said that its adjusted income had risen by 9% to $1.2 billion in the first nine months of the year, while earnings were up 22% to $182.3 million. Finablr has signed deals with Samsung, the South Korean electronics group, to provide international money transfers to 47 countries, and Airtel Africa, the telecoms and money services business, to allow customers to send money from more than 100 countries into Airtel Money wallets across Africa. It also announced an agreement with China Union Pay to collaborate on cross-border payments into mainland China. | |
| Greggs (GRG) shrugged off fears of a slowdown in trading yesterday as the maker of sausage rolls and sticky buns upgraded its profit forecast for the fifth time in only a year. The bakery chain said that recent trading had held up well against strong sales during the same period last year. Roger Whiteside, 61, the Greggs chief executive who has presided over thirteen profit upgrades during his seven-year tenure and only two downgrades, said that consistent improvements since the third quarter of 2018 had been thanks to rising customer numbers rather than price rises. |
| The South African technology investor targeting a takeover of Just Eat (JE.) is pressing ahead with its proposed £4.9 billion offer despite being warned the price is not high enough. Naspers yesterday published its offer document detailing the terms of a potential deal, but the only change was a cut in the required level of acceptances from Just Eat shareholders for the takeover to go ahead from 90% to 75%. Just Eat responded by reiterating its advice that investors should reject the 710p-a-share cash bid, which is being made through Prosus, Naspers’ Dutch spin-off. Shareholders in Just Eat must choose between a takeover by Naspers, a proposed merger with Takeaway.com that has been recommended by the board, or remaining independent. Investors speaking for about 22% of the company’s shares have publicly expressed their opposition to the Naspers bid. |
| A fall in the number of people dying has hit profits at Dignity (DTY), Britain’s only listed funeral provider. The Sutton Coldfield-based business said that its underlying profit had dropped by 30% for the 39 weeks to the end of September, down to £47.9 million from £68.6 million in the same period in 2018. That corresponded with a 5% drop in the number of deaths in England, Scotland and Wales from 455,000 to 432,000. Dignity said that its performance had been consistent with its expectations, allowing for a “significantly lower number of deaths, particularly in the first half of the year”. It managed 52,100 funerals in the first 39 weeks of 2019, down from 55,700 last year. Profits also were hit by a slight dip in market share and higher costs. |
| The private equity backers of Trainline Plc (TRN) were poised last night to sell their residual holding in the London-listed ticket-buying app, bringing the total raised from selling out to about £1.4 billion in the space of five months. Investors led by KKR announced plans to sell their remaining 68 million shares in Trainline, representing a 14.1% stake, via a secondary placing after the market had closed yesterday. The investors offloaded £840 million of their holdings at the time of the Trainline flotation in June and another £285 million-worth in a placing in September at 435p. | |
| Aston Martin Holdings (AML) shares accelerated higher yesterday after analysts speculated that the upcoming launch of the luxury carmaker’s latest model could be “game-changing”. Bosses are pinning their hopes on its first 4×4 — the DBX — which is set to be launched this month, although first deliveries of the £158,000 car aren’t expected until next summer. HSBC’s auto analysts, who are now buyers of the stock, given the plunging share price, reckon that there are several reasons why sales of the DBX “could surprise to the upside”. First, they point to rivals such as Bentley’s Bentayga, the Lamborghini Urus and Rolls-Royce’s Cullinan, which are “getting old and losing share”, something that Aston Martin can exploit. To do that, the 4×4 needs to be competitive, which HSBC fully expects it to be. “The first journalist reviews we have seen for the model were all very supportive and, having seen the car ourselves, we expect the order book will build quickly and be stronger than the market expects,” the analysts said in a research note. They expect sales of the DBX to peak at just over 3,000 vehicles in 2021, with a hybrid variant, which could arrive shortly after, helping to ensure that demand doesn’t collapse after that. HSBC lifted its price target to 550p, from 533p. | |
 | ECO Animal Health Group (EAH) revenues have been ravaged by African swine fever in China, meaning that its first-half results will be lower than those achieved in the same period of 2018. Its shares fell by 85p to 272p. |
 | Tissue Regenix Group (TRX) lost more than two thirds of its value after warning that it was likely to breach one of its banking covenants. The company, in which Woodford had a 20% stake until it was transferred to Link Fund Solutions, said last month that it was struggling to keep up with orders and that revenue could be as much as 20 per cent below forecasts. Now it has revealed that the top-line miss means it will breach one of the covenants of a $20 million loan. It is in talks with Midcap Financial, the lender, but the stock fell. |
| Tempus – Just Eat (JE.): Hold. The Just Eat share price, unchanged at 738p, tells us neither offer is acceptable. One or both suitors should sweeten the terms |
 | Tempus – European Investment Trust (EUT): Hold. Baillie Gifford’s track record is impressive but it may be best to wait for the switch before diving in |
| More than 210,000 workers in Britain are to receive a pay rise after the charity behind the living wage increased the national minimum hourly rate by 30p to £9.30. The Living Wage Foundation, which sets the voluntary measure, said London workers’ basic hourly rate will also rise, by 20p to £10.75, compared with the government’s “national living wage” of £8.21 for workers aged 25 years or older. The charity said the difference between its own living wage and the government minimum will be more than £2,000 a year nationally and almost £5,000 a year in London. | |
 | Betting firms are recruiting specialist staff to lure high-spending “VIP” customers who lose significant sums of money, prompting concerns about the industry’s commitment to promote safer gambling, say experts. VIP schemes have been cited in a succession of cases in which addicts were showered with free gifts as they racked up thousands of pounds of losses. But midway through the industry’s Responsible Gambling week a Guardian analysis of jobs websites suggests gambling firms have no plans to rein in the loyalty schemes. One advert for a “VIP executive” to work at Gala Bingo’s online business, part of the GVC Holdings (GVC)-owned Ladbrokes Coral group, states that candidates will be working to increase “overall player lifetime value and the revenue contribution for the VIP player base”. |
| Bidding for shares in the world’s most profitable company will start in a week’s time, it has been announced, as Saudi Aramco fleshed out its plans for a much-delayed float expected to be the largest in history. The oil company, which is owned by the autocratic Gulf state, said it would take bids for its shares from 17 November and planed to provide further details on the final offer price and the amount of stock for sale on 5 December. Its prospectus, which was released at the weekend, showed profits of $68.2bn (£53.3bn) for the first six months of this financial year. The 658-page document gave no indication of the price range that the Saudi government hoped to achieve but City analysts have valued Saudi Aramco, which accounts for more than 10% of the world’s oil production, between $1.1tn and $2.5tn. Bloomberg reported that the Saudi crown prince, Mohammed bin Salman, would be satisfied with a valuation of $1.6tn to $1.8tn. At the upper end of that range, the sale of just 2% of the company would result in a record $36bn float, dwarfing the $25bn raised by the Chinese tech firm Alibaba in 2015. | |
 | British Airways has pledged to review its practice of making aircraft carry tonnes of excess fuel to avoid filling up at destination airports, which saves money but drives up CO2 emissions. Willie Walsh, chief executive of BA’s parent company International Consolidated Airlines Group SA (CDI) (IAG), admitted that using the method – called “fuel tankering” within the industry – was “maybe the wrong thing to do” despite the financial incentive behind the practice, because of its environmental impact. Critics said the widespread use of fuel tankering called into question airlines’ commitment to reducing their impact on the environment. The information of excess fuel carriage came from a BA insider during a BBC Panorama investigation. IAG recently tried to burnish its environmental credentials with a commitment to become the first airline group worldwide to commit to net zero emissions by 2050. |
| BT Sport’s stranglehold on Champions League football is set to be challenged as Sky prepares to enter the battle for the £1bn-plus TV rights when bids are submitted on Monday. BT Group (BT.A), which has aired Champions League football since 2015 after beating joint holders Sky and ITV with a blockbuster bid, had not been expected to face a serious challenge to secure the next round of UK TV rights for the three years from 2021-22. Following the dip in the value of the last Premier League rights auction – considered a sign that the recent inflationary rise in prime sports rights was at an end – BT was potentially hoping to make an investor-pleasing saving on its current £1.2bn Champions League deal. Industry observers speculated that it might save £50m to £100m a season. In last year’s Premier League auction, Sky shaved £200m a year off its previous deal, or 16% a game. Sky, which sources say is preparing a “financially disciplined” bid for the Champions League rights, had not been expected to enter the auction, which would significantly add to its £3.5bn annual sports rights bill. |
| Tesco (TSCO) seeks to gain edge with Clubcard subscription service. Amazon-style offer underscores supermarket group’s change in approach to customer loyalty |
 | Andy Briggs to replace Clive Bannister as Phoenix Group Holdings (DI) (PHNX) chief. Specialist life insurer hires industry veteran who formerly led Friends Life and Aviva UK |
  | easyJet (EZJ) buys Thomas Cook Group (TCG) slots at Gatwick and Bristol airports. Collapsed travel company’s take-off and landing slots were one of its most valuable assets |
 | Standard Chartered (STAN) to cut pay packages of top 2 bosses. Lender’s chief executive and chief financial officer agree to halve pension allowance |
| Royal Mail (RMG) seeks court order to block walkout. Postal group says strike ballot had ‘irregularities’ making it ‘null and void’ |
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