 | The founders of Sophos Group (SOPH) will share a £460 million payday after their company was acquired by an American private equity fund. In the latest overseas takeover of a London-listed company, Thoma Bravo agreed to buy Sophos, the cybersecurity specialist, for $3.8 billion. The San Francisco-based fund has offered $7.40 per share, worth 583p when the deal was unveiled yesterday. The deal was recommended by Jan Hruska and Peter Lammer, Sophos’s founders, and Apax Partners, its largest investor. The likelihood of a counterbid appears remote. |
 | Julian Dunkerton plans to remain as chief executive of Superdry (SDRY) until 2021 after seizing back control of the company he co-founded, despite saying initially that he would take the job on an interim basis only. Mr Dunkerton, 54, rejoined the fashion retailer as its interim boss in April after shareholders narrowly voted in favour of his return — in turn prompting the resignations of senior directors including Euan Sutherland, the former chief executive. Superdry confirmed yesterday that he had agreed to stay on as chief executive until 2021. |
 | Ferrexpo (FXPO) denied yesterday that its chief executive and biggest shareholder had been served with legal papers, amid reports that authorities in Ukraine have started a process to add him to an international wanted list. In the latest stage of a long-running saga, Ferrexpo said in a stock market statement that its board is “closely monitoring” the situation but has been informed that Kostyantin Zhevago “has not been served with any legal notice” and “strongly denies any allegations of wrongdoing”. A month ago, Ferrexpo denied reports that Mr Zhevago was suspected of embezzling about $100 million from Bank Finance and Credit. The Ukrainian lender, which he formerly controlled, was declared insolvent in 2015. |
 | The new transport secretary will be questioned by MPs on why his department handed the operation of the west coast main line and the new High Speed 2 line to FirstGroup (FGP) when the company’s running of South Western Railway already had financial and operational problems. Grant Shapps is to face the Commons’ transport select committee tomorrow. Before that, the Labour Party has tabled questions in parliament, including: “What assessment, if any, of the financial performance of First Group’s existing rail franchises did the Department for Transport undertake prior to the announcement of the award of the West Coast Partnership?” |
 | Ashmore Group (ASHM) led by one of the City’s wealthiest financiers attracted £1.9 billion of new money in the last quarter. Net inflows at Ashmore Group reached $2.4 billion in the three months to the end of September. However, assets under management edged up by only 0.1% to $91.9 billion after $2.3 billion of investment losses in the period offset the new business that the company had pulled in. |
 | Thousands of people have signed an online petition urging Barclays (BARC) to reverse its decision to prevent its customers withdrawing cash from post offices. A Change.org campaign attacking the bank for putting profits ahead of its customers and urging its executives to think again “before it is too late” had been backed by more than 4,400 people last night. The petition, set up by the National Federation of Subpostmasters, warns that the move “will present major challenges to older and disabled people. Barclays’ actions will be damaging to customers and to a national institution — the local post office.” |
 | Ocado Group (OCDO) shares drop as JPMorgan gets negative. They reckon that Ocado’s valuation is “stretched”, that the shares are worth 20% less than their value and there is little upside remaining in the price. “At this point we do not see risk/reward as compelling and scope for outperformance appears limited,” they said. “We downgrade the shares from ‘neutral’ to ‘underweight’.” |
 | NMC Health (NMC) dropped after a bearish note from Jefferies, which described a surge in the share price as “unwarranted”. The hospital operator had looked set to be kicked out of the FTSE 100 after its value fell by a third in the first eight months of the year. Yet towards the end of August its shares recovered all those losses and more amid “unsubstantiated” reports that two groups, including one backed by Fosun, of China, were competing to buy a 40% stake. “We see no merit to this speculation as we believe the UK Listing Authority markets monitoring team would have likely investigated,” Jefferies said. The analysts believed that the rumours had “detracted from the fundamentals” and they repeated their “underweight” rating and £19.25 price target. |
 | Tempus – Augmentum Fintech (AUGM): Buy. Solid portfolio should be capable of sustaining knocks and still generating good value over time |
 | Tempus – Euromoney Institutional Investor (ERM): Hold. Quality business that at the moment feels fairly valued |
 | HSBC Holdings (HSBA) plans First Direct relaunch to compete with digital rivals. New features could include in-app marketplace and automated savings top-ups |
 | Morses Club (MCL) hopes path of careful change will win out on UK’s doorsteps. Business of selling credit to neighbours is under pressure from many sides |
| High street retailers are braced for their worst Christmas in more than a decade as they struggle with high taxes, economic fears and frenzied discounting only weeks into the season. The bosses of major chains have shared their concerns with The Mail on Sunday as Government efforts to ease the burden of tax on retailers appear to have foundered. Vital legislation designed to cut property tax for retailers in struggling high streets failed to make it though Parliament before it was closed down last week. Research by The Mail on Sunday has revealed that business rates have remained rigidly high despite rents falling as landlords cut lease demands for struggling shops. More than 12,000 high street stores are now paying more in business rates than in rent compared with around 500 in 2017, according to business rates consultants Altus. | |
| City bosses have drawn up a plan to woo Chinese giants after Brexit and transform London into the ‘prime international location’ for Beijing firms to list their shares, The Mail on Sunday can reveal. Policymakers at the City of London Corporation – the body representing the interests of banks, insurers and other organisations in the Square Mile – believe there is an ‘urgent need’ to enhance relations with China and attract new financial services investment after the UK leaves the European Union. Documents seen by this newspaper say London is well placed to take advantage of the trade war with the United States, which has seen President Donald Trump threaten a crackdown on Chinese firms listing on its markets. | |
 | British Airways will use posts on Instagram and other social media platforms to help it pick new flight destinations. Millennials in particular are likely to choose where to go on holiday based on photos they’ve seen on social media and will consider how ‘Instagrammable’ a place or hotel is before booking. Willie Walsh, chief executive of BA’s parent firm International Consolidated Airlines Group SA (CDI) (IAG), said this had not affected decisions on flight routes before but would be taken into account in future. |
 | BP (BP.) has warned that Hurricane Barry’s trail of destruction in the Gulf of Mexico hit production and increased its tax rate. The oil giant’s shares slipped 1.7%, or 8.45p, to 493.55p after it revealed 100,000 barrels were lost per day to the storm in July. The chaos forced the company to shut its rigs for two weeks, a trading update said yesterday. And because the storm affected a low-tax region, it meant BP had to produce more oil in regions with higher tax rates, increasing its overall bill. |
 | Fund manager Terry Smith has been left red-faced after the brokerage firm he used to head was slapped with a £15.4million fine. Tullett Prebon, now a part of TP ICAP (TCAP), was found by the Financial Conduct Authority (FCA) to have ineffective controls around broker conduct in its rates division between 2008 and 2010. This, combined with a culture of lavish entertainment, allowed improper trading to take place. At one point, a Tullett Prebon broker claimed more than £15,000 from the company to pay for a luxury holiday to the US with his friend, a trader at a client bank. Tullett Prebon ended up paying for the ten-day trip to Las Vegas and California, during which time the broker racked up bills from dinners in expensive bars and restaurants, and hired two top-end sports cars as amusement. |
 | The owner of airline Jet2 has lifted its profit expectations for the year after a rise in demand for flights and packaged holidays since the collapse of Thomas Cook last month. Dart Group (DTG) share price jumped following the trading update. However, the company said it remained ‘very cautious’ as the travel industry continues to face ongoing problems, including rising costs and waning consumer confidence in the face of a weaker pound and Brexit uncertainty. A weaker pound means higher costs for companies based in the UK, and also undermines the purchasing power of UK holidaymakers heading abroad. |
 | MIDAS SHARE TIPS: Scotgold Resources (DI) (SGZ) – the Highland stock that really could be a gold mine. Midas verdict: Gold is trading at about $1,500 (£1,225) a troy ounce and economists expect it to move higher in the coming months as investors seek a safe haven. Scotgold should benefit from this trend. The company has struggled in the past, but it is close to production, with financing in place and an experienced team at the helm. For locals and lovers of the Highlands alike, there is also the appeal of supporting a successful Scottish gold mine. At 54p the shares are a buy. |
 | MIDAS SHARE TIPS UPDATE: Ramsdens Holdings (RFX) shares rise as pawn shops that sell jewels sparkle thanks to strong gold prices. Midas verdict: The retail sector has been filled with profit warnings, shop closures and other tales of woe. Ramsdens seems to be holding its own. Its high street customers are loyal and it has a small but fast-growing online business selling jewellery and foreign currency. Ramsdens’ product range and ambition may continue to shield the business from some of the problems affecting the high street. But, with economic conditions weakening, shareholders have a right to feel cautious. Having enjoyed a 17% increase in the share price since last year, they may choose to sell half their stock and bank some gains. They can then keep the rest and hope that Kenyon continues to deliver. |
| FirstGroup (FGP) new chief, David Martin, the former Arriva chief who replaced ousted Wolfhart Hauser, is to meet investors at the end of a whistle-stop tour of the US on Oct 31, The Daily Telegraph understands. In his first meeting with them since taking office in August, Mr Martin will be hoping to convince investors that he has the right team and strategy in place to reinvigorate the company’s fortunes after months of disquiet. Coast Capital Management, the Wall Street activist and First’s biggest shareholder, will likely provide a stern test of Mr Martin’s resolve. |
 | Analysts have claimed that Direct Line Insurance Group (DLG) could be heavily exposed to the City watchdog’s plan to crack down on alleged overcharging of loyal customers, with the company facing a probable one-off hit to its earnings and possible damage to its brand once regulators announce final measures next year. Britain’s home and motor insurers have all found themselves under fire, after the Financial Conduct Authority (FCA) announced a ban on companies unfairly hiking prices for existing customers – a practice known as “price walking” or the “loyalty penalty” – after finding that millions of people overpaid when renewing their insurance last year. |
 | Lloyds Banking Group (LLOY) is understood to have stepped up its succession planning as analysts and headhunters bet that its chief executive Antonio Horta-Osorio will go within a year. Lloyds is understood to be in the “initial research” stage of finding a successor as speculation grows that Mr Horta-Osorio, who has long been tipped as a potential candidate for the top job at HSBC, is eyeing his exit. “I believe we will see Antonio move to step down from the board of Lloyds within the next 12 months,” said John Cronin, a banks analyst at Goodbody. Investec’s Ian Gordon said it would be “a surprise” if the 55-year-old stayed for more than another two years given he became CEO in 2011. |
| Investors in the UK’s stock market are expected to enjoy a £240bn “deal dividend” if Boris Johnson can seal a last-gasp Brexit agreement before the Oct 31 deadline. Stocks in London would rise 10% and the pound would claw back 8% against the dollar if a Brexit deal is reached, according to market stress tests conducted by data giant MSCI. Sterling and UK-exposed stocks skyrocketed into the weekend amid resurgent hopes of a breakthrough in talks between the UK and EU. The domestic-focused FTSE 250 index advanced more than 3% while RBS and housebuilders saw gains of more than 10%. Sterling gained as much as 2.8% on Friday, pushing above $1.27 for the first time in three months. | |
| The City watchdog has fined broker Tullett Prebon £15.4m for failing to be open and co-operative with an investigation into cosy relationships between brokers and traders that included lavish golf trips and wild foreign jaunts. Tullett Prebon, now part of FTSE 250 firm TP ICAP (TCAP), had “ineffective controls around broker conduct” between 2008 and 2010, resulting in “improper” trades, the Financial Conduct Authority (FCA) found. A report found that brokers’ bonuses were tied to to how much business they generated, while the company paid for golfing trips to Scotland and trips to Monte Carlo, Ibiza and Las Vegas, all on top of the usual client drinks and dinners in the City. |
 | “We’ll give you clarity at the full-year results,” Nick Beighton, the normally jovial boss of ASOS (ASC), sniffily told an analyst on the morning of its second profit alert in July. The first profit warning was just before Christmas. On Wednesday, when he updates the City, Beighton will have to go beyond clarity. There is “a lack of visibility” says Georgina Johanan, a retail analyst at JP Morgan. Asos has kept shtum so far about how its coffers might shape up in 2020. Once a stock market tech darling, the online retailer’s share price has slumped from highs of £76 last year to £24 on Friday. Almost 5% of its shares are on loan to shortsellers. |
| BP (BP.) will take a hit of up to $3bn (£2.4bn) from asset sales and warned that a storm in the Gulf of Mexico dented its production in the middle of this year. Shares in the oil giant fell 1.8% to 492.85p even as it insisted there would be no impact to its dividends or free cash flow. It comes as BP, which last week announced the departure of chief executive Bob Dudley, looks to sell off non-essential assets worth around $10bn by the end of this year – one year ahead of schedule. The company sold its entire Alaska business to Houston-based Hilcorp Energy for $5.6bn this year. |
| Questor: as incoming boss mulls a cleaner future, BP (BP.) strength gives him room to breathe. Questor share tip: oil major’s reserves are still highly cash generative as it plots a move away from fossil fuels. Hold |
| Company dividends could be under threat, with British businesses near the bottom of international league tables for dividend sustainability after a long spell of payouts growing more rapidly than profits. Dividend cover is expected to be at its lowest level in a decade this year, according to Henderson International Income Trust, an investment trust. Companies making large payouts to the detriment of capital growth may find that it becomes unsustainable, forcing them to cut dividends and to fall into a “dividend trap”. Global dividend payments topped £1 trillion for the first time last year after profits reached a record £2.3 trillion. This year dividends are expected to rise again, by 8.7% to £1.1 trillion, outstripping profit growth of 5.6%. | |
 | Legal & General Group (LGEN) new huge plant producing modular housing is one of the most ambitious diversifications attempted by the FTSE 100 insurer. “It’s taken us longer to do it than we thought, but we are very happy. The trajectory looks very positive and promising. There’s good customer acceptance now. The hard yards are over,” said Nigel Wilson CEO. He has just had to tell the Legal & General board about progress to date. Creating what the group says will be the biggest modular housing factory in the world has not come cheap: the subsidiary lost another £20.6 million last year, taking accumulated losses to almost £76 million. But Mr Wilson believes that the size of the potential prize makes the upfront cost worth it. Producing snag-free, low-cost housing on a commercial scale is the holy grail for policymakers desperate to boost new housing starts in Britain to 300,000 a year. The figure was 200,000 last year. |
| The number of visitors to shops continued to fall last month. Footfall on high streets and in shopping centres and retail parks is now down by 10% compared with seven years ago, according to Springboard, the retail analyst. The defection of shoppers to online retailers has added to the travails of businesses also suffering because of high taxes, weak consumer confidence and Brexit uncertainty. Shopper visits declined by 1.7% in September as heavy rain in the last week of the month led to the lowest visitor numbers to shops in any week since last year’s Beast from the East cold snap. High streets and shopping centres were hit hardest, with numbers declining by 1.8% and 3.2%, respectively. Retail parks fared better, with footfall up 0.1%. | |
 | AA (AA.) has launched a hunt for a new chairman two years after it ousted Bob Mackenzie, a former executive chairman, for punching a senior director. The motoring organisation has hired Korn Ferry, the consulting firm, to find a successor to John Leach by next summer, Sky News reported. Mr Leach, 71, joined the AA as a non-executive director in 2014 and took on the chairman role after Mr Mackenzie, 62, was dismissed for alleged gross misconduct in 2017. A legal dispute between Mr Mackenzie and the company over his removal is continuing. |
| Listed companies have suffered a decline in the quality and quantity of analyst coverage since new European rules were introduced, according to research that contradicts official views. The regulations, which came in at the start of last year, force brokers to charge asset managers separately for trading and research fees. This has encouraged asset managers to cut their budgets for externally produced equity research. Smaller listed companies are in danger of dropping off the radar of large institutional investors, it has been claimed, making it harder for them to raise capital and reducing liquidity in their shares. A review of the impact of the new rules — known as Mifid II — by the Financial Conduct Authority last month found “no evidence of a material reduction in research coverage”. However, in an annual investor relations survey, 52% of British companies reported a year-on-year decline in the number of analysts covering them, while 38% reported a fall in the quality of “sell-side” analyst research. | |
 | Land Securities Group (LAND) is close to sealing the £650m sale of a portfolio of cinemas, restaurants and indoor ski slopes as it builds a war chest for deals in London’s real estate market. The company is understood to have agreed to sell its 95% share of X-Leisure unit trust to private equity investor CIT. London offices make up almost half of Land Securities’ £11.7bn property port–folio, and chief executive Rob Noel, who is due to step down next year, is looking to push further into the market despite the shadow cast by uncertainty over the future of WeWork. Mike Prew of the investment bank Jefferies said the co-working provider’s rapid expansion had artificially inflated rents, and this was likely to unwind as the company slows its growth in the capital and focuses on reducing its losses. |
 | Babcock International Group (BAB) is under pressure to replace its finance director after a tumultuous few years. At least one leading shareholder is agitating for the removal of finance chief Franco Martinelli, who has held the role for five years and spent 12 years before that as financial controller. Chairman Mike Turner, the former boss of BAE Systems, was replaced by former Shell executive Ruth Cairnie in July. Since then, the share price has partially recovered. Babcock recently won a contract to build five Type 31 frigates for the navy. Some investors, though, are understood to be pushing for more new blood, and better communication with the City over its performance. |
 | Letter and parcel deliveries could grind to a halt at Christmas if workers at Royal Mail (RMG) agree to a strike this week. About 110,000 members of the Communication Workers Union (CWU) have been balloted over action. The results on Tuesday are expected to lead to a mass walk-out. The planned strike — over pay, conditions and employment terms — comes at a crucial time for the former state-owned monopoly. It is battling against slumping letter volumes, the rise of competitors, such as Yodel and Hermes, boardroom upheaval and Labour’s renationalisation threat. The industrial action also risks undermining the attempts of boss Rico Back to improve productivity and expand parcel deliveries. |
| Flutter Entertainment (FLTR) could be forced to sell brands including Paddy Power to appease competition watchdogs, analysts say. The company, which this month announced a £10bn merger with Canada’s Stars Group, could face demands for remedies from the Competition and Markets Authority to win approval for the deal, according to Canaccord Genuity. The stockbroker said the most “logical decision” would be to sell Paddy Power’s digital and retail business, given the importance of Stars Group’s Sky Betting & Gaming operation in America. While Flutter, which also owns Betfair, would want to hold on to Paddy Power, the combination with Sky Bet will mean it owns three of the UK’s top seven online betting brands, which could lead to concerns over choice. Canaccord said that any sell-off would be an emotionally “difficult decision”, given the enlarged group’s intention to have its headquarters in Dublin, where Paddy Power is based. | |
| HSBC Holdings (HSBA) is to review its global equities sales and trading business as it tries to slash costs under caretaker boss Noel Quinn, raising the prospect of more job cuts. Europe’s biggest bank is looking to cut 10,000 jobs in Europe out of a global headcount of 240,000 — some of which will come from the sale of its French retail bank. Global equities revenues were $1.2bn (£930m) last year, equivalent to about 2% of group revenue. “Equity desks are becoming more automated — it wouldn’t be a shock if they take more bodies out,” said an investment banker. HSBC is under pressure to shrink its bloated cost base as profits are squeezed by low interest rates and unrest in Hong Kong, where HSBC makes about 80% of its money. The bank posted $52bn of income and $35bn of expenses last year. |
 | The boss of Smiths Group (SMIN) was handed £4.1m in pay and perks after a 13% surge in profits. The base salary of £820,000 for Andy Reynolds Smith was boosted by cash and share bonus schemes totalling £3m last year, which Smiths said were mainly rewards for hitting long-term goals. |
| ASOS (ASC) is due to admit that pre-tax profits tumbled by 69% to £31.3m after a series of mis-steps. Although sales are thought to have risen 12% to £2.6bn, a string of profit warnings have pushed the online retailer’s shares close to a five-year low |
| AA (AA.) justifies private equity’s reputation for flogging threadbare companies to the stock market. CVC, Permira and Charterhouse listed the roadside assistance company in 2014. The AA was hobbled from the start. The buyout barons, which bought it from Centrica, extracted hefty dividends and loaded it with £3.3bn of debt before taking it to market. After a brief honeymoon, the shares started to drop in mid-2015 — and it has been downhill ever since. The AA has been battered by a series of problems. Pugnacious executive chairman Bob Mackenzie was ousted in 2017 after a brawl with a colleague. A profit warning last year bruised investors further. Membership has dwindled from 4m in 2014 to 3.19m last month. Earlier this month, the Financial Conduct Authority dealt another blow, warning that it may penalise insurers that capitalise on customers’ loyalty or inertia by charging them higher prices. Debt remains stubbornly high at £2.7bn, with a net debt-to-core profits ratio of 7.8 times. The AA paid £127m in interest costs last year, and a further £24m to reduce the deficit in its £2.4bn pension scheme. AA’s finances are not sustainable in the long term. When the time comes to refinance that mountain of debt, it will face crippling fees and — in all likelihood — more punitive interest rates. A rights issue at this share price is not viable, and selling assets such as its growing insurance business is a road to oblivion. It may be generating cash, but at this rate it would take decades to clear that pile. That leaves either a sale or a messy restructuring, probably involving a debt-for-equity swap. Until someone comes up with an answer, the AA is too big a risk. Avoid. |
 | National Grid (NG.) warns on gas supply in no-deal Brexit. UK could turn to LNG market to top up supplies, but there would be no price certainty |
 | Lombard – Will Woodford investors stay loyal to Hargreaves Lansdown (HL.)? Like ‘Stockholm syndrome’, it is sometimes hard to understand investors’ allegiance |
| Ex-Barclays (BARC) chiefs aware Qataris could not be paid openly, court told. SFO claims bankers knew demand for outsized fees constituted payment for participation in fundraisings |
| Hargreaves Lansdown (HL.) grilled over Woodford debacle. Fund supermarket faces investor criticism despite winning 35,000 new clients in last quarter |
 | Lex- Kingfisher (KGF) – UK retailing: cannibal vector. Some businesses have no choice but to allow one division to devour the sales of another |
 | Persimmon (PSN) is heading for a bitter showdown with families who claim the housebuilder mis-sold them homes on toxic leasehold deals. Hundreds of its customers bought leasehold houses and now claim they are trapped by ratcheting rent bills that have made it impossible to sell. But the company is playing hardball and has told desperate customers that it ‘does not accept’ their complaints. An inquiry by MPs earlier this year found that many leaseholders did not appear to have fully understood the deal. In a recent row with Cardiff council, Persimmon was accused of mis-selling leasehold homes. It offered residents the freeholds to their properties at no charge as part of an out-of-court settlement. Campaigners now argue all its leasehold customers across the country should receive similar compensation. But in a letter sent to customers and seen by the Mail, the company rejected claims householders were misled. |
| Defiant Barclays (BARC) bosses last night refused to back down as anger mounted over their ‘unjustifiable’ decision to ban customers from withdrawing money at local post offices. The bank insisted its plans would not restrict access to cash despite widespread condemnation of the move, with MPs yesterday joining the backlash. The chairmen of Parliament’s business and treasury select committees both called on the bank to change course, warning its move risked depriving elderly and rural customers of a vital lifeline. |
| British Airways’s boss has spoken about his frustration over recent strikes – and insisted a deal can be done with the pilots. Willie Walsh, chief executive of International Consolidated Airlines Group SA (CDI) (IAG), said: ‘There is an incentive on both parties to resolve this issue.’ The comments follow the first pilot strikes in BA’s history last month when 2,325 flights were cancelled – costing the airline more than £120million. As talks continued between pilots union Balpa and BA chief executive Alex Cruz, Walsh said it had been ‘frustrating for me at times’ to sit on the side lines. |
 | OnTheMarket plc (OTMP) saw half-year losses widen as it warned that estate agents listing their properties on its website were holding back from signing long-term contracts amid continued Brexit uncertainty. The company, which is backed by thousands of estate agents, said that woes in the wider housing market had ‘undoubtedly’ slowed their business. However, it also said that the introduction of lower-cost, shorter contracts was proving more appealing to estate agents, which have been struggling as buyers and sellers stay put. |
 | Dunelm Group (DNLM) shares slid on Thursday as the retailer flagged ‘mixed’ trading during September when ‘political uncertainty’ took its toll on the homewares market. In a trading update, the firm said sales grew by more than 6% in the past three months. However, that fell short of analyst expectations of a near 11% jump. Investors were also put out by Dunelm’s admission that its performance in September was mixed as the UK’s £13billion homewares market was knocked by the ongoing Brexit uncertainty and weak consumer confidence. |
 | Hundreds of Thomas Cook Group (TCG) employees could still lose their jobs, despite a rescue deal from Hays Travel. Almost a tenth of the 555 former Thomas Cook shops, which were snapped up by Hays this week, are within 100m of the buyer’s existing estate. Hays had 190 outlets already, and 49 Thomas Cook stores are within 100m of one, according to analysis from the Local Data Company. And 76 of the rescued shops are within a kilometre of a Hays store – which could mean a slew of closures. |
 | De La Rue (DLAR) former boss Martin Sutherland has been handed a £50,000 leaving package to help him find a new job. The payout to Sutherland, who was ousted from the banknote printer in May after he lost the contract to print Britain’s blue, post-Brexit passports to a French rival, is understood to have been negotiated with former chairman Philip Rogerson. It comes just weeks after De La Rue cut 170 jobs at its banknote plant in Gateshead. Another 100 of its passport printing jobs are also due to disappear this autumn following the loss of the UK passport contract. |
| enjoyed record quarterly revenues. The company made £3.9million in the third quarter of the year, most of which came from its timber trading division. It also exported a record amount of its own-produced sawn timber and veneer. Although some more expensive tree species have seen their price fall by around 10% in 2019, it said ‘global demand for African hardwood logs has remained consistent’. | |
 | Brown (N.) Group (BWNG) shares rose after a return to profit in the first half of the year. The group behind brands Simply Be, Jacamo and JD Williams saw shares leap to 107p as it posted pre-tax profits of £18.8million for the six months to August 31, against losses of £27.1million a year ago. |
| Almost a tenth of the Thomas Cook Group (TCG) stores snapped up by Hays Travel this week are within 100 metres of the independent travel agent’s existing shops, raising the prospect of mass closures. Hays Travel, which already had 190 outlets, purchased Thomas Cook’s 555 UK stores from liquidators in an ambitous deal which stunned the City. It has pledged to reopen all of them under the Hays brand. But as many as 49 of the 555 former Thomas Cook stores are within 100 metres of existing Hays Travel sites, analysis by the Local Data Company shows. Of these, 33 are within 50 metres. And a total of 76 the acquired stores are within a kilometre of a Hays store – suggesting major overlaps between the pair’s businesses. |
| The boss of British Airways owner International Consolidated Airlines Group SA (CDI) (IAG) believes the £14bn third runway at Heathrow Airport is unlikely to go ahead due to a growing backlash over the environment. Willie Walsh said the huge project to boost capacity at Europe’s busiest air travel hub is likely to fall flat despite finally winning approval from Parliament last year. It came as he raised concerns over how BA handled a pilot strike which caused mass cancellations last month – and offered only lukewarm support to the airline’s boss Alex Cruz. On Heathrow expansion, Mr Walsh said: “I think it is a bigger challenge today than it was a year ago. And I can’t see it getting any easier.” |
| Hargreaves Lansdown (HL.) has clashed with its eponymous founder and largest shareholder Peter Hargreaves over how the company handles its political donations. The investment platform ditched a usually-standard vote on donations at the last minute at its annual meeting on Thursday, fearing Mr Hargreaves would vote it down. Sources familiar with the fund investment platform told The Telegraph that Mr Hargreaves, a staunch Brexiteer, believes the company he founded should be able to hold stronger political convictions. Executives at Hargreaves Lansdown favour a more neutral approach. |
| Sponsorship of ITV show This Morning helped boost sales of cushions, blinds and sofas at Dunelm Group (DNLM). The retailer, which is now seen as one of the more resilient names on the high street, sold £255.6m of stock in the three months to September at stores open more than a year – up 6.4% on a year earlier. Despite this, the City was spooked by the news that sales have suffered in the final month of the period, raising questions over a possible wider high street slowdown as nervy consumer shun big purchases ahead of Brexit. Dunelm added that the progress it has made in boosting its profit margins during the first six months of this year could be hit by currency movements. |
 | Questor: ‘Mr Market’ can’t make up his mind about Craneware (CRW) but we can – ignore the noise and hold. Questor Inheritance Tax Portfolio: The software firm’s share price may be all over the place – but the business isn’t. Keep your nerve and hold on to the stock |
| A deal between British Airways and its striking pilots “is there to be done”, Willie Walsh, chief executive of International Consolidated Airlines Group SA (CDI) (IAG), has claimed as he failed to back the airline’s boss over his handling of the dispute. Negotiations with the main union for BA pilots are being led by Alex Cruz, 53, the embattled chief executive of the airline, rather than Mr Walsh, boss of the parent company. Mr Walsh conceded yesterday that there had been failings on both sides in the talks and that he had sympathy with some of the issues raised by pilots. Asked if Mr Cruz, an engineer by training, still had his backing, Mr Walsh said: “Alex is the chief executive. He is the boss. He has the responsibility to manage these issues.” |
| Regulators must ensure that Heathrow passengers do not end up paying for a third runway that is “unlikely to ever actually be built”, Willie Walsh, chief executive of International Consolidated Airlines Group SA (CDI) (IAG), has said. Mr Walsh says the Civil Aviation Authority needs to be much tougher with Heathrow, which he fears will try to pass on the cost of drawing up plans and building the runway through higher landing charges. Heathrow has insisted that this will not be the case. |
| Hargreaves Lansdown (HL.), Britain’s biggest investment platform, has shrugged off the furore caused by the Woodford affair and warned that Brexit and the trade war between America and China are knocking investor confidence. They made no mention of the Woodford controversy in a trading update yesterday, which showed the business attracted a net 35,000 new clients between the start of July and the end of September, taking its total to 1.26 million active customers. While Hargreaves faced questions from investors about the debacle at the group’s annual shareholder meeting in Bristol yesterday, City analysts were more concerned by signs that the investment platform’s growth was faltering, a slowdown the company blamed on Brexit and global trade tensions. |
| Sensyne Health (SENS) is facing renewed questions over undisclosed executive bonuses worth £1 million after it emerged that they were proposed by the company’s chairman, who is not independent. The company has come under scrutiny after it revealed a week ago that it had paid post-flotation bonuses of £850,000 to Lord Drayson, 59, the founder and chief executive, and £200,000 to Lorrie Headley, the chief financial officer, in December without informing Peel Hunt, its nominated adviser, and its investors. Sensyne paid the bonuses despite Peel Hunt having warned that shareholders were unlikely to react favourably to the payments. Peel Hunt discovered the bonuses had been paid as part of preparations for Sensyne’s annual report and advised that they should have been disclosed ten months previously. | |
| Ministers have been accused of failing to “properly defend” Britain’s economic interests as Scotch whisky producers brace for crippling American tariffs in a week’s time. Industry leaders claim that Boris Johnson’s government is “clearly preoccupied with Brexit” while dozens of distilleries face “a very real threat to growth, investment and jobs”. The Scotch Whisky Association said a duty of 25% on single-malt whisky could be an “existential” threat to its members. The World Trade Organisation permitted the United States to impose levies on goods from the European Union worth up to $7.5 billion as a result of the bloc’s illegal support for Airbus, in the long-running battle over subsidies between the aviation company and Boeing, its American rival. The Trump administration will impose tariffs on European products including Scotch, olives, cheese, wine and sweaters next Friday. | |
| Dunelm Group (DNLM), Britain’s biggest homeware and soft furnishings retailer, has warned that a weakening pound will weigh on its profit margins as material costs rise. They reported a 7.5% year-on-year rise in sales to £262.6 million for the three months to the end of last month, but said trading had been mixed due to a “softer homeware market”. Traders and analysts noted that Dunelm is particularly exposed to falls in sterling because this drives up the cost of raw material imports. The pound has fallen about 17% since the Brexit referendum in 2016, touching a three-year low last month. |
| Brown (N.) Group (BWNG), the online fashion retailer behind Jacamo and Simply Be reported a return to profit in the first half of the year as it shut all of its shops to focus on online sales. The group posted a 169% jump in profit to £31.8 million for the six months to the end of August, compared with a loss of £27.1 million the year before. Sales dropped 5.4% to £432.9 million but N Brown said online revenue now accounts for 84% of its business, up from 80% in the previous financial year. Analysts at Peel Hunt advised investors to buy the shares, adding: “The group is market leader in its space, benefiting from a strong niche and largely digital business model.” Jefferies said: “The sales drag should continue, but there are some encouraging signs to watch.” |
| The former chief executive of Thomas Cook Group (TCG) and some of his boardroom colleagues will appear before a committee of MPs next week to face a grilling on the collapse of the 178-year-old travel group under the weight of its debts. Peter Fankhauser, along with the chairman, Frank Meysman, and the heads of the audit and remuneration committees, will be questioned by the business, energy and industrial strategy committee on why the £1.1 billion rescue plan failed. At future sessions, PWC and EY, Thomas Cook’s auditors, will give evidence and the former chief executives Harriet Green and Manny Fontenla-Novoa have also been called. Assuming they appear, the latter are expected to face questions over whether their actions weakened the company. |
 | Falling prices and rising costs helped to reduce profits at Mondi (MNDI) by 18% in the third quarter, the company said in a trading statement. The company recorded earnings before interest, tax, depreciation and amortisation of €383 million, down from €466 million in the same period last year. Mondi estimates that planned mill closures during the three months from June 30 to September 30 hit underlying profits by about €40 million, up €10 million on the year. The group maintained its estimate that mill maintenance shutdowns would affect underlying profits by about €150 million over the full year. The company put the fall in underlying profits down to weaker demand and lower prices for important paper grades compared with the first half. |
 | Low & Bonar (LWB) has warned that there is a “significant risk” it will be unable to meet its financial agreements if they are tested in May as the troubled materials producer battles tough trading conditions. The company said it is talking to lenders as it attempts to move forward with plans for a £107 million takeover by FV Beteiligungs-GmbH, a German business. Lenders have agreed to waive financial deals due next month to help Low & Bonar overcome challenging trading, a deteriorating market outlook and less flexibility in managing supplier credit terms. It will have to endure a covenant test on May 31, 2020, if the German deal falls through. “There is a significant risk that should the financial covenants be tested, the company would not be able to comply,” it said in a statement. |
| Aston Martin Holdings (AML) shares fell to a fresh low of 422¾p as JP Morgan Cazenove, the house broker and one of the banks that helped to bring it to market, flagged further liquidity concerns. Analysts think bosses will be forced to raise more money as the company burns through cash in its attempts to build a new supercar every year up until 2023. “We forecast negative free cashflow to equity between the second half of 2019 and 2021 and continued cash burn could raise the need for additional capital,” JP Morgan Cazenove said. Piling more pressure on finances was the “weak demand outlook”, the analysts said, with Aston Martin having recently cut forecasts for how many cars it expects to sell this year. Bosses now reckon the firm will shift between 6,300 and 6,500 vehicles this year, but JP Morgan has pencilled in sales of about 6,000. They urge the board to “revise the business plan” and host a capital markets day to “re-engage equity investors” who have seen the value of their investment plunge by three quarters since last October’s float. | |
 | Inchcape (INCH), was among the mid-cap risers, up 8p to 614p after agreeing to sell its fleet business to Toyota for £100 million. The division leased fleets of Toyotas to UK companies, but bosses are focused on the distribution arm instead, which imports and sells cars into markets that the manufacturers see no economic reason for being in and accounts for 90 per cent of trading profits. |
 | Tempus – Wizz Air Holdings (WIZZ): Hold. Rapidly growing, efficient on costs, but shares not a bargain in the uncertain market environment |
| Tempus – Hargreaves Lansdown (HL.): Buy. Dominant market position, customer-friendly |
| Lombard – Reach Plc (RCH) needs quality newspapers to be title winner. Pursuing scale and margin risks bringing local papers down, not pushing readership up | |
| BP (BP.) chief says targeting gas could hurt efforts to lower carbon emissions. Bob Dudley says gas to play ‘vital role’ in transition toward cleaner fuels |
 | BT Group (BT.A) to revamp 615 stores in ‘national champion’ push. Telecoms company prepares for government talks over national fibre broadband rollout |
| Thomas Cook Group (TCG) shops bought by Hays Travel. Surprise deal expected to save up to 2,500 jobs in collapsed company |
 | GVC Holdings (GVC) lifts outlook on rising over-the-counter gambling. OTC betting offsets hit from crackdown on gaming machines |
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