 | Thousands of small investors in Thomas Cook Group (TCG) are furious after being wiped out by its demise. One group which represents individual investors is considering whether there are grounds to sue the auditors after their shares were left worthless, brandishing the collapse of one of the UK’s oldest tour operators ‘disgraceful’. While small investors are nursing their losses, the collapse of the 178 year-old Peterborough-based travel company is another crushing blow for the High Street, with more than 550 stores expected to close, hitting up to 9,000 UK jobs. A total of 21,000 jobs around the world are at risk after the company’s collapse in the early hours of yesterday morning when a complex rescue deal between its banks and largest shareholder, Chinese investor Fosun, broke down. |
 | Metro Bank (MTRO) has been dealt another blow after having to shelve a £200million fundraising due to a lack of demand from investors. The lender, which was rocked by an accounting scandal earlier this year, last night announced it had pulled the bond issue after receiving just £175million worth of commitments. This was despite the bonds offering a generous 7.5% yield to investors – much more than other UK banks have recently paid out, at a time when bond yields are stubbornly low. The pressure is now on for Metro Bank, which is also looking for a chairman, to raise the funds so that it can meet EU regulations known as MREL by the deadline of January 1 2020. MREL requires banks to hold an extra buffer of money so that in the event of a financial crisis they could run down in an orderly fashion rather than just collapsing. |
 | Orders for Crossword Cybersecurity plc (CCS) product Rizikon Assurance doubled between January and June, while revenue rose 5% to £570,757 – but losses widened from £824,000 to £1.1million due to investment in marketing and development. Chaired by former MI6 chief Sir Richard Dearlove, the firm will unveil its second product by the end of 2019 and cryptically said it is aiming to close ‘several large opportunities’ in the next few months too. |
 | In what will be interpreted by the City as some much-needed firefighting, Burford Capital (BUR) released a 45-page briefing for investors on its website that seeks to answer some of the questions it has been facing. The briefing showed that Burford is good – and perhaps even conservative – at estimating how much profit it expects to bring in from each case. On the downside, investors are still in the dark about what proportion of profits a huge case in Argentina accounts for. The move towards greater transparency and accountability was welcomed by investors. |
 | Wetherspoon (J.D.) (JDW) was unmoved by an increase to its target price from 1400p to 1750p from Berenberg brokers, who say it could be in line to benefit from higher earnings from fruit machines. Regulations that have cut down the amount punters can stake on fixed-odds betting terminals (FOBTs) has hammered gambling companies but, analysts say, with their low labour costs, could be a boon to pubs. |
 | Petra Diamonds Ltd.(DI) (PDL) edged up after unearthing a 20.08-carat rare blue diamond from its Cullinan mine in South Africa, the source of two of the largest diamonds in the Crown Jewels. And Berenberg analysts upgraded Petra’s stock from ‘sell’ to ‘hold’, arguing its shares fell after full-year results last week because of worries about the global diamond industry rather than Petra’s performance, per se. |
 | Smiths Group (SMIN) dropped a further 79p, to 1559p, after reporting on Friday that profits had slid in its catheter-making medical division, which it is planning to demerge and spin off as a separate company. |
 | Low & Bonar (LWB) almost doubled its value as traders celebrated a 15.5p per share cash offer from Germany’s Freudenberg. Low & Bonar announced the £107million takeover after the market closed on Friday, which is usually a time companies sneak out bad news. |
 | Northgate (NTG) revved up 17.5p, to 320p after new chairman Avril Palmer-Baunack kicked off a strategic review of the van and lorry hire group’s growth options. |
| The boss of Thomas Cook Group (TCG) faces a furious backlash after the firm collapsed into liquidation with the loss of 21,000 jobs – leaving 150,000 British holidaymakers stranded abroad. Chief executive Peter Fankhauser was attacked by unions and ministers alike for failing to keep the 178-year-old firm afloat, as shockwaves from its collapse ripped around the world. Mr Fankhauser, who has been paid £8.3m since taking charge of the company five years ago, now faces judgement in a fast-tracked public inquiry by the Insolvency Service ordered by Business Secretary Andrea Leadsom. The failure drew an immediate rebuke from Prime Minister Boris Johnson, who took aim at generous pay-outs for senior managers. In total, Thomas Cook directors have earned more than £20m in the past five years. Mr Johnson said: “One way or the other, the state will have to step in to help stranded holidaymakers. “One’s driven to reflect on whether the directors of these companies are properly incentivised to sort such matters out.” |
 | Goals Soccer Centres (GOAL) said it was keeping its options open after Mike Ashley’s swooped in with a £4m bid for the struggling five-a-side football operator. The acquisitive retail tycoon, who recently bought Jack Wills, Evans Cycles and Sofa.com, said he would offer 5p a share, but Goals said it would wait for other bids to come in. Shares were suspended at 27p in March, when it was worth £20m, after an investigation into its tax affairs was opened. Goals owes the taxman £12m and has admitted it has found “improper behaviour” dating back to 2010. Because of that its AIM trading facility will end at the end of September. Such a move would leave Sports Direct, which has a 19% stake in the business, and other shareholders without a say in a potential sales process. In June, Sports Direct failed in an attempt to oust the entire Goals board. |
 | Marks & Spencer Group (MKS) shares were battered following the sudden exit of its chief financial officer. Monday offered investors the first opportunity to react to Humphrey Singer’s exit, which comes just over a year after he joined the company. In a statement to the City, M&S said “A departure date has not yet been decided and this will be confirmed by the company in due course and, until then, Humphrey will continue with his responsibilities”. Mr Singer’s resignation, which emerged on Saturday, is the latest blow to the company and underscores its inability to maintain a stable leadership team as it attempts to strangthen its operations. |
| Metro Bank (MTRO) fell 14.6p, to 272.6p, after it postponed a senior bond sale when its coupon failed to draw investor interest. The bank said it had pulled back from the sale due to “current market conditions”, claiming it was in a “strong capital position” to shift the sale to a later date. |
 | Questor: Dunelm Group (DNLM) faces too many unpredictable elements to justify its valuation. Avoid. Questor share tip: Brexit, the vagaries of consumer tastes, currency movements and the British weather: all good reasons not to pay a fat multiple |
| The City regulator is facing questions about whether trading in Thomas Cook Group (TCG) shares should have been suspended weeks before its collapse and about the lack of disclosure over the company’s rescue talks with lenders. The travel company collapsed yesterday under the weight of its debts after it failed to secure a £1.1 billion rescue package. Desperate attempts to clinch a rescue deal with Fosun Tourism Group its lenders and other stakeholders unravelled suddenly on Thursday after it emerged that its banks, including Royal Bank of Scotland and Lloyds Banking Group, had requested £200 million. This was to be used as a seasonal standby facility over the winter period, on top of the £900 million injection of new capital. It has emerged that Thomas Cook was notified of this additional £200 million funding requirement as far back as September 9. |
| Burford Capital (BUR) hit back yesterday at Muddy Waters. In a 45-page rebuttal, the group claimed to have earned more than $1 billion from legal cases that either had concluded or were close to being resolved. It also rejected accusations that it routinely ascribed “aggressive” valuations to continuing litigation, insisting that it had upgraded forecasts for only a third of its cases, and defended its earnings estimates for legal action that it has bankrolled relating to the 2012 nationalisation of YPF, Argentina’s largest oil company. |
| “Market conditions” have prompted Metro Bank (MTRO) to halt a plan to raise £250 million from a bond issuance to investors. The bank said late yesterday that it had “decided not to proceed at this time”. Metro had struggled to drum up interest among investors to raise £250 million, despite offering a yield of 7.5%, described by analysts as generous. It said in the prospectus for its bond last week that Financial Conduct Authority and Prudential Regulation Authority inquiries had broadened to include senior management and could lead to “criminal and/or civil liability for the bank” or suspension of its regulatory permissions, while “making redress and the cost of any regulatory sanctions may involve significant expense”. |
  | Grainger (GRI) has been linked with allegations that sales of residential properties that it managed on behalf of Lloyds Banking Group (LLOY) were “corrupt”. Agents appointed by Grainger marketed London flats and houses that were sold at an “undervalue” and in some cases to “connected parties”, including an estate agent’s father, according to claims that have emerged in a High Court case. The allegations came to light in a legal battle between Ventra Investments, a property company, and Bank of Scotland. Ventra argues that it was damaged by loans that it claims it was mis-sold by the bank, a subsidiary of Lloyds. In order to settle its debts, Ventra’s properties were managed on behalf of Lloyds by Grainger, one of the UK’s largest professional landlords, which had an agreement to look after the bank’s insolvent properties. |
 | Shareholders in Ocado Group (OCDO) have brushed aside the prospect of a lengthy legal fight between the online grocer and one of its founders. The company’s shares closed 6p higher at £13.12 yesterday, even as Lord Rose of Monewden, its chairman, said that the company would “go to any lengths” to protect the intellectual property used at its futuristic warehouses. Last week The Times revealed details of the legal battle between Ocado and Jonathan Faiman, its co-founder. Mr Faiman left in 2010, months before Ocado went public. This year he set up Today Development Partners, which in May agreed to replace Ocado as Waitrose’s online grocery partner. The deal followed the sale of half of Ocado’s domestic business to Marks & Spencer Group (MKS). |
| Marks & Spencer Group (MKS) shares drop on the news that Marks and Spencer is set to lose its finance director. Shares that had lost more than a third of their value over the past year tumbled yet again as analysts said that the departure “raises red flags” about the group’s leadership. |
  | The banking sector weighed heavily on the Footsie, with Lloyds Banking Group (LLOY), Royal Bank of Scotland Group (RBS) and Barclays (BARC) taking a beating. That was on the back of bearish commentary from JP Morgan Cazenove, which expects the struggles of Britain’s banks to continue over the next year as Brexit unfolds. Its economists reckon that there will be a “forced extension” to the October 31 deadline, after which they believe a fresh general election is be the most likely outcome. “This would be a lose-lose situation for UK bank share prices in our view,” the bank’s analysts said. “Based on current opinion polls, our economists see a potential majority for the Conservatives and the Brexit party, which could lead to increasing probability of a no-deal [Brexit] scenario post-election. The next most likely alternative outcome of a Labour-led coalition would also be negative for domestic UK bank share prices in our view.” |
| Low & Bonar (LWB) agreed to be taken over by Freudenberg, a German textiles specialist. Its share price has slumped after a few “challenging” years, which culminated in the resignation of its chief executive in May. Freudenberg has offered 15½p in cash for each share, more than double their value at the close on Friday. |
 | Shares in Strategic Minerals (SML) slid by more than 10% after the mining minnow took one of its main customers to court. Strategic’s main customer at Cobre has been struggling to keep up with its contractual obligations, having been hamstrung by regulatory and financial issues over the past year.Despite making amendments to the contract in an effort to help out the unnamed client, the Aim-listed company said that it had been forced to go to court to claim back the money it was owed after a “breakdown in negotiations”. It is seeking $2.3 million in outstanding payments, as well as a further $19 million for products that should have been taken under the contract but were not. A claim will be lodged for punitive damages. |
 | Tempus – Law Debenture Corp. (LWDB): Hold. Defensive trust supported by professional services business brings diversity, but it needs to get through its recent weakness |
 | Tempus – MJ Gleeson (GLE): Buy. Highly focused, offering growth and a generous yield |
| Thomas Cook Group (TCG) customers face two-month wait for refunds. Cost of repatriating and compensating customers estimated to hit as much as £600m |
| Thomas Cook Group (TCG) collapses after knife-edge talks fail. Travel company’s demise leaves 21,000 jobs at risk and hundreds of thousands stranded |
 | Sainsbury (J) (SBRY) poised to exit mortgage lending. The UK supermarket chain to outline new strategy following its failed Asda takeover bid |
 | Court ruling on Prudential (PRU) annuities deal poses dilemma for insurers. Future transfers could be at risk unless ruling to block £12bn sale to Rothesay is overturned |
 | Greencore Group (GNC) looks to diversify into sushi and salads. UK’s largest sandwich maker seeks fresh growth engine after sale of US division |
 | Pendragon (PDG) needs a leader who can provide strategic direction. The car dealer is struggling, as its dismal interim numbers show |
| Hedge funds are cashing in on the crisis at Thomas Cook Group (TCG). As the 178-year-old travel agent battled for survival, data showed that its shares were the most bet-against in the UK. About 10.7% of its shares were being ‘shorted’ yesterday, with the positions taken by hedge funds thought to be worth at least £5.7million. But the paper profit some have made over the past six months is likely to be far higher, as Thomas Cook’s share price crashed 89% over the period. Among the vultures betting against the stricken firm is Whitebox Advisors, which was one of a handful of funds that made a killing by betting against the US sub-prime mortgage market in the run-up to the financial crisis. |
| A row has erupted between two former friends over the Ocado Group (OCDO) delivery business, threatening to embroil some of retail’s biggest names. The legal spat – which centres on the historic tie-up between Marks & Spencer Group (MKS) and Ocado – shines a spotlight on the battle for control of Britain’s grocery delivery market, with accusations of industrial espionage, top secret meetings and ‘bullying’ business tactics. At the heart of the clash stands Jonathan Faiman, one of three former Goldman Sachs bankers who launched Ocado 20 years ago, and Tim Steiner, also one of the trio and chief executive of the £9 billion delivery business. Faiman, who invited Steiner to be best man at his wedding, left Ocado in 2010. He approached Marks & Spencer in June last year to pitch a new online grocery plan through his fledgling Today Development Partners venture. The idea, if it came to fruition, would put him in direct competition with his old friend. The high street stalwart was one of the few major food retailers with no online shop. Faiman offered a solution to compete with its fierce rival Waitrose, then Ocado’s partner. |
| Thomas Cook Group (TCG) bosses have been paid more than £20 million in the past five years even though they have led the tour operator to the brink of collapse. Swiss chief executive Peter Fankhauser alone has taken home more than £8 million since being handed the reins at the beleaguered travel group in 2014. The total awarded to the top brass is equivalent to more than a quarter of the company’s current £69 million value. The figures provoked anger last night as holidaymakers, staff and small shareholders faced increasing uncertainty. |
 | The tycoon who founded Hargreaves Lansdown (HL.) has slammed the fund supermarket over its handling of the Neil Woodford crisis. It has since emerged that HL – the UK’s biggest fund supermarket for private investors – had been harbouring concerns about Woodford since November 2017 but had continued to feature him on a ‘best buy’ list regardless. Peter Hargreaves, who stood down from the board in 2015, said bosses leading the business he started with Stephen Lansdown had been too slow to act and he was ‘annoyed’ they had let the fiasco ‘go on so long’. He also criticised HL for having ‘too much’ invested with Woodford and blasted the manager for not being ‘truthful’ about his funds. |
 | MIDAS SHARE TIPS: Listen up… Glastonbury sound specialist’s shares are set to kick up a Stormzy! Midas verdict: Midwich Group (MIDW) is a focused and well managed business in a growing industry. The business has also increased revenues every year since 2006, even during the financial crisis. At £5.26 the stock is a buy. |
 | Midas verdict: Sigma Capital Group (SGM) can seem rather complex but the fundamental principles behind the business are simple. Britain needs more houses and increasing numbers of people, including families, are turning to the rental market. They deserve decent homes – and Sigma intends to deliver them. Shareholders who bought in 2015 have done well but, at £1.02, they should hold on to their shares. New investors could also take a punt on this stock. |
| Hundreds of smaller travel agents are braced for the fallout from a failure of Thomas Cook Group (TCG), with industry experts warning of a “domino effect” sweeping across the sector. As the 178-year-old tour operator collapsed early on Monday, travel industry leaders attacked the Government’s “shambolic” introduction of new European Union rules last year which they said they could push other travel agents into the red. The changes in UK law because of the European Package Travel Directive mean most hotel and flight trips booked through a travel agent are now deemed packaged holidays, whether or not they are provided by separate companies. With the collapse of Thomas Cook, independent travel agents that have combined its flights with third-party hotels will be responsible for either replacing the flight or refunding customers the cost of the whole trip – an expense that could decimate the finances of smaller agents. |
| A late-cycle surge in ‘leveraged loans’ has echoes of financial engineering before the Lehman crisis and could lead to a cascade of fire sales if conditions suddenly tighten, the world’s top financial watchdog has warned. The Bank for International Settlements said the high-risk loans have climbed to $1.4 trillion and are increasingly being sliced and diced much like subprime mortgage debt before 2007. They are packaged into debt securities known as collateralised loan obligations (CLOs) and mostly sold to unknown funds. Leveraged loans are a form of bank lending to heavily indebted companies with junk credit ratings. The number involving firms with debt above five times Ebitda earnings has soared to 60%, almost a third are over six times earnings. These companies are vulnerable to the slightest interest rate shock. The proportion issued without covenant protection has rocketed from 20% to nearer 80% since 2012 as investors take on ever greater risk to eke out extra yield, implying that the loss ratio could extremely high if there is a wave of defaults. | |
 | BT Group (BT.A) is getting kitted up to defend its Champions League crown, amid mounting confidence that its sports broadcasting arm is delivering returns following price rises. European football’s governing body Uefa has signalled to potential bidders that it will put television rights on the block around the middle of next month. BT, which ambushed Sky at the peak of their rivalry in 2013 by buying exclusive rights to all Uefa club competitions, will be favourite to retain the deal. Under chief executive Philip Jansen and consumer boss Marc Allera, the telecoms operator has in recent months reviewed its television strategy and implemented price rises. It is understood that the most recent hikes, of as much as £48 per year, to BT Sports subscriptions this summer have had little impact on cancellations while improving returns from a business that remains controversial among investors. Some continue to question whether the billions of pounds BT has invested in sport could have been better spent elsewhere. |
| Marks & Spencer Group (MKS) has lost its finance chief after just 14 months in the job, raising new questions over its cost-cutting efforts and plans to break into the competitive online grocery market. Humphrey Singer “has decided to leave the business” the company said yesterday. He will remain with the retailer while it finds a replacement. His exit will add to investor concern around M&S following its relegation from the FTSE 100 index this month. In July clothing chief Jill McDonald stepped down after two years, after being blamed for mistakes including a promotion to sell more jeans that left the company without enough stock. Chief executive Steve Rowe said Mr Singer had “helped to establish the foundations of our transformation with a stronger balance sheet” and overseen “a much keener focus on reducing our cost base”. |
  | The Hong Kong stock exchange has called on a duo of banking heavyweights to help it charm London Stock Exchange Group (LSE) shareholders, after its shock £32bn takeover approach was comprehensively rejected by the board. The Telegraph understands that HSBC Holdings (HSBA) has been hired by Hong Kong Exchanges and Clearing (HKEX) to advise it on the process after the banking giant helped it organise meetings with City investors last week. The bank is likely to announce the move tomorrow. Swiss bank UBS has also been drafted in to add credibility to the HKEX bid. HSBC and UBS are focusing on wooing investors based in London and Asia. HKEX has a long-standing relationship with HSBC. Its chairman Laura Cha, appointed with approval from the Hong Kong government, also sits on the banking giant’s board as a non-executive director. HSBC has agreed to organise meetings with City investors in the hope that it will land an official role on the deal, multiple sources said. |
 | Eve Sleep PLC (EVE) said merger talks with a rival had collapsed as it sounded the alarm on losses. Eve said that selling its foam mattresses in a box had “been more challenging than previously anticipated” and now expected revenues to be between £25m to £28m this year. As a result, it has become harder to narrow its losses. However, the company insisted it could go it alone after deciding “now is not the right time to pursue the potential merger and that it is more appropriate to focus on the Eve rebuild plan”. Chief executive James Sturrock, who replaced co-founder Jas Bagniewski last year, added: “We have taken action to reduce our cost base, including a significant reduction in administrative expenses compared to 2018. We anticipate a significant reduction in losses.” |
 | Questor: the shares are not meal-deal cheap but stay at the table for Compass Group (CPG) predictability. Questor share tip: the catering giant has already made a 22% gain for readers but they should wait for the next course. Hold |
| Thomas Cook Group (TCG) has collapsed after rescue talks failed, despite desperate efforts to save the stricken tour operator. Alix Partners, a consultancy renowned for its turnaround expertise, is set to handle the company’s insolvency. Thomas Cook’s board met late last night, and announced that the company had ceased trading in the early hours of this morning. Executives spent all day in talks in London with the group’s banks, bondholders, potential investors and Fosun, the Chinese conglomerate that is the biggest shareholder in the world’s oldest travel group. Other creditors, including credit card companies, were also involved in the discussions. The eleventh-hour talks were held in an attempt to close a £200 million funding gap and avoid a collapse of the business. The meetings, held at the offices of Latham & Watkins, a City law firm, began at 9am and broke up at 5.30pm. Thomas Cook directors convened in the evening to review their options. |
| The chairman of Ocado Group (OCDO) has pledged that the retailer “will go to any lengths” to protect its intellectual property as it faces a bitter court battle with one of its co-founders. Lord Rose of Monewden said: “Anyone who reads the court submissions will appreciate how serious this issue is. This is corporate espionage. We have been subject to corporate theft.” Last week court papers revealed that the online grocer was suing Jonathan Faiman, who left Ocado in 2010, over allegations that its confidential documents had been unlawfully obtained so that he could set up a rival new venture. “This is an issue that I and the board take incredibly seriously and will go to any lengths to protect our intellectual property,” Lord Rose, 70, said. He alleged: “One of our employees has stolen documents. Our assets and intellectual property and proprietary software is what gives us leadership in the industry. You would expect the board to protect our intellectual property.” |
 | Standard Chartered (STAN) is locked in “very difficult” conversations with its leading shareholders over its chief executive’s pay after an investor revolt over his pension. The emerging markets-focused bank was hit by backlash over Bill Winters’ pay at its annual investor meeting in May, when more than 36% of the votes cast were against its new executive pay policy. Three top 20 shareholders have told The Times that despite holding talks the bank still needs to shift its position on pay if it is to avoid another clash with investors next year. “We would be disappointed come January or February if we’re in the same place,” one said. A second said: “It’s still a very difficult conversation.” |
 | Amazon is secretly building a team of senior British property experts amid speculation that the online retailer is preparing for another assault on supermarkets. Matt Birch, who previously had a short stint at the Co-op and spent just under a decade at Sainsbury (J) (SBRY), joined Amazon in May. It is understood that Mr Birch, who was also property director at Tchibo, the German coffee retail chain, is among company executives who have been meeting to identify sites for more bricks-and-mortar stores. An Amazon spokesman said that the company did not comment on rumour or speculation. Jeff Bezos, Amazon’s founder, has said previously that the online retailer is “very interested” in physical stores and frequently has noted that 90% of retail sales in the United States still happen in physical shops. Property sources have said that Amazon is considering how to expand its present grocery offering, which is serviced by Morrison (Wm) Supermarkets (MRW), through its Prime Pantry and Amazon Fresh delivery services. It is still to open a version of its cashierless Amazon Go shops in London. |
| The billionaire behind Hargreaves Lansdown (HL.) has launched a blistering attack on Neil Woodford, slamming the beleaguered stockpicker for appearing not to be “truthful” about the performance of his frozen Equity Income Fund. Peter Hargreaves, who started the funds platform with Stephen Lansdown in 1981, also added to the wave of criticism of his old company for holding too many of Woodford’s funds and for failing to spot the crisis until it was too late. “It’s annoyed the hell out of me that it would appear he [Woodford] has not been truthful with Hargreaves Lansdown. But it’s also annoyed me that they let it go on so long,” Hargreaves said. Hargreaves Lansdown has come under fire for using its Wealth 50 list of recommended funds to promote Woodford’s Equity Income fund, which blocked withdrawals in May after a string of corporate collapses at mostly unquoted companies held by the fund. Woodford’s fund has shrunk to £3.1bn during its suspension from a value of £10.2bn at its height just two years ago. Hargreaves, 72, has kept his counsel since the fund was gated. He still owns 32% of Hargreaves Lansdown, a stake worth £3.1bn at Friday’s closing share price of £20.30. He stood down from the board in 2015. |
 | The boss of Sirius Minerals (SXX) has suggested that investors may have been badly advised when they backed his company. More than 85,000 retail investors face heavy losses after Sirius’s $3.8bn (£3bn) fertiliser mine project in the North York Moors was thrown into doubt last week when it failed to raise $500m in bonds. Chief executive Chris Fraser said: “I read stories where people seem to have over-invested or probably not taken the right advice. I feel very bad for those situations, but we have been clear about the opportunities and also the risks.” |
| Sainsbury (J) (SBRY) boss Mike Coupe will try to convince sceptical investors this week that the supermarket can thrive on its own after regulators shut down his proposed merger with Asda. Coupe is expected to outline how the chain will use data gathered from its Nectar loyalty card to boost sales and will also set out proposals to stem losses at its banking division. The chief executive is expected to step down next year, although the timing could hinge on investors’ response to Coupe’s new strategy after a capital markets day on Wednesday. The chairman, Martin Scicluna, has said that Coupe retains the board’s backing, but only 50% of investors believe the chief executive’s position is tenable, according to a poll by the investment manager Alliance Bernstein. The leading internal candidate to succeed him is said to be John Rogers, the former finance chief who became boss of Argos after its takeover by the supermarket in 2016. |
| Marks & Spencer Group (MKS) finance chief has quit after less than 18 months, continuing the exodus of top executives from the retailer. Humphrey Singer joined last July from Dixons Carphone on a £600,000-a-year contract. His departure comes two months after clothing boss Jill McDonald was ousted by Archie Norman, who has replaced almost the entire management team since he became chairman of M&S two years ago. Singer was recruited by chief executive Steve Rowe, but was said to have been unhappy in the role, according to Sky News. |
| Burford Capital (BUR) became a cause célèbre last month when activist investor Muddy Waters published a damning report on it. Although the attack by Muddy Waters founder Carson Block focused on Burford and its accounting, other litigation funders came under the spotlight. Manolete Partners Plc (MANO) is among a small clutch of listed companies that rushed to distance themselves from Burford. The sector is still haunted by the Burford debacle. Manolete, which has a market value of £225.3m, said the shorter duration of its cases meant that it was easier to value them more accurately and account for expected gains. Still, shares took a hit last month after the Burford case, dropping by a third to 370p, as concern about the sector spread. Shares closed on Friday at 510p. The growth outlook for Manolete is positive. Analysts at Arden expect it to pursue claims of larger value, which would result in larger settlements. Manolete has already invested in 59 new cases this year – equal to the number it backed over the year to the end of March. Despite the growth prospects, the sector is now under greater scrutiny. Steely nerved investors might view Manolete as attractive, but with litigation funders under the microscope, it is a sector to avoid. |
| Thomas Cook Group (TCG) lenders seek £200m to add to rescue. Banks push for extra credit facility see holiday company through winter season |
 | Lombard – Next (NXT) Brexit impact claims will make some see red. Amended document sees ‘no risk’ of tariff increases — only a £25m saving |
| Next (NXT) accelerates store openings after rent cuts. Retailer reiterates full-year profit forecast despite difficult start to autumn |
 | Debenhams (DEB) wins legal challenge over restructuring. High Court victory allows UK chain to shut 22 stores and cut rents on 100 more |
 | WPP (WPP) hires ex-Unilever marketing chief to its board. Keith Weed to be a non-executive director as ad group battles to adapt to digital era |
  | Watchdog raises concern over JD Sports Fashion (JD.) Footasylum (FOOT) takeover. Competition regulator says worries about higher prices and less choice must be addressed |
 | Kier Group (KIE) swings to £245m loss after ‘difficult year’. Concerns linger over construction group’s financial health as it warns of Brexit threat to clients’ decision-making |
 | Saga (SAGA) profits halve amid insurance business overhaul. Over-50s specialist says Brexit uncertainty is hitting demand in a ‘challenging’ travel market |
| Next (NXT) is ‘weathering the retail storm’ as it enjoyed a rise in half-year profits, the store’s boss revealed. Lord Wolfson, 51, said his business was adapting well to the online world. The Brexiteer shrugged aside the issue of political uncertainty, saying customers’ buying habits were affected more by the weather. His comments came as a struggling High Street saw retail sales fall 0.2% in August after a healthy summer, the Office for National Statistics reported. Online sales also tumbled 3.2%, the biggest fall since May 2015. An ONS spokesman said: ‘Shoppers spent less on both food and clothing while department stores resumed their downward trend after a brief rally in July.’ But Next – which this week launched a collection by TV presenter Emma Willis – said profits in the six months to July were 2.7% higher than in same period last year at £320million. |
 | Royal Mail (RMG) has admitted its parcels arm broke competition laws by striking a deal with a smaller firm to not approach each other’s customers. The ‘anti-competitive agreement’ between Parcelforce Worldwide and Salegroup, a Nottinghamshire-based delivery firm trading as Despatch Bay, ran from August 2013 to May 2018, said communications watchdog Ofcom. It saw them share details of customers so they would not approach the same ones. This meant some customers who could have been offered a cheaper price for services by one firm or the other were never contacted, leading to less competition and higher prices. |
| Kier Group (KIE) chairman is quitting as the embattled contractor announced a £245million loss yesterday. Philip Cox will step down as soon as a successor is found, the company said. He has been chairman since August 2017 but, since then, Kier’s shares have plunged nearly 90% as the company has been rocked by crisis after crisis. The company has had an emergency cash call shunned by shareholders, ousted former boss Haydn Mursell, disclosed an accounting error and has warned on profits. |
 | Troubled De La Rue (DLAR) has been sniffing around for a contract to print money in Sudan. The 206-year-old passport and banknote business, which is reeling from the loss of the contract to print British passports, has been chasing Sudanese officials in London and is poised to put itself forward if the government in Khartoum requests formal bids, sources said. The Serious Fraud Office, however, is currently investigating De La Rue over suspected corruption in Sudan’s neighbour, South Sudan. The Basingstoke-based firm – which has a regional manufacturing facility in East Africa – designed and printed South Sudan’s maiden currency when it broke away from Sudan in 2011. |
| Hargreaves Lansdown (HL.) announced the removal of its exit charges today and called for all its rivals to do the same. The move follows the lead of Interactive Investor and Fidelity, which have already scrapped the controversial fees that hinder competition by putting a barrier up for investors who want to switch to another platform. Hargreaves Lansdown’s decision also comes ahead of a potential ban on exit fees, with the financial watchdog having threatened such a move. Hargreaves Lansdown scrapped nine of its charges in a ‘simplification of its fee structure’ including its transfer fees, which were £25 for transferring cash or £25 per holding. Its account closure fee, which was previously £25 plus VAT, has also been removed. |
 | Petards Group (PEG) warned profits would be hit by delays to some of its orders, which it blamed on the time it takes contract decisions to be made by the Department for Transport. The security and surveillance systems developer also revealed that pre-tax profits had fallen by almost 60% to £206,000 in the six months to June 30 when compared with the same period of 2018, as turnover fell 8% to £8.9million and the firm plunged into debt. |
 | IG Group Holdings (IGG) shares surged after it posted first-quarter turnover of £129.1million – up by the thinnest of margins from £128.9million last year. Investors breathed a sigh of relief as the spread-betting firm added more customers and cashed in on the rollercoaster ride that took over global stock markets in August. A candidate has also been lined up to replace outgoing chairman Andy Green, who stepped down after the annual meeting yesterday, though the replacement needs a green light from regulators. IG’s expectation-beating results were described as a ‘robust performance’ by Shore Capital analysts, in what is seasonally a slower quarter. |
| Saga (SAGA) rocketed 16.3% higher to 52.8p, despite profits tumbling by more than 50% to £52.8million. The group kept its previous guidance for the full-year, reassuring traders. And it also had an encouraging start to new, three-year fixed-price home and motor insurance policies, selling 175,000 during the first half. Chief executive Lance Batchelor, who will leave in January, said Saga was ‘open minded’ about its future after US activist investor Elliott bought a 5% stake. Batchelor looks likely to hit the ground running when he leaves. As well as plans to do lots of sailing, he has agreed to be chairman of one company and is in talks to chair another two. |
| Thomas Cook Group (TCG) battle to avert collapse has been dealt a blow after lenders asked for an extra £200m injection. A 17-strong banking syndicate led by Royal Bank of Scotland have asked for an additional £200m of additional underwritten funds despite the company being in the final throes of restructuring led by Chinese conglomerate Fosun. The request is understood to have angered those at the company with insiders believing that RBS is forcing the 178-year-old firm towards collapse. RBS rejected such suggestions, saying it had provided “considerable support to Thomas Cook over many years” and was continuing to work with other stakeholders to find a resolution. Thomas Cook delayed a vote on its planned restructuring earlier this week. At the time it had been thought this was after it struggled to get approval from 75% of creditors. However, sources said late on Thursday that the reason for the delay was the additional money request. In August Thomas Cook announced that “substantial agreement regarding key commercial terms” had been reached. |
| The competition watchdog said JD Sports Fashion (JD.) £90m takeover of Footasylum (FOOT) could lead to “higher prices” and “worse choice” for shoppers, but fell short of explaining its reasons in more detail. On Thursday it said it may examine the merger in more detail unless JD Sports acted on some of its concerns. The retailer now has five days to take up the CMA’s recommendations. JD Sports defended the deal and said there would be “significant operational and strategic benefits” from the union. One industry observer said that buying Footasylum’s 70-odd stores was not significant enough to reduce competition and JD Sports’ £2bn sales dwarfed Footasylum’s revenues of £200m. But one competition lawyer said: “To be honest, the CMA doesn’t really care that one part is smaller than the other [if they’re competitors]. I’ve seen it get agitated before over much smaller deals.” |
 | Almost half of Ryanair Holdings (RYA) shareholders voted against the airline’s plan to hand Michael O’Leary a bonus package that could earn him up to €99m (£87m). The remuneration scheme, which requires the long-serving chief executive to either double profits or share price of the low-cost carrier within five years, was approved by just 50.5% of votes. It means Mr O’Leary could still be in line for one of the biggest payouts in British corporate history, despite a tumultuous year for the company. Intense competition and an oversupply of seats in the European market have squeezed Ryanair, forcing it to issue a series of profit warnings over the past year. It has also been hit by uncertainty surrounding Brexit and has blamed the delay in the delivery of its fleet of Boeing 737 Max planes for axing 900 jobs. The aircraft remains grounded amid safety concerns following the deaths of 346 people in two crashes. |
| Kier Group (KIE) “is absolutely not the next Carillion”, the boss of the struggling construction and services business insisted, despite crashing to a £245m annual loss and announcing the chairman’s departure after just two years. Andrew Davies, chief executive of the company that works on infrastructure projects such as Crossrail and HS2 and provides environmental services such rubbish collection, issued the denial amid ongoing concern about Kier’s stability. Carrillion’s collapse last year and Interserve falling into the hands of its lenders in the spring have raised questions about the future of their peers. Kier was already under pressure after a £250m emergency cash call in 2018 resulted in just 38% of investors participating, requiring bankers to bail it out. Mr Davies, who was appointed in April, has accelerated a rescue plan which aims to get the company back on track. |
| The boss of the London Stock Exchange Group (LSE) mounted a staunch defence of its £22bn takeover of data business Refinitiv in his first public comments since the Hong Kong exchange launched an audacious bid for his company. David Schwimmer said the Refinitiv deal, which was only announced last month, was a transaction LSE felt “very good about” because it was “a very strong fit strategically”. Refinitiv would help LSE take advantage of the “increasing importance” of data and analytics, and open up new asset classes such as foreign exchange and fast track its entry into “dozens” of emerging markets, the LSE chief told a conference in London. Mr Schwimmer would not be drawn further on last week’s audacious £32bn bid for the LSE from Hong Kong Exchanges and Clearing (HKEX), an offer it rejected on Friday and called “fundamentally flawed”. |
| tycoon Mike Ashley was criticised by a judge after his attempt to derail a rescue plan for Debenhams (DEB) was thrown out of court. Mr Justice Norris on Thursday rejected a challenge to the department store’s company voluntary arrangement (CVA) by Combined Property Control Group, which owns six of the properties Debenhams lets. The landlord had complained that it was treated unfairly as a creditor, and its challenge was bankrolled by Mr Ashley’s Sports Direct, which dropped its own legal challenge against Debenhams in July. The collapse of the legal challenge means that Debenhams’ rescue plan can go ahead. In May it won the approval of its creditors, including most of its landlords, to close 50 of its 166 UK stores, and secured rent cuts on others. Most stores in the UK are expected to stay open until after Christmas, when it makes a big chunk of its money. |
 | International Consolidated Airlines Group SA (CDI) (IAG) was a riser, after Morgan Stanley analysts tipped the British Airways-owner as the trend-bucking positive amid a gloomy assessment of European airlines. Analysts at the US investment bank said air firms had been poor investments over the past two years, and warned the rest of the sector is not yet ripe for buying. Its shares were also buoyed by news that the pilots’ union Balpa said it would delay planned strikes that were set to interrupt BA’s service. |
| Next (NXT) will “continue to prosper” despite the brutal conditions crippling some of its high street rivals, its boss said as the fashion chain reported higher sales and profits. Simon Wolfson said that although he had concerns about fewer people buying clothes and shoes in stores, “as long as that decline is matched by growth online, we think we can get through it”. He added: “It is not going to be painless but with the speed that rents are coming down and the relatively short-term leases being offered we can see a way of managing that decline in such a way that the group continues to prosper.” Lord Wolfson, a prominent Brexit supporter, also said that Next could cut prices by about 2% if there was a disorderly departure due to lower temporary taxes on some products. |
 | Fund shops, wealth managers and others around the financial industry are coming under pressure to remove punitive exit fees after the Telegraph revealed Hargreaves Lansdown (HL.), Britain’s biggest broker, had done so this week. Fund shops AJ Bell (AJB) and The Share Centre, which both charge customers an exit fee, said they did not have plans to remove these. Perhaps the loudest call landed at the feet of St James’s Place (STJ), Britain’s largest wealth manager. The firm levies investors an “early withdrawal charge” for its pensions and bonds, which is only charged if a customer leaves within six years. If the client withdraws funds within the first year, there is a 6% fee. This falls by one percentage point every year until it reaches 1% in year six. This in addition to a 1.5% annual ongoing charge, which includes the cost of advice given by SJP’s advisers. |
| Royal Mail (RMG) was part of a cartel that meant customers paid over the odds for parcel deliveries for more than four years. Regulator Ofcom said Royal Mail worked with SaleGroup, a reseller of delivery services, on an “illegal anti-competitive agreement”, which meant they did not compete for each other’s customers. SaleGroup is an online business that arranges deliveries for small and medium-sized business customers by sourcing multiple parcel operators, rather than carrying out deliveries itself. Royal Mail’s Parcelforce division and SaleGroup, trading as Despatch Bay, agreed a deal whereby they shared information on customers between August 2013 and May 2018. The arrangement meant the companies could avoid battling for work, and they even emailed each other, with one asking the other to withdraw quotes to certain customers, often when the rival offer was cheaper. |
 | Questor: OneSavings Bank (OSB) is growing fast, low-risk and ‘shockingly cheap’. If you have cash, buy. Questor Income Portfolio: the buy-to-let lender operates in the fast-growing ‘professional’ part of the market and shies away from risky low-deposit loans |
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