The water industry has dodged renationalisation under Jeremy Corbyn but now faces serious extra regulatory burdens as Ofwat is set to unveil potentially its toughest-ever crackdown on the utilities on Monday. Draft proposals from the regulator in the summer indicated the companies will have to spend an extra £12bn on service improvements and plugging leaks, while cutting £50 from the average customer’s bill. It is intended to force the regional monopolies to become more efficient and to take less profit, with the biggest ever cut in returns allowed, under the post-privatisation regime.
One of Britain’s biggest pub operators is considering plans to open dozens of “dark kitchens” to meet the growing demand from the likes of Deliveroo and McDonald’s. NewRiver REIT (NRR) runs more than 700 inns and hopes to invite fast-food companies and tech-savvy delivery firms to rent unwanted kitchen space. The FTSE 250 property company has been on an acquisition spree in recent years, snapping up pubs from more traditional operators Greene King and Marston’s as they offload hundreds to pay down debts. Many of the pubs NewRiver buys rely largely on drink sales, with little or no demand for food, leaving kitchen space unusused.
Britvic (BVIC) has slashed retirement benefits for its new finance chief as investors challenge listed companies over lavish pension rewards. The owner of brands including Robinsons, J2O, Purdeys and Fruit Shoot, has radically reduced pension contributions for chief financial officer Joanne Wilson, who joined from Tesco in September. Ms Wilson will receive contributions equivalent to 7.5% of her £395,000 salary, compared with 23% for her predecessor Matthew Dunn, in an effort to bring executive retirement benefits in line with the rest of the workforce.
Struggling investment trust has wagered £83m that the struggle to take away Just Eat (JE.) will explode into an all-out bidding war, as the target’s two suitors prepare for an auction showdown. Secretive Mayfair fund manager Boussard & Gavaudan Holding has invested heavily in Just Eat derivatives since Prosus gatecrashed a planned takeover by its rival Takeaway.com. Boussard & Gavaudan has joined half a dozen aggressive hedge funds that have taken positions worth a total of more than £370m in recent weeks. The high-stakes bet offers a chance for Boussard & Gavaudan to end a difficult year on a high.
Questor: Burberry Group (BRBY) has refashioned its business model and merits a premium valuation. Buy. Questor share tip: the fashion chain’s design chief has been a hit with customers and the firm is adopting a more upmarket feel
