Npower to axe jobs after failed SSE tie-up. Big six energy supplier Npower will axe 900 jobs over the next year as it scrambles to cut its costs in the face of the Government’s energy price cap and looming financial losses. The embattled energy company plans to squeeze its 16,300 strong workforce as part of a major programme to reduce its costs in response to the UK’s “incredibly tough” energy market. The decision to take an axe to the workforce comes after its plans to merge with SSE’s household supply business as a new listed energy company collapsed at the end of last year. SSE (SSE) blamed the Government’s energy price cap for taking a larger than expected toll on the creditworthiness of their nascent energy tie-up.
Unilever stockpiles Magnums and Lynx as Brexit fears mount. Unilever (ULVR) has hired extra warehouses to stockpile Magnum ice creams and deodorants on both sides of the Channel amid growing fears a no-deal Brexit will disrupt the Anglo-Dutch company’s supply chain. Alan Jope, Unilever’s new boss, revealed that the consumer goods giant had taken huge warehouse freezers to ensure Brits could continue to get their hands on Magnums and its other ice cream brands, which are made in Europe. It has also been stockpiling its Lynx, Sure and Dove deodorant brands, which are made in Leeds, in France.
Tory MP ‘hugely concerned’ by Treasury links to Royal Bank of Scotland Group (RBS) turnaround unit. Tory MP has said he is “hugely concerned” a government agency could have played a role in the Royal Bank of Scotland’s (RBS) scandal-hit turnaround unit after it emerged the bank’s top executives had their pay linked to the agency. Documents referenced in court on Thursday showed that senior bankers, including RBS’s former chief executive Stephen Hester, had their bonuses pegged to the success of government agency the Asset Protection Agency (APA) in 2010. The filing came to light days after a property developer who is suing RBS said that the APA, a division of The Treasury, was also involved in influencing the bank’s controversial global restructuring group (GRG).
BT to ring more changes as Gavin Patterson exits. Gavin Patterson’s turbulent reign as chief executive of BT Group (BT.A) came to an end on Thursday with a solid update for the City and hints of more upheaval to come under his successor Philip Jansen. Eight months after Mr Patterson was first told his services were no longer required, BT reported third quarter numbers that were slightly better than expected. The company told investors that the full-year figures would come in at the top end of previous guidance. Despite the progress, investors still bruised by the sharp deterioration under Mr Patterson before his sacking took fright at warnings of tougher times for BT’s consumer business and market, pushing the shares down as much as 5%
Diageo hands investors £660m gin-infused windfall. Spirits-making powerhouse Diageo (DGE) will hand investors a £660m windfall after surging gin sales showed no signs of abating. The Smirnoff and Baileys owner will reward shareholders by increasing its share buyback programme on the back of 6pc growth in first-half sales to £6.9bn. Pre-tax profits rose by a fifth to £2.6bn in the six months to December. Cash flow of £1.3bn, in part as a result of a $550m (£420m) sale of 19 value brands that included Seagrams whisky and Goldschalger, meant more money was available to be returned to shareholders.
Barclays trial judge implicates Qatar over 2008 fundraising deal. The judge presiding over the Barclays (BARC) fraud trial has told jurors that Qatari investors must be just as dishonest as the bankers on trial if the prosecution’s argument is correct. Prosecutors for the Serious Fraud Office (SFO) argue that Barclays former chief executive John Varley, former Middle East head Roger Jenkins, ex-wealth boss Tom Kalaris and European head of financial institutions Richard Boath kept an extra fee paid to Qatar secret from the market during the financial crisis to avoid creating an image of “desperation”.
More embarrassment for Metro Bank after admitting regulator found accounting flaw. Metro Bank (MTRO) has admitted it was the Bank of England that found a flaw in its accounts despite previously insisting it spotted the error itself. Chief executive Craig Donaldson last week said the bank had identified a miscalculation following a year-end review which was run by an auditor. Metro Bank’s shares plummeted almost 40% on the announcement. However, in an embarrassing u-turn the FTSE 250 company has admitted it was actually the Bank of England’s Prudential Regulation Authority (PRA) that “helped to identify potential inconsistencies in certain loans”.
Patisserie Valerie execs ‘failed to disclose’ they were also shop landlords. Patisserie Holdings (CAKE) executives Luke Johnson and Paul May are facing fresh questions after failing to disclose they were also landlords to the stricken bakery chain. The duo, the chairman and former chief executive respectively, own Patisserie Valerie’s Tunbridge Wells site, a fact that was not disclosed as a “related party” in the accounts of operating company Stonebeach. A spokesman for Mr Johnson said the company’s board had been made aware of the relationship, but decided it was below the threshold – called a “materiality level” – at which details needed to be disclosed.
Foxtons profits tank in ‘toughest’ London housing market. Foxtons Group (FOXT) bemoaned one of the “toughest sales markets ever” as it confirmed annual profits would slump next month. The upmarket estate agent, which does most of its business in London, said it expected to post adjusted pre-tax profits of just £3m, down from £15m the previous year and £46m in 2015. House prices in some parts of the capital have collapsed over the past two years and the market has ground to a halt as sellers of expensive homes hold out for a better offer. While revenues in Foxtons’ lettings business have been slowly rising as more residents turn to renting, sales revenues slid from £43m to £36m last year.
