EasyJet warns of turbulence ahead as consumer confidence wobbles. easyJet (EZJ) has warned of turbulence ahead as Brexit uncertainty and waning consumer confidence bites. John Lundgren, chief executive, said that the company expected a “softness in both the UK and Europe” in the second half of the year as a result of the economic uncertainty but reassured investors that the airline was “operationally well prepared for Brexit”. “Now that the EU Parliament has passed its air connectivity legislation and together with the UK’s confirmation that it will reciprocate, means that whatever happens, we’ll be flying as usual,” he added. Shares fell nearly 8pc to £10.32 in early morning trading.
Polymer maker Low & Bonar loses fifth of value after profit warning. Textiles manufacturer Low & Bonar (LWB) has sounded a profit warning, citing falling sales, supply issues after a fire at one of its sites last year, lower demand from the automotive and flooring sectors, and increased competition. The company lost a fifth of its value in morning trade, with shares falling to 13.4p, and valuing the business at just £94m. A year ago the shares were trading at more than 50p. It is the latest setback for the company, which makes polymer-based yarns and fibres that are used in applications ranging from reinforcing concrete in construction to making filters used to purify air and water.
Joules boss Colin Porter to leave after winning Moss Bros role. Colin Porter is stepping down as boss of clothing brand Joules Group (JOUL) less than a fortnight after being appointed as Moss Bros Group (MOSB) chairman. Mr Porter, who steered Joules through a stock market listing in 2016, will retire by May next year after five years in the role. When he was named as chairman of the suit hire company, Mr Porter said he would “like to reiterate that I remain as active in and committed to my role as chief executive of Joules as ever”. However, a person close to the retailer said the chairmanship at Moss Bros had nothing to do with his decision to leave Joules. It is understood headhunters have been appointed to find a successor, and preparations are at an early stage.
Bid to boost rural mobile coverage. Mobile operators are nearing a deal to work together to tackle rural coverage “not-spots” amid a rising threat of costly new regulations as they prepare for heavy investment in 5G networks. The chief executives of Britain’s mobile network owners – BT Group (BT.A), O2, Three and Vodafone Group (VOD) – are in talks to take a two-pronged approach to the problem of patchy signals in the countryside. Research from Ofcom, the industry watchdog, found that in more than a fifth of the country it is not possible to make a voice call on all four networks. In the plans now under discussion these so-called partial not-spots would be addressed by a new barter system to allow the operators to share masts more easily.
Sports Direct to offer shoppers credit in latest expansion. Mike Ashley is resurrecting plans for a move into consumer lending, as he struggles to seize control of Debenhams and seeks new sources of growth for his empire. The retailer is said to be envious of fashion giant Next’s credit arm, which has 2.5 million customers and has played a major role in expansion. Chris Wootton, Mr Ashley’s deputy finance chief, said credit for shoppers was “on the agenda” at Sports Direct. He added that the company was sensitive to the regulation and compliance involved and that it would be careful “because we don’t want a situation where someone ends up paying £1,000 for a football”.
Ex-boss of RBS restructuring unit criticised over new role. An MP has launched a scathing attack on the former boss of Royal Bank of Scotland Group (RBS) scandal-hit turnaround unit GRG, after finding out that he advises the standards organisation for restructuring practices. Derek Sach, who left RBS in 2015, chairs the International Association of Restructuring, Insolvency & Bankruptcy Professionals’ (Insol) lenders group and is named on the organisation’s 2021 task force. Tory MP Kevin Hollinrake, who is chairman of the parliamentary group on fair business banking, said he is “alarmed and perplexed” that Mr Sach advises Insol, which RBS chief Ross McEwan last year flagged to the Treasury select committee as a “leading association” that sets out principles for bankers.
British Land toasts £130m sale of portfolio of pubs to Aprirose. British Land Company (BLND) has sold its entire portfolio of pubs for £130m as it continues a sell-off of standalone properties in favour of larger developments with several tenants. The FTSE 100 member has agreed to hand its 45 pubs, which are occupied by Greene King’s Spirit Pub Company, to London-based property investor Aprirose. Aprirose already owns 150 other pubs, including 22 Marston’s sites it acquired from shopping centre landlord NewRiver for £15m in January and 73 sold by Mitchells & Butlers in 2017. British Land, one of the country’s largest property developers, has sold off more than £2.5bn worth of standalone assets, such as individual shops, supermarkets and office blocks, in the past five years.
