Ryanair Holdings (RYA) has partially bowed to shareholder pressure to shake up its corporate governance, while confirming that boss Michael O’Leary will stay with the airline for another five years. Mr O’Leary has signed a new contract until at least July 2024, but will change his title to group chief executive later this year. He will appoint a separate CEO of the Ryanair airline as part of a company restructuring. The low-cost carrier also said that chairman David Bonderman, who has been in the role since 1996, will be replaced by Stan McCarthy in summer 2020 and that Kyran McLaughin, senior independent director, had agreed to step down.
Flybe Group (FLYB) biggest shareholder has cleared a key hurdle in its bid to block the low-cost airline’s cut-price sale to Virgin Atlantic-led consortium. The Exeter-based carrier has accepted London-based asset manager Hosking Partners’ call for an extraordinary general meeting to oust chairman Simon Laffin and conduct a “forensic examination” of its sales process. Last month Hosking wrote to Flybe’s board and City watchdogs to complain about the £2.2m sale of the airline to Connect Airways, a consortium including Virgin, Southend Airport-owner Stobart, and US investment firm Cyrus Capital Partners.
A British start-up could be about to make it easier to get a credit score thanks to millions of pounds in new funding. Aire Labs, a start-up that is using artificial intelligence to help people with credit checks, is raising $11m (£8.4m) from backers including French telecoms firm Orange and credit giant Experian (EXPN). Founded in 2014, Aire develops artificial intelligence-powered chatbots to take virtual interviews to provide people with credit scores. The AI steps in when companies cannot find enough information from credit providers or want to ensure additional checks.
Ferrexpo (FXPO) warned its full-year accounts may come with a health warning after its auditors opened an investigation into its payments to a charity. The FTSE 250 iron ore miner revealed Deloitte was scrutinising “unexplained discrepancies” in bank statements at Blooming Land, a Ukrainian charity set up by Ferrexpo in 2013 to further its corporate social responsibility goals. Ferrexpo’s most recent payment to Blooming Land was a donation of $9.5m (£7.3m) in the first half of last year. The miner said it still intended to announce its full-year results on March 20, but warned it “cannot guarantee that the review will be complete by then, or complete favourably”.
The Government could in future start taking equity stakes in Britain’s technology startups, the chairman of Innovate UK, Ian Campbell, has said, in a move which could give it more say in where businesses base their operations. “We are always looking to see what the impact of our funding is,” he said. “Whether it is as a venture capital vehicle or not, I would like every pound of Innovate UK funding to be regarded as highly as venture capital funds.” When asked whether this meant the Government could start building an equity interest in companies, Mr Campbell said the answer was “potentially”, adding that “clearly political winds change, and we would have to be respectful of that”.
Hedge funds circling troubled Metro Bank. Hedge funds have smelled blood at crisis-hit Metro Bank (MTRO), upping their bets against the challenger bank as fears mount over a fresh cash call. Short-sellers have resisted the urge to cash out on Metro Bank’s 46pc plunge since last month’s profit warning. Shorts positions against the FTSE 250 company’s shares have jumped to an all-time high. FCA shorts disclosures have revealed that 8% of Metro Bank’s shares are in the hands of hedge funds at a current market value of £86m. It has been targeted by seven short-sellers, including Brexiteer Crispin Odey’s hedge fund and Marshall Wace.
Questor: far-sighted investors should plug into Johnson Matthey (JMAT) futuristic batteries now. The company currently makes its money from catalytic converters but has its eye on an electric future
TalkTalk profit warning sends shares sliding. TalkTalk Telecom Group (TALK) admitted it still has “more to do” after revealing that higher marketing expenses and a change in accounting standards would cost between £10m to £15m and make it miss profit forecasts. The broadband operator said that annual profits before interest, tax and other charges will now be between £245m and £250m, below its £259m forecast. In the latest three months, it gained 44,000 new customers, its eighth consecutive quarter of growth, with double-digit increases in both consumer and business to business (B2B), bringing its total customer base to 4.3m.
Canadian entrepreneur leads race for HMV. A Canadian chain of record stores is in pole position to buy HMV, pipping Mike Ashley to the deal. The Sunday Telegraph understands that Sunrise Records, run by entrepreneur Douglas Putnam, is the front-runner in an auction being overseen by administrators at KPMG. Insiders are saying that Mr Putnam wants to buy all, rather than part, of the iconic company, raising hopes that the majority of HMV’s 2,200 jobs can be saved. Mr Ashley, the owner, was widely expected to rescue HMV, which collapsed into administration just three days after Christmas. Bosses blamed a “tsunami of challenges facing UK retailers”. It is HMV’s second administration in six years.
Shaftesbury (SHB) showdown as investor groups back board’s share plan. West End landlord Shaftesbury’s board has won the support of two of the country’s most influential investor groups as it prepares for a showdown with its largest shareholder this week. Sammy Tak Lee, the Hong Kong billionaire who owns more than a quarter of Shaftesbury’s shares, has urged his fellow shareholders to join him in blocking three resolutions that will allow its directors to raise money by creating new shares. But ISS and Glass Lewis, which advise institutional investors on governance issues, have encouraged their members to vote in favour at the company’s looming AGM.
Flybe pensioners risk losing all if Virgin takeover bid fails. Flybe Group (FLYB) pensioners could face financial ruin if a rescue takeover led by Virgin Atlantic falls through, after it emerged that the airline’s retirement fund is not protected by Britain’s pension lifeboat. Some £170m of benefits owed to 1,350 members of the British Regional Airlines Group pension scheme may be wiped out if the Exeter-based airline failed because Flybe’s pension fund is registered in the Isle of Man, rather than the UK. This means scheme members are not entitled to payments from the Pension Protection Fund (PPF) in the event of an insolvency. Flybe had a £11.6m pension shortfall in November 2018.
