Stricken department store chain Debenhams (DEB) has warned on profits again as it continues crunch talks with lenders over a deal to shore up its finances. The company told investors that the statement it made on Jan 10 that it was “on track to deliver current year profits in line with market expectations” was “no longer valid”. It declined to give further guidance, saying it will update the market at its half-year results, which usually fall in April. The profit warning is the company’s fourth in 15 months.
The boss of Britain’s biggest bookmaker has urged regulators not to tighten the noose on the gambling sector. Kenny Alexander, chief executive of Ladbrokes, Coral and bwin owner GVC Holdings (GVC), said “a lot of work” had been done over the past 12 to 18 months to combat industry failings. “We are winning the battle on problem gambling, [but] the gambling industry has been used as a political football,” he said. The Government’s crackdown on Fixed Odds Betting Terminals (FOBTs), the so-called “crack cocaine of gambling”, was welcomed by campaigners who argue that the machines take advantage of vulnerable gamblers.
The sales slide at Sainsbury (J) (SBRY) has accelerated, piling pressure on chief executive Mike Coupe in the wake of the competition watchdog appearing to scupper its merger with Asda in doubt. The supermarket posted a 1% fall in sales in the 12 weeks to Feb 24 compared to the same period in 2018, according to new figures from Kantar Worldpanel, giving it a 15.7% market share. That was worse than the 0.3% decline for the 12 weeks to Jan 27, when Sainsbury’s had a market share of 15.9%. Mr Coupe’s future as Sainsbury’s boss was thrown into doubt last week when the Competition and Markets Authority said the proposed £12bn merger could lead to higher prices for consumers.
The boss of Phoenix Group Holdings (DI) (PHNX) said he was hungry for more deals after last year’s £3.2bn takeover of Standard Life Aberdeen’s insurance arm boosted the business more than expected. Phoenix, which specialises in closed books of business or “zombie” funds, said it now expected to generate £1.2bn in savings from the deal compared to the £720m initially expected. The FTSE 250 company almost doubled in size as a result of the acquisition. Chief executive Clive Bannister said the cost savings had not come from a “great big elimination of human beings” but natural attrition and changes to technology.
The rise of the “sharing economy” has helped equipment rental giant Ashtead Group (AHT) post another quarter of surging profits and revenues. The FTSE 100 company leases leasing everything from Portakabins to diggers though its A-Plant division in the UK and Sunbelt in America. Geoff Drabble, chief executive, said Ashtead had benefited from the “big structural change” of renting rather than buying. “Technology has moved on, which has made renting far more reliable and predictable,” he said. “That speed in transactions, together with the growth and scale in the availability of equipment, has made rental a more reliable proposition.”
Ex-Barclays banker refused to take hit for bosses over ‘horrible’ Qatar deal, court told. A former Barclays (BARC) banker on trial for fraud said he did not want to take the hit to save former boss John Varley’s job if a “f******* horrible” side-deal with Qatar collapsed during the financial crisis, a court heard on Monday. Four former Barclays bankers, including Mr Varley, are accused of hiding fees paid to Qatar in exchange for a cash injection during the 2008 crisis. The money saved Barclays from a government bail-out. A jury heard that defendant Richard Boath had worried about the legality of the “horrible” deal and suggested all investors should be paid the same rate.
Online retailer rejects £140m bid from Mike Ashley’s . Findel’s board unanimously rejected a £140m takeover bid on Monday that was triggered after Mike Ashley’s Sport Direct bought another chunk of shares in the online retailer. Directors said the mandatory offer “significantly undervalues” the company and told shareholders to take no action, with a formal response to follow once the offer document had been sent. The tracksuit tycoon’s company was already the biggest investor in Findel and its purchase of six million shares from a single shareholder at 161p apiece took its holding to 36.8%. A company is required to make a takeover bid when it has a stake of more than 30%.
Interserve’s biggest shareholder sweetens rescue offer. Interserve (IRV) biggest shareholder has sweetened its “materially superior” proposal to save the sprawling contractor as it teeters on the brink. After attacking Interserve’s own restructuring plans as “terrible” last week, Coltrane Asset Management has renewed its assault on the company’s board and urged the directors to accept its offer. The school meals to hospital cleaning contractor, which employs 45,000 people in the UK, has set out terms for a painful debt-for-equity swap, which will dilute current investors’ stakes by 95%. Shareholders were told it was “the only realistic opportunity for shareholders to recover any value in return for their investment”.
Biotech start-up with promising blindness treatment sold for £663m. A British start-up with a promising cure for blindness has been bought by US pharmaceuticals giant Biogen in the third most valuable biotech exit by a UK company in two decades. Nightstar, which was founded by London-listed healthcare company Syncona Limited NPV (SYNC) together with Oxford University, will be sold to Biogen for £663m. Its key product is a gene therapy treatment for a type of blindness called choroideremia. In a recent study, 14 patients in a trial at Oxford Eye Hospital either improved or maintained their vision after being injected in the back of the eye with Nightstar’s treatment, a virus containing the missing gene responsible for the disease.
Metro Bank founder adds to account. Metro Bank (MTRO) embattled bosses attempted to drum up support ahead of its crucial cash call by snapping up almost £500,000 of shares. The ailing challenger bank’s share price bounced back as founder Vernon Hill bought an additional £376,000 of shares and under-fire chief Craig Donaldson acquired a £100,000 stake. The bank is attempting to win the backing of investors for a £350m emergency fund raising after an accounting error triggered a profit warning in January. City analysts have warned that the cash call, its second within a year, could be just the first of a series. Metro Bank has been bankrolled by a raft of Wall Street investors brought on board by its American founder.
Aviva finally picks new boss after weeks of delay. Aviva (AV.) has picked internal frontrunner Maurice Tulloch as its new chief executive following weeks of delay. The FTSE 100 insurer, which sacked Mark Wilson last October, announced the appointment on Monday having missed its self-imposed deadline to pick a new boss by mid-February. Mr Tulloch will take over as chief executive immediately. Sources told The Telegraph last month that a crunch board meeting in January had decided Mr Tulloch was the favoured internal candidate, while Old Mutual’s ex-finance chief Ingrid Johnson was the external pick. Investors said the subsequent delay in announcing a new boss suggested there was some conflict over the decision.
Questor: double-digit growth in the offing? Not bad for a stock trading at 11 times earnings. Questor share tip: a rise in the dividend from Devro (DVO), the sausage skin firm, hints at the board’s confidence in profit growth
