The interim boss of Just Eat (JE.) has ruled out throwing his hat in the ring for the permanent position leading the delivery giant. Peter Duffy, who was parachuted in following the sudden departure of his under-fire predecessor Peter Plumb, had been linked to the job in the long term. “I am not even a candidate,” Mr Duffy said in response to whether he was interested in staying on. “I’d love to do this job but for personal reasons it isn’t right at the moment.” Just Eat has been subjected to a barrage of criticism from US activist investor Cat Rock, which wants the company to be more profitable, sell off some of its divisions and consider a merger with one of its rivals. The shareholder claimed victory as Mr Plumb stepped down after just 16 months at the helm. Cat Rock said: “We respect and appreciate Peter Duffy’s decision to withdraw from the CEO search process.”
The mud-slinging between Provident Financial (PFG) and its former boss continued on Wednesday as a bitter war of words escalated. Provident launched an attack on the track record of Non-Standard Finance (NSF), which is run by Provident’s former boss John van Kuffeler, following NSF’s hostile £1.3bn bid for the business. The lender warned the unsolicited takeover attempt would have “detrimental” consequences for its shareholders and would be risky due to “NSF’s track record of value destruction” and its “limited experience”. It said NSF’s share price had fallen about a fifth since making a series of acquisitions, adding that it had “limited banking and credit card experience”.
One of the UK’s largest listed solar power funds is set to make its first investment in a zero-subsidy renewables project within the next year. Foresight Solar Fund Limited (FSFL) will pay its shareholders a record dividend of 6.58 pence a share from its stable of predictable subsidy-driven solar investments. But the fund’s chief executive, Ricardo Pineiro, said improvements in solar technologies meant Foresight could soon make investments in unsubsidised solar projects as well. “The most important thing is achieving predictable returns for our shareholders, and we see solar as a low-risk option,” he said.
Legal & General Group (LGEN) has become the UK’s first £1 trillion investment manager, beating rivals to a position boss Nigel Wilson admited would not have been predicted a decade ago. The company attracted £42.6bn worth of new money in 2018 despite rocky market conditions battering some of its rivals. Mr Wilson said the company had “rapidly evolved” in recent years, expanding internationally and placing a greater emphasis on individual savings. He said that a decade ago “I suspect you wouldn’t put money” on L&G becoming the first reach the £1 trillion milestone.
A social media rebellion against big business in Morocco has managed to puncture the maiden financial results of one of the UK’s biggest market listings of recent years. The anti-business consumer boycott last Spring took aim at major suppliers of milk, bottled water and petrol, leaving pan-African petrol station operator Vivo Energy (VVO) as collateral damage. The uprising against ‘unfair’ prices in Morocco, a major market for Vivo, flared up just weeks after its £2bn market debut, which was one of the largest African-focused listings in a decade. The FTSE 250 company is now worth around £1.6bn on the London Stock Exchange.
Ultra Electronics Holdings (ULE) new chief executive has declared the struggling defence contractor is “in a better state than people thought” after unveiling his first set of annual results. Simon Pryce called Ultra’s performance “encouraging” having addressed what he called a “number of legacy issues”. Delivering his verdict on the company after a review, Mr Pryce stopped short of a feared “kitchen sinking”, whereby a new boss throws out the work done by previous management. Instead he insisted Ultra’s disparate divisions could be made work together.
Britain has softened the blow of ‘no deal’ Brexit, says Bank of England – but EU will feel the pinch as it is not prepared. Britain’s borders and banks are increasingly well prepared for a ‘no deal’ Brexit, softening the blow to growth and avoiding the worst of the potential chaos if no transition is agreed, Bank of England Governor Mark Carney has said. By contrast families and businesses across the EU should brace for higher borrowing costs and financial turmoil because its authorities have done less to prepare for no deal and so could cut their economies off from chunks of the crucial financial centre in London. The Bank of England has agreed to let EU institutions continue operating in the UK, ensuring British families and firms will not lose access to funds and products from firms based over the Channel.
AstraZeneca chief pockets £11.4m despite investor backlash over pay. The boss of AstraZeneca (AZN) took home £11.4m last year – a 9% increase – despite an ongoing shareholder revolt over his pay. The FTSE 100 pharmaceutical firm said Pascal Soriot’s total pay included a £1.9m annual bonus and £7.7m of shares issued under a long-term incentive scheme. He will be awarded with a potential maximum £10m for 2019, which includes a 3% increase in salary to £1.3m, an annual bonus and long-term share awards that dependent on financial targets. The drug firm also unveiled that he earns 160 times the average employee’s salary. The pay hike comes after AstraZeneca faced investor backlash over executive remuneration for two consecutive years.
Sainsbury’s sales slide piles pressure on Mike Coupe. 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.
Debenhams warns on profits again as funding talks continue. 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.
Gambling now a ‘political football’, says Ladbrokes owner GVC. 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.
Vodafone lift as it dials back debt fears. Vodafone Group (VOD) bounced back from its lowest level in a decade after soothing balance sheet worries with plans to use convertible bonds to fund its huge swoop for Liberty Global’s cable networks across Germany and central Europe. The company will issue £3.4bn of bonds that will be converted into shares to help engineer its £16bn deal for the Liberty assets without placing more strain on its balance sheet. The two tranches of debt will turn into equity by 2021 and 2022 and Vodafone told investors that it could buy back the shares to stop investors’ stakes in it being watered down.
Offshore wind to power green collar job boom. The number of ‘green collar’ jobs is set to triple by the end of the next decade under Government plans to boost the offshore wind industry. Ministers are expected later this week to announce a major partnership between Government and the burgeoning industry to build on the success of the mega-turbines dotting Britain’s coastline. The ‘sector deal’ is the tenth to be undertaken by ministers as part of the UK’s industrial renaissance and could spur the number of highly-skilled jobs within the green energy sector from 7,200 today to 27,000 jobs by 2030.
Rise of ‘sharing economy’ boosts Ashtead Group (AHT). The rise of the “sharing economy” has helped equipment rental giant Ashtead 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.”
