Glaxo hunts more deals to stay competitive, Walmsley says. GlaxoSmithKline (GSK) is on the lookout for more deals this year that will replenish its drugs pipeline and give it an edge over rivals in an increasingly competitive pharmaceuticals sector, its chief executive said. Emma Walmsley said there would be no slowdown in corporate activity and to expect further deals, particularly in oncology. “I have always absolutely clear that the number one priority is to strengthen the pipeline,” she said. The announcement comes a day after GSK unveiled a multi-million pound collaboration with fellow drugmaker Merck to co-develop and commercialise a potentially ground-breaking cancer medication.
Investors approve RBS plan to buy back shares from Treasury. Royal Bank of Scotland Group (RBS) has been given the go-ahead by investors to buy back up to £1.5bn of shares from the Government. The taxpayer-controlled lender, rescued by a £45bn bailout at the height of the 2008 financial crisis, gained the backing of 98.7% of shareholders at a general meeting in Edinburgh on Wednesday. In a speech before the vote, RBS chairman Sir Howard Davies pointed out that the bank last year delivered its first profit since the crisis and paid its first dividend since its bailout. The Treasury still owns 62% of the bank. “Those were important moments in the recovery of the bank and have allowed us to start thinking about how to distribute our excess capital,” he said.
CYBG (CYBG) jumps on extra savings from Virgin Money takeover. Shares in the owner of Clydesdale and Yorkshire banks jumped on Wednesday after it revealed its £1.7bn takeover of Virgin Money has produced bigger savings than expected. Clydesdale and Yorkshire Banking Group (CYBG), which has acquired Sir Richard Branson’s Virgin Money, surprised investors with a trading update that analysts said was not as gloomy as feared. The challenger bank said it now expected to generate annual savings from the takeover of £150m by the end of 2021, compared to previous estimates of £120m. Its shares rose almost 15% on the announcement, valuing the company at close to £3bn.
Investor anger at tobacco firm Imperial Brands (IMB) as chairman re-appointed. Tobacco giant Imperial Brands’ investors have shown their anger at the re-appointment of company’s long-serving chairman. Almost a fifth of shareholders voted against Mark Williamson at the Lambert & Butler owner’s annual general meeting on Wednesday. Mr Williamson, who also chairs of FTSE 250 engineer Spectris and is senior independent director at National Grid, has been on the board of Imperial Brands since 2007. Ahead of the shareholder meeting in Bristol, proxy advisers had raised concerns over Mr Williamson’s reappointment.
Bob Diamond quits African banking venture Atlas Mara Limited (DI) (ATMA). The former Barclays chief executive, has stood down as chairman of the African banking business he set up more than six years ago. Atlas Mara, founded in 2013 by Mr Diamond and an entrepreneur once dubbed Africa’s youngest billionaire, told investors he was stepping away “to increase his focus on his other executive roles”. The London-listed company said Mr Diamond will become a non-executive director while Michael Wilkerson, the boss of its largest shareholder Fairfax Africa, will replace him as chairman. The move comes as part of a wider shake-up at Atlas Mara, which has appointed Citigroup to help it evaluate potential deals and identify areas it should move away from.
First-time buyers help boost Barratt and Redrow profits. Two of Britain’s largest housebuilders have posted booming profits as the sector continues to be buoyed by strong demand from first-time buyers and the Government’s Help to Buy Scheme. Barratt Developments (BDEV) made £408m in the six months to December, up by a fifth on the same period in 2017, while smaller rival Redrow (RDW) posted a 5% rise to £185m for the half-year. David Thomas, chief executive of Barratt, said: “We are already the largest housebuilder in the UK by some distance but we still have ambitions to grow.” While the market for second-hand homes has slowed over the past year amid economic uncertainty, sales of new homes, especially at the more affordable end, have continued to boom.
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