Royal Bank of Scotland Group (RBS) said profits doubled and it would pay a higher than expected dividend amid continuing controversy over the Treasury’s decision to keep selling down its 62% stake. The taxpayer-controlled bank said the £1.6bn pre-tax profit for 2018 delivered a windfall of nearly £1bn for the taxpayer. Pre-tax operating profit rose 50% to £3.4bn. Chief executive Ross McEwan said: “This is a good performance in the face of economic and political uncertainty, with bottom line profits more than double what we achieved the previous year.” RBS announced a 3.5p final dividend and a special dividend of 7.5p, bringing the total to 13p – 60% higher than expected.
The High Court has ruled in favour of aviation and energy conglomerate Stobart Group Ltd. (STOB) in its battle with former chief executive Andrew Tinkler after one of the most colourful boardroom feuds of recent times. Mr Tinkler was found in breach of his fiduciary and contractual duties on four separate counts, including sharing confidential information with retail billionaire Philip Day. The court also ruled that Mr Tinkler had criticised the board in front of other significant shareholders in a bid to oust chairman Iain Ferguson. His dismissal was lawful, it was found. Mr Tinkler intended to appeal the verdict and called for the board to step down.
Premier Foods (PFD) has suffered a fresh blow to its restructuring efforts after pulling the sale of its Ambrosia custard business, blaming the “business climate” for failing to attract acceptable offers. Industry sources had said that the sale process had become “very quiet” and suggested that rumoured bidders Dairy Crest and yogurt maker Muller were no longer interested in the custard and rice pudding brand. It is understood that Premier Foods was hoping for bids above £100m for Ambrosia, which market sources had called “optimistic”.
ConvaTec shares plunge again on $150m restructuring. Shares in Convatec Group (CTEC) fell almost a fifth on Thursday after the medical technology company launched a $150m restructuring in a bid to boost revenue and cut costs. It is the latest setback for ConvaTec, which pulled off London’s largest float in 2016 at a valuation of more than £4bn but has since slipped out of the FTSE 100. It is now worth just under £2.4bn. The underperforming business, which has issued two profit warnings over the past two years, is targeting $80m of annual savings after three years and $120m by 2023. ConvaTec also said it would focus business lines with the best returns, as well as “simplifying our business to run it more efficiently”.
Interserve could face £66m hit if hedge fund thwarts rescue deal. Interserve (IRV) will be forced to immediately hand over £66m to its lenders if its largest shareholder thwarts a controversial debt-for-equity rescue deal announced last week. The ailing government contractor could also be on the hook for payments worth tens of millions of pounds if New York hedge fund Coltrane manages to oust its finance chief, Mark Whiteling. Interserve faces a battle to persuade shareholders to back the deal, which will all but wipe out their stakes and hand control of the company to its lenders.
BP warns war on plastic will help cut global oil demand. The war on single-use plastics could cut demand for oil faster than previously expected over the next two decades, BP (BP.) has warned. The oil major predicted a peak in global oil demand for the first time last year, and in its latest outlook report warned that a crackdown on plastic waste, which is made from fossil fuels, could play a role in slowing oil demand. BP expects demand for oil to rise 0.3% a year before plateauing in the 2030s. The “much slower” growth forecast is well below what BP predicted even two years ago. Last year, its central forecast scenario predicted the world’s appetite for crude would grow by 0.5pc a year through the next decades before peaking in the late 2030s.
Restaurant Group urged to appoint ex-Wagamama boss after chief executive quits. Restaurant Group (RTN) is facing calls to quickly find a successor for chief executive Andy McCue, the architect of the company’s controversial takeover of Wagamama, who has stepped down due to “extenuating personal circumstances”. The FTSE 250 company’s shares, having rebounded from multi-year lows in autumn, plummeted more than 10% in the wake of Thursday’s announcement. The former Paddy Power boss angered shareholders by ploughing ahead with the £559m acquisition of the successful noodle chain. Some 40% of investors in the Frankie & Benny’s owner voted against the “transformational” deal that required shareholders to stump up £315m through a painful rights issue.
