More than 1,000 EU financial services companies plan to open UK offices after Brexit in a bid to continue serving customers in Britain. An influx of companies opening offices, hiring staff and renting office space could help to mitigate the economic blow dealt to the City by British institutions moving some of their assets and operations to European financial centres such as Paris and Frankfurt. A total of 1,441 EU companies had applied to the Financial Conduct Authority by October 2019 for temporary permission to continue operating in the UK after Brexit, according to figures obtained by consultancy Bovill under a freedom of information request. Temporary clearance will allow banks, insurers and asset managers to carry on serving customers in Britain if the UK and EU do not agree to preserve unfettered access between their financial markets after the Brexit transition period expires at the end of 2020.
One of Portugal’s richest men has attacked huge payouts handed to the bosses of vodka maker Stock Spirits Group (STCK) as a row between the pair intensifies. Western Gate, the investment firm of retail tycoon Luis Amaral, has written to investors in Stock Spirits urging them to back an unprecedented demand for the firm to pay a special dividend to shareholders. Mr Amaral claims that profits are not being fairly shared around. The three-and-a-half page letter, a copy of which has been seen by The Daily Telegraph, says Stock Spirits is blighted by a “culture which seeks to reward management without recognising the modest performance of the underlying business”. Stock Spirits is recommending investors reject the non-binding resolution put forward by Western Gate, which owns 10pc of the company.
Fevertree Drinks (FEVR) is being tipped as a takeover target after a warning over weak Christmas trading in the UK sent shares plunging by a quarter. The high-end tonic maker company said it expects profits to be 5% lower in 2019 than during the previous 12 months, sending its shares down 25.6% to £14.83. The stock was worth £32 at the beginning of May last year. Analysts at Jefferies said the firm could be an attractive target for global soft drink titans. They said:”The debate on whether ‘big soda’ may look to add Fever-Tree to strengthen the portfolio offering within the premium mixers sub-category may start to resurface. “Any potential acquisition needs to be considered within the context of expanding sales of [Fever-Tree] internationally.”
Intu Properties (INTU) is gearing up for an emergency rights issue next month as it looks to raise as much as £1bn in cash. In a bid to shore up its finances, the troubled Trafford Centre owner confirmed this morning that it is targeting an equity raise alongside its full-year results at the end of February. Intu’s share price has plummeted in value by roughly 80pc during the last 12 months, with the landlord’s rental income taking a hit from tenants closing stores or restructuring their businesses. The equity raise, which involves Intu tapping up existing investors for cash by offering them shares at a cheaper price, is part of the group’s strategy to pay down its £4.7bn debt pile.
The beleagured operator of Northern Rail has struck a secret last-minute deal with ministers ahead of a High Court battle over franchising rules. Arriva withdrew its claim against the Department for Transport just hours before a civil trial began to consider whether ministers acted unlawfully by disqualifying four companies from bidding to run train lines. The landmark case, which also includes Stagecoach Group (SGC), Virgin Trains and France’s SNCF, kicked off on Monday. Arriva pulled out at the last moment after reaching a settlement, details of which remain private. The lawsuit had been expected to lift the lid on the commercially sensitive and opaque world of rail franchising for the first time since privatisation in the mid-Nineties. It comes after the four firms shied away from taking on responsibility for a massive railway industry pension scheme.
Countryside Properties (CSP) is braced for a pay showdown at this week’s shareholder meeting. Shareholder advisory group ISS says a £100,000 rise in two years for finance chief Mike Scott is not justified and it raised concerns about unequal pension contributions of bosses and staff. Both ISS and peer Glass Lewis recommend shareholders reject Countryside’s pay report for last year. ISS also recommends only qualified support for the new pay policy. Mr Scott’s salary rose by 17% to £350,000 in October; another 14% rise to £400,000 is proposed from this October. With bonuses, he was paid £915,000 last year; Ian Sutcliffe, who quit as chief executive on Jan 1, earned £2.6m. The firm says it sets starting salaries below market level and raises them subject to performance. Glass Lewis said this did not justify the rise.
