Aviva (AV.) chairman Sir Adrian Montague has quit the insurer and pensions provider a month after it emerged that a boardroom row had erupted over a radical break-up plan. Senior City sources told The Telegraph last month that some top directors were left frustrated after radical plans for the FTSE 100 insurer to split itself in two were rejected by the board, who chose to keep the company intact. It is not clear if Sir Adrian, who has been chairman for almost five years, ever supported the break-up plan. At an investor day in November he told shareholders he agreed with the current strategy. One person close to the company said he had “old fashioned, boardroom values and is a man of his word; he said he’ll do five years and that’s what he’s done”.
Sainsbury (J) (SBRY) is poised to axe hundreds of managers in a cost-cutting drive at the supermarket chain. The grocer said the redundances will bring Argos and Sainsbury’s closer together, following its botched £10bn merger with smaller rival Asda last year. Sainsbury’s gobbled up Argos in a £1.4bn deal in 2017. Chief executive Mike Coupe, who is rumored to step down this summer, wrote to staff on Tuesday. He said: “We have to adapt to continue to meet the needs of our customers now and in the future and, while change can be hard, it’s also necessary. “We have a clear purpose and a strong and compelling set of priorities that will support us to deliver for our customers.”
Dixons Carphone (DC.) was left red faced after admitting that sales fell over the festive period, after it initially reported a rise by mistake. The retailer originally said overall sales grew by 2% for the 10 weeks to Jan 4, only to rectify that a few hours later to say that sales in fact fell by 2%. It blamed the blip on a clerical error and stuck to financial guidance for the year to April, when it expects to make profits of around £210m. The company’s shares, having initially risen 5%, slumped after the correction was issued but recovered again to trade up 5% at 149p. Strong demand for supersize TVs, Apple Airpods and high-end hair dryers helped the company to a 2% increase in electrical like-for-like sales for the 10 weeks to Jan 4 in the UK, better than some of its peers including struggling John Lewis. Dyson’s £300 Supersonic hair dryer and £450 Airwrap styling tool proved major hits.
TalkTalk Telecom Group (TALK) has agreed a £200m sale of the FibreNation division to ease its debt burden, in a deal that analysts fear could narrow the broadband operator’s future competitive options. FibreNation’s sale to CityFibre Infrastructure Holdings (CITY) includes a wholesale commitment that will require TalkTalk to offer its customers broadband services that use CityFibre’s network. The takeover comes as analysts question whether CityFibre will be able to match the faster pace of fibre broadband roll out at rivals such as Openreach. CityFibre has raised its target to connect 8 million UK homes and businesses after buying FibreNation, but has not set a deadline. TalkTalk maintained on Tuesday that its agreement with CityFibre would give it the flexibility to access other networks if CityFibre fails to meet its targets.
The boss of easyJet (EZJ) has demanded clarity over the rescue of Flybe and warned that ministers must not hand out favours to individual airlines. Johan Lundgren said his firm is in talks with the Government over a planned overhaul of the controversial air passenger duty (APD) regime, which costs it tens of millions of pounds a year. Flybe was last week given a lifeline by the state, which allowed it to delay payment of a £10m APD bill amid fears the regional airline would otherwise go bust. The whole tax regime – which costs up to £26 per passenger – is now being reviewed. But rivals such as British Airways owner IAG and Ryanair cried foul, saying the deal was an unfair market intervention and pointing out that Flybe is part owned by billionaire Sir Richard Branson.
Vodafone Group (VOD) has pulled out of Facebook’s effort to create a new global currency, adding to the growing list of companies distancing themselves from the social network’s plans. The British telecoms company said it instead planned to focus its efforts on its mobile payment system, M-Pesa. It is the latest blow to the Libra currency, a project that Facebook announced last year but which has been damaged by an exodus of backers and criticism from regulators. Vodafone’s departure adds to exits from Visa, Mastercard, Stripe, PayPal, eBay, Booking Holdings and Mercado Pago, leaving just 20 of the original 27 members of the Libra Association, the group that will govern the currency.
Questor: Imperial Brands (IMB) feels like a very uncomfortable stock to hold – which is why we will do so. Questor share tip: British American looked equally cursed this time last year and its shares have gained 37%. The same could happen to Imps
