Former Tesco executive Carl Rogberg cleared of fraud charges. The last of three Tesco (TSCO) directors accused of fraud relating to the supermarket’s 2014 accounting scandal has been acquitted, dealing a blow to the Serious Fraud Office. Carl Rogberg, 52, former UK finance director, was tried for the second time last year along with former colleagues Christopher Bush and John Scouler. The first trial was abandoned last February after Mr Rogberg suffered a heart attack. Mr Rogberg said that the acquittal was a “huge relief” and the trial had “enormous consequences on my health and exemplary career, as well as for my wife, my son, my family and my friends”.
Elliott’s tanks make life even tougher for Dixons Carphone (DC.) boss. Dixons Carphone’s new boss, Alex Baldock, has been in the job for less than a year. In that relatively short period of time he has taken the former management to task, issued a major profit warning, announced a slew of store closures and suffered a cyber attack. He’s now facing the prospect of one of the world’s most aggressive hedge funds, Elliott Advisors, parking on his lawn. Paul Singer’s hedge fund, perhaps best known for seizing control of an Argentine naval ship to push the country into default, launched 21 activist campaigns against companies around the world last year alone, according to data from Activist Insight.
Fast-growing Metro Bank (MTRO) spooks City with profit miss. Metro Bank’s shares have plummeted after it warned investors that profits for 2018 would fall behind City expectations. The high street bank, which is trying to snatch market share from the big traditional lenders, said pre-tax profits would be £50m for 2018 – a 138% rise on the previous year but below the £59m previously expected. The company blamed the slip on the final quarter when activity “softened”. Shares in the business fell more than 30% on the back of the announcement, wiping a third off the company’s value. Chief executive Craig Donaldson said it was “another strong year” for the bank as it continued to open new stores across the UK.
Marston’s to sell pubs and cut investment in debt battle. Marston’s (MARS) will bolster its balance sheet by raising £200m with the sale of unwanted pubs and cutting back on investment for its remaining estate. The Wolverhampton-based company, one of Britain’s biggest brewers and pub chains, is determined to reduce its £1.4bn debt pile by 2023. Up to £90m will be raised by selling “certain non-core assets”. Investment into Marston’s estate will fall by £25m a year as its focuses on building pubs that also offer accommodation. The so-called “capital allocation update” came as Marston’s reported 5.7% growth in like-for-like sales for the Christmas period, and a 1.4% rise for the 16 weeks to Jan 19.
WH Smith enjoys festive boost as sales rise. WH Smith (SMWH) posted a rise in sales over the Christmas period as growth in its travel division continued to offset declines across its high street shops. Total sales in travel were up by 16% in the 20 weeks to January 19, while like-for-like sales – which exclude acquisitions, store openings and closures – rose 3%. WH Smith runs hundreds of travel outlets in places like railway stations, airports and bus stations, that sell things like books, magazines, bottled water and adapters. Stephen Clarke, chief executive, said higher passenger numbers, investment in the business and new outlets helped boost sales over the crucial holiday period.
Burberry Group (BRBY) sales slip ahead of Riccardo Tisci launch. Sales at fashion house Burberry dipped over the key festive season as shoppers waited to get their hands on its new Riccardo Tisci collection. Retail revenue fell 2% to £711m over the last three months, while like-for-like store sales across all regions crept up 1%, a slowdown from the 2% increase in the same period last year. The FTSE 100 luxury retailer said it had seen “consistent performance” across its regions, with a slight rise in sales in mainland China, a crucial market for the luxury sector. However sales in the Americas were affected by lower consumer footfall.
Thousands of jobs at risk as Patisserie Holdings (CAKE) collapses. Scandal-hit bakery chain Patisserie Valerie has collapsed into administration and put thousands of jobs at risk, just months after it revealed a devastating accounting fraud. KPMG has been appointed as administrators and has already shut 70 of Patisserie Valerie’s 191 stores and concessions with immediate effect. A “significant number” of the more than 3,000 staff employed will be made redundant over the next 24 hours, the accountancy firm warned. The failure comes after last-ditch talks to secure fresh funding from banks HSBC and Barclays fell apart on Tuesday afternoon.
All Bar One owner under fire for not putting enough women on its board. A row has erupted at one of Britain’s biggest pub companies after its third-largest shareholder called for the chairman to step down amid allegations of a boardroom gender bias. Fund management titan Aberdeen Standard has attacked Mitchells & Butlers (MAB), the owner of chains including Harvester, All Bar One and Toby Carvery, for failing to put more women on its board and questioning the independence of its non-executive directors. Deborah Gilshan, investment director of Aberdeen Standard, said: “In our view, board independence has deteriorated significantly, and demonstrably so.
Mike Ashley’s truce with Intu Properties (INTU) saves four House of Fraser stores. Four House of Fraser stores slated for closure have been saved after Mike Ashley and shopping centre landlord Intu struck a truce following months of fractious negotiations. Mr Ashley, who owns the department store chain, had threatened to pull all 17 of his retail empire’s shops from Intu centres. He accused the company of being “unwilling to help retailers save stores and jobs” after it refused to meet his demands for rent cuts. However, the two sides have reached an “interim agreement” that will save the shops at Intu’s centres in Norwich, Nottingham, Lakeside in Essex and the Metrocentre in Gateshead open and 1,000 jobs.
Dixons Carphone woos gaming fans as mobile phone sales slide. The boss of Dixons Carphone (DC.) has insisted it can make its stores “exciting” as it looks battle the rise of online shopping and a precipitous fall in mobile phone sales. Chief executive Alex Baldock revealed that the retailer planned to have 140 gaming “arenas” across its stores by the end of the year after enjoying a 60pc jump in sales from gaming products over the 10 weeks to Jan 5. These areas allow computer game fans to compete against each other in store and follow similar efforts by rival retailer Game Digital to cash in on the “e-sports” gaming trend.
The crackdown on risky contracts for difference (CFDs) shut out IG Group Holdings (IGG) customers in its first half, sending the spread betting operator’s profits and shares sliding. IG’s operating profit slumped 18pc year-on-year to £113m at the interim stage following the European Securities and Markets Authority’s shake-up of the sector. Revenue also continued to deteriorate in its second quarter, dropping 8%. The watchdog is clamping down on CFDs, which allow inexperienced investors to rack up huge losses by betting on a price movement without owning the underlying asset. It has slashed leverage limits for retail investors stung by the products.
EasyJet seeks Gatwick compensation for £15m drone bill. easyJet (EZJ) is seeking compensation from Gatwick airport after the airline suffered a multimillion-pound hit for flight chaos caused by drone sightings before Christmas. The low-cost carrier said on Tuesday that three days of drone-related disruption cost it £15m in customer welfare expenses and lost revenues. About 82,000 easyJet customers were affected as Britain’s second-biggest airport grappled with rogue drones. More than 400 flights were cancelled by easyJet, Gatwick’s biggest airline. Chief executive Johan Lundgren said it was unfair for easyJet to foot the bill for the drone-related costs.
