Metro Bank (MTRO) could be left without a permanent chief executive or chairman for months until regulatory probes into its 2019 loans gaffe are complete, City analysts have warned. Watchdogs are still investigating the lender following an accounting scandal which stunned investors last January. Metro shares have since plunged 91%, while in December chief executive Craig Donaldson followed founder Vernon Hill out of the door. One former Metro Bank insider said the lender is unlikely to secure a replacement for Mr Donaldson or Mr Hill before the probes from the Bank of England and the Financial Conduct Authority (FCA) are complete. The view was echoed by City analysts.
Barclays (BARC) boss Jes Staley has declared victory over corporate raider Edward Bramson, arguing that his prized investment bank is here to stay after fears it could be broken up. Speaking at this year’s World Economic Forum in Davos, Mr Staley said that Mr Bramson’s campaign for deep cuts at Barclays appears to be at an end. In an interview with CNBC, he said: “Our activists have pretty much pulled back. Barclays is here to stay as a bulge bracket investment bank.” One investor agreed that Mr Bramson has softened his siege, despite the fact that in November he lengthened a controversial loan, used to build a stake in the lender, by a year to July 2022. Mr Staley’s declaration of victory at Davos comes months after his case for keeping the investment bank intact was boosted by strong results within the unit, which beat its Wall Street rivals.
Sainsbury (J) (SBRY) boss Mike Coupe is in line for a payday of up to £4m after announcing he will step down less than a year after his botched £7.3bn deal with smaller rival Asda. Mr Coupe has been at the helm of the supermarket chain for six years and will be replaced by Simon Roberts, the head of retail and operations, after he retires in June. He is in line for £4m for his work at the grocer this year if certain targets are hit. However, given the drop in the share price by a quarter over the past year, his pay packet will likely be lower. Mr Coupe has said he will give up his annual bonus and a long-term share award for the next financial year. His base salary is £981,543. His pay has attracted recent scrutiny after his audacious bid for Asda crumbled last year.
Wetherspoon (J.D.) (JDW) boss Tim Martin launched a fresh broadside against “complacent” City shareholders that force firms to stick to rules they do not follow themselves. The pub chief once again attacked Columbia Threadneedle and BlackRock – two of Wetherspoon’s biggest investors with a combined 12.9pc stake – and UK corporate governance rules for creating what he said were short-termist, inexperienced boards by restricting the number of years a director can serve for. In a rant issued as Wetherspoons announced a rise in Christmas sales, Mr Martin said: “These factors are obviously damaging for customers, employees and the economy – as well as for shareholders. “The current system is remote, counterproductive and inflexible, which are also the characteristics of many major shareholding institutions and their advisers.”
Lambskin handbags and a new range of trainers boosted sales at Burberry Group (BRBY) in the run-up to Christmas despite severe disruption from violent pro-democracy protests in Hong Kong which kept buyers in the city at home. Revenue at the British fashion house rose by 1% to £719m in the 13 weeks to Dec 28 compared to a year earlier, while sales at stores that have been open for more than a year rose by 3%. But sales in the important Hong Kong market halved as clashes between police and protesters in the territory dented demand. Burberry’s chief financial officer Julie Brown said sales of a new range of trainers enjoyed double digit growth during the period, while its Lola lambskin handbags were a hit with customers.
Ted Baker (TED) has been forced to reveal that an accounting blunder was more than twice as big as previously thought, blowing a £58m hole in the troubled retailer’s finances and piling further pressure on bosses. The fashion firm said that a review by Deloitte had found the value of stock on its books was overstated by £58m, rather than a previous estimate of between £20m to £25m. This mistake is larger than the company’s pre-tax profits for the year to Jan 26, 2019, which stood at £50.9m. Shares fell as much as 10% before recovering some losses to trade down 5% at 303p. The stock has lost more than three-quarters of its value since the beginning of 2019. The Deloitte review also comes as an embarrassment to rival KPMG, Ted Baker’s auditor, which mentioned the issue in the retailer’s last annual report but concluded it was too small to affect the company’s accounts.
World-leading British fuel cell company seeking to create bountiful clean energy has been given a major boost from German industrial giant Bosch. Ceres Power Holdings (CWR) has secured a £38m investment from Bosch, which upped its holding from 4% to 18% in a deal which values the company in Horsham, West Sussex at more than £500m. The business is developing fuel cells, which use a chemical reaction to create electricity from fuels such as hydrogen, ethanol or biogas without combustion. They do this by fusing hydrogen atoms with oxygen, a process which releases electricity. When powered by pure hydrogen the only byproduct is water, while other fuels run through fuel cells create far less pollution than comparable methods of power generation.
