Analysts and shareholders have forecast major changes ahead for Royal Bank of Scotland Group (RBS) online bank Bó after it emerged that the banker who spearheaded the launch of the money saving app is set to leave. The Monzo-rival’s future has been plunged into chaos after it was reported that Mark Bailie, who was at one point tipped as a successor to former chief executive Ross McEwan, was going to leave just months after the app’s high-profile debut. Ian Gordon, a banks analyst at Investec, said Mr Bailie’s exit puts Bó “at risk” or “subject to review” while Goodbody analyst John Cronin said a rebrand is more likely to be on the cards.
One of the biggest takeovers of the last 12 months has been plunged into doubt after Britain’s competition watchdog opened a shock investigation. Takeaway.com’s £5.9bn swoop for rival Just Eat (JE.), signed off by European authorities two weeks ago, will be probed by the Competition and Markets Authority. The watchdog has reconsidered its previous decision not to look at the deal, the company said. Of particular concern is whether the merger would have prevented Takeaway entering the UK market on its own – therefore reducing future competition.
Posh hot chocolate machines and a vegan range helped boost sales for Hotel Chocolat Group (HOTC) over Christmas, but the retailer warned its overseas expansion had run up higher costs than expected. The confectioner posted an 11% rise in sales for the 13 weeks to Dec 29, boosted by demand for a £100 Velvetiser device that claims to allow customers to create “barista-grade” hot chocolate in their home. Hotel Chocolat said demand had exceeded expectations for new flavours including dark mint and raspberry white chocolate. Its new vegan “milk” chocolate – five years in the making and dubbed Nutmilk – had also been an immediate hit, the firm said. However the firm, which was co-founded by chief executive Angus Thirlwell in 1993, said costs associated with its overseas expansion were higher than expected due to issues with its supply chain that it plans to address this year.
Morrison (Wm) Supermarkets (MRW) is to axe 3,000 managers in stores and replace them with lower-paid shop-floor workers as it seeks to entice more customers and make shopping easier. Departmental chiefs in areas such as beer, wine and spirits are under threat of redundancy, while the firm is adding 4,000 extra staff at its Market Street counters, including bakers, butchers and fishmongers. Although staff whose positions are at risk will be able to stay on in new roles, the changes could leave many facing a hefty pay cut. The firm will make a final decision on changes in March after it asks for feedback from workers. David Lepley, retail director at Morrisons, said the overhaul is meant to ensure products remain available and help customers find the items they want.
A record Black Friday boosted sales at ASOS (ASC) over the festive period, propelling the fast-fashion retailer forward after a string of profits warnings last year. Retail sales hit £1bn in the for the four months to Dec 31, up a fifth on the same period a year earlier and ahead of analysts’ expectations. Chief executive Nick Beighton said the firm has moved on from the damage caused by botched warehouse overhauls in the UK and US, but added that more work must still be done. Asos was boosted by an advertising campaign with Love Island star Ovie Soko, and competitive discounts during Black Friday also boosted its coffers.
Questor: the reinvented Alliance Trust (ATST) has proved itself and is worth holding on to. Questor investment trust bargain: three years ago we opted for a cautious approach as its new incarnation took shape but the trust now seems on a firm footing
