Kingsmill and Twinings owner warns of ‘very severe consequences’ on food supplies from a no-deal Brexit. Associated British Foods (ABF), the conglomerate behind Primark and one of the world’s biggest food producers, has issued a dire warning about the prospect of a no-deal Brexit. The FTSE 100 giant believes the failure of Theresa May to strike a deal with Brussels over the UK’s divorce from the EU will lead to food supply chains being “severely disrupted”, its finance chief John Bason told The Telegraph. “People need to understand the disruption that will come from it,” he added. “There could be very severe consequences on the availability of food.” Mr Bason had earlier lambasted the Government for keeping a no-deal Brexit on the table, telling Reuters it was “unbelievable” and “irresponsible”.
Provident Financial (PFG) may have to choose between a nil-premium takeover or a panicked breakup of the business after its former boss launched a £1.3bn bid from the company. The troubled doorstep lender is scrambling for a new plan following an unsolicited all-share bid last week from Non-Standard Finance (NSF). If it succeeds, John van Kuffeler, who was chief executive and then chairman of Provident for more than two decades, would regain control of its larger but struggling competitor. Provident rebuffed the bid on Monday, saying it offered little value to shareholders of the 138-year-old firm.
Profits at Hiscox Limited (DI) (HSX) have surged despite another year of natural disasters and other catastrophes resulting in a high number of claims for the London-listed insurer. After a reasonably smooth start to the year, a number of natural disasters, such as hurricanes and wildfires in the US, typhoons in Japan, hailstorms in Australia and large cyber and marine hull claims led to significant market losses in the second half. However, the FTSE 100 company still managed to make a pre-tax profit of $137.4m (£105m) in 2018, compared with just £39.7m a year earlier as the number of premiums it wrote increased across all divisions.
Laura Ashley rebuffs takeover. The chairman of Ashley (Laura) Holding (ALY) has rebuffed a potential takeover of the retailer after a Manchester-born entrepreneur announced his intention to make a bid. Andrew Khoo said yesterday that no approach had been received and that his family “remain just as committed and passionate about this well-loved brand as when we first decided to invest in Laura Ashley over 20 years ago”. The comments came after The Telegraph reported that Michael Flacks, a British investor who made a fortune in the international property market, intended to make an offer following a string of profit warnings.
Thomas Cook a short-seller target as it bids to sell airline. Investors have placed their biggest bets against Thomas Cook Group (TCG) in a year as fears grow that the sale of its airline could be blown off course by a turbulent aviation market. The travel agent was plunged into crisis last year after a string of profit warnings led to a call for support from its banks to allay concerns of a cash crunch. Thomas Cook then put its airline on the market earlier this month to provide “greater financial flexibility and increased resources”. Short positions, where shares are borrowed and sold on the market in the hope of buying them back at a later date at a lower value, have nevertheless risen sharply since the announcement on Feb 6.
Pearson eyes future growth as profits rise on cost cutting. Pearson (PSON) relied on cost-cutting to deliver a rise in profits last year, with boss John Fallon hoping its restructuring plan will create a more “adaptive, flexible business”. The education giant Pearson, which offers online courses, training and materials, reported an 18% rise in pre-tax profits to $498m in 2018. But revenues at the FTSE 100 company fell 9% to $4.1bn due to disposals shrinking the size of the business, including offloading its English teaching businesses Wall Street English and UTEL, its online university partnership with Mexico.
Aviva circles ex-Old Mutual finance head as pressure to find new boss rises. Aviva (AV.) has approached Old Mutual’s former finance head Ingrid Johnson in its hunt for a new chief executive, as pressure rises on the insurer to secure new leadership. City sources said the Aviva board identified Ms Johnson as the top external candidate at a board meeting last month. She resigned from Old Mutual in November following a restructure of the fund manager. It was not clear this weekend whether an offer has been made to Ms Johnson. Aviva declined to comment and Ms Johnson could not be reached.
Investors ready to block €100m bonus package for Ryanair boss. Ryanair Holdings (RYA) investors are preparing to launch a concerted bid to block boss Michael O’Leary’s controversial €100m (£90m) bonus package. The low-cost airline shocked shareholders two weeks ago by announcing Mr O’Leary would potentially be entitled to the shares-based payout, despite being savaged by stock markets since last summer. It was branded “ludicrous” when announced, and The Sunday Telegraph can reveal some of the Square Mile’s most powerful institutions are plotting an approach to the Investor Forum, the corporate governance heavyweight that spearheaded a successful revolt against Unilever’s failed bid to move its headquarters out of the UK last year.
Questor: the British drugs firm that makes hay from America’s routine drugs shortages. Questor share tip: Hikma Pharmaceuticals (HIK), a little-known member of the FTSE 100, has some profitable products in its 700-strong stable
