BT retreats from Ireland with £400m sale as international sell-off gains pace. BT Group (BT.A) is planning a retreat from Ireland with a £400m auction of its business serving corporate clients in the Republic, The Telegraph can reveal. The telecoms giant has invited bids for BT Ireland as part of a radical pruning of its Global Services international arm, sparked by a major accounting scandal in Italy. The sale of BT Ireland is being handled by advisers from Bank of America Merrill Lynch, who are assessing first round bids submitted before Easter, according to City sources. The business, which employs more than 600, last year reported a pre-tax profit of €34m (£29m) on sales of €425m, in documents filed at Ireland’s Companies Registration Office.
Hull telecoms monopoly KCom taken private in £500m bet on ultrafast broadband. KCOM Group (KCOM), the Hull telecoms operator famous for its cream-coloured phone boxes, will be taken private in a £500m deal by one of Britain’s biggest pension schemes. USSL, the trustee of the Universities Superannuation Scheme, which manages £64bn on behalf of academics, has agreed to acquire KCom in the latest of a wave of buyouts reflecting confidence in the long-term value of ultrafast broadband networks. Hull and the surrounding area benefits from a ubiquitous fibre-optic broadband network built by KCom, which holds a local telecoms monopoly independent of BT.
Interserve (IRV) finance chief to quit weeks after pre-pack rescue deal. Interserve’s finance chief is standing down just weeks after the struggling government contractor was handed over to its lenders in a contentious rescue deal. Mark Whiteling, who joined the company just 18 months ago to help lead a turnaround effort, is leaving to pursue a portfolio career. His departure adds another item to the in-tray of Interserve’s chief executive Debbie White, who is working to return the business to profit after its finances were ruined by a series of loss-making contracts. Interserve delivers a host of vital public services from cleaning schools to building railway stations and maintaining military bases.
Primark’s strong sales cushion blow from sugar wipeout for Associated British Foods (ABF). Primark’s continued popularity has helped cushion Associated British Food from a total wipeout of profits in its sugar business and allowed the company to maintain guidance for next year. The budget fashion chain helped generate the bulk of group profits after a 25% rise in operating profits to £426m in the six months to 2 March on the back of tighter stock control and more favourable exchange rates. Primark sales rose 4% to £3.6bn following new openings and strong recent trading compared with the same period last year when the UK was blitzed by the Beast from the East. ABF reported group sales of £7.5bn while half-year statutory pre-tax profits fell by 15% to £515m.
GSK may face shareholder revolt over executive pay. GlaxoSmithKline (GSK) may face a shareholder rebellion after an influential advisory group told investors to reject the company’s remuneration policy at its forthcoming annual meeting. Glass Lewis said new finance chief Iain Mackay’s £850,000 base annual salary was 10pc higher than that of his predecessor, Simon Dingemans, who was paid £773,000. Mr Mackay took up the position on April 1. The advisory group also pointed out that his total pay packet, worth a possible £5.95m with bonuses and benefits, was higher than the £5.39m he was eligible for at his former employer, HSBC, despite the base salary of £700,000 being significantly lower.
Anglo shares hit by mine closure fears. Metals giant Anglo American (AAL) suffered its worst day of 2019 after analysts warned the shutdown of a mine in Brazil could wipe a fifth off its earnings next year. Brazilian authorities have increased scrutiny on its mining sector following the Vale dam disaster in January that killed hundreds of people, suspending operations at several sites. JPMorgan calculated that Anglo could face a 20%, or $932m (£720m), cut to its 2020 earnings if a licence for the expanded tailings dam at the Minas Rio iron ore mine is delayed and the site is shut. The bank told clients “permitting timelines in Brazil are uncertain” in the wake of the dam disaster.
Questor: this trust’s discount hasn’t narrowed as we’d hoped but it has gained 20% anyway. Questor investment trust bargain: ICG Enterprise Trust (ICGT), which invests in unlisted firms, has grown the value of its portfolio by about 15pc annually for the past five years
