is facing a shareholder revolt after influential investors urged the giant miner to suspend membership of contentious trade groups that lobby for the fossil fuels industry. Standard Life Aberdeen (SLA) and Aviva (AV.) have become the latest institutional investors to support a resolution pressing BHP to halt membership of associations whose lobbying is deemed to be inconsistent with the 2015 Paris agreement, which seeks to restrict global warming. BHP’s annual meeting next week is shaping up to be one of the most prominent clashes so far between a company and its shareholders over the approach to climate change. The interventions come at a significant moment for City institutions and big companies, amid increasing concerns about climate change and high-profile Extinction Rebellion protests.
The directors of Boussard & Gavaudan Holding Ltd. GBP Shares (BGHS), an under-performing £500 million London-listed investment trust have been accused of treating shareholders poorly while allowing the fund managers to pocket high fees. Fund managers have been paid €102 million over the past five years, while the total return to shareholders has been an underwhelming 5.7% per year. The figures have been identified in research by Investec which has urged shareholders in Boussard & Gavaudan Holding to rebel against a proposed restructuring of the company this month, arguing that its governance is worse than at Woodford Patient Capital, the embattled trust run by Neil Woodford.
British Airways is to offset carbon emissions for all UK domestic flights from next year as part of a wider commitment by its parent company to achieve net-zero carbon emissions by 2050. Emissions from domestic BA flights will be offset by International Consolidated Airlines Group SA (CDI) (IAG) investing in carbon reduction projects, including renewable energy and reforestation programmes. BA operates up to 75 UK domestic flights a day.
Betting on horses and other sports at the local bookmaker is on the increase after the government clampdown on fixed-odds betting terminals, according to the owner of Ladbrokes and Coral. GVC Holdings (GVC) said that like-for-like net gaming revenues from machines had fallen by 36% in the third quarter. The overall picture across its retail estate was above expectations after a 7% rise in net gaming revenues from over-the-counter bets on horses, greyhounds and football.
BT Group (BT.A) will return to the high street for the first time since 2002 as part of a launch of services aimed at helping customers to deal with operating several internet-connected devices. It intends to transform its 600 EE mobile network stores into dual-branded branches. The telecoms group walked away from the high street after the sale of O2 in 2001. It hopes that the new-look stores will provide access to experts “who can help with everything from getting online for the first time to the latest in smart home technology”.
The takeover of Greene King (GNK), Britain’s biggest pub operator and brewer, by Hong Kong’s richest man has been backed by shareholders. At an extraordinary meeting yesterday, more than 99% of shareholders of CK Asset Holdings, the investment vehicle of Li Ka-Shing, approved the £2.7 billion acquisition of Greene King, which includes net debt. It runs two breweries, has 2,730 pubs, under brands including Hungry Horse, Farmhouse Inns and Chef & Brewer, and employs 38,000 people. CK Asset Holdings has committed previously to preserving staff numbers at existing levels. Increases in business rates, labour costs and teetotalism among young people have hit the pub sector hard. Independent brewers also have had to compete with giant global producers such as Anheuser-Busch Inbev, which makes Budweiser, and the growing popularity of craft beers.
The culture secretary has backed the £2.6 billion takeover of Inmarsat (ISAT) by a consortium of private equity firms and pension funds. The deal involving Britain’s largest satellite company had been referred to Nicky Morgan in July on national interest grounds. Ms Morgan, 47, said yesterday that she was minded to approve the deal after receiving assurances from the buyers, which include Apax Partners and Warburg Pincus. To avoid an in-depth investigation, the consortium has entered into several legally binding undertakings, including a promise to keep the company’s headquarters in Britain for several years and guarantees over the security of sensitive information and continuity of service. They also have promised that at least half the Inmarsat board will comprise UK nationals and that its new chairman and head of security will be British.
Hammerson (HMSO), Intu Properties (INTU), Capital & Counties Properties (CAPC) – A decline in the valuation of Britain’s shops, shopping centres and retail parks accelerated last month. CBRE said yesterday that retail property values had fallen by 1.7% in September, the sharpest monthly fall since December last year, when they declined by 2.2%. Valuations were dragged down by shopping centres, which fell by 2.6%, and retail warehouses, which dropped by 1.8%. Over the third quarter, retail property values fell by 3.6%, more than any quarter since the end of 2018, when they fell by 4.6%. Retail property values are under increasing pressure. Faced with rising wage bills, higher business rates and disruption from online shopping, retailers are seeking to reduce rent bills. Some have used company voluntary arrangements to reduce their rents and close stores, with a knock-on effect on values. Next, Primark and H&M typically are cutting rents from £70 per sq ft to £40 per sq ft and are negotiating their leases down from ten years to five years, according to Jefferies, the investment bank.
The chief executive of Dunelm Group (DNLM) has been given store credit at the home furnishing retailer to partly fund his relocation costs. The retailer has handed Nick Wilkinson £50,000 towards his relocation costs partly funded by store vouchers to furnish his new home, according to its annual report. Mr Wilkinson, 53, who joined from Evans Cycles in March, is also entitled to 5 per cent of his annual salary of £221,000 to travel from his home in Hertfordshire, where he spends weekends, to Dunelm’s head office in Leicester. His new home is in Leicestershire, where he spends the week.
Just Eat (JE.) would-be merger partner’s latest results was clear to investors yesterday. Takeaway.com, the online food delivery service, is now a profitable business. That was the message the Dutch group was sending out as it revealed that it had processed 41.6 million orders in the three months to the end of September, almost double what it handled in the same period last year. Takeaway.com said that its latest growth had been driven by strong sales in Germany, where it completed the acquisition of Delivery Hero earlier in the year.
Hargreaves Lansdown (HL.)shares rose after Liberum said it was a buyer of the shares and reckons that the suspension of Woodford’s Equity Income fund, which Hargreaves promoted to its clients, is just an “unhelpful distraction” rather than a more serious matter.
About three quarters of Extinction Rebellion protesters would consider investing in BP (BP.) and Royal Dutch Shell ‘B’ (RDSB), according to a “very non-scientific survey” by Barclays. Barclays’ analysts in London questioned protesters occupying Trafalgar Square about their views on the energy industry. The analysts said: “Concerns from institutional investors about the terminal value of oil companies in a 2C [of warming] environment are, for us, having a meaningful impact on share price performance. We remain convinced that environmental and technology strategies will be key determinants of competitiveness in the coming decade.” The analysts said that the activists had called for a carbon tax and had criticised oil firms for investing too little time and money into stopping climate change. They added: “When asked if they would ever buy shares in BP and Shell, there was surprisingly careful consideration and, in a very non-scientific survey, about 75% said they would, but only if the majority of investments were renewables.”
Tempus – Restaurant Group (RTN): Avoid. Wagamama is a clear performer, but the perils of the casual dining sector remove the shine
Tempus – On The Beach Group (OTB): Avoid. Well placed for growth but shares are not compelling
