Ted Baker confirms Lindsay Page as new chief executive after end of hugging inquiry. Ted Baker (TED) has appointed Lindsay Page as its chief executive and said that it had concluded an investigation into the “hugging” row involving Ray Kelvin, the founder of the fashion chain. Mr Page, 59, was appointed acting chief executive in December 2018 when Mr Kelvin, 63, took a leave of absence after hundreds of staff signed a petition complaining about “forced hugging”, sexual innuendos and “stroking people’s necks”.
Indivior fights to survive $3bn indictment threat. Shares crash after US attack on ‘deceitful’ opioid scheme. The UK-listed drug maker Indivior (INDV) faces a battle to survive after it was hit by a US indictment which could cost it more than $3 billion. Shares in Indivior fell more than 70% after it was accused by a federal grand jury in Virginia of engaging in an “illicit nationwide scheme” to drive sales of prescriptions for its blockbuster treatment for opioid addiction. The indictment, including 28 felony counts, was issued after a six-year federal criminal investigation by the Department of Justice, but caught Indivior and the City by surprise.
Drastic Dave’s Tesco shakeup pays off. Tesco (TSCO) said the “vast majority” of its financial turnaround was complete after it reported a double-digit rise in profits and accelerated dividend growth. Britain’s biggest supermarket said every part of its business, including its troubled international division, contributed as pre-tax profit jumped by 28.8% to £1.67 billion. This was well ahead of the stock market’s expectations and came on revenue that rose 11.2% to nearly £64 billion, its third consecutive year of growth. Tesco’s operating profits also jumped 17.1% to £2.1 billion in the year to February 24. Dave Lewis, 54, the chief executive parachuted in from Unilever nearly five years ago to help revive a business that was on its knees, was in bullish mood yesterday as he said the grocer had “restored its competitiveness” and could look ahead to further growth and “untapped value opportunities”.
Canadian security firm mulls bid for G4S (GFS). A Canadian security company is eyeing a takeover of G4S that could value the under-pressure British government contractor at more than £3 billion. The Montreal-based Garda World Security yesterday confirmed it was considering a cash bid for all or part of G4S, sending shares in the FTSE 250-listed group surging 36¼p to 221p, giving it a market value of £3.4 billion. At one point the stock was up 31%, its biggest one-day move. Under City rules, the Canadian business has until May 8 to make a firm offer or walk away. G4S urged its shareholders to take no action.
Rolls-Royce speeds up Trent engine checks over wear alert. Rolls-Royce Holdings (RR.) has agreed with the European safety regulator to an accelerated inspection plan for some of its aircraft jet engines because of the issues over turbine blades wearing out faster than expected. The aerospace engineer said that as part of its work to tackle premature deterioration of turbine blades in a small number of its Trent 1000 Ten engines in Boeing Dreamliners, it would inspect the remaining fleet. Rolls-Royce said this would enable it to “confirm the health” of the engines over the next few months.
ASOS (ASC) ‘fixing errors’ after profits plunge. The online fashion group said that it had made a pre-tax profit of just £4 million after it was hit by rival promotions, weakness in its French, German and American markets, and £24 million of costs as it developed its supply chain around the world. The 87% fall in profits came despite the fact revenue rose by 14% to just over £1.3 billion in the six months to February. Asos said that its Black Friday campaign last year had been less successful than before. This was partly because it did not offer large enough discounts compared with its rivals and because its own-label products failed to capture the imagination of its young shoppers. The company said that it was “capable of a lot more” and was taking action to improve its performance in the second half. It is increasing its marketing, improving design and working more closely with social media influencers to lure shoppers.
Ashley threat to sue over Debenhams (DEB). Mike Ashley’s has threatened legal action against the administrators of Debenhams and the department store group’s directors after the chain’s pre-pack administration wiped out his equity stake in the business. Sports Direct, which owned a near-30% holding in Debenhams and has been battling to control its future, is believed to have lost about £150 million after the lenders took control on Tuesday. Yesterday Sports Direct warned FTI Consulting that it reserved its rights to apply to court to have the company removed as administrator. Earlier Chris Wootton, deputy chief financial officer of Sports Direct, claimed that Debenhams’ directors had abandoned their fiduciary duties with the pre-pack and said Mr Ashley’s company was examining whether to sue.
“Small is the new big,” analysts at Barclays declared in a note. “Mass marketing is being replaced with mass personalisation.” According to the analysts, millennials and Generation Z consumers have taken “total control”. This has allowed small, nimble brands to capitalise over the past five years as the traditional advantage of scale fell by the wayside. However, Associated British Foods (ABF) gained 37p to close at £25.14 last night after Barclays outlined signs of a fightback by Europe’s heavyweight manufacturers. Big food companies “are getting more flexible, cutting speed to market in half in the last 18 months”, it said. This ought to make it harder for small brands to “blindside” the sector again. “Big Food is alive to the threat because it has learnt the hard way; with slowing growth,” Barclays added. The bank believes the sector’s next key battlegrounds will be food personalisation and data, allowing companies to use precise marketing to target customers. “This trend very much favours the bigger companies,” the analysts said. In a 311-page report, it named ABF, which also owns Primark, as one of its top picks. Barclays knocked Unilever (ULVR), however, expressing concern over its margins and slowing market share gains.
Reckitt Benckiser Group (RB.) came under pressure after Indivior, which it spun off in back in December 2014, was accused of illegally boosting prescriptions for its opioid treatment. Reckitt slumped by 416p to £59.92 as shares in Indivior crashed 76p to 30p on the FTSE 250.
Stagecoach Group (SGC) faced a tough session after the government disqualified it from several rail franchise bids. Shares in the travel operator ended the day down 12½p at 121p.
Punters were cashing out of Rank Group (RNK) after the gambling operator behind Grosvenor Casinos and Mecca Bingo announced that its retail boss had resigned. Shares in the company fell 6¼p to a two-month low of 153¼p at the news of Alan Morgan’s departure. He will leave at the end of July “to pursue other opportunities”, Rank said, having led the FTSE 250 company’s British retail business since 2017. Mr Morgan, 41, said he felt that “now is the appropriate time for a new challenge”.
Tempus – Hollywood Bowl Group (BOWL): Buy. Weak second-half comparatives should mean continuation of like-for-like sales growth
