RBS chairman mulls £4bn payout for investors. Bank could use surplus cash for special dividend. Royal Bank of Scotland Group (RBS) could use up to £4 billion of surplus capital to pay out a special one-off dividend to shareholders, its chairman Sir Howard Davies told The Times yesterday. While his preferred choice was to use the spare cash to buy RBS shares from the government, Sir Howard said that the dividend was an option if shareholders wanted it.
N Brown decides new era online will need new boss. The chief executive of Brown (N.) Group (BWNG) has been ousted after five years in the job. Angela Spindler, who has led the plus-size fashion retailer’s shift online, will step down at the end of the month after the board concluded that now was “an appropriate time to search for a new leader”. Steve Johnson, chief executive of its financial services business, will step in as interim boss while the company searches for a new chief executive.
Sports Direct denies plans to take over Debenhams. was forced to issue a statement yesterday clarifying that it did not intend to make a takeover offer for Debenhams after yet another chaotic annual meeting. Confusion arose after Simon Bentley, the outgoing senior independent director, allegedly told journalists that the board had discussed the possibility of combining Debenhams with its newly acquired House of Fraser department stores chain.
Hot weather has chilling effect on profits at SSE. SSE (SSE) has stunned investors by warning that profits will be significantly lower than expected this year because of high gas prices, warm windless weather and the looming energy price cap. Its shares fell by more than 8% after the unscheduled update, which analysts said implied that full-year profits would be 25% lower than expected.
Galliford Try must build bridges after bypass hit. The problem-hit Aberdeen bypass has delivered a further £20 million hit to the finances of Galliford Try (GFRD). The FTSE 250 construction group said that the write-off meant that it had lost £45 million on the scheme in the full financial year. The total additional charge since the project started is £123 million.
Green light for Big Yellow expansion. Big Yellow Group (BYG) has raised £67 million through a share placing to build nine new sites and expand two existing ones. Big Yellow Group said that the proceeds also would be used to fund its longer-term expansion plans.Big Yellow was founded in 1998. It has 96 self-storage sites across Britain, including 22 operating under the Armadillo name.
International Consolidated Airlines Group SA (CDI) (IAG) – BA set to cut risk with £4bn pensions deal. British Airways is close to concluding a deal to insure more than £4 billion of its historic pension liabilities. Trustees of the BA-sponsored Airways Pension Scheme could sign a pension buy-in deal with Legal & General Group (LGEN), a big player in the pension risk transfer industry, within days. If completed successfully, the £4.4 billion deal would be the largest such transaction in Britain, according to Sky News.
Indivior wins a breather in legal fight with rivals. Indivior (INDV) has been given a fresh reprieve from competition for its blockbuster opioid addiction treatment after an Israeli rival agreed to delay launching a generic version of the drug. The British drugs maker said that Teva Pharmaceuticals would await the outcome of an American court case involving Dr Reddy’s Laboratories, an Indian company that is also seeking to bring a copycat product to market. A decision on a preliminary injunction is expected in early November.
Superdry adds to its collection of executives. A new seat has been created at the top table of Superdry (SDRY) as the fashion chain seeks to step up its “brand innovation”. The fashion retailer best known for its jackets emblazoned with Japanese slogans said that it had hired Brigitte Danielmeyer to fill a new role of chief product officer as it seeks to enhance the creativity within the chain’s in-house design teams.
Three months after Amigo Holdings (AMGO) completed a £1.3 billion London listing, a row is brewing over the behaviour of its billionaire founder. Executives at the lender are said to be frustrated by the decision of James Benamor to step down as a director last week despite him still owning a 63.5% stake in the business. Sources say that the executives admit privately that they believe Mr Benamor, 41, wants to compete with Amigo in overseas markets, potentially setting the stage for the bizarre situation of the company and its biggest shareholder becoming rivals.
Dunelm draws curtain on past troubles. The new boss of Dunelm Group (DNLM) said that years of disruption and falling profits were largely behind it as he laid out his strategy to increase profits. Nick Wilkinson, who took over as chief executive of the homewares chain in February, said that he would simplify the business under the core Dunelm brand after a difficult period in which it had struggled to integrate its purchase of Worldstores, a loss-making internet business.
Goals Soccer Centres picks up pace in second half. It looks like it will be a year of two halves for Britain’s biggest five-a-side football operator, which reported a bounce back after a weather-related profit warning. Goals Soccer Centres (GOAL), in which is the biggest shareholder with 18.9%, said that a 2.8% fall in like-for-like sales in the first half had been followed by a strong start to the second half. Like-for-like sales for the year had turned positive which, according to analysts, implied growth of 8% to 9% in July and August, or an extra two or three games a day at each centre.
Ten Entertainment bowled over by ‘worst July ever’. The boss of one of Britain’s biggest tenpin bowling operators said that July had been the worst month he had seen as the heatwave, the World Cup and school holidays combined to hit trading. Alan Hand, outgoing chief executive of Ten Entertainment Group (TEG), said that like-for-like sales had fallen by 18.6 per cent in July, although “normal conditions” had returned in August, with growth of 9.8%
Rolls-Royce Holdings (RR.) ran into turbulence on the stock market yesterday after problems with of one of its engines forced an Iberia Airlines flight to make an emergency landing. The announcement put traders on red alert, amid fears that problems that the engine manufacturer has suffered with its Trent 1000 engine model, made for Boeing’s 787, could have been repeated in the newer model. The FTSE 100 company had said previously that such issues would not transfer to the Trent XWB, which is a completely different engine.
British American Tobacco (BATS) and rose to the top of the premier index’s leaderboard after the US Food and Drug Administration said that it may ban flavoured e-cigarettes, potentially squashing the threat posed to the incumbents by challenger brands such as Juul Labs. The proposed new restrictions come in response to an “epidemic” of young people using the product, the FDA said, which is encouraged by e-cigarette makers marketing flavours such as candy, bubble gum and fruit flavours.
There was a sell-off in the utilities sector after SSE (SSE) warned that its profits would be lower than expected owing to high gas prices, unusually dry, still and warm weather and the looming energy price cap. Centrica (CNA), which owns British Gas, fell 5½p to 144¼p, United Utilities Group (UU.) dipped 5¾p to 710½p and Severn Trent (SVT) fell 8½p to £19.34.
Fevertree Drinks (FEVR) fizzed almost 6% higher to a record high of £41.20 during morning trading on speculation of bid interest from Pepsico. The shares eventually closed down 64p at £38.32 after a source close to the company made clear that there was nothing happening, declaring: “We don’t comment on market speculation or rumour, but, of course, are aware of our obligations as a listed company.”
Derriston Capital (DERR), the listed cash shell seeking shareholder approval for the reverse takeover deal with S4 Capital, the vehicle for Sir Martin Sorrell’s new advertising venture, was expected to start trading again yesterday, but remained suspended. Dealings in shares of Derriston have been suspended since the potential deal was announced at the end of May. There was speculation that dealing may now be delayed until the reverse takeover is completed later in the month.
Tempus – Galliford Try (GFRD): Hold. All three divisions are showing clear signs of sustainable growth
Tempus – Safestore Holdings (SAFE): Buy. In a sector that is full of opportunity, the shares should be a winner
