Peter Long steps down at Royal Mail. Chairman stands down after investor pay revolt. Peter Long has stood down as chairman of Royal Mail (RMG) only two months after suffering one of Britain’s biggest ever shareholder rebellions over pay and his other corporate commitments. Royal Mail announced yesterday that Mr Long would stand down with immediate effect after he reviewed his board appointments and concluded that it was “no longer possible” for him to remain. He also will step down as executive chairman of Countrywide (CWD), the embattled estate agency group.
Tesco’s Drastic Dave brings back Slasher Jack. New discount stores aim to hit rival German discounters where it hurts – at the checkouts. In advance of the opening of the first two Jack’s stores today, Dave Lewis, Tesco (TSCO) chief executive, claimed that the new discount stores would offer the “cheapest products in town” and were exactly what Sir Jack Cohen, Tesco’s founder, “would have wanted and what he would have done”.
The vehicle hire company seen as the go-to choice of “white van man” has suffered an embarrassing defeat in a vote over pay at its annual meeting. Shareholders speaking for almost 58% of Northgate (NTG) voted against the hire group’s pay report at Tuesday’s annual meeting after it tried to scrap the link between executive bonuses and the company’s earnings per share. Investors argued that if they were to suffer lost earnings, so, too, should directors.
Kingfisher springs a profit leak with home improvement still not finished. Declining profits at Kingfisher (KGF) and the departure of a key executive have triggered concerns about its turnaround plan and ability to hit full-year forecasts. The DIY group behind the B&Q and Screwfix chains yesterday announced a 30.1% drop in pre-tax profit to £281 million for the six months to the end of July.
Stalling rail growth hits Stagecoach. Stagecoach Group (SGC) has suffered a slowdown in growth on its East Midlands Trains franchise and a drop in revenues from London buses. The transport operator said yesterday that like-for-like revenue growth on East Midlands from May to August had slowed to 2.1%, down from 3.5% in the previous financial year. It also fell to 5.3% in its Virgin Trains venture, which operates services on the west coast main line between London Euston, Birmingham, the northwest and Scotland.
ITV hopes partner will help it come on stream. ITV (ITV) is in talks with potential partners for its planned British streaming service and hopes to agree an outline deal over the coming months. Dame Carolyn McCall, its chief executive, said yesterday that she was aiming to have drawn up a battle plan to counter Netflix and Amazon Video by February, when ITV publishes its annual results. “We’re working through a number of plans, but it depends on who we partner with,” she told investors.
Smiths is analysts’ pick as a defence in trying times. Citi’s analysts decided that now would be a good time to man the defences, or at least consider the virtues of defensive stocks. They initiated coverage of Smiths Group (SMIN) with a “buy” rating. It’s long been a candidate for a demerger/spin-offs of its divisions, but a deal to marry its medical division with ICU, of the United States, was called off at the end of last week.Citi’s analysts wrote. “We see medical’s defensive attributes as an intrinsic advantage, given the macro risks worrying cyclicals’ investors at present.”
A rise in metals prices lifted miners after an apparent softening of the trade dispute between the United States and China, the world’s biggest metals consumer. Antofagasta (ANTO) climbed 46½p to 837p. Anglo American (AAL) jumped 79½p to £16.56. Kaz Minerals (KAZ), the copper company, rose to the top of the mid-caps after prices of the metal rose sharply. It closed up 38p at 520p.
Premaitha Health (NIPT) rose by 12.6% after announcing that it had agreed a legal settlement and licence agreement with Illumina, the San Diego-based biotechnology specialist, over its patent for non-invasive prenatal testing.
Shield Therapeutics (STX) leapt 13% after reporting that it had signed an exclusive license agreement with Norgine, a Dutch-based pharmaceuticals company, for the commercialisation of Feraccru, its first prescription medicine. The deal includes an £11 million immediate upfront payment.
Japan is Quixant’s next big bet. A British software company is hoping to profit from Japanese consumers’ love of pachinko, the arcade game, after the country’s legalisation of casino gambling. Quixant (QXT) said that it expected regulatory developments in key gaming markets, particularly Japan, to “result in significant market growth over the medium term” that the company was “well placed to exploit”. Japan’s parliament passed a law in July that legalised casino gambling in resorts that offer casinos alongside hotels, entertainment and conference facilities.
Tempus – Aveva Group (AVV): Hold long term. An impressively run business that under-promises and over-delivers. The shares should improve steadily over time
Tempus – Accesso Technology Group (ACSO): Buy. Established in core markets, growing in others
