Investors demand change as Ryanair Holdings (RYA) survives revolt. Calls grow for chairman to quit amid criticism of governance. Ryanair has suffered a major shareholder revolt, with nearly a third refusing to back the re-election of its chairman and leading City institutions publicly criticising its corporate governance. Amid growing concerns about the independence of the chairman and the management’s souring employee relations, 29.5% of shareholders voting at Ryanair’s annual meeting in Ireland yesterday refused to back the re-election of David Bonderman.
Egyptian oilfields set to change hands in $1bn transaction. SDX Energy Inc. (DI) (SDX) confirmed yesterday that it was in talks with the oil major, BP (BP.), about “a significant package of assets” in the country, after a report by Bloomberg. The proposed $1 billion deal is understood to relate to BP’s stake in the Gulf of Suez Petroleum Company (Gupco), a joint venture with the Egyptian General Petroleum Corporation set up in the 1960s. It produces about 70,000 barrels of oil per day.
Big players prepare for grand finale at Sky (SKY). The battle for Sky will be settled by Saturday evening after a rapid-fire one-day auction between three of the world’s largest media companies. The Takeover Panel yesterday published the rules for the pay-TV giant’s sale, with a contest being decided over three rounds of bidding, starting this evening, and pitting Comcast, America’s largest cable company, against 21st Century Fox, the media group, and Disney, the Hollywood studio.
House of Fraser debts hit French Connection Group (FCCN). Its links to House of Fraser left French Connection cursing its luck yesterday as the fashion chain revealed that it had plunged to another first-half loss. The business once best known for its FCUK label said that it had made a pre-tax loss of £15.1 million in the six months to July 31, worse than the £5.9 million it lost in the same period a year earlier.
Broadband link takes off for Inmarsat (ISAT). Inmarsat will collaborate with Panasonic in providing in-flight broadband for commercial airlines. The British satellite company and the giant Japanese electronics group have signed a ten-year agreement, under which Inmarsat will become Panasonic Avionics’ exclusive provider of connectivity using its Ka-band satellite network. In return, it will offer Panasonic’s portfolio of services to its commercial aviation customers.
Busy first day makes happy Jack’s. Tesco (TSCO) first Jack’s discount store was packed with shoppers when it opened yesterday, with some queuing from 3am. The Chatteris store enjoyed a successful first morning, right, with hundreds pouring through the doors at 10am to be greeted with champagne, bacon sandwiches and cupcakes. By 11am the budget supermarket was overflowing with customers filling trolleys with food and bargain household items.
Kier plans to ‘future-proof’ business with sales and cuts. A cost and debt-cutting drive has been launched by Kier Group (KIE) amid mounting pressure from hedge funds. The construction company unveiled plans yesterday to generate extra profits and cash of at least £20 million in 2020 and a further £30 million to £50 million from offloading non-core businesses. The “future-proofing Kier” programme is designed to help to cut its average net debt to £250 million in 2021 and to deliver a net cash position.
Eve boss can sleep easy as sales recover. Maybe July’s profit warning was just the wake-up call Eve Sleep PLC (EVE) needed. The company bounced back yesterday from that summer low point after announcing that it would refocus on its key markets and scale back expansion efforts. The online mattress retailer, which appointed James Sturrock, the former Moonpig boss, as its chief executive this month, reported a 63% jump in half-year revenue to £18.8 million. The interim pre-tax loss rose to £12 million from £9.1 million previously.
Purplebricks Group (PURP) was seen by many as being truly in the pink, bursting with health and potential, but that perception is on the ebb in some quarters. Yesterday Anthony Codling, a long-time doubter at Jefferies, highlighted a decision by Connells, a rival estate agency, to close its online operation, saying that the digital model was “fundamentally flawed”.
Burberry Group (BRBY) was out of fashion. A tour of its revamped store on Regent Street failed to create the “wow” factor among analysts, leading some to suggest that the debut collection by Riccardo Tisci, the designer, was insufficiently fashion-forward.
Shares in Tesco (TSCO) ticked up 3p to 239p after Jack’s, its cheap and cheerful new brand, was well received — although questions remain about whether it can take on the likes of Aldi and Lidl.
Fresnillo (FRES) was among big board’s biggest risers, up 22p at 847½p. A mining rally that also took in Lonmin (LMI), Acacia Mining (ACA) and Anglo American (AAL), reflected relief that the trade war between the United States and China has been kept in check. The positive sentiment also benefited Standard Chartered (STAN), one of the largest providers of trade finance to Asian clients.
Kier Group (KIE) swung from a rise early in the day, which put the squeeze on short-sellers who had wagered it could be the next Carillion. The gain tailed off, though, and its shares closed almost flat at £10.39.
Aveva Group (AVV), which develops engineering and industrial software, rose 4.8% or 136p to £29.78 after upbeat comments from brokers.
W H Ireland Group (WHI) was one of the biggest risers on Aim. It has raised £2 million, which will satisfy Financial Conduct Authority capital requirements, and has gained M&G as a holder of 14 per cent of its stock.
Petro Matad Ltd. (MATD) shares plunged by a quarter after the Mongolia-focused oil company said that its first foray into a new region had failed to strike oil. The explorer said that Snow Leopard 1 was “the first oil exploration well ever drilled in the Valley of the Lakes basin complex of central Mongolia”. It estimated that it could find as much as 90 million barrels of oil. But after drilling to 2,930 metres, it found only an oil sheen in shallower geology and no oil or gas at all in a deeper prospect. It said: “The absence of hydrocarbon shows is being investigated.”
Tempus – Diageo (DGE): Hold long term. The currency hit is a minor setback for a group with plenty of long-term potential
Tempus – Rio Tinto (RIO): Avoid. Its investment drive and cash return are priced in
