Vernon Hill stepped down with immediate effect but will stay on the board until the end of the year as a non-executive director. His resignation came before a trading update from Metro Bank (MTRO) after the market had closed, in which it revealed that it had fallen to a £4.9 million loss after tax for the three months to September 30 from a £10 million profit a year earlier. The loss was the result of an accounting blunder this year.
Sports Direct names RSM as new auditor. has appointed RSM as its auditor after it was dropped by Grant Thornton and snubbed by the accounting industry’s Big Four. The decision ends a six-week hunt for a replacement to avoid government intervention or possible suspension from the London Stock Exchange. The retailer said in August that Grant Thornton, which had been its auditor since the company was floated in 2007, would not seek reappointment at the annual meeting after a review of its client portfolio. Conflicts of interests ruled out EY, KPMG and Deloitte, while PWC cited concerns about the sports goods retailer’s ownership structure.
One of the biggest investors pf Just Eat (JE.) has declared that the South African bidder trying to gatecrash a takeover of the takeaway delivery group will have to raise its offer by at least 20% for it “to be deemed attractive”. Aberdeen Standard Investments, which has a stake of 5.2% in Just Eat, said that it welcomed the interest in the company, but insisted that neither Naspers bid or a proposed merger with Takeaway.com were acceptable.
Fuller Smith & Turner (FSTA) has reinvested some of the proceeds from the sale of its brewing business in acquiring Cotswold Inns & Hotels for £40 million. The deal involves seven hotels and inns in the Cotswolds, including the Manor House at Moreton-in-Marsh, as well as two bars in Birmingham. It excludes the Broadway Hotel, which is being retained by Michael and Pamela Horton, who founded the business in 1997. The properties being acquired by Fuller’s generated revenue of £17.5 million last year and underlying earnings of £3.4 million.
Fresnillo (FRES) edged lower after it said that this year’s production would likely be at the “lower end” of its guidance. Its third-quarter update showed a 6.9% drop in gold production compared with the same period last year, while that of silver fell by 14.5%. RBC said that this was not a “particularly strong set of numbers”.
Centamin (DI) (CEY) topped the mid-cap risers, despite the goldminer announcing a 17% fall in third-quarter production. Analysts at Peel Hunt said that the drop was in line with their revised forecasts, while the “main positive” from the update was the commitment to maintain the final dividend.
The boss of Manolete Partners Plc (MANO) has pledged almost half of his stake in the company as security against a £1 million personal loan, which he is using to pay for renovation work at his London home. Steven Cooklin, chief executive, has put up a 7.8% stake, worth almost £15 million which also will be used to pay the taxman. Sources close to Mr Cooklin, who owns 18% of the company, said that he had no intention of selling any of his shares.
Tempus – Contour Global (GLO): Buy. Highly attractive valuation for a company at the centre of the world’s move to renewable fuel sources
Tempus – Northgate (NTG): Buy. Operational recovery and potential sales are not built into the shares
