The new digital bank set up by Royal Bank of Scotland Group (RBS) to compete with rival financial technology groups has become a target for fraudsters. It is understood that about 30% of applications received by Bó since the app-based venture went live two weeks ago were fraudulent. The figure underscores the scale of the challenge facing British banks in the digital age as they seek to counter money laundering and cybercrime. RBS is one of Britain’s biggest lenders and is led by Alison Rose, 49, who took charge of the bank at the start of this month. It has about 18.9 million customers and is behind the Natwest and Ulster Bank brands.
Better growth in the United States than expected and signs of a rapprochement between Washington and Beijing have raised hopes that the global economy has turned a corner and pushed Wall Street to fresh highs for a third day. Last month the International Monetary Fund downgraded its forecasts and warned of a “synchronised slowdown” if weak growth in advanced economies did not improve and trade tensions were not resolved. However, traders said yesterday that the bull market was “back on track”. The S&P 500 and the pan-European Stoxx 600 index hit new highs. President Trump added to the holiday spirit before Thanksgiving today by claiming that the US was in the “final throes” of securing a trade deal with China.
A French law to protect farmers and smaller distributors from the impact of promotions by large retailers has put a big dent in the profit of one of Britain’s biggest soft drinks groups. Britvic (BVIC) said that it had been a challenging year in the country, due in part to a “major impact” from the introduction of the so-called EGalim law. The law was brought in primarily to rebalance commercial relationships between smaller suppliers and retailers by specifying minimum limits on retailer margins and a maximum on supplier volumes sold on promotion.
Amigo Holdings (AMGO) has been ordered to explain more carefully the risks that people are taking on when they agree to guarantee a loan for a family member or friend. The company, the market leader in guarantor loans, admitted yesterday that the Financial Conduct Authority had identified areas where there was room for improvement, but it insisted that the regulator had not raised any concern about its main product or its business model. Shares in the company crashed by more than 50 per cent in August after it reported a rise in bad debts, earmarked more cash for customer complaints and said that loan growth would slow to a standstill after a regulatory crackdown.
Future (FUTR), the magazine publisher behind Practical Caravan and Total Film lost almost a tenth of its value after a clutch of senior managers offloaded shares worth nearly £44 million. The executives at Future decided to cash out after a long-term bonus plan paid out in full. The Bath-based company, which owns a variety of special interest print titles and websites, is the strongest performer on the stock market this year. Under Zillah Byng-Thorne, its chief executive, it has struck a series of progressively larger takeover deals, boosting its online advertising and ecommerce revenues. Its share price has tripled since the start of January, lifting Future’s market value to £1.4 billion. When Ms Byng-Thorne, 45, took charge in 2014, it was worth less than £100 million.
The pay and pensions of bosses at three of Britain’s biggest banks are to be cut in the not-too-distant future. Lloyds Banking Group (LLOY) confirmed yesterday that António Horta-Osório, its chief executive, would have his pension allowance next year reduced from 33% of his base pay to 15% to put him on an equal footing with ordinary staff, in line with new guidelines set by the large City investing institutions. The bank’s contribution to the pensions of ordinary employees will rise from a maximum of 13% of their base pay to 15%, a concession costing the bank £20 million.
Pressure Technologies (PRES), a precision engineer and producer of high pressure gas storage cylinders to Royal Navy submarines and Royal Air Force aircraft has been found guilty of the death at work of one of its maintenance engineers. Pressure Technologies, better known locally and in the industry under its Chesterfield Special Cylinders trading name, was found guilty by a jury at Sheffield Crown Court. Pressure Technologies has been fighting the case for the past four years, rejecting liability for the death at the age of 64 of John Townsend, a long-time employee. Sentencing in the case brought by the Health and Safety Executive, and the size of an expected fine, will be heard on Monday week.
On The Beach Group (OTB) has taken a £7.7 million hit to its profits from the collapse of Thomas Cook. On the Beach Group said that lost revenue, refunds and the cost of getting its customers home had totalled £25.6 million, of which it had been able to reclaim £18.5 million through a “chargeback” insurance scheme. It also had to foot a bill of about £600,000 in additional costs from dealing with the fallout from the collapse, plus the loss of money held by Thomas Cook agents. About 15% of On the Beach customers had booked Thomas Cook flights.
British American Tobacco (BATS) has played down the impact of tougher vaping regulation in the United States and told investors that its revenue will be towards the top of previous forecasts. The tobacco company said in a trading update yesterday it was “well placed to succeed”, even as American scrutiny of electronic cigarettes intensifies because of concerns that they can make people ill. BAT said that its revenue growth will be “in the upper half” of its long-term guidance of between 3% and 5% on an adjusted basis this year, thanks to stronger prices and market gains by its traditional smoking products.
The impact of soaring costs on pub profits sent Marston’s (MARS) tumbling to a full-year loss of £20 million after impairments and writedowns totalling £121 million. The pub operator and brewer said that although its underlying profits had been broadly flat, its statutory profit had been wiped out by asset impairments, reorganisation costs and losses on interest rate swap valuation movements. Its destination and premium pub division suffered a £43.4 million hit, while there was a £9.9 million write-off of acquisitions and developments that the company had decided not to go through with. The hit from an interest rate swap was £48.7 million.
Pre-election jitters have been blamed for a slump in orders at SCS Group (SCS), with consumers reluctant to splash out so-called big-ticket items such as the retailer’s sofas and flooring. SCS said yesterday that orders had slipped by 7.1% over the 17 weeks to November 23, dragging its two-year like-for-like order intake down by 4%. SCS, which stands for Sofa Carpet Specialist, was founded in Sunderland in 1894 as a family-owned home furnishing business. It now employs 2,000 people in Britain and has 101 stores. It was bought out of administration in 2008 by Sun Capital Partners, a private equity firm specialising in company turnarounds, and returned to the stock market in 2015 with a £70 million valuation.
