Ferrexpo (FXPO) auditors quit after miner delayed investigation. Ferrexpo’s auditors resigned because the company waited months to launch an investigation into financial discrepancies at a charity it funds, it has emerged. Shares in the Ukrainian iron ore producer plunged by more than a quarter on Friday when it said that Deloitte had resigned with immediate effect, days after issuing a qualified opinion on Ferrexpo’s annual results. Deloitte was unable to conclude whether tens of millions of pounds donated by Ferrexpo to Blooming Land had been spent on legitimate charitable purposes and was also unable to back the company’s conclusion that Kostyantin Zhevago, its chief executive, did not have control over the charity.
Auto Trader Group (AUTO) chief hands over keys. The chief executive who made a fortune from the Auto Trader flotation is vacating the driving seat. Trevor Mather, 51, is to step down as chief executive of the digital car-selling marketplace over the next year. He will be replaced by his deputy, Nathan Coe, 40, currently chief operating officer and finance director. Auto Trader made a fortune for its founder, Sir John Madejski, 78, who used his money to buy Reading football club in the 1990s. Mr Mather leaves the company with plenty of gas in the tank: a £70 million shareholding on top of the annual pay and bonuses which last year topped £2.6 million.
‘Take control of railways away from government’. Train operators call for huge shake-up of industry. The rail industry is to call for the present train franchise system to be scrapped, that long-distance routes are opened up to competition between multiple operators and that commuter services into London and around leading cities come under the control of local authorities. This week the Rail Delivery Group, which represents the privately owned train operators as well as Network Rail, the state-controlled track, signalling and station company, will make the most significant intervention in the government’s root-and-branch review of the railways. Chris Grayling, 57, the much-criticised transport secretary, has commissioned Keith Williams, a former chief executive of British Airways and chairman-elect of Royal Mail, to deliver a report on the future of what is seen by some as a failing railway industry. Mr Williams, 62, has been asked to deliver a report in the autumn, which Mr Grayling has pledged to turn into a government white paper.
Writing’s on the wall for oil firms, say fund managers. Several big fund managers believe that oil companies should shut themselves down because soon they will become impossible to invest in as the world switches to renewable energy. A survey of 39 fund managers with $10.2 trillion under management found that 24% wanted the oil industry “to wind down their businesses and return cash to shareholders”. All but two of the funds said that oil stocks would not be attractive investments within ten years if they failed to respond to climate risks. Among respondents to the survey by the UK Sustainable Investment and Finance Association and the Climate Change Collaborative were leading names such as Aviva, Legal & General Investment Management, M&G Investments, Invesco, Hermes Asset Management and Schroders.
Convatec, Barclays and Reach Plc (RCH) face shareholder rebellions. Investors are preparing a series of rebellions, with Convatec Group (CTEC), the embattled medical devices group, Barclays (BARC) and the owner of the Daily Mirror newspaper in the line of fire. The problems facing Convatec are mounting as it faces a potential revolt at its annual investor meeting next month. Barclays and Reach, the publisher formerly known as Trinity Mirror, are braced for uprisings this week. Glass Lewis, an influential shareholder advisory group, has recommended that shareholders oppose Convatec’s executive remuneration report, warning that it has “severe reservations” about boardroom rewards at the company. Its concerns centre on Convatec increasing the potential long-term incentive share award for Frank Schulkes, chief financial officer, from 175% of his salary to 250%. Mr Schulkes, 57, was paid £627,000 last year, including a £430,000 salary and £116,000 bonus.
How flower power is being used to beat the terrorists. Recent terror attacks are evidence that the lorry, van or car has become many terrorists’ weapon of choice in western European cities. Ranged against them are rows and rows of flowerpots. The pots, or rather supersized planters engineered and deeply embedded to halt a 7.5-tonne lorry speeding at 50mph, are being used alongside toughened bollards, rooted benches, bins, lamp posts, sculptures and specially designed deep kerbs to prevent attacks in open urban spaces. In the infrastructure market, they are known as protective landscape furniture and in a factory close to the banks of the Tyne in North Shields, a team of engineers, designers and technicians are working on them. These staff at Marshalls (MSLH) are following internationally recognised crash-tested regulations. There are no laws or local authority guidance in the UK stating that these street fittings must be installed, but they are being included routinely, anyway, in new projects and are being retro-fitted around shopping centres, football grounds, hospitals, schools and colleges, around ATMs and at train and bus stations — or, indeed, anywhere where tourists may converge.
Property group won’t appoint women ‘just for the sake of it’. Britain’s sole large listed company with no women on its board said has that it is not inclined to appoint a female director “just for the sake of it”. Daejan Holdings (DJAN) is the only remaining business among Britain’s 350 largest quoted companies to have resisted pressure from the government’s Hampton-Alexander review body to stamp out all-male boardrooms. The company, which owns buildings worth £2.4 billion, said that the Orthodox Jewish beliefs of its controlling family should be considered. Daejan was founded by Osias Freshwater, who came to the UK as a refugee from Nazi Germany. The group is led by his sons Benzion, 71, and Solomon, 63.
Shell awaits ruling on deaths of Nigerian activists. A Dutch court will rule this week on whether Royal Dutch Shell ‘B’ (RDSB) was complicit in the death of nine Nigerian anti-oil protesters in the 1990s. The wives of four of the “Ogoni Nine” executed by Nigeria’s military regime are demanding compensation and a public apology from the oil major over allegations that it was instrumental in the arrests. One of the victims was Ken Saro-Wiwa, the prominent writer and activist. They were hanged in 1995. A district court in the Hague is expected to rule on Wednesday. Shell has paid the families of protesters $15.5 million, but has never admitted wrongdoing and insists that it pleaded for clemency for the Ogoni Nine.
National Grid seeks to avoid fuelling panic over gas alert. National Grid (NG.) is seeking to rename the alert it issues to warn of possible supply shortages, claiming that calling it a “gas deficit warning” is inaccurate and can fuel panic. The utility company, which ensures that Britain’s gas supply and demand are in balance, issued the warning during the Beast from the East cold spell last year after a “series of significant supply losses resulting in a forecast end-of-day supply deficit”. The alert to the gas market, designed to inform traders that they needed “to provide more gas or reduce demand”, sent prices soaring and ultimately had the desired effect by securing enough gas to meet demand, which was unusually high in the freezing weather.
British Land joins workspace club. The arrival of Wework on its doorstep has prompted one of Britain’s biggest property companies to launch a new members club-style offering for tenants who want to rent out meeting rooms and events space. British Land Company (BLND) has opened Storey Club at its Paddington Central office campus in west London. The 10,000 sq ft space includes a lounge area, café, workspace and themed meeting rooms for private dinners, corporate functions and events. The space is accessible to all of its tenants on the campus and the company hopes that it will bring in hundreds of thousands of pounds a year in rent. The club includes an underground area that British Land said would have been more difficult to let on a traditional lease.
The People’s Operator to leave creditors out of pocket. Creditors of a collapsed “ethical” mobile network start-up are facing losses from its failure. People’s Operator (The) (TPOP) was hyped as a future £2 billion business by Jimmy Wales, 52, a former chairman and the founder of Wikipedia, but the company fell into administration in February. Barclays, the only secured creditor, is owed more than £1 million, according to Duff & Phelps, the administrator, and is set to receive up to a quarter of its loan. Unsecured creditors, including HM Revenue & Customs and Lycamobile, are owed a combined £1.35 million but are not expected to receive anything.
