Morning Financial Press Review 21/11/19
Below are the key morning and weekend press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
has unveiled its first sports utility vehicle in an attempt to compete in the fast growing luxury SUV car market and reverse the 75% slide in its share price since the company floated last year. The British company, which supplies cars to James Bond in the 007 films, said it hoped the long-awaited £158,000 DBX model would widen its appeal to wealthy women, as almost all of its current customers are men. The new car, which has a top speed of 181mph and goes from 0-62mph in 4.5 seconds, will emit more than three times as much carbon dioxide as a Ford Fiesta. The DBX travels 19.7 miles per gallon of petrol, compared with an average of 51.7mpg for new cars in the UK. “I can’t emphasise enough how incredibly exciting and significant DBX is for Aston Martin,” said Andy Palmer, its chief executive. “We have both delivered this model through our expertise, but also by garnering invaluable experience and knowledge from external counsel, including our female advisory board. This is a real landmark for this great British brand and I promise that DBX will reward all who experience it in their everyday lives.”
A blue-chip fund manager has been fined £2million and accused of treating thousands of ordinary savers with contempt after overcharging them for almost five years while waiving fees for corporate clients. In the latest case to shame the investment industry, the Financial Conduct Authority revealed how Henderson raked in £1.8million in excess management charges from two funds while effectively leaving them to run themselves as trackers. After making a number of fund managers redundant, the London firm decided in November 2011 to reduce active management of its Japan and North American funds. It immediately informed its institutional investors, such as pension funds and big corporate clients, and waived their fees. But it kept around 4,700 retail investors in the dark. They continued to be charged an annual fee of between 0.75% and 1.5% – several times what they would have been in a tracker fund.
The boss of housebuilder has denied he plans to leave the company after selling nearly £4million worth of stock. Pete Redfern sold 2.15m shares for 174.2p each, regulatory filings have revealed, leaving him with 1.53m, worth £2.6million. It means he now holds a 0.05% stake in the company, down from 0.11%. The 49-year-old has been chief executive of Taylor Wimpey for 12 years, having been in charge since the merger of George Wimpey and Taylor Woodrow in 2007. Since then he has raked in more than £40million in pay.
has lost a bit of its fizz as it cut its sales expectations for the year, blaming a slowdown in consumer spending in the UK. The AIM-listed company – which had previously warned that it would be difficult to repeat last year’s stellar performance – said sales to supermarkets and off-licences were behind expectations due to a ‘wider slowdown in consumer retail spending’. In the UK, its most mature market, it expects to see sales growth of just 2 per cent this year, which is significantly down from sales growth of 53% in 2018, when it saw an ‘exceptionally strong’ summer. The slowdown in the UK was partly offset by much faster growth in the US, Europe and other parts of the world, where it expects sales to be 34%, 19% and 35% higher than last year. Overall, Fever-Tree now see revenues to come in between £266million and £268million, or growth of between 12 and 13%, down compared to analysts expectations of £275million.
Rebel shareholders are preparing to go to court in an extraordinary attempt to block the £4.7billion private equity takeover of British satellite telecommunications company . In a highly unusual tactic, Oaktree Capital and its allies will urge a judge to withhold final approval of the deal until a row is settled over how much investors should be paid. It comes after the buyout won approval from regulators and a majority of shareholders. But the stand-off means the takeover could face yet more delays, after scrutiny from the UK Government on national security grounds held it up previously.
Shares in sank after it announced a board shake-up and kicked-off a business review. Chairman Ivan Dunleavy, former boss of Pinewood Studios, and directors Philip Miles and Lord Grade have left the music and video business with immediate effect – and without explanation. The group has been buying up music publishing rights to tap into the growth in music streaming services.
The boss of , one of Britain’s biggest housebuilders has cashed in almost £4m of stock, amid fury over bumper profits for developers from the Help to Buy subsidy scheme. Taylor Wimpey boss Pete Redfern, 49, offloaded 2.15m shares at 174p each on November 19, raising £3.7m in total. A spokesman said the sale was “part of regular financial planning” designed to manage the size of his interest in the company, which is still well above the required minimum. The company’s shares have climbed from about 136p at the start of the year. Last week, it said full-year sales would be slightly higher than expected although margins slightly lower, with an order book of about 10,443 homes.
The boss of defence firm has warned it could be a takeover target as ministers prepare to wave through the sale of rival Cobham. Archie Bethel said private equity firms are likely to be encouraged by the Cobham deal – making a raid on his own company more likely. Business Secretary Andrea Leadsom earlier this week indicated she will allow Cobham to be snapped up by US firm Advent after it gave guarantees designed to protect national security. Asked about an assault on FTSE 250-listed Babcock, Mr Bethel said: “It’s a distinct possibility. “Private equity will do what they do but it’s certainly a risk – especially with our shares so undervalued.”
Shareholders in gave a lukewarm response to the insurer’s long-awaited strategic review yesterday, questioning whether its targets were stretching enough and the rejig radical enough to sweep away its reputation as the stock market’s perennial disappointment. Shares in Aviva were pushed lower to 403½p after it set out plans for a simpler structure with more accountable divisional heads, more disciplined control of costs and a greater focus on customer outcomes. Maurice Tulloch, 50, appointed chief executive in March, also announced plans for re-investing £1.3 billion in the business over the next three years, while holding or increasing the dividend and cutting debt.
continues to generate plenty of cash, enabling its new boss to unveil the return of a further £100 million to shareholders alongside its full-year results. Simon Smith, who took over as chief executive of the transport caterer at the end of May, announced the latest cash payout — to be returned via a share buyback over the next 12 months — alongside a raised final dividend of 6p, making a total for the year of 11.8p, up by 15.7%. The £100 million comes on top of two special dividends in the past two years, one of £100 million and one of £150 million.
pledged yesterday to slash annual costs by £50 million a year through increased use of automation and self-service tools. Before a presentation to investors today, Penny James, who stepped up to be chief executive of the car and household insurer in May, said that she aimed to cut operating expenses to below £590 million, from £644 million. The company said that it was “too early to say” whether the programme would lead to job losses. It employs more than 11,000 people in the UK in dozens of centres including in Doncaster, Leeds, Manchester, Glasgow and Bristol. Ms James also promised that the years of heavy capital expenditure were over and that investment by the company would fall from about £175 million.
Britain’s largest listed technology company insisted yesterday that its strategic plan was on track after increased investment reduced annual earnings. reported a 13% drop in organic operating profit to £432 million, despite rising revenues, as investments in its cloud and subscription businesses took their toll. Steve Hare, chief executive the FTSE 100 software developer, said that he had set out a “very clear path” a year ago and that expectations on revenue had been “exceeded quite considerably”. Revenue rose 5.6% on an organic basis to £1.82 billion in the year to September 30. “In 12 months, we have made a lot of progress; in the next 12 months, we’ll make a lot more,” Mr Hare, 58, said.
Joe Lewis’s 27% stake in is looking increasingly like a Premier League-winning investment. Shares of the All Bar One and Harvester operator, already up three quarters over the past 12 months, rose by another 24½p to 470½p yesterday as it continued to circumnavigate turbulence in the casual dining sector. The pub and restaurant group reported a 36% jump in pre-tax profits to £177 million in the year to the end of September, up 10.7% on an adjusted basis, from revenues 3.9% higher at £2.2 billion. Like-for-like sales for the year grew by 3.5%.
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