Shares in CYBG (CYBG), the group that recently bought Virgin Money, fell more than 10 per cent after it swung to a full-year loss and warned of lower levels of business confidence due to Brexit. It comes as CYBG, which is the parent company of Clydesdale and Yorkshire Banks, is also being sued by hundreds of small businesses who claim they were mis-sold tailored loans.
Shares in AO World (AO.) sunk by more than 12 per cent in early trading today as weary investors shuddered at the cautious tone struck by the electricals firm. In an otherwise robust set of half-year results, in which it said losses narrowed and sales jumped 10%, the online retailer admitted that it had been plagued by a ‘challenging backdrop’ in its core markets. AO – founded by executive chairman John Roberts in 2000 and best known for its catchy ‘AO, let’s go’ jingle – specialises in white goods, such as fridges and washing machines, as well as laptops and small kitchen appliances.
easyJet (EZJ) seems to have weathered turbulence from air traffic control strikes, wage rises and higher oil prices with a 41% jump in profits and forward bookings ahead of last year. The low-cost airline results were in line with expectations, with pre-tax profits of £578million for the year to September 30 and passengers numbers up by a record 10.2% at 88.5 million. The company benefited from Ryanair’s flight cancellations and the collapse of Monarch Airlines and Air Berlin, with total revenues rising 16.8% to £5.9billion during the year.
Shares on Wall Street tanked last night as some of America’s biggest tech companies took a hammering from investors. Apple fell nearly 4% – taking losses since its October peak to over 20% – following reports that the company has cut production orders for the iPhones unveiled earlier this year. Facebook followed suit, falling more than 5%. The social media titan’s shares have dropped 14% over the past month. Tech shares more broadly slid amid allegations from Chinese authorities that some of the world’s top computer chip-makers were engaging in anti-competitive behaviour. Even Amazon shed more than 5% ahead of Black Friday and the Christmas shopping period.
Corporate raider targeting Barclays expected to demand seat on board in coming weeks – sparking fight over its future. A corporate raider targeting Barclays (BARC) is expected to demand a seat on its board in the coming weeks – sparking a fight over its future. American Edward Bramson owns more than 5% of the bank through his fund Sherborne Investors and is thought to be pushing for a break-up of its prized investment arm. The 67-year-old is said to be close to declaring his hand around a year after first buying the stock. Investment insiders said Bramson is likely to seek a board seat if the bank does not do his bidding. Under the rules of his fund, this will put the New Yorker in line for a multi-million-pound bonus if the share price goes up.
Noel Edmonds will launch a £60m lawsuit against Lloyds tomorrow over claims it wrecked his firm. The TV presenter argues that a clique of criminal bankers at the Reading branch of HBOS, which Lloyds Banking Group (LLOY) had bought at the height of the financial crisis, destroyed his company Unique Group.
TSB has poached a top female banker for its vacant chief executive post as it battles to recover from an IT meltdown that left its reputation in tatters. Debbie Crosbie will take over in the new year after Paul Pester resigned in September. He was ousted after the April disaster which locked as many as 1.9m customers out of their accounts. It will make Crosbie, 48, the most powerful woman in British banking with an empire covering 4.2m customers and £60 billion of deposits and lending. The appointment follows fears that TSB was struggling to find a chief executive. Senior finance figures, including former Virgin Money boss Jayne-Anne Gadhia, had turned down the role. Crosbie is chief operating officer at CYBG (CYBG), where she has long been seen as a safe pair of hands and became the first woman to have her signature on a Scottish banknote.
Neil Woodford was dragged into a boardroom battle yesterday in yet another setback for the fund manager. The 58-year-old told the High Court he was shocked by what he described as ‘totally false’ allegations he was part of a conspiracy to harm Southend Airport-owner Stobart Group Ltd. (STOB). Woodford was called as a witness for Andrew Tinkler, the former chief executive of Stobart who is being sued by the company.
Babcock is battling to calm investors’ fears about its finances following a dramatic slump in the share price. The defence contractor, which maintains submarines carrying Britain’s nuclear deterrent, has seen its value more than halve in the past five years, leaving it valued at around £3 billion. The stock is down more than 30% since June. Babcock International Group (BAB) has been forced to speak out about the health of its finances, insisting a shake-up of its businesses would not result in ‘material’ cash costs when it reports results tomorrow. Sky News claimed the firm was preparing to unveil a £100m fall in the value of Avincis, the helicopter business Babcock bought in 2014 for £1.6 billion.
Diploma (DPLM) – which supplies components for Formula One racing cars – revved ahead of its peers to end the day as the index’s biggest riser. The firm, which also supplies medical equipment and seals and wiring to transport and defence companies, revealed in its full-year results that revenue was up 7% to £485.1m. Profit before tax rose 9% to £72.7m. The firm has generated a total return of 1382.6% for investors over the past decade, while the FTSE 250 has made just 224.9% and the FTSE 100 a mere 155.1%
Among the smaller companies on the London Stock Exchange, graphene businesses had a strong day. Versarien (VRS), which is looking to incorporate its Nanene version of graphene into clothes, wound dressings and aeroplane components, shot up 6.1%, or 7.5p, to 130p as it signed an agreement with a Chinese company to partner on building a manufacturing centre in China. Its smaller rival, Haydale Graphene Industries (HAYD), soared 36.7%, or 5.5p, to 20.5p as it signed a contract with Thai banknote printer TKS Siampress
