Tesco (TSCO) bosses cleared of fraud over 2014 accounting scandal. Two former Tesco directors have been cleared of fraud in relation to the supermarket’s £263m accounting scandal after a judge ruled there was insufficient evidence, in what is being seen as a “significant defeat” for the Serious Fraud Office. Chris Bush, ex-UK managing director, and John Scouler, the then UK food commercial director, were accused of being aware that income was being wrongly included in the company’s financial records to meet targets and make Tesco look financially healthier than it was. When Tesco unveiled that it had overstated profits by £250m in October 2014 its shares plummeted by nearly 12%, wiping £2bn off its market value. The SFO began investigating the following month, brought charges against a trio of directors in September 2016 and a trial commenced the following year. But on Thursday at Southwark Crown Court, the jury was told that former Tesco bosses were acquitted at the Court of Appeal on Wednesday.
Ted Baker hires law firm to investigate harassment claims. Ted Baker (TED) has hired law firm Herbert Smith Freehills to lead an investigation into claims of workplace harassment after details of an alleged ‘forced hugs’ policy emerged. The FTSE 250 company said earlier this week it would take the allegations “ very seriously”. The law firm will report to a committee of non-executive directors that will be chaired by Sharon Baylay, a former Microsoft UK executive who joined the retailer earlier this year. It comes after an online petition signed by staff accused Ray Kelvin, the founder and chief executive of Ted Baker, of encouraging people to hug him before they talk.
Johnston Press accused of rush to hand newspaper empire to lenders and avoid pension liabilities. The collapsed newspaper publisher Johnston Press (JPR) has been accused of a “rush” to complete a pre-pack administration that handed control to its lenders and allowed them to avoid pension liabilities. Johnston Press also faces concerns that its attempts to secure a rescue deal were inadequate. The head of the Pension Protection Fund (PPF), which was in crisis talks with the publisher before its failure last month and is now due to take on its defined benefit pension liabilities, said officials “could not, and still don’t, understand why there was an apparent rush to complete the pre-pack”. The administration meant the 200-strong portfolio of Johnston Press newspapers, including The Yorkshire Post, The Scotsman and the i, were handed over to JPI Media, a new company controlled by a consortium of lenders led by the New York hedge fund GoldenTree. JPI Media did not take on responsibility for the Johnston Press pension scheme, which had a funding deficit of £109m and would need £305m to insure members’ benefits.
EasyHotel wins over customers but warns Brexit uncertainty could hit sector. easyHotel (EZH) hailed a “transformational” year of soaring revenues and underlying profits but warned that trading could come under pressure in 2019 amid uncertainty over Brexit. The “super budget” hotel chain, which offers no-frills rooms from £19.99 per night, saw sales across both its own and franchised sites rocket by more than a quarter to £37m in the year to September. Pre-tax profits were broadly flat at £870,000 but adjusted earnings were up 29pc, excluding the impact of higher depreciation because of its larger estate, the closure of one hotel and disruption caused by a planning dispute at another. Guy Parsons, chief executive, said it was difficult to predict the impact Brexit was likely to have on the sector. He said: “I’d need to be a fortune teller to guess what’s going to happen in the next few weeks. “The commentators say they expect hotel revenues to grow next year just not as strongly as they have done in the last 12 months, and we firmly believe we will outperform the market come what may.”
DS Smith denies plastics sell-off is a response to environmental concerns as profits jump. Packaging giant Smith (DS) (SMDS) has denied plans to sell its plastics division are a response to growing controversy around the material’s environmental impact as it unveiled another set of bumper profits. Excluding the plastics business, pre-tax profits rocketed 27% to £162m in the six months to October as new acquisitions and higher prices spurred 15% growth in revenues to £3.1bn. Miles Roberts, chief executive, refuted suggestions the sell-off was a reaction to the recent backlash against plastic, insisting the division, which makes crates, foam construction blocks and bag-in-a-box packaging, was a “very nice business”.
