Metro Bank (MTRO) has been given a vote of confidence after customers ranked it first for personal banking services. The lender, which has been struggling to recover from a £900 million accounting error and criticism of its leadership, also placed second for business banking and third for mobile retail banking services. In contrast Royal Bank of Scotland Group (RBS) found itself bottom of the pile of 16 banks for personal banking and second to last in business banking, ahead of TSB. The findings are from the latest survey by the Competition and Markets Authority of customers’ views on the service and quality of various aspects of their banks, including overdrafts and branches. The CMA started the surveys last year as one of the measures to come out of its 2014 investigation, which criticised the services customers received but stopped short of breaking up larger players. Metro shared first place in personal banking with First Direct, the online banking division of HSBC Holdings (HSBA). It placed second place in business banking after Sweden’s Handelsbanken for the second time. Metro’s rating in business banking was seen as one of the biggest reasons behind its surprise win in February of £120 million from an official competition to boost services in that area.
Sir Peter Middleton, one of the most senior figures in the City, is to stand down as chairman of Burford Capital (BUR) as the bitter battle that has gripped the Square Mile produces its first scalps. In an attempt to mollify shareholders in the litigation finance company, it was announced yesterday that Sir Peter and David Lowe, a non-executive director, would leave after two new non-executives had been brought in. Burford also said that Elizabeth O’Connell, the chief financial officer, had been replaced with immediate effect. Sir Peter had come under fire for governance failings, especially by appointing Ms O’Connell as finance chief when she was married to the chief executive, Christopher Bogart.
An experienced transport executive is to be chairman of FirstGroup (FGP) after turning down the chance to join an activist investor-led bid to oust most of the board. David Martin, a former boss of Arriva, was originally selected by Coast Capital, which owns about 10 per cent of First, as one of the directors it wanted to join the rail and train operator. However, Mr Martin, 67, withdrew from the appointment before a shareholder meeting to vote on the proposals. The directors of First survived a vote in June but Wolfhart Hauser bowed to pressure and decided to resign as chairman. Two non-executives, Jim Winestock and Imelda Walsh, are also departing this year.
GVC Holdings (GVC) has upgraded its full-year profit forecast after mitigating the impact of stringent new gaming machine rules on its betting shops. GVC Holdings, which had already reported slightly better trends than expected, announced yesterday an additional £10 million upgrade to its UK retail profit forecast after transferring betting volumes to other parts of its shop estate and stepping up the pace on cost-cutting. As a result the group has lifted its forecast for underlying earnings for the year to between £650 million and £670 million, up from £630 million at the start of the year. Like-for-like net gaming revenues in its UK retail business fell 10% in the first half after the maximum stake on fixed odds betting terminals was cut from £100 to £2 by the government in April to tackle gambling addiction.
has shut down eight Jack Wills shops and warned that it will close more if landlords do not agree to further rent cuts, only two weeks after the retailer bought the preppy fashion brand in a pre-pack administration. The stores that have been closed are in Marlborough, Wiltshire; Rock, Cornwall; St Albans, Hertfordshire; Tunbridge Wells, Kent; Derby; Reigate, Surrey; Durham and Kingston upon Thames. Michael Murray, Sports Direct’s head of elevation and the future son-in-law of the retailer’s founder Mike Ashley, told The Times that the closures were “not a question of the right number of stores, but what’s the right rent”. It is understood that Jack Wills is demanding that landlords charge zero rent in areas where the business rates bill is high.
Plans to pedestrianise and protect town centres around the country have helped to boost revenues at Marshalls (MSLH) by 15%. The FTSE 250 paving supplier said that residential, commercial and government demand had helped to increase profits from £32.5 million before tax to £37.1 million in the first six months of the year. The group said yesterday that it was “increasingly confident of at least achieving its expectations” for the full financial year. Martyn Coffey, chief executive, is confident the group will continue to benefit from the pedestrianisation of urban areas over the coming years. “It’s going to accelerate,” he said, pointing to projects in Leeds and on Bond Street and Oxford Street in London. Those managing city centres and stadiums “are also looking at spending more money on what we call landscape protection,” Mr Coffey added, referring to bollards that now use reinforced steel and concrete to prevent vehicles from driving into busy areas.
Concerns over the impact of President Trump’s acrimonious trade war with China have led Kaz Minerals (KAZ) to warn investors over the short-term performance of copper prices. Shares in the FTSE 250 Kazakhstan-focused business fell more than 15% after it adopted a cautious stance on copper “due to continuing trade pressures and China slowdown concerns”. Its confidence that the outlook “remains robust” in the longer term failed to reassure the market. Kaz reported yesterday that lower commodity prices had dragged its core earnings down by 10% to $620 million in the first half. It highlighted a 6% rise in copper production, which reached 147.6 kilo tonnes in the six months to June 30 and helped to partially counter the weaker pricing.
Gem Diamonds Ltd. (DI) (GEMD) reported higher prices in the half year to June, despite weakness in the gemstone market. The company sold and produced fewer diamonds than in previous periods but secured 10% higher prices, achieving an average of $1,697 per carat. It sold 15 diamonds for more than $1 million each, generating revenue of $41.6 million, and found three stones greater than 100 carats. Analysts at Liberum, the broker, said that instability in the diamond market in recent years had tended to affect trade in smaller, lower-quality diamonds. However, they added that macroeconomic uncertainty and the Hong Kong protests could lead to that weakness hitting the wider market.
Short-sellers swooped on ASOS (ASC), and analysts at Jefferies downgraded it, sending the shares tumbling. The retailer warned last month that its pre-tax profit for the year would be between £30 million and £35 million, compared with £102 million the year before, knocked by troubles at its overseas warehouses. The profit warning had led to a 15% slide in the share price but the analysts warned yesterday of further downside risk. Asos will need to invest to “win” Black Friday, which will require further investment in the first half of next year, but any savings will need to be partly reinvested to improve deliveries or marketing to win back disappointed customers, the analysts said. Instead, they directed investors to the rival Boohoo.com (BOO) for online profitable growth and Superdry (SDRY) for a “lowly valued recovery story”.
Just Eat (JE.) was a big faller, weighed down partly by Asda, the supermarket owned by the American retail group Walmart, with which it has partnered on an express grocery home delivery service. Asda said Brexit uncertainty had affected quarterly results. Roger Burnley, 53, Asda’s chief executive, said: “If ever a case study on the impact the mood of the nation has on UK spending habits were needed, this quarter has proved it.” Just Eat was also knocked by a note by analysts at Deutsche Bank, who said there was a risk that its proposed £9 billion merger with the Dutch rival Takeaway.com may not reach completion. The deal may be “appetising” for Takeaway.com, they said, but shareholders of Just Eat would be less satisfied.
Analysts at Peel Hunt increased their price target for Avon Rubber (AVON) from £17 to £18, describing the riot equipment manufacturer’s acquisition of the American bullet protection business of 3M as a “natural fit”.
Tempus – Plus500 Ltd (DI) (PLUS): Hold. The buyback will support the shares but regulatory threats to the company remain
