The Times
Insolvency experts call for U.S.-style protection: The insolvency industry has called for troubled companies to be given an American-style “grace period” to protect them from creditors.
Boss is thinking outside the box after resigning: The revolving boardroom door at Snoozebox Holdings was spinning again when Lorcan Ó Murchu resigned as Chief Executive.
I’m out (of cash): TV Dragon’s computing firm nears collapse: The cloud computing company set up by Piers Linney, a former star of Dragons’ Den, is on the brink of collapse. Outsourcery said that it had run short of funds because of factors outside its control and that it was exploring options to restructure or sell non-strategic assets to plug gaps in its finances.
Four into three won’t go, says Brussels: The plan to create Britain’s largest mobile phone network provider is set to be scuppered by European regulators, who will veto the £10.25 billion takeover of O2’s U.K. network by CK Hutchison, the Owner of Three.
Private equity heads the queue for $1 billion Hotelbeds: Cinven is being tipped as the frontrunner in the €1 billion-plus auction of the Hotelbeds business.
The Independent
Shell to close BG Head Quarters near London by the end of the year: Royal Dutch Shell will close the head office of BG Group, the gas producer it agreed to acquire for $50 billion in February, by the end of the year, it said on Monday, as part of a plan to save costs and cut 10,300 jobs worldwide.
TTIP: U.K. Government found trade deal had ‘lots of risk and no benefit’ in its only assessment: The Transatlantic Trade and Investment Partnership will have “few or no benefits to the U.K.”, according to the only official assessment of the deal commissioned by the U.K. Government.
Asda launches ‘quiet hour’ to help autistic customers: An Asda store plans to introduce a “quiet hour” to make shopping easier for customers living with autism.
Financial Times
Royal Mail begins crunch pay talks with trade union: Royal Mail is in crunch pay talks with the powerful trade union that represents most of its workers, with the company aiming to keep its efficiency improvement plans on track.
To Read More Click Here
U.K. banks’ recovery from crisis lags behind European peers: U.K. banks are lagging behind their European rivals in their recovery since the financial crisis, and are not expected to close the gap for years — if at all — despite their efforts to cut costs and restructure.
To Read More Click Here
IEX asks for SEC exchange approval on merits of its application: IEX, the upstart trading venue, on Monday urged regulators to give the green light to its application to become a fully-fledged exchange outside of a broader debate that its plan has sparked about stock trading rules.
To Read More Click Here
Hanjin Shipping shares sink 30% on restructuring fears: Shares in Hanjin Shipping sank 30% on Monday on growing concern about the future of South Korea’s biggest container carrier as mounting debts and ballooning losses force it toward a creditor-led debt restructuring.
To Read More Click Here
Tribune to consider Gannett’s $815 million offer: Gannett, the publisher of USA, has moved to extend its lead as the biggest print and digital news organisation in the U.S. with an $815 million takeover proposal for Tribune Publishing, Owner of the Los Angeles Times and the Chicago Tribune newspapers.
To Read More Click Here
Lex:
EDF: high tension lines: EDF, the French electric utility, has finally recognised the yawning financial gap it must cross. It has not generated positive free cash flow since 2010, when French power prices were two-thirds higher than today.
To Read More Click Here
Coco bonds: exploding canaries: In theory, the contingent convertible bond is just what European banking needs. Regulators want a loss-absorber that prevents bank bankruptcies. Banks do not wish to issue equity. Investors have had their fill of it, too, but are hungry for strong yields, which “cocos” offer.
To Read More Click Here
Lombard:
BHS and the demonisation of Philip Green: The collapse of BHS has all the attributes of a contemporary morality tale. Sir Philip Green washed his hands of the failing retailer a year ago, when he sold it to a consortium of little-known businessmen for £1.
To Read More Click Here
Fast company: According to one Chief Executive: “You don’t pick your exit in this job, your exit picks you.” In the case of Graham Chipchase, Chief Executive of Rexam, destiny came knocking last year in the form of a £4.3 billion cash-and-shares offer from U.S. rival Ball.
To Read More Click Here
The Daily Telegraph
Sir Philip Green attacked over BHS collapse: Sir Philip Green has been labelled the “unacceptable face of capitalism” after BHS, the retailer he sold for £1 last year, collapsed into administration with a £571 million hole in its pension fund.
Fraudsters steal £9 billion from Britain’s small businesses: Britain’s small businesses are losing more than £9 billion a year to fraudsters who send false invoices, viruses posing as bills, or who pose as suppliers on the phone, it has emerged.
Oil rally loses steam after three week climb: Oil prices stalled at around $45 a barrel on Monday after three weeks of bullish trade pushed prices to five month highs last week.
Falkner House to launch London’s first pre-prep boys’ school for 15 years: The family behind the Falkner House girls’ school in South Kensington has invested £10 million in launching a new pre-preparatory school for boys to meet a surge in demand.
Deutsche Bank co-Chief cleared in court: Deutsche Bank’s outgoing co-Chief Executive Juergen Fitschen has been cleared in court of lying to judges in a lengthy legal battle.
Saudi Arabia’s Aramco valued at more than £1 trillion ahead of stock market debut: Saudi Arabia has confirmed plans to sell up to 5% of the state-owned oil giant Aramco through a stock market listing, valuing the company at more than $2 trillion (£1.38 trillion).
Channel 4 seeks more diverse board: Channel 4’s new Chairman has launched a search for ethnic minority and disabled non-Executive Directors amid concerns that the broadcaster’s board does not reflect its Government-imposed diversity remit.
Ikea starts selling solar panels again: Ikea has rebooted its solar panel offering with several ‘solar shops’ opening at stores across the U.K. this week as part of the retailer’s renewed sustainability drive.
The Questor Column:
Profits jump 156% at Lok’n Store: Let’s face it, we all have too much stuff cluttering up the home, and when this is combined with a housing crisis which prevents us from moving up the ladder it is understandable why first-half profits soared 156% at storage company Lok ‘n Store sending the shares almost 5% higher. The company operates from a total of 27 stores, of which 13 are freehold and long leasehold, 8 are on shorter leases, and the remaining 6 are managed by Lok ‘n Store but owned by a third party. The value of the store portfolio was £98.5 million at the end of January, a £10.1 million increase on a year earlier, and this underpins the net asset value of 307p per share. The company has net debts of £25.8 million at the end of January, up from £24.3 million a year earlier. Like-for-like revenue increased 8% to £8 million during the six months to the end of January and operating profits before exceptional items increased 17% to £2.4 million. The reported pretax profit performance was even more impressive, jumping 156% higher to £3.8 million. However, £2 million of that increase was a one-off payment for a property that was disposed of two years ago. The demand for storage units has been helped by a recovery in the U.K. housing market during the past seven years. The company is clearly exposed to a downturn in the housing market and the wider economy, but risk of someone who rents a unit defaulting on the payments is covered by a deposit and the ability to take Ownership of the contents. The company is performing well but the shares price in much of the good news trading on 29 times forecast earnings, falling to 21 times next year. Being a smaller company listed on Aim they also tend to be quite volatile. Lok’n Store at 317p +13p. Questor says “Hold”.
Vodafone shares retain defensive quality: Vodafone is enjoying growth in its new money transfer system and the company is beginning to answer questions over its highly rated shares and uncovered dividend. The FTSE 100-listed mobile group said it had 25 million people at the end of March using its service that connects to your bank account and allows you to send and receive money, or pay bills across Africa, Asia and Europe. The number of people using the service had increased 27% on a year earlier. The performance of the mobile payment service comes as the revenue and profits at Vodafone have returned to growth. The organic service revenue has steadily increased for more than 18 months now. Vodafone spent £19 billion on “Project Spring” to improve the coverage of its mobile network. The project was finished at the end of March and it was needed because customers are downloading far more data through their phones to watch films and TV shows. The growth is important for Vodafone because the shares are highly rated, trading on 40 times forecast earnings, compared to BT on 14 times earnings. The other criticism of Vodafone is that the dividend of 11.4p per share is not covered by the earnings of 5p per share. The market consensus is for revenue of £40.9 billion and pretax profits of £2.2 billion, giving 5p in earnings per share for the year to the end of March. The shares are clearly highly rated, but the possibility of a U.S. takeover bid and the improved trading performance warrant this. Buy. Vodafone at 227p -0.7p. Questor says “Buy”.
The Guardian
BHS collapses into administration as rescue deal fails: BHS has officially collapsed into administration after failing to agree a last-minute deal to rescue the department store chain.
Saudi Arabia approves ambitious plan to move economy beyond oil: Saudi Arabia has approved an ambitious strategy to restructure the kingdom’s oil-dependent economy, involving diversification, privatisation of massive state assets including the energy giant Aramco, tax increases and spending and subsidy cuts.
Daily Mail
Kodak pins its revival hopes new camera phone aimed at older customers: Kodak may have missed the boat when it came to successfully producing digital cameras but it hopes to have better luck with its camera phone.
Investor fury as building materials giant CRH awards its CEO an 8.5% raise plus bonus increase taking his pay to £7.5 million: Building materials giant CRH is the latest blue-chip company to anger shareholders over high levels of boardroom pay.
Loss-making RBS facing £1 billion claim it destroyed small firms and stripped their assets: Loss-making Royal Bank of Scotland could be facing a £1billion damages claim over allegations it destroyed small businesses for a profit.
Thomas Cook in talks with rivals to sell its fleet of 91 aircraft: Thomas Cook is believed to have held talks with rival airlines about selling its fleet of 91 aircraft.
CPP Founder Hamish Ogston wins fight to sack the board and take control of card firm: The Founder of scandal-hit credit card firm CPP appears to have won a battle to sack its board and regain control.
British manufacturing sees some green shoots in the face of external headwinds and ongoing export concerns: U.K. factory output stabilised over the three months to April, according to a survey published, although export orders remain a cause for concern for manufacturing firms.
Daily Express
Former Barclays Boss Diamond eyes up takeover of Barclays Africa: Former Barclays Boss Bob Diamond is stepping up his efforts to buy the lender’s African operations in a multi-billion pound deal after joining forces with U.S. private equity giant The Carlyle Group.
Fears grow China’s huge debt bubble will spark a devastating global crash: Stock markets across the world plunged amid growing fears China’s monstrous debt bubble is about to burst and trigger a devastating financial crisis.
11,000 banks urged to check security amid fears hackers could steal tens of millions: Thousands of global banks and financial firms have been urged to check security amid fears hackers have found a way to access systems and steal cash.
The Scottish Herald
Scotland could be world leader in technologies to store excess renewable energy: Scotland could become a world leader in developing new technologies to store excess electricity production from wind farms, creating thousands of jobs, a leading business organisation has declared.
William Duncan & Co launches new division and opens Kilmarnock office: AYR-based accountancy firm William Duncan & Co has expanded its operations in Glasgow and opened an office in Kilmarnock. William Duncan & Co has established a corporate advisory division in Glasgow, which will provide services in areas such as mergers and acquisitions and fundraising for small and medium sized enterprises.
Scottish manufacturers post tumble in orders and output: Scottish manufacturers suffered a sharp acceleration in the pace of decline of new orders and output volumes in the three months to April, a survey has revealed.
Glasgow-based Smart Metering Systems says Paul Dollman to step down as Chairman: Glasgow-based Smart Metering Systems has said Paul Dollman intends to stand down as Chairman with effect from the company’s general meeting on 26 May.
Wood Group wins North Sea contracts from Norwegian giant: Wood Group has won a series of contracts to support Statoil’s plans to expand its operations in the Norwegian North Sea amid the crude price plunge.
Oil slowdown fails to halt Burness Paull momentum: The downturn in Aberdeen has failed to clip the wings of Burness Paull, the region’s biggest corporate law firm, which reports continuing buoyancy after a year which saw it comfortably top the dealmaking chart for Scotland’s law firms.
Robertson invites bids for £110 million projects: Robertson Group is inviting construction industry companies in the Edinburgh area to share in a £110 million boom of work in the city.
Former Credit Suisse Executive rejoins Aberdeen board: Gerhard Fusenig has rejoined the board of Aberdeen Asset Management with immediate effect.
Glasgow property boom: Glasgow’s property market saw a 103% increase in total take-up in the first three months of 2016, when compared with 2015.
The Scotsman
Arran Brewery takes to the skies with Red Arrows: Craft beer producer Arran Brewery is taking flight after signing a deal for its name to appear on a Red Arrows Hawk during next year’s aerobatic display season.
Campbell Dallas says yes to new apprentices: Accountancy firm Campbell Dallas is investing £250,000 on the recruitment and development of 15 apprenticeship accountants this year.
Fibre optic technology firm lands £1.2 million investment: Optoscribe, a spin-out from Edinburgh’s Heriot-Watt University that specialises in fibre optic communications, has raised £1.2 million to ramp up its headcount and manufacturing capabilities.
Skyscanner hails tie-up with cab booking service: Travel search engine Skyscanner has launched a partnership with a taxi price comparison app that claims it can save travellers up to 20% off their fares to and from airports.
City A.M.
Charter’s $55 billion takeover of Time Warner Cable is approved by the U.S. Department of Justice: Charter’s $55 billion (£38 billion) takeover of Time Warner Cable has been granted antitrust approval by the U.S. justice department.
Pizza chain Zizzi to cut staff perks in wake of the National Living Wage: Zizzi’s staff have had their perks cut as the National Living Wage puts a strain on the business. The private-equity owned restaurant chain has become the latest business to respond to changes in the minimum wage.
Former Marks & Spencer Boss Marc Bolland tipped to take up Director role at British Airways Owner IAG: Marks & Spencer’s former Chief Executive Marc Bolland is tipped to be named as a non-Executive Director of International Airlines Group (IAG), the Owner of British Airways.
Empiric buys student property in Manchester for £30 million: Empiric Student Property has bought a 561 bed scheme in Manchester for £29.5 million as well as the 50% stake it doesn’t already own in a student accommodation in Southampton.
Online gambling site 21Bet nets 15,000 customers in first month after scoring a clutch during Cheltenham Festival and ahead of new casino site launch: Upstart online bookmaker 21Bet has signed up over 15,000 customers in its first month in a bid to establish a foothold in the U.K. online betting scene.
Xerox’s revenue slips on printer sales slowdown as it refocuses on services, share price nosedives: Printer and copier maker Xerox has posted a 4.2% fall in quarterly revenue to $4.28 billion (£2.96 billion) from $4.47 billion a year earlier after a strong dollar dragged on already low sales of its hardware.
Ladbrokes’ non-Executive Director Richard Moross will step down from board in May: Ladbrokes’ non-Executive Director, Richard Moross, has announced he will step down from the betting giant’s board of Directors at this year’s annual general meeting (AGM).
Jury on Operation Tabernula case retires to consider verdict: The jury on the Tabernula case, involving five former financial services professionals accused of insider trading, was retired to consider its verdict.
