Related Articles
Companies
Vodafone boss resigns
Vodafone (VOD) chief executive Nick Read has resigned after four years in the job, after the telecoms giant downgraded its full-year profit and cash flow guidance last month. CFO Margherita Della Valle will take over as interim boss once Read leaves at the end of December.
In its interim results last month, the company blamed its poor showing on the underperformance of Germany, its largest and highest-margin market. Meanwhile, inflation pushed up free cash outflow to €3.2bn (£2.8bn) from €1bn a year earlier. The telecommunications company is struggling with increased costs and investors have not responded with confidence – in the past six months its share price has fallen a quarter. AS
Read the full story here
Glencore to hand DRC $180mn for “any alleged acts of corruption”
Mining and trading giant Glencore (GLEN) became a major producer of copper and cobalt in the Democratic Republic of Congo through deals with the former government, its cronies and Dan Gertler, who “amassed [a] fortune through hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals in the DRC”, according to the US government.
Now, it has agreed a payout deal with the DRC government that will cover the company for “all present and future claims arising from any alleged acts of corruption by the Glencore group in the DRC between 2007 and 2018”.
The $180mn (£147mn) payment takes its 2022 corruption and bribery penalties to almost $1.7bn, following deals with US, UK and Brazilian authorities. “Glencore is a long-standing investor in the DRC and is pleased to have reached this agreement to address the consequences of its past conduct,” said chair Kalidas Madhavpeddi. Glencore’s copper and cobalt business is one of the key planks of its mining division – the interim cash profit this year was $3.3bn. The cobalt price has also soared in recent years as carmakers look to get their hands on supply for lithium-ion batteries. AH
AG Barr boosted by acquisition
Irn-Bru purveyor AG Barr (BAG) has bought drinks business Boost, which sells energy, sport, and protein beverages, for an initial outlay of £20mn in cash. The company said that this would help with earnings per share, though overall operating margin would be impacted in the short-term. Further consideration of up to £12mn will be due, depending on Boost’s financial performance. Boost posted £42mn in revenue and £2mn in pre-tax profits in 2021.
Peel Hunt analysts are bullish on the deal. They said that “we see significant opportunity for the company to find synergies, and the group now has another brand in a category that continues to grow”. AG Barr shares were up by 2 per cent in early trading. CA
De La Rue chair survives vote
The chair of banknote manufacturer De La Rue (DLAR) will remain in post, after an attempt to oust him failed.
Activist investor Crystal Amber, which has a 10 per cent stake in De La Rue, called on Kevin Loosemore to resign in October. However, at a shareholder vote on Friday afternoon, 83 per cent of votes were cast in favour of Loosemore continuing as a director of the company and chair of the board.
De La Rue recently downgraded its profit guidance for the third time this year, warning of a “subdued” currency market and supply problems in the authentication division. JS
Avon sells Kentucky assets
Avon Protection (AVON) has sold the assets of one of its body armour factories in Lexington, Kentucky, for a “modest cash consideration”.
The assets are part of the body armour plates business that is currently being wound down after failing US military tests. They are being sold to CoorsTek, which is a supplier of advanced ceramic materials to the aerospace and defence industry.
The deal is expected to complete in the second half of its 2023 financial year, once Avon has completed existing contractual obligations with customers.
Avon Protection’s executive chair Bruce Thompson said the deal “provides a future for the facility and the team based there”, while allowing it to concentrate on its core business of making head protection and respiratory systems.
Avon’s shares were up 4 per cent in early trading, narrowing their year-to-date loss to under 5 per cent. However, they remain 77 per cent below their December 2020 peak of 4,650p a share. MF
Currys ditches Royal Mail
Electrical retailer Currys (CURY) has stopped using Royal Mail “for now”, as postal workers prepare for six days of strikes this month.
Currys’ chief executive Alex Baldock told the BBC that there are “relatively few smaller parcels that we distribute through Royal Mail, [and] they are easily switchable to another provider”
Members of the Communication Workers Union have already held 12 days of strike action this year, and further walkouts are due to take place on 9, 11, 14, 15, 23 and 24 December.
Royal Mail reported a £219mn operating loss in the six months to 25 September 2022, and management is insistent that it needs to cut 5,000 full-time roles by next spring. The performance of courier’s parent company, International Distributions Services (IDS), has been bolstered by the strength of its European parcels business. JS
Source link
