Below are the key headlines from today’s updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Rolls-Royce faces fresh engine problems as Singapore Airlines grounds planes. Rolls-Royce Holdings (RR.) could be flying into more turbulence after Singapore Airlines grounded two Boeing 787 airliners because their engines were wearing out faster than expected. The new airliners are fitted with Rolls’ Trent 1000 TEN engine, the latest version of the Trent 1000, which has suffered a series of problems since coming into service in 2011. Inspections of the Singapore Airlines’ jets revealed that blades in the high-pressure turbines were wearing out. The aircraft have been taken out of service for repairs. Rolls said that it had warned airlines using the Trent 1000 TEN that the high-pressure turbine blades would have a “limited life cycle”.
Superdry board loses battle to freeze out Dunkerton. Superdry (SDRY) has lost a bitter battle against Julian Dunkerton after shareholders narrowly voted in favour of the reappointment of the co-founder and former chief executive. The high street retailer, best known for its jackets and hoodies with Japanese characters, said that 51.15% of shareholders had voted in favour of reappointing Mr Dunkerton. A similar margin voted in favour of appointing Peter Williams as a non-executive director. Mr Williams is a former chairman of Boohoo.com and former chief executive of Selfridges.
Philip Day snaps up Bonmarché. Philip Day, the billionaire owner of Edinburgh Woollen Mill, has acquired a majority stake in Bonmarche Holdings (BON) and made a mandatory offer to buy the rest of the troubled retailer. He paid 11.445p a share for BM Holdings’s 52.4% stake, which is a 36% discount to the retailer’s 18p closing price last night and values the company at about £5.7 million. In August last year the shares were trading at about 116p. The women’s clothing chain has 321 shops and concessions and about 1,900 full-time staff. Mr Day, who made his name buying up troubled chains such as Jane Norman and Peacocks, expects a “material reduction in headcount”.
Sainsbury’s sales slump worsens as Asda nabs second place. The sales slide at Sainsbury (J) (SBRY) has worsened, allowing takeover target Asda to leapfrog it as the country’s second-biggest grocer. Sales at Sainsbury’s fell 1.8% in the three months to March, cutting its market share to 15.3%, according to closely watched figures from research firm Kantar. By contrast, sales rose by just 0.1% at Asda, but that was enough to give it a 15.4% market share. This marked two years of continuous growth at the Walmart-owned retailer, Kantar said. Its numbers are based on total till roll and include sales of non-food goods at Sainsbury’s and Asda, such as their clothing ranges, but not sales at Argos, which Sainsbury’s bought in 2016.
Provident fights back at bidder Non-Standard with questions over finances. Doorstep lender Provident Financial (PFG) pressed the nuclear button in its hostile bid battle with suitor Non-Standard Finance (NSF) on Tuesday by raising questions over the legality of historic shareholder payouts made by its rival. In a highly unusual move, Provident asked NSF to explain whether a string of dividends and share buybacks made between 2016 and 2018 were legal, raising the question that NSF may have broken company law. Provident’s attack follows a forensic accounting probe by the group, which claims to have uncovered shortfalls in the pot of money NSF set aside to pay investors in 2018. The sudden twist came after NSF, which did not respond to Provident’s statement, said a majority of shareholders had backed the £1.3 billion all-share bid. It did not respond directly to the dividend claims.
Wizz Air Holdings (WIZZ) was among the biggest risers. Amid doom and gloom in much of the aviation sector, the Square Mile welcomed some good news from the airline. It said it expects net profits for the year to March 31 to be at the higher end of a range between €270 million (£232 million) and €300 million. The shares rose 127p to 3007p
Shell cuts ties with anti-climate change lobby groups. Royal Dutch Shell ‘B’ (RDSB) is severing its ties with major US oil lobbyists because of their opposition to tackling climate change. Shell will stop being a member of the American Fuel and Petrochemical Manufacturers (AFPM) from next year after the lobby group attacked plans to tax greenhouse gas emissions. The energy giant is also planning to distance itself from another nine lobby groups that hold policies out of line with Shell’s pledge to help meet the Paris climate goals. The company warned it will publicly distance itself from specific policies held by their trade groups where they differ from the Shell view, and was “prepared to walk away” from groups that have materially different climate policies.