Below are the key headlines from the midday updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Barclays crushes Bramson’s crusade to muscle onto board. US activist investor Edward Bramson on Thursday admitted defeat in his bid to get a seat on the board of Barclays (BARC) before his showdown with the bank at its annual meeting had even begun. Early signs were that he had spectacularly failed in his bid to shake up Barclays and slash back the historic British lender’s investment bank. “We know we haven’t won the majority of the vote,” Bramson said outside the bank’s meeting at the QEII centre in Westminster. He said it was premature to discuss his next move.
Kames Capital has become the latest major shareholder to attack takeaway firm Just Eat (JE.) , urging it to hire a full-time boss to stabilise the business and get it back on track. Just Eat has been under siege from activist shareholder Cat Rock since the end of last year. The investor is agitating for a merger with Dutch rival Takeaway.com. Kames fund manager Malcolm McPartlin does not support Cat Rock but said: “This is clearly a period of flux. The interim chief executive Peter Duffy has not put himself forward and the firm needs the right person at the helm. I think the business needs some stability… there needs to be a permanent chief executive in place.”
Lloyds takes fresh £100m hit over the PPI scandal while warning the continuing Brexit uncertainty could ‘further impact the economy’. Lloyds Banking Group (LLOY) has set aside a further £100million to cover the cost of complaints arising out of the payment protection insurance scandal. The lender said the additional charge came as it continues to see around 13,000 complaints a week over PPI mis-selling. The bank has reported flat first quarter profits of £1.6billion, claiming that while uncertainty surrounding Brexit could ‘further impact the economy’, its finances were looking solid. In the first three months of 2018, the lender set aside £90million to cover PPI claims, but during the same quarter this year, that figure rose to a further £100million. The bank’s chief executive, Antonio Horta-Osorio, said: ‘While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market-leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders.’
Reckitt sales struggle as not enough people get sick. Reckitt Benckiser Group (RB.) blamed a smaller than expected number of people suffering from cold and flu as it missed growth expectations at the start of the year. The Dettol and Lemsip maker reported like-for-like sales growth of 1%, behind forecasts of a 1.8% increase. Sales of over the counter health products, which accounted for a quarter of revenues in its health business, fell by 9%. “Our health business unit was impacted by the unusually weak cold and flu season across US and several European markets,” said Rakesh Kapoor, Reckitt’s outgoing chief executive.
Paddy Power Betfair takes the lead in American sports betting race. Paddy Power Betfair (PPB) shrugged off a string of unfavourable sports results, hailing “huge progress” in the United States where bookmakers are racing to win customers in the wake of deregulation. Quarterly revenue rose by almost a fifth to £478m powered by a 47% surge across the Atlantic. Turnover in its Australian brand Sportsbet also swelled by a fifth, with the company saying increased investment in response to local tax hikes had paid off. Adverse results in the country took the shine off profit margins, however. Paddy Power Betfair’s biggest single division, European online, posted more modest growth of 4%, boosted by its acquisition of Georgian company Adjarabet.
Billionaire shareholder steps up threats against Carnaby Street owner Shaftesbury. Hong Kong billionaire Sammy Tak Lee has stepped up his campaign against the board of West End landlord Shaftesbury (SHB) , producing a draft legal claim for £10m in damages over what he insists was an unfair fundraising two years ago. Mr Lee, who with a 26% stake is Shaftesbury’s biggest shareholder, has claimed the £265m share placing in 2017 was a deliberate attempt to dilute his stake in the company, making it more difficult to mount a potential takeover.
Low oil prices hit Shell profits. Profits at Royal Dutch Shell ‘B’ (RDSB) dipped by 7% to $5.3 billion in the first quarter as lower oil prices hit. The Anglo-Dutch oil giant said that lower margins in its refining and chemicals business also affected profits but this was partly offset by stronger prices for liquefied natural gas. Shell also announced that it was pressing ahead with the next phase of its $25 billion share buyback programme and would repurchase $2.75 billion of shares between now and the end of July. The quarterly result was better than City expectations: analysts had forecast profits of just over $4.5 billion.