Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
British Land Company (BLND) saw almost £600million slashed from the value of its retail property portfolio as it was struck by the current turmoil facing UK retailers. The shopping centre operator was weighed down by the recent flurry of shop closures and restructurings by major high street retailers in the six months to September. The value of British Land’s shopping centres, retail parks and shops slid by £599million, or 10.7%, to £4.8billion, significantly widening the company’s losses for period. A wave of Company Voluntary Arrangement (CVA) restructuring deals have resulted in a raft of rent reductions, while cost rises have also contributed to the collapse of a number of high street retailers, such as Mothercare. British Land said it expects the retail sector to remain challenging but has seen ‘early signs that some liquidity may be returning’ to some parts of the market.
Mulberry Group (MUL) has sunk deeper into the red as fewer shoppers visited its UK stores and it refused to slash its prices. The retailer became the latest to blame tough conditions on the High Street for its woes. The Somerset firm’s shares tumbled as much as 6% as a slowdown in the UK, together with higher investment costs for international expansion, pushed it to a £9.9million pre-tax loss for the six months to September 28. This compares with losses of £8.2million a year earlier. Its policy is not to cut prices, however, with its handbags selling for between £395 and £3,500UK sales dropped 4%, although online sales strengthened.
A court is due to rule on whether Sainsbury (J) (SBRY) broke the law when it pulled out of building a new £7m supermarket. The grocer was taken to court over claims it breached a contract when abandoning the project for the store in Whittlesey, Cambridgeshire. The retailer decided the scheme was no longer financially viable in 2015 as competition in the grocery arena heated up. The case was heard in the Chancery Division of the High Court in London last week and Judge Simon Monty QC said a verdict is expected in the next few weeks. Bruce Smith is suing the grocer over claims it failed to keep to the terms of a deal with his Whitacre Management development company.
The boss of Wizz Air Holdings (WIZZ) has cast doubt on rival easyJet’s bid to fill the void left by Thomas Cook with a sweeping expansion into package holidays. Wizz chief József Váradi said he was “surprised” at his competitor’s plans, with easyJet (EZJ) poised to reveal details next week after putting its proposals on ice for a year. Thomas Cook’s collapse has triggered a scramble for market share by other players in the industry – but Mr Váradi is sceptical about its future. He said: “I don’t think this packaged holiday industry is going to flourish. I think that the model is outdated. Why should they [customers] pay a premium for pretty much nothing?” Ryanair Holdings (RYA) boss Michael O’Leary sparked anger in October by saying the packaged holiday sector was “screwed” in the wake of Thomas Cook’s collapse.
Avon Rubber (AVON) is seeking fresh acquisition targets. The main-market-listed company is currently waiting security approval for its $91m August purchase of US-based body armour business Ceradyne from 3M. However, Avon chief executive Paul McDonald said he is seeking further deals as the company builds up a £200m war chest in an attempt to increase its exposure to the security sector. “We already had masks and respirators, and Ceradyne means with helmets and body armour we protect soldiers from the waist up,” he said. “We’re looking at how technology can integrate that, such as displays on visors so soldiers are better informed about their surroundings.”
Tullow Oil (TLW) plunged after samples tested from two wells off Guyana contained heavy crude with a high sulphur content. This type of oil is much more expensive to refine than the light, pure crude found in the US, Saudi Arabia and other hotspots. In August, the City thought Tullow and its partners – AIM-listed Eco (Atlantic) Oil & Gas NPV (DI) (ECO) and France’s Total – had hit the jackpot off Guyana, the only English-speaking country in South America that has become a new focal point for the industry. But the results cast doubt on how much money could be made from Guyana oil, though the company said it is still confident there is light oil to be found. Tullow also cut its annual output forecast for a third time this year (it now expects to make 87,000 barrels per day, compared with guidance of 89,000-93,000 before) amid problems in Ghana.
The incoming chief executive of mining giant BHP Billiton (BLT) , Mike Henry, has refused to say whether the company will bow to increasing shareholder pressure and quit the Minerals Council of Australia over its position on global heating. Henry also declined to say whether he would be quitting his role as vice chair of the Minerals Council when he takes over from current chief executive Andrew Mackenzie at the end of the year. However, Henry said he endorsed the position taken on climate by the company under Mackenzie, who earlier this year described global heating as a crisis requiring “the biggest global mobilisation since World War II”.
Royal Mail (RMG) has won a high court injunction preventing the first national postal strike in a decade, which it said could have disrupted postal voting in the general election. The Communication Workers Union (CWU) said it would appeal against the injunction after it was granted in London’s high court on Wednesday. Trade union sources said strike action could still take place before Christmas – a key commercial period for Royal Mail – if members vote again and even if the legal appeal is lost. The strike cannot take place before the general election on 12 December, unless the appeal succeeds. Members of the CWU overwhelmingly backed industrial action in a dispute over job security and employment terms and conditions. Last month 97% voted in favour of action, on a turnout of almost 76%. However, Royal Mail successfully argued that there were “irregularities” in the ballot.
The pugnacious founder-chairman of Wetherspoon (J.D.) (JDW) has taken up arms against the City, turning his talent for polemic away from Brexit and towards the financial establishment. In a lengthy tirade – now a customary feature of Wetherspoon’s stock exchange statements – Tim Martin dismissed UK corporate governance rules as “up the spout” and criticised two major institutions that own a chunk of the company he built. He also lashed out at the investor advisory group Pirc, which has publicly rebuked Martin for spending £95,000 of company money on pro-Brexit literature without first seeking approval from shareholders.