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.
Aviva looks to kick-start growth as insurance veteran wins CEO race. The UK’s biggest insurer Aviva (AV.) named veteran insider Maurice Tulloch as its next chief executive on Monday, tasked with “re-energising” sluggish growth at the company. The FTSE 100 giant’s board, which ousted former chief Mark Wilson in October, finally approved Tulloch’s appointment last night. It picked him ahead of the other front-runner Andy Briggs, who heads Aviva’s UK insurance business. Tulloch, who travelled to address 2000 staff in Sheffield today, has been at Aviva for 26 years and has worked in almost every division. Most recently he was based in Canada as head of Aviva’s international business, which includes its Canadian and European markets.
British American Tobacco battered by smokers’ £6 billion court damages victory in Canada. Shares in cigarettes giant British American Tobacco (BATS) took a knock today after Canada’s Court of Appeal ruled it will have to cough up £6 billion in damages to a group of Quebec smokers. British American Tobacco had appealed a 2015 Quebec Superior Court ruling to award damages to some 100,000 Quebec smokers. They alleged the company’s subsidiary Imperial Tobacco Canada knew since the 1950s that its product was causing cancer and failed to warn consumers adequately. BAT said that its subsidiary would now review the court’s decision in more detail and decide on the next steps.
Metro Bank wins support of key backer in cash call. Metro Bank (MTRO) chairman Vernon Hill on Monday won the backing of a key investor as he tries to persuade shareholders to cough up £350 million to fill a hole in the accounts. Last week Metro Bank said it wanted to raise the cash after admitting a batch of property loans had been wrongly recorded in the accounts and are riskier than it had been reporting. That cash call was the second in a few months, putting pressure on Hill and chief executive Craig Donaldson. Metro Bank’s early backers include hedge fund king Steve Cohen and luxury homebuilder Bruce Toll.
Agricultural product maker Eden Research (EDEN) deserves its slice of good luck. Last week its latest product, named Cedroz, was given the thumbs up by the EU’s Regulatory Affairs Directorate in Malta. But before investors crack open the champagne, like everything to do with the EU, there is still more red tape to jump through as each member state must now grant their individual approval for the sale and use of Cedroz – a process that could take another two years. Should Eden receive the go-ahead then analysts at Shore Capital believe the firm will jump from being a small capper to a serious player. But for now investors will have to be patient as the company continues to rely on a natural pesticide called Mevalone to generate revenues. Eden is also looking to expand into the US and is currently awaiting regulatory approval by The Environmental Protection Agency for both Mevalone and Cedroz. The firm is also set to sell a head-lice treatment in September this year through its subsidiary TerpeneTech. Patience is a virtue and it’ll be needed with Eden Research.
Online gaming firm 888 Holdings (888) has signed its third takeover deal in as many months, with the acquisition today of BetBright’s sports betting platform. For £15million, 888 will take ownership of the Irish firm’s sports technology and product development, as well as its Dublin office. It said the deal forms part of its long-term strategy, and strengthens its portfolio so that it now covers casino, poker, bingo and sport. New boss Itai Pazner, who took over from Itai Frieberger in January, said: ‘This acquisition of a high-quality and scalable sportsbook is an exciting milestone for 888. ‘It gives the group the missing piece in our proprietary product and technology portfolio and will enable 888 to own proprietary, end-to-end solutions across the four major online gaming verticals.’With 888Sport becoming an increasingly established and popular worldwide sports betting destination, we believe it is the right time to take ownership of our full sports betting proposition.’
Ray Kelvin ‘distressed’ as he quits Ted Baker fashion empire over Hug-gate. The boss and founder of Ted Baker (TED) admitted a probe into sexual harassment allegations against him had been “deeply distressing” as he shocked the City by stepping down on Monday. Ray Kelvin said: “The past few months have been deeply distressing and I’ll now be taking time privately with my family to consider what my next adventure will be.” Kelvin, who still owns 34% of the retailer, has built Ted Baker up into a global fashion brand since starting the business in 1988. There is an ongoing external investigation into allegations of inappropriate behaviour towards staff, led by lawyers at Herbert Smith Freehills, expected to last for at least an extra two months.
Mike Ashley’s Sports Direct International (SPD) has triggered a takeover bid for Findel (FDL) after announcing a deal to buy another chunk of shares in the online retailer. The tracksuit tycoon’s company was already the biggest investor in Findel and its purchase of six million shares from a single shareholder at 161p apiece, worth almost £10m, takes its holding to 36.8%. A company is required to make a takeover bid when it has a stake of more than 30%. Sports Direct’s offer values Findel at £140m. Shares in Findel jumped 8% to 175p following the announcement, valuing the company at £151m, suggesting Sports Direct may have to raise its offer. The stock was trading as high as 285p six months ago.
Shares in Synthomer (SYNT) fell almost 9% this morning after investors were spooked by its report of softening markets in Europe and North America at the end of last year. Synthomer’s overall results for 2018 were broadly in line with expectations and the board said that its outlook for the year ahead remained unchanged. However, it cited currency transactional headwinds and blamed a fall in raw material prices that affected customer buying behaviour for a softer trading environment in the final quarter of the year.
Rotork (ROR) warned that macroeconomic uncertainty and oil price volatility dampened its outlook in 2019 despite double-digit growth in its first year under Kevin Hostetler. Mr Hostetler, who took the chief executive role in February 2018, said that the company had been hesitant in acquiring new projects in the second half of 2018 due to “significant fluctuations in oil prices and increasing economic uncertainty”. The oil market staggered to its lowest in 18 months at the end of last year amid geopolitical tensions between the US and China. Just over half of Rotork’s revenue comes from the oil and gas sector
Abcam (ABC) fell 140p, or 10.4%, to £12.01, after it revealed a cautious short-term outlook. The antibody maker reported revenue and profit growth and a higher interim dividend. However, it said that in the “short term” it expected constant-currency revenue growth for the full year to be “broadly in line” with the first six months. It said that this was owing to “continued softness” in Japan and anticipated phasing of revenue for its custom products and licensing business.