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.
Patisserie Valerie consumed by Irish private equity firm Causeway Capital Partners which has bought 96 of its 121 shops. The deal, struck early this morning with KPMG, the administrators, will preserve the majority of Patisserie’s 2,000 jobs. The total price paid by Causeway and AF Blakemore, the company that owns Spar, was £13 million, comprising £10 million in cash and £3 million deferred consideration. Baker & Spice, which has five branches, and was also owned by Patisserie Holdings (CAKE), has not yet been sold but KPMG said there was “strong interest” in the acquisition and it would provide an update later today. Blakemore has acquired all 21 of Patisserie’s branches of Philpotts. Patisserie’s shareholders, including its majority shareholder Luke Johnson, 57, the executive chairman who owns about 30% of its stock, will be wiped out.
AstraZeneca sees shares rise despite profits fall as signs grow of recovery. Profits are tumbling at AstraZeneca (AZN), but the shares enjoyed a bounce today as the City looked on happily at a strong end to the year and some good results from cancer treatments. The drug giant saw profits slump 14% to £1.6 billion, but a “very strong” final quarter means the company can claim growth has returned. Shares rose 5%, or 258p, to 5979p. That is, at least, above the 5500p a share offered by America’s Pfizer to take over the company in 2014.
Restaurant Group boss departs due to ‘personal circumstances’ after Wagamama takeover. Restaurant Group (RTN) stunned investors this morning by announcing the resignation of its chief executive less than two months after he pushed through the controversial acquisition of the Japanese noodle bar chain Wagamama. The Frankie & Benny’s and Chiquito operator said that Andy McCue, 44, had informed the board of his decision to leave “due to extenuating personal circumstances”, although he would remain in the role while his successor was being recruited. Shares of the company, which have been battered by investor scepticism over the wisdom of the £559 million Wagamama deal, slumped by 13.5% on the news, losing 19¾p to 126¼p in morning trading, valuing the group at only £621 million.
Micro Focus gets mega boost after ‘back to basics’ strategy pays off. Software giant Micro Focus International (MCRO), which was hammered after a profit warning last year, stopped the rot on Thursday after going “back to basics”. Major problems slotting in a recently acquired software business from Hewlett Packard last year sent shares off a cliff. Shareholders breathed a sigh of relief today after full-year results came in better than expected and shares shot up 12% to 1685p. Chief executive Stephen Murdoch reported that earnings had risen almost 10% to $1.5 billion (£1.2 billion) and said the firm was “back on track”.
Rolls-Royce flies onwards in spite of end to the Airbus A380. Rolls-Royce Holdings (RR.) cushioned the blow from the end of Airbus’ A380 on Thursday after landing a major deal to supply 70 smaller planes ordered by Emirates. The aerospace giant, a major supplier of the A380, will make engines for a batch of 40 A330neo aircraft and 30 A350s for the Middle Eastern carrier. The A330neo aircraft is powered by the Trent 7000 engine and the A350 uses the Trent XWB engine. Rolls put no price on the contracts. It reports results on February 28. Civil aerospace president Chris Cholerton said: “The addition of Airbus A330-900 and Airbus A350-900 aircraft to the Emirates fleet will make the airline one of the largest users of Trent engines in the world and we look forward to continuing to support them and their customers.”
Cabot Energy (CAB) were on the slide after the oil explorer – focused on Italy – warned that the Italian Government was suspending signing new oil and gas permits. Italy’s populist 5Star Movement has essentially pushed through an 18-month suspension on all offshore oil and gas exploration. While its shows the Party is serious about green issues it also opens the government to potential lawsuits from energy companies, and is angering regional governments furious about possible job losses. Scott Aitken, chief executive officer said: “This new legislation is not a ban on exploration. It allows the Italian government to reappraise the exploration licences it has granted. Cabot Energy will ensure the Company is prepared to rapidly progress our licences as soon as the review is completed, whenever that occurs within the next 18 months.” He says the company has now moved its attention to its assets in Canada
Pressure on Plus500 Ltd (DI) (PLUS) spreads to market listing prospectus. Questions have been raised about the accuracy and candour of the full listing prospectus last year of Plus500, the financial bets company that shocked investors this week with a big profit warning. Plus500 said in the prospectus in June that windfall profits/losses gained from customers’ trading positions amounted to only “a marginal component” of the group’s overall revenues. However, in disclosures alongside the profit warning on Tuesday, it said that it had lost as principal $103 million in 2017, equivalent to more than 23% of revenues for the year.
BP (BP.) warns war on plastic will help cut global oil demand. The war on single-use plastics could cut demand for oil faster than previously expected over the next two decades, BP has warned. The oil major predicted a peak in global oil demand for the first time last year, and in its latest outlook report warned that a crackdown on plastic waste, which is made from fossil fuels, could play a role in slowing oil demand. BP expects demand for oil to rise 0.3% a year before plateauing in the 2030s. The “much slower” growth forecast is well below what BP predicted even two years ago. Last year, its central forecast scenario predicted the world’s appetite for crude would grow by 0.5% a year through the next decades before peaking in the late 2030s
Moneysupermarket bets on pushing remortgaging online. Moneysupermarket.com Group (MONY) is betting on digital mortgages to unlock new growth as it gears up to push the house-buying process online. The FTSE 250 company, which already allows users to compare UK prices for mortgages, wants to bring the full application process to the web. Its new focus comes as the company prepares to replace its chairman Bruce Carnegie-Brown with Robin Freestone, a former finance director of media group Pearson, in May. “We think mortgages will get digitised – we’re really excited to be disrupting this market,” said chief executive Mark Lewis.