Reckitt Benckiser announces new Chief Financial Officer
Reckitt Benckiser (LON:RB) announced on Monday the appointment of Jeff Carr as Chief Financial Officer.
Shares in the British multinational consumer goods company were down during trading on Monday.
Reckitt Benckiser’s current Chief Financial Officer, Adrian Hennah, will retire next year.
The consumer goods company added that, as Chief Financial Officer of the business, Jeff Carr will receive a salary of £680,000.
The owner of Nurofen and Dettol made another change to its management earlier this year in June, when it announced the appointment of PepsiCo Executive Laxman Narasimhan as its new Chief Executive Officer.
“We are pleased to have appointed Jeff as Chief Financial Officer. Jeff brings extensive experience across consumer and retail companies and is also an alumnus of RB,” Laxman Narasimhan, Chief Executive Officer, commented on the announcement.
“Jeff has a record of transformational strategic and operational leadership, consistent performance delivery, strong capital allocation discipline and with building strong teams; all of which lead to long term shareholder value creation,” the Chief Executive Officer continued.
Jeff Carr commented on the appointment: “I spent part of my early career at RB and I am delighted to be re-joining RB as its CFO. I have always valued the business’s entrepreneurial energy and creativity and, like Laxman see great potential to drive positive change. I look forward to starting in the role next year.”
Indeed, Jeff Carr, who will join the business from his current position at at Ahold Delhaize, worked in senior finance roles in Reckitt Benckiser between 1994 and 2004.
Current Chief Financial Officer, Adrian Hennah, said: “It has been a privilege to serve as CFO of this great business for seven years, alongside so many impressive colleagues. I look forward to supporting Laxman while he gets his arms fully around the business, to re-introducing Jeff to the business, and beyond that to new challenges.”
Shares in Reckitt Benckiser Group plc (LON:RB) were trading at -2.01% as of 14:55 BST Monday.
Asking prices up only 0.6%, Rightmove
Asking prices for homes in the UK increased by just 0.6% in October, well below the average rise for the month, new data revealed on Monday.
Rightmove said that an Autumn bounce usually occurs during this time of the year, with an average rise of 1.6% in October.
However, asking prices rose by a “sluggish” 0.6% for October 2019, the lowest figure for this time of the year since October 2008.
Meanwhile, the number of properties coming to market was down by 13.5% compared to the same period a year prior.
Rightmove said that there are “strong indications” that many potential sellers are being discouraged by political uncertainty.
With the Brexit deadline fast approaching, Boris Johnson failed to get his Brexit deal past MPs on Saturday.
“In a strange Brexit-induced paradox, thousands of potential sellers are holding back compared to this time a year ago, though the number of buyers agreeing purchases is virtually the same,” Miles Shipside, Rightmove director and housing market analyst, commented on the data.
“Ironically, this means that those who are coming to market have a better chance of selling, so while some would-be sellers are being put off, it’s actually a good time to sell. Those who are ignoring the Brexit disruption have less competition from stay-away sellers, and their prospective buyers have less negotiating power, with a reduced choice of suitable alternatives,” Miles Shipside continued.
Marc von Grundherr, director of lettings and estate agent, Benham and Reeves, also commented: “No fireworks and no explosions across the current property landscape, and while the market is more subdued than usual, this is of course going to be the case ahead of our supposed EU exit at the end of the month. This uncertainty has evidently caused many sellers to hesitate and sit tight however, a healthy level of sales are still transacting, and this is proof that the UK property market is yet to disappear down the Brexit abyss.”
Nick Leeming, Chairman of Jackson-Stops, was optimistic that an Autumn bounce may occur.
“Although the UK is yet to experience an Autumn bounce it doesn’t mean one isn’t on its way. Today’s data shows that sales aren’t falling through as regularly as they have been, which suggests that the market is currently being driven by must-movers,” Nick Leeming said.
“Despite Rightmove’s figures showing that stock is currently lower across the nation, once the UK does leave the EU, whether that be on the 31st October or otherwise, I expect to see an increase in listings and greater activity levels, with the prospect of a modest uplift in property prices in the new year,” Nick Leeming added.
Just last week UK Investor Magazine took a look at various property market reactions to the news of the potential Brexit deal.
Just Eat Q3 revenue up 25%
Just Eat (LON:JE) said on Monday that its revenue for the third quarter grew by 25%.
Shares in the online food order and delivery service were down during Monday morning trading.
Just Eat posted a revenue growth of 25% for the three months to 30 September, amounting to £248 million.
Group orders were up 16% to 62 million, the food order and delivery service added.
UK orders were up by 8% to 33 million, Just Eat said, driven by rapid growth in its delivery proposition.
Moreover, the business has confirmed its guidance for full year 2019 revenue in the range of £1.0 billion to £1.1 billion and is also on track to deliver its uEBITDA guidance in the range of £185 million to £205 million. Just Eat said that both exclude Brazil and Mexico.
“We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan,” Peter Duffy, Interim CEO of Just Eat, commented on the third quarter results.
“Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains. The strong growth in our UK delivery business shows that we can successfully meet these needs,” Peter Duffy continued.
Peter Duffy said that “the winning platform for food delivery will offer customers the broadest range, underlining the importance of our move to the hybrid business model and continuing investments in key markets”.
At the end of July, rivals Just Eat and Takeaway.com agreed in principle on the key terms of an £8.2 billion all-share deal.
It posted a sharp fall in pre-tax profits in its half year results, down 98% from the year prior.
Shares in Just Eat plc (LON:JE) were trading at -5.76% as of 09:33 BST Monday.
Inglenook: The Godfather Of Californian Fine Wine
Founded by a Finnish sea captain and today owned by the Coppola family, the Inglenook story has more romance and celebrity stardust than the rest of California’s “First Growth” wineries put together. The tale begins back in the 1870s when Gustave Niebaum arrived in Rutherford to finally settle down on dry land and purchased 500 acres of farmland. The first Inglenook vintage came shortly after in 1882 and the estate grew in stature over the next couple of generations, remaining in the family until the 1960s.
Leaner times were to follow when the winery was sold in 1964 in need of significant repair and investment. For years owner John Daniel Jr had been subsidising the estate with his personal wealth as had Gustave Niebaum before him. Following protracted period of gentle decline, the estate was set on the path to stardom when Francis and Eleanor Coppola bought the property with profits from The Godfather films.
The Coppolas brought with them a burning ambition to craft world-class wines and restore the Inglenook name to its former renown. This journey began with the first harvest in 1978 and the creation of the estate’s flagship Rubicon, a Bordeaux-style red, bearing the name of Julius Caesar’s fated river crossing which marked the point of no return.
Over the years the estate has collaborated with the who’s who of international winemaking consultants including the so-called “Dean of American Winemaking”, André Tchelistcheff, and top French vigneron Stéphane Derenoncourt. In 2011 Philippe Bascaules came on board as general manager, a role which he manages to juggle with being MD and head winemaker at Chateau Margaux in Bordeaux where he has worked for over two decades.
One of Bascaules’ first moves was to craft a 50-year plan for renewing the vineyards. Along with the celebrity status of the current owner, it is this kind of visionary thinking which has revived the fortunes of the estate and turned Inglenook into a household name for collectors of blue-chip Californian wines.
Earlier this year Inglenook announced a major cellar expansion to mark its 140thanniversary which is expected to be completed by the 2020 harvest. Included in the plans are 122 fermenting tanks, one for each of the estate’s vineyard plots. This will increase quality even further by allowing Inglenook’s winemakers to select the very best performing vineyards of each vintage and harness the unique qualities of the site’s varied terroirs.
The investment potential of Inglenook’s top wine, Rubicon, has also been boosted in recent years by a run of excellent vintages. The 2012 was awarded 95 points by Robert Parker’s acclaimed The Wine Advocate while the 2013 and 2014 vintages both received outstanding 97 point scores from American wine critic James Suckling.
Along with the romantic backstory, celebrity ownership, and superb quality, Inglenook’s relatively soft pricing compared with other top Californian estates makes the Rubicon a very attractive prospect for investors looking to diversify their portfolio. Liv-Ex list pricing on the Rubicon 2010 has jumped 83.2% over the past six months, indicating the exciting potential of mature bottlings from this world-class estate for those who enter the market early.
Links of London cut head office roles as administration looms
As British jewelry manufacturer Links of London went into administration last week, the events that unfolded led to 38 head office jobs cut, one of the reasons was the tough economic climate.
Administrator Deloitte have commented that no jobs have been cuts from stores, as it handles the British firms finances.
The British retailer, owned by Folli Follie has 28 stores across the UK and Ireland and has a strong presence in London.
It currently employs 350 people across the UK and Ireland, but as the company descends into collapse, many of these jobs are looking to be cut.
Joint administrator Matt Smith said “Whilst we continue to talk to interested parties about a sale of the business, the ongoing cash-flow pressures mean the current cost base is not sustainable. n light of ongoing cash flow pressures, this has left the directors with no choice but to place the business into administration.”
Smith had commented earlier in the administration process that directors were looking for alternate solutions, including a company voluntary agreement, refinancing but no deal was put to paper.
The British retailer entered administration on the 7th October and since then has been unable to process online sales.
As a result consumers were redirected towards stores where purchases are still being completed.
It was reported that Mike Ashley’s Sports Direct (LON: SPD) was among two final bidders for the chain which trades from 28 stores and seven concessions.
Links had reported losses up to £10 million whilst sales only just reached £20 million.
High street retailers have found survival increasing difficult as rent rates rise, consumer confidence falls due to Brexit complications.
Links of London follow established brands such as Toys R Us and Maplin to call for a CVA, and the future of high street retail looks tougher and tougher, this is driven by changing consumer habits following a large increase in online sales.
Holiday Inn owner hit by political unrest in Hong Kong
InterContinental Hotels Group, have said today that political unrest in Hong Kong has led to lower revenues, and that revenues have dropped by one third in operating hotels.
InterContinental Hotels Group (LON: IHG) who also own subsidiaries Holiday Inn and Crown Plaza have suffered dips in stock price after the news broke out.
Hong Kong has been in a battle of political sovereignty with China, and this has impacted many firms ability to conduct business.
Firms such as Starbucks (NASDAQ: SBUX) have had shop fronts destroyed and windows broken as part of protests.
The FTSE100 listed company alluded to revenue per room available slipped by 0.8% in its third quarter review.
Revenue in Chinese operations also dropped 6.1% due to a 36% fall in Hong Kong business.
Pro Democracy protests have escalated issues from both governments, where neither is willing to give any concessions. This has led to violent protests and many restrictions on business.
The city’s chief executive Carrie Lam to declare this week Hong Kong to be in “technical recession”
China is the second largest market for InterContinental and due to these tensions business has significantly slowed down.
However, directors at InterContinental Hotels have also seen slower business in the mature US market.
Chief executive Keith Barr said: “Despite the weaker revpar environment, and the challenges some of our markets are currently experiencing, we remain confident in our financial outcome for the rest of the year.”
Despite these problems, InterContinental have increased the number of hotel rooms, alongside competitors such as Whitbread, owners of Holiday Inn. (LON: WTB).
The company’s hotel estate has grown 4.7% year on year holding a total number of 865,000 rooms across 5,700 hotels.
Most of this growth has spawned from the newly acquired mainstream suites brand Atwell Suites, and the growing Six Senses resort brand. Whilst there have been changes in travel to TUI (LON: TUI) and Thomas Cook (LON : TCG).
Currently shares of InterContinental Exchange Inc are trading at $94.28 per share, seeing a 0.73% increase. 18/11/2019 14:07BST
Wincanton weighs up offer for Eddie Stobart driving share prices.
Wincanton Plc (LON: WIN) have is looking to pursue a possible merger with Eddie Stobart (LON: STOB). If this deal goes through, this could create the UK’s biggest provider of logistics and could give market dominance to Wincanton.
Whilst a formal offer is yet to reach the table, Wincanton are preparing moves from Eddie Stobart to begin negotiations.
Wincanton said it is “undertaking a diligence exercise on Eddie Stobart and its assets” to assess the benefits and costs of a merger deal.
Wincanton holds more than 200 warehouses across the UK and Ireland also possesses 3,600 vehicles.
Earlier this year, Wincanton reported a 6.3% rise in pretax profit to £49.3 million, despite sales slipping 2.6% to £1.14 billion.
The announcement early on Friday gave Wincanton until 17:00 on 15th November to formalize an initial bid.
No proposal has been made by Wincanton to Eddie Stobart as to the terms of any potential offer, and there can be no certainty that any offer will be made to Eddie Stobart shareholders,” Eddie Stobart said.
Eddie Stobart, the Cumbrian based logistical firm has a reputation in British industry for their stand out green and red lorries (as pictured).
Eddie Stobart were faced with a tough 2019, only a few months ago accusations of a accountancy scandal surfaced British media.
This forced the UK firm to slash its profit figures booked last year leading to the Chief Executive resigning.
Wincanton are the third firm which have approached Eddie Stobart over a potential merger in the last month.
Earlier this week, discussions with private equity firm Dbay were ongoing.
However, these talks seem to have fallen through giving Wincanton the opportunity to seize initiative for this deal.
The deal comes less than a week after Andrew Tinkler, former boss of Stobart Group said he was no long interested in the business. Other competitors have also felt the heat in this industry such as Fedex (NYSE: FDX) and United Parcel Services (NYSE: UPS)
The current shares of Wincanton Plc are trading at 2,389p seeing a 2.1% rise after this approach was made.
Savile Row added to list facing tough US tarriffs
Savile Row has joined the list of UK tailors who are finding economic conditions tough because of new tariffs set by the US government.
The historic tailoring firm who headline the world renowned London Street, have stated that every suit they sell faces a 25% additional tariff.
James Sleater, founder and director of Savile Row’s newest tailor, Cad & the Dandy said “I don’t think anybody on the street was aware of [the tariff]. Conversations about Airbus and [US President Donald] Trump and Savile Row are not normally three words that go hand in hand,”
Retailers have had very little time to prepare for this new tariff as the tariff almost doubles export tax on suits from 13% to 25%.
A spokesman for Airbus commented “The only way to avoid the negative effects of the tariffs is for the US and EU to find a negotiated settlement. We are working with all our customers to try to mitigate the impact by all possible means.”
On 2 October, the World Trade Organisation (WTO) gave the US permission to impose taxes on $7.5bn (£5.8bn) of goods it imports from the EU.
This forms the next chapter in the ongoing saga between Washington and Brussels over illegal subsidies given to Airbus (EPA: AIR) and Boeing (NYSE: BA).
Tariffs have also been slapped on other British exports such as scotch whiskey, cashmere knitwear and wool suits.
International Trade Secretary Liz Truss says: “Resorting to tit-for-tat tariffs is not in any country’s best interests and we are in regular contact with the Trump administration, urging them to refrain from resorting to such measures. As well as causing temporary disruption to UK businesses, it would also hit American consumers in the pocket.”
Savile Row’s seniority have expressed their concerns about potential US business. Kathryn Sargent, Savile Row’s first female master tailor worries that US customers may not know about the tariffs imposed and that clients may enquire about reflected price rises.
Sargant added “It is a conversation that I’ll be having with my clients when I’m over there, to sense what their reaction is and to see if it puts them off placing future orders,”
Mr Dixon says that Richard James, one of the few Savile Row tailors with a store in the US adds “But we think there will be a price rise, we will have to pass some of this on to our customers. Nevertheless, an increase is an increase and we pride ourselves on people getting value for money, especially for a Savile Row suit.”
Dixon concluded “The amount of man-hours that go into it, the incredible fabrics used and a suit that can last 20 years or 30 years and then to have a big part of that being paid in tax. I don’t know how people are going to feel about that”