Reckitt Benckiser Group (LON:RB) revealed its full year results on Monday. The consumer goods company reported a 65% drop in its annual profit as a result of one-off gains from the previous year. Net income slid 65% to £2.16 billion. The company has said that 2017 saw exceptional scenarios that increased its profit. These include the sale of the company’s food business and tax credits. Revenue increased by 10% to £12.6 billion. Moreover, adjusted operating profit increased 8% to £3.36 billion. Like-for-like revenue increased 3%, coming in at the top end of the 2-3% guidance.

As for 2019, Reckitt Benckiser has said it will target a 3-4% growth in like-for-like revenue.

Rakesh Kapoor, Chief Executive Officer of Reckitt Benckiser, commented on the results: “2018 was a year of good financial progress, achieved in an environment of both significant change within the company, and challenging market conditions. We delivered the upper end of our 2018 revenue growth target, and accelerated the delivery of MJN cost synergies versus our ingoing expectations.” “2018 was also a year of significant strategic progress. RB2.0 represents a platform to transform RB for growth and outperformance. In 2018 we fully integrated MJN to create RB Health. And at the same time we created RB Hygiene Home, which has reignited growth with a more focused and agile organisation.” “As we look to the future, we are well positioned for long term, sustainable growth, from the excellent portfolio of brands within each of our more focused and agile Business Units.” “For 2019 we expect momentum to continue, and target +3-4% LFL net revenue growth. We expect to maintain the adjusted operating margin as we generate our usual RB cost and efficiency savings, and deploy them into building two even stronger businesses.” In October, the group reported a smaller-than-expected increase in underlying quarterly sales as a result of a manufacturing disruption at a European baby formula factory. However, it reported solid sales and revenue growth in the first quarter. At 08:22 GMT Monday, shares in Reckitt Benckiser Group plc (LON:RB) were trading at +1.84%.

UK retail sales picked up in January, offering some respite to ailing high street shops, according to the latest official figures. UK retail sales rose 1% in January, the Office for National Statistics (ONS) said. This proved ahead of market expectations of 0.2%. Rhian Murphy, head of retail sales at the ONS said this was the result of clothing discounts: “Retail sales returned to growth, with increases across most sectors. Clothing stores saw strong sales, luring consumers with price reductions with food sales also growing after a slight dip over Christmas.” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, commented: “January’s jump in retail sales shows that most households have maintained a happy-go-lucky mentality, despite the fraught political situation. While consumers’ confidence is down, this reflects rather fuzzy expectations that Brexit might be costly eventually.” The better-than-expected retail figures follow the most recent inflation figures. According to January’s Consumer Price Index, UK inflation fell to 1.8%, below the Bank of England’s target of 2%. This was attributed to falls in electric and gas prices, with an Ofgem imposed price cap taking effect over the period. Despite easing inflation and retail somewhat rebounding, the UK high street continues to suffer, with various well-known brands closing stores. Retailers such as New Look, HMV and restaurant chains such as Prezzo and Jamie’s Italian all announcing site closures in 2018.      

Lloyds Bank (LON:LLOY) has announced former Morgan Stanley banker William Chalmers as its new Chief Financial Officer. Chalmers is set to join the bank in June to take up his new role. Prior to his new position at Lloyds, Chalmers was co-head at Morgan Stanley’s Global Financial Institutions Group. Lloyds is set to pay around £4.4 million in deferred cash and shares which he will lose out on once he leaves his current role. His fixed pay will be around £1.3m per year, plus benefits and performance-based bonuses. António Horta-Osório, Lloyds Chief executive, commented: “William has a proven track record in financial services and will be a great addition to the executive team. We will be sad to see George go, but are pleased to have had him in the team for the past seven years and to be able to have George and William working together to ensure a smooth transition.” Incoming Chief Financial Officer Chalmers also added: “I very much look forward to joining the executive team at Lloyds Banking Group. It is a tremendous company that is going through an impressive transformation. I look forward to getting started and making a contribution.” Lloyds is set to announce its 2018 annual results next Wednesday. Shares in Lloyds are currently +1.67% as of 13:50PM (GMT).

Premier Foods (LON:PFD) announced on Friday that it is no longer putting up its Ambrosia business for sale. The company said that whilst ‘a number of parties had expressed interest’, the board concluded that ‘the present business climate the process will not result in a satisfactory financial outcome’. Its Ambrosia business produces dried milk for infants as well as custard and rice pudding. Premier Foods is a food manufacturer. Alongside Ambrosia, its brands include Mr Kipling, Ambrosia, Angel Delight, Homepride, as well as Sharwood’s and Lloyd Grossman sauces. Last month, the company reported a 2.2% fall in sales across the Christmas period. At the time of the results, Gavin Darby, Premier Foods Chief Executive commented: “We faced into two sets of challenges in the quarter – lower International sales and our logistics programme, which as expected, affected cake sales volumes early in the quarter,” “As we look to the fourth quarter, we expect to see a good performance from branded sweet treats, we have a good innovation plan lined up and our Darby departed the role as CEO at the end of January. The company confirmed that Darby would receive at least £1 million as part of the exit. Premier Foods shares are currently -3.64% as of 12:37PM (GMT).    

Royal Bank of Scotland (LON:RBS) released its annual results on the Friday for the year ended 31 December 2018. Annual profit has more than doubled, driving the bank to reveal a special dividend. RBS also warned of the economic and political Brexit-induced uncertainty that lies ahead. Pre-tax profit for the financial year was £1.62 billion, compared to the £752 million on-year figure. Operating profit increased 50% to £3.36 billion. Final ordinary dividend per share is 3.5p. Additionally, the bank has also announced a special dividend of 7.5p per share. Chief Executive, Ross McEwan, commented on the results: “2018 was a year of strong progress on our strategy – we settled our remaining major legacy issues, paid our first dividend in ten years and delivered another full year bottom line profit. However, while our financial performance is more assured, we know that a significant gap remains to achieving our ambition to be the best bank for customers. We are fully focused on closing this gap.” “Today we are reporting a pre-tax operating profit of £3.4 billion and a bottom line attributable profit of £1.6 billion for 2018. In addition, we are pleased to propose a full year ordinary dividend of 3.5 pence per share, and a special dividend of 7.5 pence per share. These are in addition to the ordinary dividend we paid at our interim results. Together, we will have returned £1.6 billion to shareholders, and around £1 billion to the UK taxpayer in dividends. We also have shareholder approval to participate in a directed buyback should the government seek to dispose of a portion of its shares.”

RBS has emphasised the uncertain economic outlook that lies ahead of the UK’s planned departure date from the European Union.

In December, RBS applied for a German banking license amid concerns surrounding Brexit. The Chief Executive has warned of the economic and political Brexit uncertainties in the past, claiming it has the potential to lead to a recession. “Our central economic forecast, which supports our corporate plan, is in line with consensus as at the end of December 2018 and shows average UK GDP growth of around 1.0-2.0% from 2019 to 2023 and continued low interest rates. Given the current uncertainties we will continue to actively monitor and react to market conditions,” the bank said. The Chief Executive continued: “The UK economy faces a heightened level of uncertainty related to the ongoing Brexit negotiations. We have continued to support our customers, providing £30.4 billion in gross new UK mortgage lending in 2018, and Commercial Banking made or renewed commitments of around £30 billion of term lending facilities to mainly UK businesses. Our Commercial and Business Banking businesses supported total lending of more than £100 billion in 2018.” Last year, RBS paid its first dividend since it was rescued from collapse ten years ago. At 09:25 GMT Friday, Royal Bank of Scotland Group plc (LON:RBS) shares were trading at +1.08%.

Patisserie Valerie has been rescued by private equity firm Causeway Capital, saving 2,000 jobs. Ireland’s Causeway Capital agreed to buy the struggling bakery chain from administration, valuing the firm at £13 million. Causeway Capital’s Matt Scaife said: “Patisserie Valerie is a heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike. We are delighted to partner with the team and look forward to helping the business return to growth.” Patisserie Valerie’s new chief executive Steve Francis also commented: “We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business. The affection and loyalty for the brand among our customers and employees, and Causeway Capital’s enthusiasm and support for the business, creates for us the foundations for an exciting future for the business. ” Last year proved a turbulent year for Patisserie Valerie, after the uncovering of a series of “accounting irregularities” plunged the chain into disarray. The chain fell into administration in January after it failed to reach an agreement with lenders. KPMG had been appointed to handle the process, announcing the closure of 71 locations and the loss of 902 jobs. Mike Ashley’s Sports Direct had originally tabled an offer of £15 million for the chain, but KPMG rejected it. The Serious Fraud Office is currently investigating Patisserie Valerie’s former finance director Chris Marsh over the allegations of “accounting irregularities”. Patisserie Valerie was founded back in 1926, making it almost 100-years old.    

The Restaurant Group (LON:RTN) Chief Executive Andy McCue announced is departure on Thursday, causing shares to fall. The group, which owns the Frankie and Benny’s and Garfunkels’ chains, said that Mr McCue would be leaving the role due to “extenuating personal circumstances”.

Andy McCue, CEO, commented on his decision:

“In recent years, we have achieved much in a challenging market. I’m confident The Restaurant Group is well positioned with the scale, talent and levers to drive profitable growth. While I recognise that this decision is untimely, it is the right one for me and my family. We have a strong team in the business and a clear plan which we are focused on delivering.”

“Whilst we are clearly disappointed that he will not be able to provide the long-term leadership for the business, we understand and respect the decision he has made purely on personal grounds,” commented company chair Debbie Hewitt. McCue has been chief executive of the group since 2016, having joined from PaddyPower. Back in November, shareholders approved the company’s acquisition of Wagamama, as part of a £559 million takeover deal. McCue was a key proponent of the move, amid shareholders reservations over the deal. However, the acquisition has been a tipped as a way for the Group to diversify its food offerings and to target a more health-conscious customer. The restaurant industry has been struggling as of late, with many rival chains such as Prezzo (LON:PRZ) and Jamie’s Italian’s suffering from high rents and weak consumer demand. Both chains announced the closure of various sites in 2018 as a result of a tough trading climate. Shares in the company are currently -12.33% as of 12:13PM (GMT).