Royal Mail (LON:RMG) announced the appointment of Keith Williams as its new chairman on Friday. Keith Williams, formerly a chief executive British Airways, is set to replace Les Owen. He is set to take up the role on May 22 after the company reports its latest results. Royal Mail has been struggling as of late amid declining volumes of letters and falling profits. In its first half-results back released back in November, Royal Mail reported a 25% fall in profits, sending shares downwards at the time. Revenue was up 1% on an underlying basis, whilst GLS revenue increased 9%. Adjusted operating profit margin, after transformation costs of 3.9%, were down by 150 basis points. Moreover, adjusted basic earnings per share of 13.6p decreased by 6.5p.

Orna Ni-Chionna, Senior Independent Director of Royal Mail commented on the appointment: “Our external search has confirmed that Keith Williams is the right person to chair the Royal Mail Group through a significant period of change. The Company will benefit from his strong leadership skills, and his industrial relations, operational and strategic expertise.

Keith Williams added: “I am delighted to accept this role. Royal Mail has many strengths, including great brands and great people, which form a platform for future success. The fast-moving delivery market means that we need to keep changing, and at greater pace. I look forward to working with Rico Back, our Group CEO, and the senior management team as we address the significant challenges facing our business.”

The Royal Mail is the UK’s postal and courier service. It was originally a publicly owned company, however it has been listed on the London Stock Exchange in 2013. It is a constituent of the FTSE-250 Index.

Shares in the company are currently trading -1.49% as of 10:52AM (GMT).

   

Prime Minister Theresa May has been granted a Brexit delay until the 22 May, pushing the official departure date beyond 29 March. The announcement came Thursday evening following eight hours of talks with EU leaders. It reduces the current likelihood of a no-deal leave next week. However, the GBP/USD dropped sharply to 1.3080 as fears of a no-deal Brexit prevail. If MPs approve the negotiated deal next week, the departure date will be postponed to the 22 May. However, if the deal negotiated with the EU is not approved by MPs, Britain will have until 12 April to offer a new plan or leave with a no-deal. “This is perhaps the last chance for Britain to say what it wants for the future,” Belgium’s Prime Minister Charles Michel said. “More than ever, this is in the hands of the British parliament.” An online petition demanding that Theresa May cancel Brexit and revoke Article 50 hit 2.5 million signatures. “The highest the site has ever had to deal with,” parliament’s petitions committee said in a tweet following the crash of the site. This is not the most popular petition in the Parliament website, however, as in June 2016 a petition of over 4 million signatures for a second EU referendum surfaced. British companies have not hidden their fears of a no-deal Brexit as the nation approached the original departure date. Earlier this month it was reported that the UK’s luxury sector could lose up to £6.8 billion in exports each year if the nation leaves with out a deal, putting brands such as Burberry, Bentley, Rolls-Royce and Harrods at risk. In insurance, Aviva and Admiral also warned of Brexit risks. Aviva said that political uncertainties have “muted” its near-term outlook, and Admiral predicted potential economic chaos if a “hard Brexit” is pursued. In contrast, however, the CEO of Heathrow affirmed that in the short-term, queues at Dover might boost air traffic, allowing airports to benefit from the additional trade.

Disney (NYSE:DIS) announced on Wednesday it had completed its $71 billion takeover of 21st Century Fox, ahead of the launch of its streaming service. The deal closed shortly after midnight New York time on Wednesday. It will see Disney take control of the vast majority of Rupert Murdoch’s television empire including National Geographic and a majority stake in the streaming service Hulu. However, Murdoch will retain the Fox News Channel and Fox Sports, with the company continuing as The Fox Corporation. “This is an extraordinary and historic moment for us—one that will create significant long-term value for our company and our shareholders,” commented Robert A. Iger, Chairman and Chief Executive Officer of Disney. “Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.” The merger came after a bidding war with ComCast, which owns NBS Universal. Alongside completing the merger, the media and entertainment conglomerate has also set it sights on challenging Netflix with the upcoming launch of its very own streaming service. The service is set to be called Disney+ and is set to launch later this year. Shares in Disney are currently trading -0.34% as of 10:27AM (GMT).

Ted Baker (LON:TED) posted a 26.1% decrease in its pre-tax annual profits on Thursday. Brexit uncertainty, “competitive discounting” across the sector, well-publicised challenges facing some of its British trading partners and UK weather patterns impacted the group’s performance. For the year ended 26 January, the British fashion retailer reported a £50.9 million profit before tax figure. This is a 26.1% drop compared to the £68.8 million a year prior. The group’s results occur against a backdrop of warnings and complaints by retailers of the difficult trading conditions that have hit the high street. The decrease in pre-tax profits is its first decline since the financial crisis. Founded in 1988, the FTSE 250 company has roughly 500 stores and concessions across the world. Headquartered in London, the retailer also announced a 4.4% increase in group revenue to £617.4 million. Retail sales, including e-commerce, were up 4.2% to £461 million. Retail sales in the UK and Europe were up 4.6%, in North America 4.7% and Rest of the World also up at 4.7%. The business announced its selective expansion, opening two stores in the UK, five stores in the US, one in Spain and one in China. “Ted Baker has continued to grow across each of the brand’s distribution channels despite difficult trading conditions across a number of the Group’s global markets. This resilient sales performance again reflects the strength of the brand, the talent of our teams, and the quality of our collections,” acting Chief Executive Officer Lindsay Page commented. Lindsay Page took on the role following the resignation of the group’s Chief Executive and founder, Ray Kelvin. His resignation occurred amid a continued investigation into allegations of personal misconduct, though he has denied all allegations made against him. Ted Baker also outlined its Brexit contingency plans which hope to assist in minimising any disruptions caused by the UK’s departure from the European Union. “A number of indirect risks remain which are beyond our control and the resulting risk that they pose is highly reliant on the preparedness of national authorities and other businesses,” the company said. It said that a no-deal Brexit will have the greatest impact on its business. “In preparation for a no deal withdrawal, the Group appointed a Brexit working group to work with external advisors to ascertain the likely impacts of such withdrawal on the business,” it said. Ted Baker emphasized that though a number of strategies and contingency plans have been developed, there are prevailing risks that remain outside of the group’s control. At 08:56 GMT Thursday, shares in Ted Baker plc (LON:TED) were trading at -4.8%.

Next (LON:NXT) posted a 0.4% decrease in annual profits on Thursday in its results for the year ending in January. The company predicts another decline for the following year as in store sales continue to decrease. The company recorded a pre-tax profit of £722.9 million. This figure is a 0.4% decrease compared to last year’s £726.1 million. Though this aligns with the company’s guidance, it is a third straight decline for the British clothing chain. The group also announced that 53% of its sales were now online. In store sales dropped by almost 8% to £1.95 billion, as online sales rose by 14.7% to £1.92 billion. Footfall across the high street was particularly low during one of the most anticipated shopping days of the year – Boxing Day. Experts said that the average footfall across the UK dropped by 3.1% despite retailers offering generous discounts on their products. The disappointing turnout reflects the broader sector-wide crisis that hit retailers in 2018. For the year ahead, Next has forecasted sales to be up by 1.7%. It is expecting an 8.5% decline in retail sales and an 11% increase in sales made online. “Although we anticipate that our total sales will grow in the year ahead, we are forecasting for profits to marginally decline,” the company said in its results. “We have talked before about the structural costs involved in business moving from Retail to Online. The problem is that, in the short term, many of our Retail costs (such as rent) remain fixed but increasing business Online generates additional variable costs required to handle more deliveries and warehouse work,” it continued. The company predicted a 1.1% decrease in pre-tax profits, down to £715 million. Elsewhere in retail, the struggling sports wear retailer Footasylum (LON:FOOT) was recently purchased by its larger rival JD Sports (LON:JD) in a bid help the 69-store chain amid tough trading conditions. Bonmarche (LON:BON) also made headlines this week as it issued its third profit warning in the past six months. At 08:23 GMT Thursday, shares in Next plc (LON:NXT) were trading at -3.01%.

Google has been fined €1.5 billion by the European Commission over its advertising rules. The search engine has been dealt the penalty after European Commission said that Google had been blocking rival online search advertisers.