TSB apologises for latest IT meltdown
TSB apologised on Monday to customers following disruption to online and mobile banking.
The lender is still recovering from April, where the group’s customers were left without access to online banking services for several weeks.
Users of online banking were denied access for using the “wrong” login and password details on Monday morning, despite details being correct.
“We’re really sorry that some of our customers are experiencing intermittent issues,” said the bank.
“There was an issue yesterday [Sunday] afternoon which was resolved, however customers may be experiencing a slowness in service. Customers are still able to use their cards as normal. We’d like to apologise for any inconvenience this may cause.”
Gareth Shaw, money expert at Which? said: “TSB customers who endured chaos with their bank earlier in the year will be asking themselves how on earth this could be happening again. TSB bosses gave robust assurances that lessons had been learned – so this will come as a real blow to all those who stuck with the bank. For TSB customers at their wits’ end with the bank – there has never been an easier time to switch, and the current account switch service makes the process as painless as possible.”
“Customers can incur fines, penalties and fees when they’re not able to access their finances, so the bank must offer compensation to all those affected.”
In July, the bank revealed that the IT meltdown in April had cost the group £176.4 million, resulting in a half-year loss.
An estimated 26,000 customers closed their TSB account in the second quarter.
The issue in April happened when customer data moved from an IT system operated by Lloyds Banking Group (LON: LLOY) to one managed by Sabadell (BME: SAB).
TSB has about 5 million customers.
The lender tweeted on Monday that customers were facing problems.
Rosslyn Data Technologies PLC secures contract worth over $650,000
Rosslyn Data Technologies PLC (LON:RDT) has announced that it has secured a data analytics contract worth over US$650,000. The contract is set to cover three years with US$250,000 to be billed in the first year and US$200,000 per annum in the following years. In addition, the contract includes an option to extend beyond its three-year duration.
Rosslyn Data Technologies is a leading global big data company that provides data extraction, data cleansing and data enrichment technologies to its clients. Rosslyn’s RAPid platform is the primary product the company offers. Its customers are multinational and include Coca-Cola Enterprises, Babcock Corporate Services PLC and Xerox Business Services.
The client Rosslyn Data Technologies have secured a contract with is a high profile global defence, aerospace and security company. It operates in a complex technology landscape and covers a wide range of companies and geographies and a mass of data repositories and systems. Rosslyn’s RAPid platform will be used to implement the project in less than eight weeks. Implementing the project in such a quick period demonstrates the power of Rosslyn’s award-winning analytics platform.
CEO Roger Bullen said: “I am delighted that Rosslyn, through our partner program, has won another high profile client in a competitive and demanding process. Our focus on the complex data analytics market continues to deliver a number of opportunities and this extremely important win demonstrates the continued demand for our data services in this growing sector.
“Being selected by this leading company shows that our RAPid Analytics Platform is the technology of choice for companies serious about leveraging the value of their data in order to improve business performance. This win also underpins the progress we are making in increasing our average annual contract value, which is continuing to grow.”
Funding Circle is set to be listed on the London Stock Exchange
Funding Circle plans to raise an estimate of £300 million from an IPO on the London Stock Exchange. As a result, Funding Circle will become the first of Britain’s new generation of financial technology companies to go public. Additionally, existing shareholders will also be able to sell existing shares.
The peer-to-peer lender offers loans to small businesses in the US, Germany, the Netherlands and the UK. Funding Circle is the leading small and medium enterprise loans platform in these countries.
Founded in August 2010, the company has leant over £5 billion in loans to 50,000 small businesses by connecting them with 80,000 retail and institutional investors looking to lend money. This includes £1 billion from the first half of 2018 alone.
Financial technology, or “FinTech”, is the new technology that competes with the traditional financial services.
Mobile banking and cryptocurrency are a few examples of technologies that increase the accessibility of financial services to the general public. Today, London has become a hub for financial technology. In addition to Funding Circle, Monzo, TransferWise, Algomi and Blockchain are just a few FinTech companies to call London their home. Market analysts are expecting a valuation of Funding Circle to approach £2 billion after its IPO. Funding Circle could sell at least 25% worth of the company to increase its value. CEO and co-founder of Funding Circle, Samir Desai, said: “At Funding Circle our mission is to build a better financial world. Today’s announcement is the start of the next stage in our exciting and transformational journey. “Over the last eight years, we have worked hard to build a platform that is number one in every market we operate in. By combining cutting-edge technology with our own proprietary credit models and sophisticated data analytics, we deliver a better deal for small businesses and investors around the world.”Export dip means UK manufacturing growth hits two year low
Following IHS Markit’s figures revealing that China’s manufacturing growth is losing momentum, figures released later this morning have revealed that UK manufacturing growth is at its lowest level for the last twenty-five months.
This news comes amid tariff tensions which have affected market liquidity on a global scale, but more importantly because of ongoing Brexit uncertainty, which has knocked consumer confidence and increased production costs.
Since the vote in 2016, figures show that the decision to leave the EU has cost the UK economy over two percent of its expected output, as well as up to four percent of potential investment.
What is more concerning about today’s news is that in addition to faltering consumer confidence at home, even a devalued pound could not save British manufacturers from suffering the lowest number of export orders since April 2016.
Rob Dobson, director at IHS Markit said, “Foreign demand declined for the first time since April 2016, despite the weakness of sterling, amid reports of slower global economic growth and the increasingly uncertain trading environment.”
Stephen Cooper, UK head of industrial manufacturing at KPMG, added that,
the PMI report has “a bit of back to school dread about it”“Optimism has fallen whilst job creation is virtually at a standstill, with cuts by larger businesses neutralised by job growth in SMEs.“Together with export orders – also at a 25 month low despite continued sterling weakness – these figures are particularly concerning against the backdrop of global trade wars and increasing uncertainty around Brexit – both of which will be weighing on businesses.” Going forwards, global trade tensions will do nothing to help the situation of UK manufacturing, but the issue at the forefront still remains – certainty over the scale of our involvement with the EU needs to be clarified as soon as possible.
Hurricane Energy shares increase by 11% after Spirit Energy deal
Hurricane Energy PLC (LON:HUR) announced a significant partnership deal with Spirit Energy earlier this morning. This transaction opens up a significant new work programme across Hurricane’s assets. Spirit Energy is to fund US$387 million of Hurricane’s shares and will receive a 50% stake in return.
The UK based oil and gas company, Hurricane Energy, focuses on hydrocarbon resources in naturally fractured basement reservoirs. Additionally, Spirit Energy is an independent exploration and production operator. It is owned by Centrica PLC (69%) and two of Bayerngas Norge’s former shareholders led by Stadtwerke München Group (31%).
The 50% farm-in of Hurricane’s Lincoln and Warwick licences will cover the Greater Warwick Area. The partnership hopes to accelerate their potential monetisation by targeting reserve growth.
The Greater Warwick Area programme will take place in two phases across 2019 and 2020. Following the successful drilling across the two years, Spirit Energy is set to take on the role of the Greater Warwick Area licence operator.
Hurricane Energy shares have seen an 11.01% increase this morning after the deal.
Chief Executive of Hurricane, Dr Robert Trice, said: “We are delighted to be working with Spirit Energy. We share a common vision for the development of the Greater Warwick Area and more importantly a shared understanding of the potential of fractured basement in the UKCS. Their prior experience of basement in Norwayand elsewhere underpins this understanding. “This transaction allows us to accelerate monetisation of our GWA resource base through a work programme designed to target significant reserve growth. The initial phases include three wells, one of which is anticipated to be tied-back to the Aoka Mizu in 2020. At this point Hurricane will have two significant accumulations developed to Early Production System stage, providing long term production data – critical to the realisation of value from fractured basement fields – as well as generating significant cash flows. “We are already planning for three further GWA wells and commencement of full field development FEED during 2020, allowing us to aim for development sanction in 2021. “As a result of the GWA Farm-in, Lancaster EPS cash flows have been freed up to focus on appraisal of the Greater Lancaster Area. “As we approach first oil on Lancaster, which remains on track for 1H 2019, we have increased financial flexibility and two parallel work programmes to drive our Rona Ridge resources towards monetisation.”Chinese manufacturing growth hits 15 month low
With global manufacturing feeling the pinch of Sino-US trade tensions, figures for August reveal that Chinese manufacturing growth has hit a 15 month low.
With tariffs coming into force, Chinese businesses have seen the prices of imported goods jump at the same time as the number of export orders dipping for the fifth consecutive month; both of which have played a role in factory bosses having to cut staff.
While manufacturing output has not decreased, China’s PMI looks daunting. The PMI or Purchasing Managers’ Index is a measurement done by The Institute for Supply Management (ISM), which uses a monthly survey of a company’s new orders, inventory levels, production, supplier deliveries and employment to gauge performance. PMI is measured out of one hundred, with a score being allocated based on the number of answers indicating improvement, no change, or decrease – a score over fifty indicating a positive change.
Beijing-based media outlet Caixin commented, “Latest data indicated that demand conditions softened, with total new business rising at the slowest pace for 15 months. Weaker foreign demand contributed to the softer increase in overall new work, with export sales declining for the fifth month in a row.”
“Optimism regarding future production remained relatively subdued in August, with confidence little-changed from June’s recent low. Positive forecasts were generally linked to expectations of rising client demand. However, concerns over the ongoing China-US trade war and softer demand conditions weighed on overall sentiment.”
The latest data published this morning by Caixin and research group Markit, show that China’s PMI stands at 50.6 for August, down 0.2 from the month before.
Chinese analysts have so far forecast that this trend is likely to continue going forward, with tensions persisting and the possibility of further tariffs looming in the autumn. The bleak outlook for manufacturing has been shared by European companies over the summer, with British manufacturing figures from within the hour appearing equally bearish.
Royal Mail buys Dicom Canada for £213 million
Royal Mail PLC (LON:RMG) has bought the Canadian parcel delivery firm, Dicom Canada, for roughly £213 million (C$360 million). The company was purchased from private equity group Wind Point Partners. The deal is set to expand Royal Mail into Canada.
Dicom Canada provides transportation services offering courier facilities, truck loading, logistics management and trucking services. The firm operates in Canada and the US. The company generated unaudited revenue of C$233 million in the last year ending in June 2018.
Royal Mail has said: “Dicom Canada is well-placed to leverage growth trends in these markets and provides GLS with an established market position in this key economy.”
Despite the acquisition by Royal Mail, Dicom Canada will continue to be lead by Rick Barnes and its current management team.
At 10.34am: Royal Mail PLC share price was up by 0.56%.
Footasylum shares plunge 50pc on profit warning
Footasylum (LON: FOOT) shares plunged on Monday morning after the group warned of lower profits.
Shares in the group fell tumbled over 50 percent to 40p, valuing the company at about £42 million.
“These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Footasylum’s trading has continued to be impacted by weak consumer sentiment,” said Barry Bown, the executive chairman.
“On top of that, increased clearance in stores has led to a reduction in gross margin, and we have also had some unforeseen delays in our new store openings and upsizes. However, we have continued our programme of investment, both in upsizing our stores and in our digital capabilities, and are working hard on a number of initiatives to maximise the Company’s performance during the upcoming peak trading period,” he added.
The company reported a rise in sales of 18.5 percent in the six months to 25 August but said sales since have been “more challenging”.
The retailer has adjusted earnings for the fiscal year 2019 so they are “significantly lower”.
The group said sales in the months of May and June were strong but sales for July and August were “more challenging” amid the tough retail environment as there is a growing shift towards online shopping.
Revenues for the half-year are expected to grow 18.5 percent to £98.6 million.
Despite the challenging outlook, we are encouraged by the continuing progress that we are making in improving our online performance, rolling out our store opening programme, and further enhancing our supplier relationships, and therefore remain confident in the Company’s long-term prospects,” Brown added.
Analysts at Liberum said that lowering its outlook again was “highly disappointing” and the rest of the current financial year is also “likely to be difficult”.
“The group should hopefully start to see the benefits from some of the initiatives laid out by the executive chairman, but these take time to deliver,” the analysts added.
Homebase to close 42 stores, risking 1,500 jobs
Homebase will close 42 stores in a move that will save the retail chain from bankruptcy.
Creditors approved proposals the company voluntary arrangement (CVA), that will cut 1,500 jobs and lead to the closure of closure of 42 out of 241 branches.
“We now have the platform to turn the business around and return to profitability,” said Damian McGloughlin, the group’s chief executive.
“We can look to the future with great confidence, and we will be working closely with our suppliers to capitalise on the opportunities we see in the home improvement market in the UK and Ireland.”
Over 95 per cent of Homebase’s landlords voted in favour of the CVA. Landlords of an additional 70 stores agreed to accept rent cuts of up to 90 percent.
Following the Australian firm Wesfarmers (ASX: WES) takeover of the group, a move that was branded, one of the worst acquisitions in UK corporate history, the group was sold on to Hilco, which bought Homebase for £1 in May.
Wesfarmers boss Rob Scott described the acquisition as “disappointing”.
“Problems arising from poor execution post-acquisition being compounded by a deterioration in the macro environment and retail sector in the UK,” he said.
Hilco plans to take the loss-making chain “back to its roots”.
CVA’s are becoming more and more commonplace this past year, with several chains on the high street seeking approval for similar measures.
Groups include Mothercare (LON: MTC), Carpetright (LON: CPR), House of Fraser and Byron.
Earlier this week, Jamie Oliver revealed that he injected £13 million of his own money into restaurant chain in order to save it from collapse.
Lyft plans March stock market flotation
Uber rival Lyft is reportedly planning for a stock market flotation as early as March 2019.
The ride-hailing company has hired IPO adviser Class V Group LLC to work on the matter and will take pitches from banks from September, according to Bloomberg.
“A variety of factors will determine if and when Lyft goes public, but in the meantime we are focused on building our business, which continues to grow,” said a spokesperson from the group.
“We don’t comment on rumors or speculation,” the spokesperson added.
If the group is to go public in March, it would go public before rival Uber.
Uber’s chief executive, Dara Khosrowshahi, has confirmed that his company are still planning for a planned public offering in the second half of this year.
Typically, similar companies do not want to begin selling shares at the same time in the fear that investor appetite might end following the first IPO.
However, Lyft also faces the risk that investors might wait for Uber’s flotation.
In February, Uber was valued at around $72 billion.
Uber’s incoming chief financial officer Nelson Chai did not seem as confident as Khosrowshahi about going public, he said in an interview with Axios earlier this month.
“I can’t say I’m on board yet with going public next year”, he said.
“I’ve been impressed with the information I’ve seen, but I don’t have enough insight until I really get in there to make sure we have the right processes and controls to be a public company.”
Travis Kalanick, Uber’s ousted boss, said before his resignation that he also wanted the group to float “as late as humanly possible”.
Kalanick left the group amid criticism over the company’s culture and after major investors asked him to leave. He still remains an important member of the company’s board.