Business news in brief
Sports Direct’s Ashley says ‘stabbed in the back’ by shareholders
Mike Ashley, the founder and majority owner of Sports Direct, said yesterday he had been “stabbed in the back” by other shareholders over their lack of support, and warned future engagement with them would be “extremely challenging”. In a statement to the London Stock Exchange, Mr Ashley, who owns 61 per cent of Sports Direct’s equity and is the firm’s chief executive, criticised shareholders for failing to support the board and “repeatedly hounding” former chairman Keith Hellawell. At Wednesday’s annual shareholders’ meeting, the re-election of Mr Ashley was opposed by 9.78 per cent of votes cast, while Mr Hellawell, the company’s chairman for the past nine years, stepped down just ahead of the meeting. Reuters
Co-op says can’t guarantee to avoid food shortages in no-deal Brexit
The Co-operative, Britain’s sixth largest supermarket group, said yesterday it could not guarantee shortages of some food products would be avoided in the event of a no-deal Brexit. Recent signals from Brussels have buoyed hopes that the UK and EU can come to a proper divorce agreement before the UK
leaves the bloc on 29 March. But many business chiefs and investors fear politics could scupper an agreement, thrusting the world’s fifth largest economy into a no-deal Brexit that they say would clog up the arteries of trade. Reuters
Nationwide issues assurances over jobs as it invests £1.2bn in tech
Nationwide Building Society has said it is not planning redundancies and will maintain its branch network as it invests another £1.3bn in tech to help “simplify” operations. The additional cash will bring its total tech investment plans to £4.1bn over the next five years, during which it expects to create between 750 and 1,000 jobs in a new “technology hub”. The group said it will help “simplify its technology estate and build new technology platforms to enable growth and diversification, and drive forward digital, data and analytic strategies”. However, Nationwide insisted that there were no plans for redundancies in other parts of the business, and gave assurances that its branch network will be maintained. PA
Investec shares jump as group plans to spin off and list business in London
Shares in banking group Investec surged as its board announced plans to spin off its asset management division. The South African group expects the separated Investec Asset Management (IAM) business to be listed on the London Stock Exchange within the next year. It expects the move to simplify the company’s structure, while focusing IAM and the remaining group on their “respective growth plans. As an independently listed company, IAM will be better positioned to accelerate its growth and have an enhanced ability to attract and retain investment talent,” the group said. PA
SSE appoints boss of retail unit
Energy giant SSE and npower owner Innogy have agreed to appoint Martin Read as chairman designate for their new British energy supply and services company. It comes after the Competition and Markets Authority gave the provisional green light to merger plans between npower and SSE’s retail operations – SSE Energy Services – last month. He will work alongside chief executive designate Katie Bickerstaffe and chief financial officer designate Gordon Boyd. Mr Read is a former chairman of Laird and was chief executive of international IT services firm Logica. That is on top of non-executive directorships at companies including Lloyd’s of London, British Airways, Boots and Asda. PA
Ryanair faces opposition
The Local Authority Pension Fund Forum (LAPFF) is recommending that its members vote against the reelection of Ryanair chairman David Bonderman at the company’s annual general meeting next week. It comes amid concerns over Ryanair’s treatment of workers and handling of recurring strikes by its employees. The LAPFF is also calling for votes to be cast against the company’s annual report and accounts. Its members, who hold around £230bn of pension fund assets, are set to attend the AGM in Dublin on 20 September and press the board on their concerns. PA
VW in talks on self-driving car standards
Germany’s Volkswagen is in talks with other carmakers to set common standards for self-driving vehicle technology, Automotive News reported yesterday. The Volkswagen Group is discussing the initiative with
more than 15 potential partners, according to the report, which cited an anonymous company executive. It did not identify any of the other companies involved. Carmakers, suppliers and technology companies are already investing more than €55bn (£49bn) globally in autonomous driving, consulting firm AlixPartners estimates. Reuters
Santander UK to build £150m tech hub in Milton Keynes
Santander UK said yesterday it would build a new technology hub in Milton Keynes, representing an investment of £150m. The proposed new site is expected to house more than 5,000 staff, and replace the bank’s existing offices in the area. A planning application will be submitted for the development in 2019, Santander UK said, and subject to approval the hub is expected to open in 2022. Reuters