Business news in brief
Facebook offers cheap talk on racism, says civil rights leader
Facebook chief executive Mark Zuckerberg and chief operating officer Sheryl Sandberg met with a group of civil rights leaders on Tuesday, including the organisers of a growing advertising boycott over hate speech on Facebook. One of those leaders, Derrick Johnson (president of the US National Association for the Advancement of Coloured People), said Facebook’s executives offered little but cheap talk that skirted major commitments to new rules or actions that would curb racism and misinformation on its platform. “We’ve watched the conversation blossom into nothingness,” Mr Johnson said. “They lack the cultural sensitivity to understand that their platform is actually being used to cause harm. Or, they understand the harm their platform is causing and they’ve chosen to take the profit.” AP
Grant Thornton fined nearly £2m for audit failures
Grant Thornton has been fined £2m by the industry watchdog for “firm-wide” failures in its auditing of collapsed Bargain Booze owner Conviviality. The Financial Reporting Council (FRC) said Grant Thornton had admitted breaching “very important” ethical standards and requirements between 2014 and 2017 to ensure the independence of its audit. The FRC said the failures were “repeated and prolonged” and saw “numerous breaches”. The watchdog has also reprimanded former Grant Thornton senior manager Natasha Toy and the accountancy firm’s former audit engagement partner Kevin Engel. PA
FirstGroup warns it may go bust
Transport giant FirstGroup has warned over its ability to continue as a going concern after swinging to a full-year operating loss amid plunging passenger numbers during the pandemic. The bus and rail firm reported an operating loss of £152.7m for the year to 31 March against earnings of £9.8m the previous year. Statutory pre-tax losses widened to £299.6m from losses of £97.9m the previous year after booking a raft of charges – including a £21.5m hit for the coronavirus crisis. FirstGroup flagged a “material uncertainty” over its ability to continue as a going concern due to risks around the pandemic, but stressed it had “adequate” resources to carry on operating for the next 12 months. PA
Segro collects majority of its rent payments
Property giant Segro said that it had been paid a vast majority of the rent it was due at the end of June, even as many of its fellow landlords struggle to get tenants to meet their bills. The business has gathered up to 93 per cent of the £37m it is due for the third quarter of the year. Businesses often settle their rent bill every three months, paying for the next period. But with the coronavirus crisis forcing many businesses to shut down, several property companies have been coming up short.