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The Daily Telegraph Business - April 23, 2018

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Business
***
Monday 23 April 2018
telegraph.co.uk
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Page 7
THE recent whistleblowing case at
Barclays is likely to cost the bank’s boss
Jes Staley up to £1m in fines and bonuses after he broke the rules by trying
to unmask the person who made the
claims.
Regulators are understood to be
planning to fine Mr Staley up to 10pc of
his after-tax salary for 2016 – the year in
which the breach occurred – or last
year. In both years he earned an aftertax salary of around £1.25m, translating
to a potential fine of up to £125,000.
If the Financial Conduct Authority
(FCA) extends that to his total pay
packet, including bonuses and pension
payments, the fine could be as much as
£225,000. On top of that, The Daily Telegraph understands the bank’s board is
considering clawing back up to half of
his bonus for 2016. His bonus was
£1.32m that year so he stands to lose
around £666,000, taking the hit from
the FCA and Barclays to as much as
£891,000. Both the FCA and Barclays
declined to comment.
The City watchdog said Mr Staley, a
former JP Morgan banker, failed to act
with due skill, care and diligence when
he instructed his security team to locate the source of personal allegations
made about a colleague in 2016. Mr Sta-
By Jillian Ambrose
THE UK has already suffered stealth
cyber attacks on more than 80 manufacturing plants, with criminals deploying tactics that could put critical
national infrastructure at risk.
Britain’s spy agencies have warned
the bosses of utilities, transport and
health services that Russian hackers
are invading unprotected networks
ahead of a potentially serious attack.
But new evidence shows the attackers
are already targeting UK factories.
In an anonymous survey of manufacturers, almost half admitted that
they have fallen prey to cyber warfare,
according to trade group EEF.
Stephen Phipson, the boss of EEF,
said 48pc of those surveyed said they
have at some time been subject to a cyber security incident, and half of these
suffered some financial loss or disrup-
48pc
The proportion of manufacturers who took
part in the survey who said they had been
impacted by a cyber attack at some point
Seeking clarity Luxury brands such as Christian Dior, Chanel and Dolce & Gabbana (with
model Naomi Campbell), are among the least transparent about labour conditions in their
supply chains, research has found five years after the Rana Plaza disaster. Report: Page 3
Bonmarche owner eyes Young’s bid
By Ben Woods
THE owner of women’s fashion chain Bonmarche is understood to be weighing a
swoop for British frozen
food giant Young’s Seafood.
Sun Capital Partners,
which also controls bed and
mattress firm Dreams, is
among a clutch of private
equity firms considering
making an offer for the company, sources have told The
Daily Telegraph. Boutique
investment house Stamford
Partners has been hired to
handle the sale process,
which could value the group
at up to £300m.
Young’s has been owned
by Lion Capital, Bain Capital
and HPS Investment Partners for the last decade.
The firms announced
plans to sell the business on
Thursday, stating that they
“intend to start a structured
and open bidding process”.
Japan’s Mitsubishi Corpora-
Page 2
Half of UK
manufacturers
fall victim to
cyber attacks
BFA/REX/SHUTTERSTOCK
By Ben Marlow, Tim Wallace
and Iain Withers
ley apologised last year for his “mistake” in twice trying to identify the
whistleblower.
He was cleared of the more serious
charge of acting with “a lack of integrity”, which could have seen him
stripped of the right to lead the bank.
Barclays was not sanctioned. The outcome angered whistleblowing lawyers,
who accused the FCA and fellow regulator the Prudential Regulation Authority
of going soft on Mr Staley and the bank.
The investigation was seen as the
first big test of rules designed to police
the conduct of top bank bosses.
“This was an opportunity for UK
regulators to say they will protect
whistleblowers, and they blew it,”
Erika Kelton, a partner and whistleblowing attorney at Phillips and Cohen, told The Telegraph.
The verdict boosted Barclays as it
works to fend off a campaign to overhaul it by New York-based corporate
raider Edward Bramson.
Mr Staley’s misconduct dated back
to June 2016, when Barclays executives
received an anonymous letter raising
concerns about a recent senior hire.
The letter was treated by the bank as
a whistleblow. Barclays’ own investigation found Mr Staley “honestly, but
mistakenly, believed” his actions to try
to identify who wrote the letter were
permitted. There is some anger at the
bank over how long the FCA investigation has taken.
One insider said: “It has taken the
FCA more than a year to come to the
same conclusion that Barclays came to
in just a few weeks – that Jes wasn’t
guilty of the more serious charge.”
Page 5
+1.48 (+2.04pc)
Barclays boss
faces £1m hit
after hunt for
whistleblower
Jes Staley may be fined and
lose bonuses after FCA says
he broke rules by trying to
unmask source of claims
Shared
history
We would
do well to
tighten our
bond with
Commonwealth
Roger
Bootle
(June)
-1.37¢
Page 7
p
Gaining
altitude
The drone
market is
ready for a
steep ascent
as China
streaks
ahead in
patent race
tion – the owner of canned
food producer Princes – is
also understood to be interested in a prospective deal.
Young’s, which employs
around 2,000 staff and has a
turnover of more than
£500m, was founded by
Elizabeth Young and her
family in 1805.
The three investment
funds bought the business
from CapVest in 2008 in a
£1.1bn deal that included the
Findus brands.
tion to business as a result. Almost 170
manufacturers across the country took
part in the survey.
“There seems little doubt that many
more attacks will have gone undetected,” Mr Phipson added.
Oliver Welch, EEF’s security expert,
said it is possible that manufacturers
may not even be aware.
“There’s evidence out there that
there is quite a lot of malware that is designed to sit in the background, not really do very much, while the person
infected doesn’t even know that it is
happening,” he said.
A cyber security expert at INSINIA
Security, speaking to The Daily Telegraph, said: “Russia has been probing
us for years and years. This is far more
than reconnaissance. Anyone who is
burying their head in the sand and saying that Russia aren’t attacking us is
mad.”
2
***
Monday 23 April 2018 The Daily Telegraph
Business comment
The new laws Mark Zuckerberg
conceded are necessary to govern
social media are likely to entrench
his company’s dominant position
M
ark Zuckerberg’s 10 hours of
questioning by US politicians,
carried out over two marathon
sessions in Washington this
month, was striking for how
little we learnt.
Many of the senators and congressmen
questioning Facebook’s founder seemed to lack
the most rudimentary understanding of how
social media functions, and those who did
dedicated much of their allotted time to
grandstanding, rather than forensic scrutiny.
But we did at least learn one thing: Zuckerberg
is not, on the face of it, opposed to the social
media regulation that so many desire. He
admitted that “I think there are going to be…
places where there needs to be more regulation”,
and said he was “not the type of person that
thinks all regulation is bad”.
This was a deft move because it appeared to
defuse a charge levelled against Zuckerberg and
many of his fellow Silicon Valley leaders: that
they are fundamentally hostile to regulation, see
new laws as hindering progress, and generally
believe governments should get out of their way.
Like all caricatures, there is some truth in it.
Regulation is often viewed with suspicion by the
tech community. But not always.
Facebook and Twitter, for example, have been
open in their support for proposed US legislation
that would force social media companies to
disclose who has paid for political adverts.
Zuckerberg, in his Washington hearings this
month, had warm words for new European data
laws known as the GDPR that will be applied
from next month. “I think they [the Europeans]
get things right,” he said.
This was striking because the GDPR is a
potentially ominous new landscape for Silicon
Valley’s giants. It gives internet users much
stricter controls over how their data is shared,
stored and processed, and forces companies to
be clearer about how they collect it. Failures can
result in fines of up to 4pc of annual turnover, a
sum that would add up to over $1.6bn (£1.1bn) in
Facebook’s case. The company has admitted that
the regulations could affect
user numbers.
So what explains the
sudden support for it? Some
Damascene conversion? Is
Zuckerberg ready to cede
power to legislation, and
admit the limits of
Facebook’s ability to police
its own domain? This seems
unlikely. Such control is
rarely given up willingly,
especially in Europe, where
politicians have proven more eager than their US
counterparts to fine technology companies.
Instead, we must consider the alternative. The
reason Zuckerberg welcomes regulation is
because it benefits him to do so. New rules on
internet companies, rather than cutting
Facebook down to size, could well do the
opposite, entrenching their power and making it
more difficult for competitors to spring up.
Take Facebook’s controversy, which centres
on how the political consultants Cambridge
Analytica exploited the social network to obtain
private data of 87m users. Most of that data was
exposed not through fault of the people affected,
but because they were friends with someone
who downloaded a particular app. The scandal is
that Facebook data ended up in the wrong
people’s hands, not that it had it in the first place.
The company’s response has been to lock
down the social network; making changes that
prevent other parties from accessing user data.
Any regulations that stem from the
controversy will be about stopping companies
like Facebook from sharing the information they
have on citizens. It is a laudable aim, but at the
same time, it bolsters those who already have the
most valuable warchests of personal data.
Facebook, in particular, seems to regard the
new laws as an opportunity, rather than a threat.
Last week it began asking users in Europe to give
Facebook permission to apply facial recognition
to their profiles. It has not used facial recognition
in Europe for the past six years, but a GDPRinspired privacy overhaul has given it the chance
to turn it back on, provided that users agree.
Meanwhile, the company is shifting the
responsibility for handling the data of 1.5bn users
outside of Europe, currently governed at its
international base in Dublin, to the US in order to
exempt them from the new European rules. Only
a company of Facebook’s size and resources
would be able to do this at the drop of a hat.
This is the unintended consequence of new
internet regulations: those with the biggest
pockets are in the best position to comply, and
those who have built up a dominant position are
able to pull up the ladder behind them.
Meanwhile, the challenger that one day might
dethrone Facebook is hobbled.
Europe’s new data laws attempt to address
this, demanding that users can “port” their
information from one service to another, but the
social networks have not agreed how this might
work in practice, making a mockery of the idea.
There is another reason Facebook may not
oppose regulation: the alternative is worse. It
owns three of the biggest social apps – Facebook
itself, Instagram and WhatsApp – which will all
have more than 1bn users by the end of the year.
It would rather be contending with new laws
than discussing monopolies.
Facebook did not replace MySpace because
the latter was regulated, but because it created
something better. Today’s attempts to rein in
Zuckerberg’s company may present a challenge
to Facebook, but they will also make it more
difficult for any upstart to topple it.
‘Facebook
seems to see
the new
laws as an
opportunity,
rather than
a threat’
ROGER BOOTLE
TLE
I
n 1973, when the UK decided to
join what we now call the EU, for
many British people the fate of
our ties with the Commonwealth
figured large. They felt uneasy
about the severing of close
relations with countries that had
fought alongside the UK in two world
wars and shared its core values. Not
that the UK establishment seemed to
mind, of course.
After all, economics supposedly
trumped all this. People had to face the
fact that what was then referred to as
the Common Market was an
international economic powerhouse.
By contrast, the Commonwealth
amounted to next to nothing.
Is this still true? Or could a revival of
Britain’s Commonwealth ties and an
expansion of trade with it make up for
whatever we are going to lose when
we leave the EU?
Last week’s Commonwealth Heads
of Government Meeting served to
underline the contrast between two
abiding key features of this rather
strange organisation.
First, it is a gigantic talking shop
with no power or even joint policies of
significance. Second, between its
members there is an atmosphere of
warmth, co-operation and sense of
shared heritage and values.
Many Commonwealth countries
look with optimism and enthusiasm on
opportunities for increased UK trade
and co-operation post-Brexit. Indeed, I
expect a far-reaching UK/Australia
free trade agreement (FTA) to be
signed very soon after Brexit. Contrast
this with the tortuous negotiations
that the EU went through over its deal
with Canada and the fact that it still
hasn’t signed a deal with the US.
Contrast this also with the stonewalling, hostile timetable and haggling
of the EU Commission over Brexit. The
EU’s recent flat refusal to entertain the
UK’s proposed technological answer to
the Irish border issue was a blatant
Business
Insight
Whitbread
T
his week will be
make or break for
Whitbread when it
presents its full-year
results on Wednesday,
writes Isabelle Fraser.
City sources said that
Alison Brittain, the chief
executive, was not
“philosophically
opposed” to a de-merger,
breaking up its Costa
Coffee chain from the
rest of the company,
which includes Premier
Inn. The Sunday Times
said that sources
believed the spin-off is a
case of “when, not if ”.
Roughly 10pc of its
shares are now in the
hands of two activist
investors – Elliott
Advisors and Sachem
Head – which think that
GARETH FULLER/PA
Facebook
could end up
gaining from
regulation
After Brexit, the UK should explore
the ‘Commonwealth advantage’
example. This is a purely political
move designed to outmanoeuvre the
UK and/or scupper Brexit.
It seems that goodwill, shared
heritage and enthusiasm for a warm
future relationship may amount to
more than just words after all – and the
lack of them for still more.
Nevertheless, given that the
Commonwealth does not constitute an
effective unit of governance, and
certainly not a free-trade zone or
customs union, it cannot possibly
mimic the EU or directly replace the
UK’s EU relationship when we leave.
But that isn’t exactly a drawback. After
all, we are leaving the EU for a reason.
Most Brexit supporters do not want to
be part of a wider political entity.
But the size and significance of the
Commonwealth’s membership is
frequently under-estimated. Its
combined population is about 2.4bn
(about half of whom are Indian), not
much less than a third of the world’s
total.
Moreover, its relative weight in the
world economy has been rising, in
contrast to the EU. In purchasing
power parity (PPP) terms, in 1980,
what we now call the EU accounted
for about 30pc of world GDP,
compared to about 20pc for the US,
and about 15pc for the
Commonwealth. By last year, the US
share had fallen to about 15pc, and the
EU’s to about 16.5pc. Meanwhile, the
Commonwealth’s share had risen to
about 17pc. Furthermore, according to
the IMF, by 2022, the US and the EU
will both have fallen further to about
15pc, compared to the
Commonwealth’s share of almost 19pc.
Looking further ahead, there is
every reason to expect the
Commonwealth’s share to continue to
rise and the EU’s to continue to fall.
While the EU’s population is set to
stagnate or fall, the Commonwealth’s
is set to continue rising. Over and
above this, productivity growth in
Commonwealth countries looks likely
to continue to be higher than in the
EU, not least because so many of the
Commonwealth’s members are still
fairly low on the development ladder
where rapid productivity growth is
easier to attain.
At least one study has uncovered
what it calls “the Commonwealth
advantage”, that is to say the fact that
because of shared history, the
predominance of the English language
and legal systems based on English
common law, the costs of doing
business when trading with other
Commonwealth countries are some
10pc to 15pc lower than for trade with
non-Commonwealth countries. Even
so, if this Commonwealth advantage
Soldiers of the
Coldstream Guards
carry flags of the 53
Commonwealth
countries during
celebrations at the
formal opening of
the Commonwealth
Heads of
Government
Meeting
‘Productivity
growth in
Commonwealth
countries
looks likely
to continue
to be higher
than in
the EU’
exists, it does not apply equally across
all countries.
Doing business in India can be a
nightmare, whereas doing business in
the Netherlands is comparatively easy.
And no one should imagine that the
Commonwealth is going to suddenly
spring to life as a replacement for the
EU. Despite the Commonwealth
advantage, although they have grown
faster than exports to the EU, the
recent growth of the UK’s exports to
Commonwealth countries has not
been spectacular. Moreover, as a share
of the UK’s total exports, exports to the
Commonwealth currently amount to
only about 9pc, compared to over
40pc for UK exports to the EU.
Yet Britain’s EU exports are not
going to drop away just because the
UK is leaving.
Rather, most UK exports to the EU
are going to continue post-Brexit, and
even to grow. It is just that they are
likely to grow more slowly than
exports to other countries, including
the Commonwealth.
We are most unlikely to find
ourselves expanding our trade
through a direct Commonwealth
initiative. More likely, trade growth
will come naturally as markets expand
and through the conclusion of bilateral
FTAs with individual members. These
can then serve as the template for
deals with others.
Could ties with the Commonwealth
become closer still? This was the
suggestion of Lord Howell in his book
Old Links and New Ties. There have
even been suggestions to create a new
Commonwealth investment bank, a
Commonwealth business visa and a
Commonwealth airport queue. I am
sceptical about whether this is
possible and/or desirable.
Nevertheless, I am enthusiastic
about the possibility for closer links
and more trade. The EU/
Commonwealth comparison pitches
geography against history. It is about
the importance of proximity versus
culture – political, legal, linguistic and
business. I am decidedly on the side of
history and culture.
Roger Bootle is chairman of
Capital Economics;
roger.bootle@capitaleconomics.com
breaking up the company
could create £3bn of value.
Whitbread is
undergoing a cost-cutting
programme, as well as
expanding in China, and in
airports and train stations
in the UK. As a result
analysts at Credit Suisse
expected profit margins at
Costa to be hit.
The bad weather
brought on by the “Beast
Alison Brittain
Chief executive
from the East” may also
affect Costa’s profits, as
well as the impact of
reduced footfall in high
streets and shopping
centres.
Whitbread’s pre-tax
profit is forecast to be
£585m, up from £565m
last year, though like-forlike sales have slowed and
even reversed recently.
GETTY IMAGES
James
b
Titcomb
Reduced footfall on high streets may affect Costa’s profits
Strengths
Threats
 It has a set of strong
brands in the UK
 Expanding Costa and
Premier Inn both at home
and abroad
 It has a large portfolio of
UK real estate
 Growing
shareholdings of activist
investors
 Very strong
competition in the sector
 Crisis in casual dining
could spread to business
Weaknesses
Opportunities
 Rising costs of
expansion could hit profits
of Costa
 Hit by general decline in
footfall in high streets
 Affected by cyclical
fluctuations
 Sources suggest chief
executive is open to a
de-merger
 Spin-off could create
£3bn in value
 Cost efficiency could
streamline business
Inflating oil prices is a dangerous game for the Saudis
TOM STEVENSON
NSON
W
hen, a couple of years ago,
Saudi Arabia was twisting the
arms of Russia and 22 other
oil producing countries to stem the
flow of crude, the oil price was already
off its low of less than $30 a barrel. But
at around $50 in late 2016, it still
represented a big problem for the
oil-rich kingdom. With an expensive
economic transformation under way, a
war in Yemen to fund and an upstart
shale industry in North America, it
badly needed to take back control.
The production curbs which kicked
in at the beginning of 2017 have been
an unqualified success as far as Saudi
Arabia is concerned. The oil glut,
which had seen the price fall by nearly
three quarters peak-to-trough
between 2014 and 2016, has been all
but eliminated in just over a year.
The surplus over the long-term
average stocks of oil and refined
products in the developed world has
fallen from 340m barrels to just 10m.
In the US, there is actually a deficit for
the first time since 2014.
Now, as officials from Saudi and
Russia consider what to do next, the
talk is of the oil price rising above $80
a barrel. There is even speculation that
the Middle Eastern oil giant would be
happy to see oil rise to $100. This
would represent a significant shock
even for a global economy that is
currently firing on all cylinders. The
extra revenues that would be
generated by an oil price hike on this
scale would be extremely tempting in
Riyadh. Perhaps too tempting.
It’s not hard to see why Saudi is
manoeuvring the oil price higher.
Some time next year, the state-owned
oil company Aramco will come to
market. The Saudis are looking for a $2
trillion (£1.4 trillion) valuation.
A flirtation with $100 a barrel would
be extremely timely ahead of the IPO.
The flotation of Aramco is the
centrepiece of Crown Prince
Mohammed bin Salman’s ambitions to
modernise the economy. That
programme will be costly, as will the
ongoing war in southern neighbour
Yemen. Already, the kingdom’s
massive foreign cash reserves have
dwindled from a peak of $737bn in
2014 to $488bn today. Some oil experts
think that break-even for Saudi Arabia
is somewhere close to $85 a barrel.
The rapid reduction in the world’s
excess oil reflects an unusual
combination of events over the past 15
months. First, the compliance with the
proposed production cuts has been
remarkably disciplined.
Typically, Opec has talked a good
game on output curbs but then seen
revenue-hungry member states peel
away from the agreement to exceed
their allotment. This time the targeted
2pc reduction in supply has been met
almost precisely. The 1.9m barrels a
day that the group is leaving in the
ground represents 1.98pc of 2016
production.
Next, the implosion of Venezuela’s
economy has resulted in that country’s
output falling to multi-decade lows,
adding to lost production from
Angola’s ageing fields and temporary
shutdowns in Algeria. Looking
forward, the re-imposition of sanctions
on Iran might keep another 500,000
barrels a day off world markets. Iran
pumped about 4pc of the world’s oil
production in March.
Rising price expectations are not
just about supply. Demand growth in
the first three months of 2018 is
forecast to reach more than 2.5m
barrels a day, according to Goldman
Sachs. That represents the strongest
year-on-year growth since 2010. In the
US, demand for petrol has not been so
high since 2007, the American
Petroleum Institute said. With the
traditional summer driving season
about to get under way, the market is
likely to remain tight.
In these circumstances, you might
expect the oil producers to feel more
relaxed about cashing in on higher
prices by opening the spigots a little.
Far from it. Saudi energy minister
Khalid al-Falih told CNBC last week:
“We have to be patient. We shouldn’t
jump the gun, we shouldn’t be
complacent.”
That was a clear indication that at
June’s meeting of the production
cartel, the current curbs will not only
be extended to the end of this year but
well into 2019 as well. What might this
mean and why might Saudi Arabia
‘The first risk
is that a
return to
$100 oil is
the trigger
for the next
economic
downturn’
come to regret its short-termist
approach to managing the oil price?
The first risk is that a return to $100
oil is the trigger for the next economic
downturn. The US is deep into one of
the longest-ever economic upturns,
more than 100 months old now.
Unemployment is close to historic
lows. Wage growth is creeping back
and the Fed is on a tightening path.
Gasoline demand finally reached its
2007 peak in 2016. Put $100 oil into
that cocktail, however, and the end of
the cycle moves into view.
Last week, the implied probability
of three further US interest rate hikes
in 2018 rose above 80pc. The chance
of four more this year, not on anyone’s
radars until very recently, is now a
non-negligible 30pc. Oil-fuelled
inflation could sound the death knell
for lower-for-longer monetary policy.
The second risk is that the Saudis
enjoy a short-term windfall but in the
long run shoot themselves in the foot.
A higher oil price will trigger an
even stronger response from North
American shale producers who are
profitable above $60 a barrel and
would be massively so anywhere near
$100. The longer-term danger is that a
return to expensive oil hastens the
inevitable transition to electric
vehicles. A spike in the oil price will
bring peak oil that little bit closer. Be
careful what you wish for.
Tom Stevenson is an investment director
at Fidelity International. The views
expressed here are his own. He tweets at
@tomstevenson63
**
The Daily Telegraph Monday 23 April 2018
3
Business
Luxury brands accused of failing supply chain transparency test
By Jack Torrance
TOP luxury brands including Christian
Dior, Dolce & Gabbana and Chanel are
among the least transparent businesses
when it comes to labour conditions in
their supply chains, according to research released five years after the
Rana Plaza disaster, the sector’s deadliest industrial accident on record.
Dior discloses virtually nothing
about where its clothes are made, according to this year’s Fashion Transparency Index, while D&G, Chanel,
Marc Jacobs, Versace and Giorgio Armani all scored less than 10pc of the total
available points.
The report was published by Fashion Revolution, a campaign group set
up after the collapse of Rana Plaza, a
complex of garment factories in Bangladesh, which killed more than 1,100
workers. It ranked companies based on
how open they were about where their
clothes were made, who was responsible for conditions in their supply chain
and how they dealt with trade unions.
The worst performing British brands
included Matalan, Sainsbury’s clothing
label Tu and Sports Direct.
The most transparent brands according to the research were sportswear makers Adidas, Reebok and
Puma, while the top UK companies on
the list were Marks & Spencer and Asos.
Peter McAllister, executive director
of the Ethical Trading Initiative campaign group, said many large mass-produced brands had upped their game
after attracting negative attention.
He said: “[Luxury brands] haven’t
been under the same pressure, yet we
know many of their things are produced
in exactly the same countries, some-
times in exactly the same factories as
regular high street brands.” Chanel,
D&G, Versace, Matalan and LVMH,
which owns Dior and Marc Jacobs, did
not respond to requests for comment.
An Armani spokesman said that its
suppliers were “carefully selected” and
that “regular audit programmes, both
social and environmental, are constantly implemented in order to ensure
full compliance of the company’s code
of conduct”. A Sainsbury’s spokesman
said all of its suppliers had to meet its
code of conduct and that it had “dedicated teams in the UK, China, India and
Bangladesh to ensure we can regularly
visit our sites and confirm they meet
our high standards”. A Sports Direct
spokesman said it was “committed to
responsible business practices”.
Feature: Page 5
Facebook profits
to be hit by rise
in staffing costs
to police website
and 60pc this year. The increase was
brushed off by investors because the
FACEBOOK is to warn of a hit to profits company has previously exaggerated
this week as it feels the first financial how much it will spend on new staff,
effects of the Cambridge Analytica but the latest crisis has led to an unscandal.
precedented commitment to solving
Investors are braced for the social Facebook’s problems.
network to warn of an increase in
Analysts at Deutsche Bank said last
spending on Wednesday, as it attempts week: “We (and most investors) do not
to get a grip on the scandals enveloping expect Facebook to reduce its opex
the company.
guidance range [of 45pc to 60pc] and
Last month, it emerged that millions maybe even talk towards the mid or
of Facebook users had their personal higher end of the range.”
data collected without their consent
Mark Mahaney of Royal Bank of Canand passed to the British election con- ada said: “We wouldn’t be surprised to
sultants Cambridge Analytica. Face- see the company guide to the high end
book has since revealed that 87m people of that range with a greater focus on
may have been affected, and promised a platform security measures.”
series of reforms to regain trust after a
At the end of March, Facebook said it
heavy drop in its share price.
would stop using information purThe scandal only emerged in the sec- chased from data brokers to target adond half of March, so any fallout is un- verts, something analysts expect will
likely to show in the closely-watched dent revenue.
user numbers when Facebook reports
Last week Deutsche Bank trimmed
results for the first quarter of the year. forecasts for revenues and increased
But Mark Zuckerberg is now expected spending expectations, saying full-year
to forecast a significant rise in costs af- profits would be 3pc lower than previter he promised to increase in the num- ously forecast at $25bn.
ber of people assigned to police the
Google’s parent company, which rewebsite and bolster security.
ports first-quarter results on Monday,
Last month the Facebook chief said is expected to post a 25pc increase in
an audit of thousands of third party profits as revenues from its YouTube
apps that had access to users’ informa- video service and cloud computing
tion would cost the company “many services continue to soar. The commillions”, and analysts expect that Fa- pany is under pressure to reveal how
cebook’s chief executive will predict much money YouTube makes, aloperating expenses increasing by up to though analysts do not expect it to do
60pc, the high-end of previous fore- so this week.
casts. While profits are still due to rise,
Amazon is expected to brush off reextra costs will ultimately hinder Face- cent criticism from Donald Trump with
book’s astonishing profit growth after a 39pc increase in quarterly revenues
years of enormous leaps.
to $49.9bn. The internet retail giant reIn November, Facebook said it ex- vealed last week that it had 100m subpects expenses to rise by between 45pc scribers to its Prime service.
By James Titcomb
Automotive components are produced at a Voestalpine factory. The Austrian industrial giant is building an automated steel plant in Kapfenberg, south-west of Vienna
Europe’s first new steel plant in 40 years takes shape in Austria
By Tim Wallace
EUROPE’S long steel slump could be
coming to an end as construction starts
tomorrow on the first new specialised
plant in 40 years at a site in Austria.
Industrial giant Voestalpine is building the €350m factory, which it expects
to be almost completely automated, at
Kapfenberg, south-west of Vienna.
The construction work itself should
take three years and create up to 1,000
Easing austerity could cost a
minimum £300bn over six years
By Anna Isaac
THE government is set for a £300bn
spending black hole over the next six
years if it decides to ease austerity, The
Telegraph can reveal.
Addressing the recruitment crisis in
public services and the rising costs of
an ageing population will make it far
harder for Philip Hammond to balance
the books by 2025, analysts at the National Institute of Economic and Social
Research (NIESR) have warned.
Keeping services at a level “sufficient
to deliver quality” amid heightened demand in areas such as state pensions
and the NHS will result in the government facing £300bn of unaccounted
spending over the next six years – “the
minimum amount that the Government needs to spend to satisfy public
and political demand”, the report said.
Talk of a light at the end of the fiscal
tunnel at the Chancellor’s Spring Statement “will turn out to be an illusion”
said Dr Garry Young, who oversaw the
report. The sum of £300bn was gener-
ated by a forecast that takes into account the likely cost of an older
population and historic rates of government spending.
In the forecast scenario, spending
restraint is relaxed to in order to address worker shortages and increased
demand for services. It showed that the
deficit would rise to over 4pc of GDP by
£40bn
The share of the £300bn that the NIESR
report says will need to be spent on an
ageing population
2022-2023, breaking the government’s
tight rules on fiscal prudence. To avoid
that amount of borrowing, taxes would
have to be raised by £80bn.
The research, commissioned by tech
firm Sopra Steria, found that an ageing
population would account for £40bn
of the unaccounted for £300bn spend-
Online merger to create first
‘super-comparison’ website
By Jillian Ambrose
A PRIVATE equity firm is hoping to tap
the fierce competition between energy
and telecoms services by merging a
pair of online price comparison sites to
cover energy, broadband, TV and mobile providers.
Inflexion Private Equity has struck a
deal to buy both Energy Helpline and
Simon Turner, the
managing partner of
Inflexion, said
growing consumer
choice had driven the
comparison market
UK Web Media, which compares mobile phones, to create the UK’s first super-comparison site across the full
homes services market.
The value of the deals to create Comparison Technologies has not been disclosed but is likely to dwarf last month’s
£40m takeover of rival comparison
specialist Decision Technologies by
MoneySupermarket. The Daily Tele-
graph understands that the pair
brought in a combined annual revenue
of £30m last year, and Inflexion is
likely to have paid multiples of this figure to secure the deals.
The flurry of activity in the service
switching space has emerged as competition in the energy and broadband
sectors has heated up.
Simon Turner, managing partner of
Inflexion, said the growth in the price
comparison market was being driven
by increasing consumer choice.
Over 50 new energy suppliers have
sprung up in recent years to take on the
“Big Six” incumbents and all are beginning to branch out in broadband, insurance and other home services to
maintain a competitive edge.
Meanwhile, consumers are increasingly turning to comparison sites to
navigate more varied and complex digital TV, broadband and mobile phone
deals.
“We have seen this in the insurance
market, and now Comparison Technologies has been created to offer a comparison and seamless switching service
across the home services space,” Mr
Turner told The Daily Telegraph.
ing. Older service users would add to
costs in areas such as inpatient bed
days and GP appointments.
While “taxing won’t be popular”, a
separate tax for healthcare might be
more acceptable to the public, Dr
Young said. “I think what wouldn’t really be acceptable is to carry on as we
are,” he added.
The research follows other warnings
from economists that the Government
has failed to sufficiently factor in the
likely impact of an ageing population.
Warnings from the report echoed
calls from Paul Johnson, director of the
Institute for Fiscal Studies, for politicians to stop pretending “they can reinvent the laws of economics”.
“We’ve got two parties who want to
have European levels of social spending and American levels of tax,” Mr
Johnson said.
The report also noted that a so-called
hard Brexit which saw the EU-UK trading relationship revert to WTO rules,
could add a further £50bn to the government’s spending shortfall.
Hammond hints at
global hunt for the
next Bank governor
By Iain Withers
CHANCELLOR Philip Hammond has
hinted the Treasury may look abroad
again when it comes to replacing Bank
of England governor Mark Carney.
Canadian-born Mr Carney’s tenure
at the Old Lady of Threadneedle Street
ends in June 2019. He became the first
foreigner to lead Britain’s central bank
in three centuries when he took up the
role in 2013.
Mr Hammond was asked whether
there would be another global hunt for
Mr Carney’s successor at an International Monetary Fund event in Washington DC.
“The formal process has not yet
started but I, and many other people I
am sure, may have cast their eye around
various rooms to see if any likely looking candidates hove into view,” he told
reporters.
Bookmaker Betway last week
stopped taking bets on who will be the
next Bank chief after a surge of money
on current Financial Conduct Authority boss Andrew Bailey. UK names
linked include deputy Bank governors
Ben Broadbent and Dave Ramsden.
jobs. Work in the factory itself will be
highly digitised, meaning more monitoring of machines by computer and
less of the traditional work in front of
blast furnaces.
Chairman Wolfgang Eder said it was a
sign European manufacturers can still
operate competitively. He called the investment “a positive signal” for European industry, as it was the first in a new
steel plant in decades.
Europe’s steel industry has been in
long-term decline as cheaper production in countries such as China has undercut more expensive western
workers.Pressure from trading partners including the US has pushed
China to cut some of the excess capacity in its state-backed plants.
However, there are still concerns its
state-backed factories are dumping
subsidised steel onto markets, undermining other countries’ industries. As a
result the US has slapped tariffs on
steel and aluminium imports. The EU
is exempt from the tariffs, however,
which should relieve some of the competitive pressure on its steel output.
Voestalpine’s site, which is the size
of six football pitches, should produce
205,000 tons of high-performance
steel per year. Customers for the conglomerate, which has a market value of
€8bn (£7bn)y, include car factories,
aeroplane manufacturers, and the oil
and gas industry.
4
***
Monday 23 April 2018 The Daily Telegraph
Business
‘Digitisation is not a threat, it’s God’s gift to us’
Anders Dahlvig, the
Inter Ikea chairman,
tells James Ashton
how it stays nimble
as margins tighten
CV
Anders
Dahlvig
 Education
University of
Lund (bachelor’s
degree in
business);
University of
California
(masters degree
in economics).
I
 Career
Joined Ikea in
1983; rose to Ikea
UK MD in 1993;
Ikea chief
executive and
president in
1999; Inter Ikea
chairman in
2016. Also
non-executive
director for
Kingfisher,
H&M and Pret A
Manger.
 Family
Lives in
Stockholm with
his partner but
keeps a home in
Helsingborg
where his two
sons, aged 22 and
18, are based.
Relaxes with
“the usual stuff
– golf, tennis,
skiing”.
DAVID ROSE
ngvar Kamprad, the frugal
Swedish genius who created Ikea,
may have died earlier this year,
but he left behind many loyal
followers to ensure that his
distinctive flat-pack furniture
continues to fill homes across the
globe. One such keeper of the flame is
Anders Dahlvig, who departed as chief
executive almost a decade ago but still
wields influence over the company
that last year sold 85m LED light bulbs
and recorded 817m visitors to its stores.
The unassuming Swede has for the
last two years chaired Inter Ikea,
which sounds to the uninitiated like
the staff football team. It is actually
where much power has accumulated
recently in Ikea’s labyrinthine
ownership structure. Why the need
for a subtle reorganisation at one of
the world’s most successful retailers?
The answer is not so subtle: because
the entire industry is undergoing a
profound change from which even the
market leaders are not immune.
“Digitisation is God’s gift to
someone like Ikea,” Dahlvig, 60,
proclaims confidently on the sidelines
of the World Retail Congress in
Madrid, where web giants are trying to
outdo each other with
pronouncements about how fast
commerce is becoming mobile,
predictive and powered by robots.
He is uniquely placed to talk about
it. As well as Inter Ikea, he holds board
seats at B&Q owner Kingfisher, fashion
retailer H&M and sandwich chain Pret
A Manger, plus some smaller Swedish
ventures in cosmetics and retail
finance. Truly a smorgasbord of
shopping.
Retail has always been a low-margin
industry, but Dahlvig thinks it has
become much harder to eke out a
profit compared to when he started 35
years ago. The main reason is the
internet, which has introduced price
transparency that has been driving
down prices. Great news for
consumers; terrible for anyone trying
to sell the same stuff as nimbler
competitors.
“At Kingfisher, before we started
our transformation, we were selling
generic products that are sold by every
other DIY retailer,” he says. “We could
see some years back if we continued
doing that that would be a slow death
and we needed to change the range.”
For Ikea, he takes a different view:
“With a unique product range you can
survive in a world like this.” In fact,
greater scrutiny can play into the
hands of a business that has always
tried to be as cheap as it is cheerful. It
markets the Billy bookcase from £25,
among a 9,500-strong range that is
renewed with 2,500 items every year.
“For us price comparability is
almost something good because a lot
of consumers probably thought
someone else was cheaper,” Dahlvig
says. “Now they can check and they
can see our prices are good.” He sees
upsides to this revolution too, namely
the shift to click and collect and
same-day or next-day home delivery.
“A lot of people say this is a big
threat but we have always had
problems penetrating the city centres
with our big-box stores. This gives us
an opportunity to set up our supply
chain for direct delivery and of course
serve the people living in the middle of
London.”
Ikea is testing different models,
such as a small bedroom store in
Madrid with click and collect for the
broader range, plus a kitchen
showroom in the centre of Stockholm.
“I think going forward for London we
will look at the market in a different
way,” he says. “You will see different
types of hubs or touchpoints.” If that
means Ikea will operate fewer giant
out-of-town sites in the future, there is
less chance of the “appalling”
customer service at weekends that
Dahlvig confessed to when he was
chief executive in 2001 as
overcrowded stores made the chain a
victim of its own success. “That was a
while ago,” he says sheepishly. “Some
things have happened since then.”
The need for new ideas goes some
way to explaining what happened at
Inter Ikea two years ago. The Dutchbased business, owned by a
Liechtenstein foundation, acts as
brand owner and franchiser, charging
the main retail company, Ingka, plus
other franchisees, 3pc of turnover as a
licensing fee to trade under the Ikea
name. Inter Ikea expanded its role to
take control of design, manufacturing,
procurement and logistics so it could
adapt to the changing market more
quickly. “You can say in the past that
Inter Ikea as a franchiser was in
charge of that too but let Ingka do the
job for them. In my time as chief
executive we had product
development and supply chain but it
was an assignment from Inter Ikea.
Now we have actually taken it on
ourselves.”
Ingka, whose chief executive Jesper
Brodin is no newcomer, having spent
Ingvar Kamprad, the founder of Ikea, wore
second-hand clothes and drove an old car
23 years at the furnishings empire, last
year reported €2.5bn of net profit on
retail sales up 3.8pc at €34.1bn.
Why does the corporate structure –
multiple divisions owned through
overseas charitable foundations – have
to be so complicated? Not surprisingly,
the insider doesn’t think it is. “If you
think about it as a franchise system like
McDonald’s, it is the same kind of
system.” The charge often levelled at
Ikea is that Kamprad set it up this way
to pay less tax. “Well, that is not what I
think. It had more do with
safeguarding the Ikea concept long
term. This was done a long time ago
– even before I started at the company.”
The European Commission needs
convincing of this argument. It has
opened a probe into Inter Ikea’s tax
affairs dating back to 2006 amid
concerns it has paid too little and had
an unfair advantage over other
companies that would put it in breach
of European Union state aid rules.
Dahlvig joined Ikea in 1983, having
returned to Europe after studying in
California. The son of a librarian and a
teacher, his big break came early on
when he became the personal assistant
to Kamprad. Once he began working
there, Dahlvig become hooked on the
sense of freedom.
“It was extremely entrepreneurial in
those years when I started. There was
very little in the way of rules and
guidelines: Ingvar let people run with
it. That served us well up until the late
Eighties and early Nineties. Then we
had just become too big and we started
to become a little more formalised, to
go through that process that all
growing companies go through at
some point. It is inevitable: it is chaos
if you become too big and have no
structure. But it is about finding the
balance so you don’t go overboard and
become too bureaucratic.”
Kamprad still looms large over the
company, even though he had not
served as chief executive since 1986
and left the supervisory council in
2013. His thrifty ways – wearing
second-hand clothes and driving a
clapped-out Volvo despite a £50bn
‘It is inevitable: it is chaos if
you become too big and have
no structure. But it is about
finding the balance’
fortune – extended to Ikea’s corporate
culture, where managers still stick to
economy-class flights and budget
hotels.
“He was pretty straightforward and
uncorruptible in the sense of letting
the success corrupt him like a lot of
people do at some point,” says Dahlvig,
who predicts that one of the
challenges Ikea will face in the future
is maintaining such parsimony. “There
is always a pressure upwards, always
pressure to improve hotel standards or
the way we travel. As long as Ingvar
was around he was a really good way
of keeping that in check.”
Kamprad’s three sons – Peter, Jonas
and Mathias – had once been expected
to take the reins of Ikea but are
“absolutely engaged” through various
directorships within the group even
though they prefer to stay out of
operational roles. Dahlvig says that is
common in family firms, although
over at H&M, which has close links to
Ikea because both were established in
the Forties, the boss Karl-Johan
Persson is the grandson of the founder
Erling. In Dahlvig’s decade in charge
of Ikea, the company increased
operating profits by more than 10pc a
year on average and hired more than
70,000 new staff, which is chronicled
in his book The Ikea Edge.
“Writing a book felt like an
interesting thing to do and became a
bit of a debrief for me. We worked so
intensively for 10 years I didn’t get a
chance to reflect. This was my way of
reflecting on what I actually learnt.”
Capita sets sights on US software
market as turnaround begins
By Rhiannon Curry
CAPITA is taking steps to try to break
into the lucrative American software
market for the first time by recruiting
an east coast-based team to target US
emergency services, infrastructure
and energy companies.
The company is understood to be approaching firms with three different
products.
These include one which is currently
used by organisations including the
NHS to track inspection and
maintenance jobs, while another,
called 911eye, allows emergency services to live-stream call-outs to their
control centres.
Capita is also looking to roll out Capita Retain International, a recruitment
and talent management programme
already used by professional services
firms in the UK and Europe.
It is understood to have identified
potential local partners and has begun
recruiting a sales team to pilot the tech-
nology in the region. This would be the
first time that Capita has traded in
North America, which accounts for one
third of the global software market.
In 2016, the last year for which full
annual results are currently available,
Capita’s digital and software solutions
business made £521.6m in revenue,
10pc
The proportion of Capita’s overall 2016
revenue which was accounted for by its
digital and software solutions business
just over 10pc of its total revenue for
the year.
Meanwhile, Jonathan Lewis, its new
chief executive, will unveil further details of the company’s planned £700m
raise this week along with the firm’s financial results for last year and an up-
BAT director ‘has too many
jobs’ to be re-elected at AGM
By Bradley Gerrard
PRESSURE has been piled on a member of British American Tobacco’s
board to step down due to claims she
has too many commitments to devote
enough time to the world’s largest
cigarette maker.
Marion Helmes, who was appointed
as a non-executive director in 2016, has
five other directorships, including beMarion Helmes, a
non-executive
director at BAT, is
facing pressure from
investor groups over
her re-election
ing non-executive director of energy
company Uniper and industrial construction firm Bilfinger, both of which
are based in Germany.
Two corporate governance agencies
that advise investors how to vote in annual general meetings believe her reelection should be rejected, as does
Royal London. Glass Lewis, one of the
agencies, said it believed a non-execu-
tive director of a FTSE 350 listed company “should retain some spare
capacity in case a crisis or other event
escalates the demand on their time”.
Its report said: “As such, we believe
that the time and other commitments
of these other roles may, in certain circumstances, preclude this director
from devoting the required attention,
priority and time to this company’s
needs.”
Ms Helmes’ primary employment is
described as “professional director”. In
the past she has helped manage businesses across Europe, the Americas
and Asia, including as chief financial
officer of Celesio, Q-Cells and ThyssenKrupp Elevator Technology.
ISS said even though Ms Helmes
planned to step down from her vicechairman role at Bilfinger, she still had
a vast array of commitments to keep
abreast of.
“Even when this change takes place
she will have six positions in aggregate,” its report said.
A British American Tobacco spokesman said besides the decision to step
down from Bilfinger, Ms Helmes would
also not seek re-election on another
board she sits on.
date on his transformation plan. Mr
Lewis initially revealed proposals to
turn the business around at the end of
January, when the group also announced a shock profit warning and
scrapped its dividend.
As well as raising money from investors, Capita is expected to sell a number of its divisions in order to
concentrate on core areas, one of which
is its technology services arm.
It has hired consultants to come up
with a new strategic plan for the firm
and is expected to announce where it
will concentrate investment in the
coming months.
Consensus figures from the market
suggest that the company’s revenues
will be around £4.2bn for 2017, while
pre-tax profits will be around £390m, a
45pc rise on the previous year.
However, pre-tax profits for the current year are expected to be lower, at
between £270m and £300m, even
without the costs associated with the
restructuring of the business.
Strong pound takes
toll on British firms’
dividend growth
By Isabelle Fraser
DIVIDENDS have crept up among British-listed companies, as the stronger
value of sterling over the dollar masked
growth.
The UK Dividend Monitor, carried
out by Link Asset Services, found that
in the first three months of this year the
total amount paid out increased by just
1.2pc year-on-year, after large one-off
payments were stripped out.
This slower rate of growth was partly
due to the strength of the pound against
the US dollar, in which more than 20pc
of dividends were paid out in the first
quarter. Sterling was 12pc stronger
than the dollar, compared to the same
period last year, and this lowered the
sterling value of payouts made in dollars by £879m.
The quarter’s overall total was distorted by the £1bn one-off payment by
British American Tobacco, which
switched to quarterly dividends after it
acquired Reynolds. If that payout is included, the total increases to £16.7bn,
which is up 7.6pc on last year.
The growth was also boosted by the
pre-takeover special dividend from
Sky.
***
The Daily Telegraph Monday 23 April 2018
5
Fashion giants
fail to escape
long shadow
of Rana Plaza
Five years on from
the disaster, the
clothing supply chain
is still far from clean,
writes Jack Torrance
I
t was on this day five years ago
that cracks began to appear in
the walls of Rana Plaza, the
ill-fated complex of clothes
factories and shops in Savar, 15
miles outside the Bangladeshi
capital of Dhaka.
Though employees were sent home,
they returned to work the following
day and around 3,100 were inside
when the building began to give way.
After a power outage, large
generators on the roof had been fired
up – sending powerful vibrations
through the structure and creating
more cracks in load-bearing columns.
That caused the building’s floors to
collapse in on themselves, trapping
thousands of workers in a concrete
concertina that ultimately killed 1,138
people and left many others with
life-changing injuries.
The sorry episode, one of the
deadliest industrial accidents in
history, shocked the world. And as
clothes labels began to be plucked
from the rubble, it left many major
fashion brands, including Britain’s
Primark, Matalan and Bonmarche,
with questions to answer.
The disaster has come to be the
most potent symbol of how fashion
chains lost control of their supply
chains as they offshored
manufacturing in the pursuit of lower
costs. Even those brands who were not
implicated were left with a startling
reminder of how much harm they
could cause by not keeping their
supply chains in check. “There is no
doubt that the industry got a huge
wake-up call,” says Peter McAllister,
who runs the Ethical Trading
Initiative, a collection of brands, trade
unions and NGOs that campaign for
workers’ rights.
The response in Bangladesh itself
was swift with dozens of brands,
including Bonmarche, Matalan and
Primark, signing up to a new legally
binding agreement on worker safety
two months later.
History is littered with deals not
worth the paper they are written on,
but the Bangladesh Accord on Fire and
Building Safety has by most accounts
been transformative. The tie-up
included an agreement on common
building standards enforced by an
independent inspection programme,
with factories that ignored the rules
being barred from working with any
of the brands involved. It also forced
manufacturers to create elected
ed health
and safety committees.
A separate group set up by 177 North
American retailers, the Alliance
ce for
Bangladesh Worker Safety, hass taken a
similar approach.
Warwick Business School’s
Professor Jimmy Donaghey, who
ho has
visited Bangladesh eight timess
since the disaster, says the accord
ord
has had an “extremely significant”
ant”
impact, providing a “massive
incentive” for manufacturers to raise
standards. “Employers in Bangladesh
gladesh
who have undergone oversight
ht by the
accord and alliance now can claim
laim to
be among the safest, if not the safest,
in the world,” he adds.
Some brands have gone even
n
further, with Primark embarking
ing on
its own programme of building
g
inspections and hiring an in-house
ouse
structural engineer as part of its
ts
ethical trade team. But while great
leaps forward have been made
e
when it comes to building safety,
ety, it
would be fanciful to suggest the
he
ANDREW BIRAJ/REUTERS; MUNIR UZ ZAMAN/AFP/GETTY
Business
Union leader
Mohammad
Ibrahim, top left,
stands in front of
the former Rana
Plaza site, whose
collapse caused
panic in the area,
main. Below, Carry
Somers launched
not-for-profit
Fashion Revolution
after the disaster to
put pressure on
brands
global fashion supply chain is
anywhere near as clean as it should be.
“Mainly we are cheap labour – that
is why we are scared; we need money,
we need to survive,” says Nazma
Akter, who began work as a seamstress
in a Bangladeshi factory aged just 11
and now runs the Sommilito Garments
Sramik Federation trade union.
Those on factory floors,
predominantly women, are often
subjected to harassment and abuse,
especially if they try to organise
unions, she says, adding: “Women are
still treated like they should not talk.”
One of the industry’s big headaches
has been the practice of subcontracting, where manufacturers that
have been through proper inspections
pass the order along to another factory
down the road.
Most companies explicitly
prohibit
p
pro
hibit such deals in their
supplier
s plier contracts, but
sup
without
w hout having a physical
wit
presence at each and every
factory
f tory there is only so
fac
much they can do to
ensure a particular
garment
g ment has
gar
been made
where it was
supposed
s posed to be.
sup
McAllister says some
brands have
significantly boosted
the amount of time
they
th y spend in
the
factories
fa
to keep an
eye
e on things but
they
th y are very
the
much
m h in the
muc
minority.
m ority.
min
One
of
o the
big
b
issues
issues
has been a lack of transparency.
Without knowing which firms are
manufacturing where, what their
policies are and how they are being
enforced, it is hard for unions and
campaigners to keep tabs on what they
are doing and hold them to account.
Carry Somers, founder of the Fair
Trade Panama hat brand Pachacuti,
launched not-for-profit group Fashion
Revolution in the months after the
disaster in the hope of putting
pressure on brands into revealing
more details about their supply chains.
“Campaigners had to search
through the rubble for clothing labels
to prove which brands were actually
producing there,” she says. “That’s
when I realised that the workers were
invisible and the lack of transparency
and responsibility in the fashion
supply chain was costing lives.”
The group publishes its latest
Fashion Transparency Index today, a
ranking of 150 major brands based on
how much information they disclose
about their supply chains. Having
been among the earliest to face
criticism for their overseas factories as
long ago as the Nineties, the big global
sportswear brands Adidas, Puma and
Reebok came out on top, with their
rival Nike not far behind. The topperforming UK companies were Marks
& Spencer and Asos.
Primark was among the best of
those brands implicated in Rana Plaza,
with a score of 36 out of a possible 100.
Matalan, on the other hand, was
among the worst on the list, with a
score of just five (Bonmarche was not
included in the research).
While there has been a surge in
companies publishing lists of their
direct suppliers – those who stitch the
clothes together – there is a lack of
transparency about those firms further
‘Mainly we
are cheap
labour – that
is why we
are scared;
we need
money, we
need to
survive’
up the chain – cloth cutters, leather
tanners, button makers and the like.
Somers, who visited tanneries in
Savar, just miles from where Rana
Plaza was, last year observed workers
toiling amid the harsh chemicals with
no protective equipment.
To some, the industry’s ethical
problems are largely the result of a
relentless pursuit of lower costs as
brands desperately compete on price.
“Overall, the model of fashion hasn’t
changed,” says Safia Minney, author of
Slave to Fashion, which charts the
problem of modern slavery. “Prices
have come down 13pc and lead times
have shorted too, which means that
nearly half of Bangladesh factory
workers are not earning a minimum
wage, let alone the living wage.”
Jack Wills founder Peter Williams
says there are parallels with the food
industry. “There are people who pick
up the own-brand chicken breast, and
others who go for organic,” he says. “If
you care about organic, you will pay a
premium and it is worth every penny.”
But Somers warns against
customers seeing high prices as a sign
clothes were made ethically. “Several
of the mass-produced luxury brands
are made in Bangladesh on the exact
same production lines as cheaper
fast-fashion brands,” she says, and the
likes of Chanel, Dior and Dolce &
Gabbana are among the worst
performers in the transparency index.
It is clear that the tragic events of
five years ago have spurred real
change in the industry, improving
factory conditions in a way that means
fewer people have to toil away in
deathtrap buildings. But while many
supply chains remain opaque and
companies continue to push for lower
prices, it seems likely to remain a
controversial issue for some time.
Drone market finally set for take-off after whirl of patents
Despite a slow start,
industries as varied
as oil, retail and
insurance are keen
for a stake in the
technology, reports
Bradley Gerrard
F
ictional depictions of the 21st
century often imagined the skies
filled with drones but nearly two
decades in, this prediction seems far
from reality. Even the world’s
mightiest of retailers, Amazon, has
only trialled deliveries by drone.
But new data suggests we could be
on the cusp of change and those
fanciful visions of the future might be
about to finally take off.
Data from the World Intellectual
Property Office for the 2016-17
financial year shows patents filed for
technology related to drones hit a new
high of 5,301 – more than quadrupling
from the 1,242 the prior year.
Credit for technological
advancement is usually given to
Silicon Valley but the crucial factor
behind the spike is a deluge of patent
filings from China.
Gwilym Roberts, partner at Kilburn
& Strode and author of A Practical
Guide to Drafting Patents, said the
increase suggested major
developments were likely in the next
few years.
“Filing a patent now represents
people banking on the future,” he says.
“Patents have a 20-year life so it is a
land grab for future technologies.”
Major recent drone announcements
have come from the likes of Amazon
and delivery giant UPS. In December
2016, the online retailer started a
drone delivery trial in the UK with two
shoppers receiving their items by
drone. And the following month, UPS
unveiled its first residential delivery
drone test that was launched from an
electric van fitted with a recharging
station for the battery-powered drone.
This method means the battery life of
the drone (which is about 30 minutes)
can be extended.
But the huge rise in patents revealed
by the latest data does not necessarily
herald the arrival of masses of
skybound packages, experts suggest.
Instead, it signifies the likely rise in
use of drones across a burgeoning
number of industries.
Robert Garbett, chief executive of
Drone Major Group, said: “It’s more to
do with the widening applications of
drones. The whole thing about
delivering packages is a PR campaign.
It is a great concept and gets the media
excited but I don’t think it is where the
industry is going.”
Drones are now widely used in the
film and TV industry, for surveillance
purposes and for increasingly complex
tasks such as performing digital scans
of large vessels or oil rigs to search for
any damage.
The word “drone” tends to conjure
up images of a quadruple-propellered
flying object but those in the industry
suggest it really means any unmanned
vessel. Garbett says autonomous
catamarans carrying a flying drone are
sent out to the likes of offshore oil rigs.
Once they arrive, the air-based drone
surveys the rig, collecting the
necessary data, and then lands back on
the marine vessel for the return
journey.
Accounting giant KPMG set up a
new team focused on artificial
intelligence and emerging
technologies just six months ago to
help meet the growing demand from
clients for advice on how to better use
tech to help them solve problems.
Murray Raisbeck, who works in the
team, said there had been a “big shift”
in how companies were more actively
trying to embrace technological
advancements for their own gain.
“There’s been a big supply push
from the drone manufacturers and
now the supply and demand sides are
starting to meet,” he said. Besides the
natural resources and mining sectors,
Raisbeck says the insurance industry
is trying to quickly embrace drones.
“If there is a natural disaster or a
commercial insurance claim where a
large property or site in a remote
location is damaged, you can get a
drone out to assess it,” he says. “There
are really clear statistics that the
quicker you get to a claim in a natural
disaster, the better.”
Beyond this, the insurance industry
is also looking at the best ways to
insure drones, whichever sector they
are being used in. “There’s the
potential for them to cause accidents,”
Raisbeck says. “Lots of insurers are
thinking about drone insurance.”
The jump in patent filings was
driven by China’s Ewatt Technology,
which filed 110 patents in the 2016-17
financial year, with leading drone
manufacturer DJI filing 49 and French
wireless technology company Parrot
submitting 37.
The actual amount of patent activity
concerning drones may be even
higher, as many governments have the
right to make some patents, usually
those that relate to military uses,
national secrets.
The rise in drone patent filings is
primarily due to rapidly growing
competition between manufacturers
vying to have the most up-to-date
technology.
Experts suggest the majority of
companies filing patents tend to be
small businesses hoping to strike gold
by being bought out.
The rapid growth of drone sales for
both recreational purposes and
commercial uses continues to fuel
research and development across
China, the US and Europe.
China overtook the US in 2012-13 in
the filing of drone patents and now has
the highest number of filings per
country at 4,106, with the US on 496 in
2016-17. Three drone patents were filed
from the UK in the past 12 months.
“The competition between drone
developers is fierce and they recognise
that patents are vital to protect
investment in R&D,” Roberts says.
“This patent drone warfare is only
just starting; with the commercial
value, rapid rate of development and
escalating filings, we see the classic
ingredients for legal battles shaping
up.”
Whatever the outcome of such
litigation, KPMG’s Raisbeck believes
that the prevalence of drones will
undoubtedly increase in the coming
years. “Most drones are in the ‘proof of
concept’ stage but everyone is looking
at how they can use the technology
efficiently,” he says.
“The technology is becoming
increasingly robust and I think it will
be [a] fairly widespread adoption.”
***
6
Monday 23 April 2018 The Daily Telegraph
Business
Virgin’s ability to
make rail bids
‘under review’
PRESSURE is mounting on Virgin
Trains after the Government said it
was keeping the company’s future in
rail under “constant review”.
Sir Richard Branson’s train company
stoked political controversy last year
when it emerged its joint venture
which runs the East Coast mainline
with Stagecoach would have to hand
the keys to the franchise back years
early.
The pair were accused of overbidding for the franchise by Chris Grayling, the Transport Secretary, while the
companies blamed macroeconomic
factors and uncompleted Network Rail
upgrades for preventing the joint venture from hitting its targets.
The companies have also reiterated
that they have met the financial obligations of the contract, including using
all of a £165m parent company bond,
put in place at the start of the franchise
to ensure the Government receives its
payments if a rail operator is struggling. But transport minister Jo Johnson has responded to a written
question from Andy McDonald, the
shadow transport secretary, stating his
department is “keeping Virgin’s eligibility for current and future bids under
close scrutiny and constant review”.
The comments come just a couple of
months after Mr Grayling extended
Virgin Trains’ contract on the West
Coast mainline through to 2019.
The Secretary of State defended the
decision by stating Virgin was the majority shareholder on the West Coast
line, unlike the East Coast which is
90pc controlled by Stagecoach.
Any rebuke of Virgin Trains by the
Government seems unlikely to involve
removing its ability to bid for future
rail franchises though.
Mr Grayling has said there are “no
adequate legal grounds” to restrict either company from bidding for future
rail contracts.
Mr McDonald said: “Labour believes
franchise failure must mean forfeit so
it is good that the Government is reviewing the company’s right to bid for
rail franchises. There must be no reward for failure.”
Virgin Trains declined to comment.
JULIAN STRATENSCHULTE/DPA
By Bradley Gerrard
BUSINESS BULLETIN
Ready
to roll
Bionicist
Prof Ingo
Rechenber
at Hanover
Fair in
Germany
with a robot
replica of the
Moroccan
flic-flac
spider he
discovered
in the
Sahara.
‘Fitbit for cars’ Lightfoot
gets £1m Innovate loan
Lightfoot, a technology start-up billed
as a “Fitbit for cars” measuring how
efficiently motorists are driving, is the
first recipient of a £1m loan through a
patient capital funding scheme from
the government-backed Innovate UK
agency. The business, which expects
to turn over £6m this year, intends to
use the funding to branch out into the
consumer market from business fleets.
Ex-BHS executive helps
House of Fraser cut rent
The former property director of BHS
who worked with its owner Dominic
Chappell to try to negotiate rent
reductions for the beleaguered chain
has been working with House of
Fraser in its own battle to save costs.
Mark Sherwood’s Attis Asset
Management is helping House of
Fraser “optimise its operational estate”.
Mifid II rules failing investors, warns City veteran
By Lucy Burton
A SWEEPING piece of EU legislation
aimed at saving European investors
millions of pounds in unnecessary
trading costs is failing to do the job,
new analysis claims.
City veteran Alasdair Haynes, who
set up European exchange Aquis in
2013 with the backing of former Barclays executive Rich Ricci, has argued
that investors are still being ripped off
despite the new EU trading rules that
came into force in January.
“Mifid II makes it clear that both
fund managers and banks have a responsibility to their investors to carry
out trades on the best venue,” he said.
“A big part of that is naturally getting
the best price. At the moment, it is
clear to me that this is not the case.”
Looking at the difference between
the price of a stock when an order is received and the price of the same stock
Bluejay finds vast store
of ilmenite in Greenland
five minutes later, Mr Haynes claims
that investors, such as pension funds,
are losing up to €2.3bn (£2bn) on unnecessary trading costs each year.
“Many people don’t realise that the
price at which they buy a stock is not
necessarily the price that they are initially quoted,” he said.
Mifid II is one of the biggest regulatory upheavals to hit the City in years,
influencing almost every part of the
process for those involved in shares.
Mining company Bluejay will this
week unveil a high-grade discovery of
ilmenite, a form of titanium-iron oxide
used in white paint, at its site in
Greenland, smashing expectations
about the size of its deposit. Aim-listed
Bluejay will report a 400pc increase in
the size of its Itelak deposit and a
“remarkable” find on a nearby delta.
Share prices www.telegraph.co.uk/shares
Mkt Cap
© 2018 Tradeweb Markets LLC. All rights reserved. The
Tradeweb FTSE Gilt Closing Prices information contained
herein is proprietary to Tradeweb; may not be copied or
re-distributed; is not warranted to be accurate, complete or
timely; and does not constitute investment advice. Tradeweb
is not responsible for any loss or damage that might result
from the use of this information.
Government Securities
Amount
Issued £m Stock
Price
Flat
Yield
Rmd
Yield
(£m)
Stock
Price (p) Cvr
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Engineering / Industrial
1747.0
Bodycote
912½
●
2.9
1.9
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(£m)
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9564.9
11966.9 Old Mutual
242⅝
2.7
2.9
61.3
Jup UK Gwth IT
313
322
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54907.8 Glencore
3045.8
1717½ 1964
Phoenix
2108.6
Unite ●
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220
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688.5
Marston’s ●
1193.3
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108⅝
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318
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99
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National Ex ●
406
1.9
3.3
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Kenmare Res
217
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Workspace Gp ●
1018
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6181.5
PaddyPwrBet
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321
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Petropavlovsk
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500*
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5.0
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Randgold Res
5742
1.5
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207
12755.1 Carrefour €
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498.6
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1.8
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3i
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Northern 2 VCT
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Aberdeen Diversified 120
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Vedanta Res ●
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Aberdeen New India 430
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16.6
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1.6
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507¾
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2442.7
Alliance Trust ●
717
760
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Pacific Assets
251
264
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25201.4 Treas 4¾% 38 149.51
Index Linked Securities
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7437.9
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Allianz Tech Trust 1285
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Bankers Inv ●
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855
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Perpetual Inc & Gr ●354½
394
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39250* 38779 1.4
Treas 2½% IL 20361.39
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360
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PremierGlblInfra
9084.0 Treas 2% IL 35 261.50
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162
158
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Petrofac ●
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88
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Premier Oil
89⅞
127
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7.9
114790.0 Royal D Shell A
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1954* 1838
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101⅝
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BlckRck Grt Euro
322½
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1.7
400.9
Ruffer Inv Pref
229
225
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BlckRck Inc&Grth Inv198
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3.3
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Schroder Asian TR 350*
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1.4
Scot American
472
Soco Intl
Carr’s Grp
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1.9
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185.8
BlackRock Latin
554
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9182.1
Coca‑Cola HBC
2496
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BlckRck NrthAmerInc153½ 164
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644.7
Scot Invest ●
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897
2.4
Aerospace & defence
1488.4
Cranswick ●
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BlackRock Small
1375
1548
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463¼
449
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63025.5 AstraZeneca
4976
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753.0
Dairy Crest ●
532½
1.2
4.2
370.8
BlkRk Throg Tst
507
571
1.8
176.2
Sec Tst of Scot
160½*
174
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2564.4
BTG ●
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BlackRock Wld M 385½*
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Seneca Global
172
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Stand Life Eq Inc
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314½
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Ceres Power
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1450.8
Saga ●
129½
1.4
6.9
165.6
Finsbury Food
127
2.3
2.4
134153.5 Total €
50⅝
5.1
1.2
1.2
0.8
5792.6
Sainsbury J
263⅞
1.8
3.7
41.1
Futura Medical
34
—
66293.9 UBS AG SFr
17¼
3.8
1.3
2.2
1.0
2127.5
Smith WH ●
1932
2.1
2.6
22.8
Gaming Realms
8
—
50076.7 Volkswagen €
169¾
2.3
2.6
0.4
5.6
2081.3
Sports Direct ●
387⅜
—
49.8
Gattaca
161
1.2
12.4
-10.3
2.0
23380.5 Tesco
1.3
1.4
7.1
4.2
2.8
Price
Cvr
Yld
597.5
Chemring
213½
0.8
1.4
2603.5
Tate & Lyle ●
559
2.0
5.0
801.0
2773.6
Cobham ●
116
3872½
1.5
3.3
319.3
Brunner
748
837
2.2
1967.6
Tmpletn Em Mt ●
726
834
1.1
2909.7
Hikma ●
1208
474.2
Highland Gold
145¾
1265.0
Qinetiq ●
223
3.5
2.7
1484.2
Caledonia ●
2680
3318
2.1
215.9
Troy Inc & Gr
74⅞*
75
3.5
3174.7
Indivior ●
436⅜
—
30.7
Hornby
24½
16110.0 Rolls‑Royce
866¼
-19.6
1.4
25.1
Candover #
115½
156
—
147.7
UIL Ord
165
273
4.5
5.8
Premier Vet
38
—
134.5
Inland Homes
66
1253.2
Senior ●
298¾
2.1
2.3
185.1
City Merchants HY 193¾*
189
5.2
829.5
IQE
109¾
1051.7
Ultra ●
1405
1.3
3.5
8.2
78.6
City Nat Res H Yld 117½
143
4.4
1893.8
395
239⅜
4.9
Support services
Aggreko ●
739⅜
1.5
3.7
821.5
James Halstead
—
—
RM ZDP
101½
—
124.7
SimplyBiz Grp
163
656¾
1.1
5.5
1487.2
City of Lon ●
423½
412
4.2
10185.1 Ashtead Gp
2071
3.6
1.4
2.5
Kellan Gp
1881½
1.7
4.4
77.8
Dunedin Ent
377
439
5.0
3764.7
Babcock Intl ●
744⅝
2.2
3.8
19.4
LPA Gp
156½
5.3
1.7
4890.5
Utd Utilities
717¼
1.6
5.5
1303.1
Edinburgh Inv Tr ● 666
725
3.9
1489.7
BCA Marketplace ● 186¾
0.7
3.8
304.3
M&C Saatchi
368
0.4
2.6
402.1
Edin Worldwide
775
759
—
7155.8
Bunzl
2130
2.0
2.2
81.1
Miton Group
47
2.3
3.0
317.8
ElectraPrivEq
830
1114
—
1066.4
Capita ●
159¾
—
45.6
Mpac Group
226
133.9
EP Global Opp
308
329
1.7
61.1
Carillion #
14¼
—
30.7
MS Intl
183½
1.1
4.5
0¾
2966.7
Ashmore ●
419⅜
1.5
4.0
438.8
European Assets 1227½* 1213
6.4
187.8
Charles Taylor
272
1.2
4.0
427.3
Numis
398
2.3
3.0
3.0
1028.7
Brewin D ●
363
1.1
4.1
382.1
The Europ InvTr
911
1026
2.5
139.2
Communisis
66⅜
2.1
4.0
340.0
Oakley Capital
166*
243
2.7
2297.1
1517
2.1
4.0
175.1
Charles Stanley
345
1.8
2.0
271.2
Fidelity Asian V
395
399
1.3
519.1
De La Rue
507
1.6
4.9
8.3
OneView Group
10
701¼
0.9
5.2
42.3
El Oro
67
85
3.6
1290.3
Fidlty Chna Sp Sits ● 234
275
1.1
6089.4
DCC
6825
2.1
1.7
9.5
Prime People
80½
2.6
6.2
1.4
4.6
8234.2
Hargreaves L
1736
1.5
1.8
878.1
Fidelity Euro V ●
211½*
237
2.1
1145.5
Essentra ●
435⅝
2.1
4.8
642.9
Restore
565
1.4
0.9
—
2906.3
IG Group ●
790
1.4
4.1
203.4
Fidelity Japan V
150
165
—
14742.6 Experian
1606½
2.1
2.0
116.6
Rockhopper Exp
25½
5630
2.7
2.0
38.8
Share
27
0.5
1.5
258½
1.6
3.8
93.7
Sinclair Ph
18⅝
65¾
274¼
77429.3 Santander
479⅞
2.2
3.3
3123.9
Intermediate C
1076
2.6
2.6
683.6
Fidelity Sp V
258
267
1.8
13933.9 Ferguson
385.2
2085
1.4
3.8
3909.2
Investec ●
583⅝
2.2
4.0
1264.3
Finsbury Gwth ●
758*
748
1.9
4010.9
G4S
25240.7 Standard Ch
764⅜
2.1
1.0
1463.7
IP Group ●
138¼
—
3491.6
Foreign & Col ●
644*
661
1.6
2605.3
Hays ●
179⅝
2.6
1.8
32.9
SRT Marine Sys
25¾
1239.7
278¼
6.3
2.2
293.2
Liontrust
580
0.9
2.8
327.1
F&C Cap & Inc
325
322
3.3
2428.9
Homeserve ●
736½
1.5
2.2
103.3
StatPro
157½
13.7
Lon. Fin. & Inv.
Secure Trust Bk
Virgin Money ●
Beverages
●
44
3.2
2.5
1157.5
F&C ComProp ●
144¾*
139
4.1
124.4
Interserve
85⅜
-8.8
9.5
29.4
Sterling Energy
13⅜
14736.3 Lon Stock Ex
4250
2.8
1.2
69.6
F&C Mgd G
198
198
—
7950.2
Intertek Group
4926
2.5
1.4
161.2
Tribal Gp
82¼
—
—
—
-1.2
1.8
1.3
1.2
2.0
3.7
—
2977.8
Man Group ●
184¼
1.4
4.3
57.1
F&C Mgd I
133½
133
4.2
2391.4
IWG ●
262⅝
2.2
2.2
4.9
Union Jack Oil
0⅛
709
1.6
3.7
3759.4
NEX Group ●
990
11.6
3.1
258.1
F&C Priv Eq Ord
349*
348
4.0
505.0
Johnson Serv
137¾
2.5
2.0
83.3
Walker Green
117½
60646.2 Diageo
2465
1.7
2.6
1354.3
Paragon ●
519½
2.7
3.0
794.5
F&C Glob SmCo ● 1330
1362
1.0
552.5
Menzies J
660
0.7
3.1
9.1
Xtract Resources
520.0
260
0.7
2.7
148.0
Park Group
79¾
1.8
3.7
84.3
F&C UKHighIncTst 97*
106
5.0
678.8
MITIE Gp
185½
-39.4
0.7
461.3
Young & Co - A
1552½
3.2
1.2
1748.3
Provident Fin ●
690⅜
—
260.0
F&C UKRealEstInv 108
104
4.6
5277.5
Rentokil
286¼
9.6
1.4
234.7
Young & Co - N/V 1225
2.9
1.6
1181.0
Rathbone Bros ●
2302
1.5
2.6
103.7
Hend Alt Strat
268
334
1.8
528.7
Ricardo Gp
990
2.4
2.0
294.0
S&U
2450
1.9
4.3
174.6
Hend Div Inc Tst
92⅛
89
4.8
549.5
Robt Walters
728
3.6
1.7
-2.7
2.6
The Alternative Investment Market is for young
and growing companies. Shares may carry higher
risks than those with a full quotation, and may be
difficult to sell.
2.0
3.5
Stock Spirits
Chemicals
6038.5
Croda
4587
2.2
1.8
7420.3
Schroders
3283
1.9
3.4
339.2
Hend High Inc
181*
181
5.2
859.5
SIG ●
145¼
6318.9
Johnson Mat
3265
2.6
2.3
2653.3
TP ICAP ●
471
0.9
3.6
657.4
Hend Smaller Co
880
1004
2.2
1073.3
Serco Group ●
97¾
2344.8
Victrex ●
2726
2.2
2.0
81.6
Hend Opp
1020
1238
2.0
3315.6
Travis P ●
1315
844.2
Herald Inv ●
1215
1402
—
670.9
HgCapital
1797½* 1879
2.6
Healthcare
Construction
Mkt Cap
(£m)
Stock
Price (p) NAV
Yld
4235.5
ConvaTec Grp ●
217
1.4
1.9
2557.3
HICL Infrastructure ●142⅞ 147
5.5
52.0
UIL Fin ZDP 18
159
155
—
Mkt Cap
(£m)
Stock
34863.2 Shire
Price (p) Cvr
Yld
3821½ 13.3
0.7
50.2
Alumasc
139
2.5
5.2
7669.5
NMC Health
3688
5.0
0.4
558.2
ICG Enterprise Tst 806
912
2.5
55.8
UIL Fin ZDP 20
143
130
—
2005.1
Balfour Beatty ●
290¾
6.8
1.2
5091.4
Mediclinic Int
690⅝
3.9
1.1
206.1
Intl Biotech Tst
580
4.9
62.8
UIL Fin ZDP 22
125½
112
—
11828.0 Smith & Nep
1352
2.5
1.8
196.8
Invesco Asia Trust 277½
319
1.5
508.9
Utilico Emerg
217
243
3.2
161.0
Invesco Inc Gth Tr 275
314
4.0
1853.7
Witan ●
1040
1057
2.2
1381.2
Assura ●
132.3
6.2
201.6
Witan Pacific
319
372
1.5
1427.1
Big Yellow Gp
1211.5
Worldw HealthTr ● 2425
2396
0.9
6544.1
Brit Land
666*
945.2
CLS Hldgs ●
232
373.5
Cap&Regional
52*
2432.7
Capital&Count ●
286½
3469.5
Derwent Ldn ●
3111
5666.2
Barratt Dev
559⅝
1.4
7.7
4066.7
Bellway ●
3307
2.8
4.0
5320.6
Berkeley Grp
3966
4.3
2.7
386.0
Boot H
290
4.0
2.8
1423.6
Breedon Group
85¼
488.1
Costain
460
1293.2
Crest Nicholson ● 503½
21241.1 CRH
2.2
InvesPerp Enhc Inc 80¼*
74
9.6
InvesPerp Bal Rk
139
140
—
—
7257.1
Burberry
1735
1.7
2.3
66.7
InvesPerp Sel UK E 182
185
3.5
3.0
284.1
McBride
155⅝
1.1
2.8
67.0
InvesPerp Sel Gbl E 201
205
3.3
PZ Cussons ●
Household goods
2.0
6.6
1041.8
243
1.9
3.4
169.8
InvesPerp UK Sm Co 517
539
4.0
3.3
2.4
39621.8 Reckitt Benck
5625
5.3
2.9
870.8
JPM American ●
387*
410
1.4
1298.7
1591
2.8
1.9
327.4
JPM Asian
348*
387
4.4
22.0
JPM Brazil Inv
65¾
77
1.2
(£m)
211.1
JPM Chinese
289½
333
0.6
136.3
1806.8
Grafton Gp ●
761
3.5
2.0
Marshalls ●
426⅝
1.5
3.3
608.3
Morgan Sindall
1360
2.6
3.3
31.7
Nth Midland Con
312
1.2
1.9
8457.9
Persimmon
2717
1.1
8.6
25.2
2353.8
Redrow ●
636½
3.5
3.1
6356.2
Taylor Wimpey
194
1.1
7.8
518
Superdry ●
Information technology
Media
Bloomsbury
●
Telecom Plus
302⅜
181
1.5
3.7
2741.2
Intu Props ●
202¼*
3.7
JPM Claverh’se
736
749
3.7
2236.9
Daily Mail ‘A’
663
4.3
3.4
4288.8
Hammerson ●
540*
255.8
JPM ElecManGth
787½
810
1.4
1375.5
Euromoney ●
1260
1.2
2.4
418.7
Helical
353
3.9
3.1
1.4
81.7
JPM ElecManInc
112
114
4.1
6020.2
Informa
730⅝
1.8
2.8
11733.3 H K Land
501⅜
11.9
14.0
0.6
5.1
JPM ElecManCsh
100½
102
0.3
5834.8
ITV
145
1.3
5.4
7205.5
Land Secs
971¾
2.6
1.4
1052.0
JPM Emerg Mkt ●
851
965
1.3
6120.3
Pearson
784
2.9
2.2
26.2
Local Shopp REIT
31¾
Micro Focus Intl 1298½
0.7
5.7
654.4
JPM Eur Sm Cos
409
449
1.1
16251.1 RELX
1544
2.1
2.6
1289.6
LondonMetric ●
321.0
SDL
390
5.6
1.6
221.1
JPM Eur Gwth
303
335
2.3
4069.7
4488
2.7
1.3
252.7
—
6834.4
Sage Gp
630¾
1.8
2.4
160.2
JPM Eur Inc
157¼
173
3.7
22553.5 Sky
1312
3.1
1.0
737.8
Spirent
120⅝
1.1
2.5
404.4
JPM Gbl Gth & Inc 313½
305
3.9
252.6
Trinity Mirror
84⅜
4.0
376.9
JPM GEMI
127*
132
3.9
3807.0
UBM ●
966
1.6
157.8
JPM GL Conv
97⅜
99
4.6
14516.0 WPP
1146½
2.4
5.2
736.6
JPM Indian ●
700
799
—
307.1
discoverIE Grp
430
0.6
2.0
4669.6
Halma
1230
2.4
1.1
531.9
Oxford Inst
927
-2.7
1.4
3588.5
Renishaw ●
4930
2.6
1.1
692.5
XP Power
3600
1.9
2.2
19½
89.5
CML Micro
532½
958.3
Laird
196
274.0
Microgen
450
5662.6
Insurance
5746.2
Admiral
20986.1 Aviva
1997
1.0
5.7
703.0
JPM Japanese ●
436
472
1.1
522
1.3
5.2
229.2
JPM Japan Sm Cos 420½
482
—
1.9
Rightmove ●
Cvr GrsYld
2.2
99¼
0.8
6.0
308737.1 BankAmerica $
30⅜
1.6
3.4
126⅛
1.5
3.2
198481.9 Boeing $
338
2.0
2.0
1092
2.4
4.6
91932.8 Caterpillar $
153⅞
2.0
0.4
210
-1.5
6.3
233462.0 Chevron $
122⅛
3.7
1.1
19553.1 Coca-Cola Euro $
40⅜
3.2
1.1
59122.3 Colgate Palm $
67¾
2.5
1.4
Tobaccos
21652.0 Dr Pepper $
120½
1.9
2.5
4.3
84865.1 Brit Am Tob
3700
9.4
5.3
153349.6 DowDuPont $
65⅞
2.3
0.6
17.4
22913.5 Imp Brands
2402½
0.9
7.1
333017.9 Exxon Mobil $
78⅝
3.9
1.5
36269.1 Fiat Chrysler $
23½
—
—
4874.6
41¼
3.3
1.6
0.5
1.6
4.7
Transport
2.5
3304.2
BBA Aviation ●
320
0.9
Foot Locker $
124608.4 Gen Electric $
14⅜
3.3
1.4
3.0
204284.5 Home Depot $
177¼
2.3
1.8
2.8
938.7
Clarkson ●
3105
1.4
2.4
111261.8 Honeywell $
148⅝
2.0
0.7
4.4
875.3
Fisher J ●
1742
2.8
1.6
35240.3 HP $
21½
2.6
2.7
—
499.6
Northgate
375
2.6
4.7
133357.5 IBM $
144¾
4.1
1.0
184⅞*
4.1
5600.0
Royal Mail
560
1.2
4.2
20850.8 Inger Rand $
83½
2.2
2.9
McKay Secs
269
3.4
308.5
Wincanton
248
3.6
3.8
240640.9 Intel $
51½
2.3
1.7
354.4
Mucklow A J
560
4.0
22100.2 Intl Paper $
53⅜
3.6
2.7
6.9
281.4
Raven Russia
42⅝
—
381591.9 JP Morgan Ch $
111⅞
2.0
2.8
2.4
133.1
Raven R C R Prf
134
9.0
339568.5 Johnson&John $
126⅝
2.7
0.1
Bold FTSE100 Stocks
2.2
Raven R Wts
20
—
105¼
1.8
4.4
* Ex-dividend
§ Ex-rights
232.9
Raven R CnvPref
117½
Mining
24825.0 Anglo Amer
●
2.7
6.9
401.6
BSD Crown
86649.3 Amer Express $
56019.1 Vodafone
694¾
2.5
6.4
856.1
Gt Portland Est ●
1.4
1.2
3.3
Grainger ●
—
100¾
375¾
4.5
1957.0
—
1723.3
900
1261.7
1.0
59
10990.1 Alcoa $
KCOM Group
Yld
37
6.4
TalkTalk ●
Cvr
Price
1.2
1445.5
-0.1
(m)
241¾
512.5
7.0
Stock
38950.9 21st Cent Fox A $
23991.2 BT Group
4.3
6.1
Americans
Mkt Cap
Inmarsat ●
—
—
Telecommunications
57⅞
Price
Mkt Cap
Stock
Property
—
Electricals
Dialight
Net Asset Values © 2018 Morningstar Estimated
at previous day’s close see www.Morningstar.co.
uk.
2525
850.5
168.5
549
—
2⅝
671.6
RDI REIT ●
1113.1
Safestore ●
42
Travel & Leisure
Carnival
4673
2.0
2.7
6961.3
5.5
23801.7 Compass
1503
2.1
2.3
15290.3 Marathon Oil $
17⅞
1.1
4.8
35¼
7.4
6367.2
easyJet
1603
1.9
2.6
125357.4 McDonalds $
159½
2.5
1.6
530
2.6
1404.4
FirstGroup ●
116
158358.5 Merck $
58¾
3.3
0.5
9637.4
—
Manpower $
585½
1.8
1.9
292.9
JPM Mid Cap
1230
1281
2.4
4.1
892.2
St Modwen
401¼
4.3
1.6
308.1
Fullers ‘A’
961
2.0
727245.4 Microsoft $
94½
1.8
0.7
5124.6
DirectLineIns
372¾
0.9
9.5
88.0
JPM Mlti-Ass
94½
101
—
Antofagasta
952¾
1.5
3.8
1399.1
Savills ●
984½
1.9
3.1
822.4
Go-Ahead Grp ●
1907
2.0
5.4
218134.6 Pfizer $
36⅝
3.7
2.6
301¾
-3.0
4.1
4210.4
Hiscox ●
1467
0.3
2.0
243.2
JPM Russian
476
563
4.4
32407.6 BHP Billiton
1534⅜
1.1
4.7
6300.4
Segro
628¼*
2.6
5535.5
GVC Hldgs ●
961½
-0.4
3.1
185967.2 Procter & Gamble $ 74
3.9
1.3
27271.1 Nat Grid
812⅞
5.1
5.5
2667.9
Jardine Lloyd ●
1218
1.6
2.8
180.1
JPM Small Cos
1130
1362
2.0
1759.3
Centamin ●
152¾
1.5
5.8
3057.5
Shaftesbury ●
995
1.6
12519.9 IAG Intl Cons Air 611
4.4
3.1
22032.7 Rockwell $
172⅜
1.9
0.9
13476.1 SSE
1327½
1.7
7.0
1159.7
Lancashire Hldg ●
576
-2.3
1.9
155.8
JPM US Sml
274*
289
0.9
5832.8
Evraz
407¼
0.8
10.5
151.5
Town Centre
285
4.0
8332.3
Intercont Hotels 4370
2.7
1.7
98818.6 United Tech $
123½
2.3
2.1
3087.0
Electricity
1228.4
Drax Group ●
Beazley
●
9393.2
1767¼
●
3.1
●
FTSE250 Stocks
† Ex-scrip
# Suspended
—
—
—
Britvic ●
1874.4
—
100
—
-1.6
47336.7 Lloyds Bk Gp
Stock
11.0
Pennon Gp ●
32884.7 Ryl Bk Scot
(£m)
3.3
Severn Trent
1.3
Mkt Cap
1.3
4445.5
4.8
Recent issues
Crusader Resources 3
215½
140890.0 HSBC
45⅝
Suez Environ €
11.4
36853.8 Barclays
Close Bros ●
7366.2
—
2756.8
Banks
4.1
Pendragon
852
General financial
2.2
2.6
Next
290
2.0
1.5
20¾
Ocado ●
REA Hldgs
3.2
139
18802.3 Peugeot €
391.6
Hilton Food
467⅞
36893.6 Pernod Ricard €
3564.3
0.8
117.1
GKN
—
4.1
Pharmaceuticals
693.1
8069.4
4.8
3002.1
3.6
Automobiles & parts
2.7
3.1
26¼
6659.9
Yld
0.5
3.6
—
Cvr
146¼
2.0
33586.3 LafargeHolcim SFr 55⅜
4.5
-0.2
1.2
Centrica
2.3
1.8
12342.3 Lufthansa €
601
8188.9
0.9
1.7
279¼
2.2
Price
Gas & Water
4.6
88½
141046.3 LVMH €
1.3
Stock
47700.2 Unilever
14
51010.8 Heineken €
1485
19163.2 BAE Systems
—
Europeans
157⅜
1.56
—
Xerox $
1360¼
3.11
6821.2 Treas 2½% IL 24356.77
3.0
Stagecoach ●
3.24
0.0
278¾
902.4
—
4.19
●
●
15868.6 Ryanair
6.9
143.36
(£m)
Yld
87¼
662
2905.4
131.6
Price (p) Cvr
586*
2.3
3.7
Stock
257389.3 Wal Mart Strs $
1525* 1619
2.0
2631
(£m)
1.2
Lowland Inv
1840
20828.9 Ass Brit Fds
Mkt Cap
1.5
Keystone Inv Tr
29761.9 Treas 4¼% 36 136.76
The share prices, price-earnings ratios and dividend yields
below are supplied by Interactive Data (Europe) Ltd. The
yields are calculated using historic dividend payments divided
by the closing share price multiplied by 100.
Yld
174
Law Debenture
Goodwin
Food producers
Price (p) Cvr
412.0
●
35440.5 Treas 4¼% 32 131.22
6579.0
Stock
2193.1
693.6
132.5
19027.7 Treas 6% 28
3.7
Mkt Cap
4.5
232.2
5870.4
7396.2
2.0
Yld
6.5
0.7
1.29
380⅝
141
3.0
0.8
4.02
148⅛
2.5
4.2
124.34
Price (p) Cvr
Tritax Big Box ●
1.3
4.3
35076.5 Treas 5% 25
Stock
2020.4
2.0
608½
Low&Bonar
(£m)
2.2
-0.7
1422½
10107.0 Melrose Ind ●
Mkt Cap
1.9
653
Fenner ●
185.4
Yld
1298
774½
Cropper J
0.88
Price (p) Cvr
Fresnillo
1875
●
RSA
6.56
Stock
6.2
48595.1 Prudential
121.89
(£m)
120
6686.9
24072.0 Treas 8% 21
Mkt Cap
114*
3.3
32089.2 Jardine Mthsn
Yld
J Laing Infra ●
1.3
1180.5
Price (p) NAV
1129.8
2.1
134.7
Stock
5.6
4.0
Coats Group ●
(£m)
2.1
79
Castings
1119.5
Mkt Cap
275¼
419½
183.0
Yld
16398.4 Legal & General
‡ Ex-all
Cover relates to the previous year’s dividend.
Yields are net of basic rate tax.
Data is provided for information purposes only and is
not intended for trading purposes. Speak with a
financial advisor before using any data to make
transactions.
***
The Daily Telegraph Monday 23 April 2018
7
Business
Barclays under pressure as activist Sherborne hovers
Exchange, Metro Bank
Economics
Public sector net borrowing (UK), CBI
industrial trends survey (UK), new
home sales (US)
TOM
REES
THE WEEK AHEAD
Wednesday
Today
No FTSE 350 companies reporting.
Economics
Composite PMI survey (US & EU),
existing home sales (US)
Tomorrow
Shopping centre giant Hammerson
will have questions to face from
relieved shareholders at its AGM after
pulling out of its £3.4bn swoop for
rival Intu Properties last week.
Hammerson blamed a deterioration
in the UK retail market for walking
away from the tie-up, but shareholders
were reportedly ramping up the
pressure on management over the deal
which City analysts believed would
dilute the company’s higher-quality
portfolio.
Trading statement
Anglo American, London Stock
Exchange, St James’s Place
AGM Hammerson, London Stock
BARCROFT MEDIA VIA GETTY IMAGES
Whitbread’s management will be
feeling the heat at its full-year figures
after a second activist revealed a stake
in the Costa Coffee owner.
With rival activist Sachem Head
unveiling a stake earlier in the year,
feared hedge fund Elliott Advisors said
it had built a 6pc interest in the FTSE
100 company, urging it to split up its
Costa and Premier Inn businesses.
Boss Alison Brittain has said that the
company is open to change and she
will likely be forced to address the
issue following the Elliott stake,
according to Hargreaves Lansdown’s
George Salmon.
He said: “At an operating level, times
have been tough for Whitbread
recently. Like-for-like sales have
slowed and even reversed recently.”
Full-year results
Whitbread
Interim results
Fenner, Redefine International
Trading update
Antofagasta, Croda International,
Fresnillo, GlaxoSmithKline, Intu
Properties, Lloyds Banking Group,
Metro Bank, Persimmon, Tullow Oil
AGM British American Tobacco,
Countrywide, Intu, Persimmon,
Tullow Oil
The bank’s investment arm
will come in for scrutiny
this week, with Merlin and
Whitbread also reporting
Analysts will say Merlin Entertainments’ Legoland saw a slowdown during the cold snap
Thursday
All eyes will be on Barclays’
investment banking figures amid fears
that activist investor Sherborne will
target the struggling division in its
campaign.
The Sunday Telegraph revealed that
Sherborne – which has taken a 5.2pc
stake in the banking giant – is
attempting to woo shareholders to
support its cause and is thought to be
pushing for a major shake-up in
Barclays’ investment banking division.
But Sherborne is likely to face major
opposition from the group’s
management over any large changes
to the division, with plans thought to
be in place to resist any attempt to
break up the bank.
After a recent sector-wide lull in
investment banking, see-sawing
markets in the first quarter of the year
could help Barclays’ troubled arm.
Full-year results
Capita
Trading update
Barclays, Cobham, Elementis,
Hastings, KAZ Minerals, Meggitt,
Royal Dutch Shell, Shire, Synthomer,
Taylor Wimpey, Weir
AGM
Aggreko, Cobham, Just Eat, Meggitt,
Taylor Wimpey, Weir
Economics
Finance loans for housing (UK), CBI
distributive trades survey (UK),
durable goods orders (US), wholesale
inventories (US), ECB monetary policy
meeting (EU)
Economic week ahead
The full extent of
the economic
damage caused
by the so-called
“Beast from the
East” cold spell
will be revealed
on Friday.
Economists
estimate GDP
grew by 0.3pc or
even 0.2pc in the
first quarter of
the year, as the
icy blast slashed
the growth rate
from 0.4pc in the
final three
months of 2017.
The weather
kept shoppers
off the high
street and
prevented some
workers getting
to the office.
Industrial and
retail surveys
from the CBI
over the week
will indicate how
growth fared in
April.
Officials at the
Bank of England
will also have a
Friday
The extended “Beast from the East”
cold front is expected to knock theme
park owner Merlin Entertainments’
recent trading.
Barclays analysts warned of a
“subdued performance” at the
company’s Legoland park during the
cold snap, adding that this year’s
figures were unlikely to be a catalyst
for Merlin’s struggling share price.
Full-year results
Virgin Money
Trading update
Computacenter, Merlin
Entertainments, Rotork, Royal Bank of
Scotland, Travis Perkins
AGM
Merlin Entertainments, Ultra
Electronics, Travis Perkins
Economics
GDP first-quarter first estimate (UK &
US), GfK consumer confidence (UK),
consumer confidence (EU)
Market data
Unit trusts & open-ended investment companies prices www.telegraph.co.uk/funds
World market indices Friday close
Name
Index
È Australia
5964.40
-12.00
-0.20pc
È Brazil
Bovespa
85550.08
-274.18
-0.32pc
È China
Shanghai Composite
3071.54
-45.83
-1.47pc
CAC General
5412.83
+21.19
+0.39pc
DAX
12540.50
-26.92
-0.21pc
Hang Seng
30418.33
-290.11
-0.94pc
È Germany
È Hong Kong
Mid
Sell
Change
Buy on day
Change
All Ordinaries
Ç France
Init chge
Mid
Change
Buy on day
Mid
Change
Buy on day
Mid
Change
Buy on day
Mid
Change
Buy on day
Discretionary Unit Fund
Multi-Mgr Inc&Gwth A Acc
5.00
*175.1000
+0.40
JPM Global Uncons Eq A Acc 3.00
*1307.0000
+8.0000
Jupiter Emerg Euro Opps
–
206.68
+0.20
M&G Episode Growth A Inc
4.00
61.11
+0.13
No 1, Poultry, London EC2R 8JR. 020 7415 4130
Multi-Mgr Inc&Gwth A Inc
5.25
*153.2000
+0.30
JPM Global Uncons Eq A Inc 3.00
*97.0700
+0.6200
Jupiter European
–
2150.61
-2.98
M&G Episode Income A Inc
4.00
*130.08
+0.42
Multi-Mgr Mangd A Acc†
5.00
*276.8000
+1.30
JPM Japan A Acc
3.00
*459.0000
+6.2000
Jupiter Euro Inc Acc
–
80.68
+0.63
M&G Episode Income A Acc
4.00
*170.13
+0.55
Multi-Mgr Mangd A Inc†
5.00
*269.6000
+1.10
JPM Japan A Inc
3.00
*110.5000
+1.5000
Jupiter Euro Inc Inc
–
55.35
+0.43
M&G Global Dividend A Inc
4.00
*202.23
+0.06
Sterling Bond Acc†
4.25 *219.5600 229.0400
…
JPM Multi-Asset Income A Acc 3.00
*94.9300
-0.2900
Jupiter Euro Special Sits
–
413.47
+2.05
M&G Global Dividend A Acc
4.00
*277.79
+0.08
Sterling Bond Inc†
4.25 *64.5500 67.3300
…
JPM Multi-Asset Income A Inc 3.00
*65.5300
-0.2000
Jupiter Fin Opp
–
609.05
+6.96
M&G Glbl Emrgng Mkts A Inc 4.00
261.62
-1.42
Strategic Bond A Inc
4.00
*122.6000
-0.20
JPM Multi-Asset Inc A Mth Inc 3.00
*65.0500
-0.2000
Jupiter Fund Of Inv Trusts
–
252.15
+0.62
M&G Glbl Emrgng Mkts A Acc 4.00
283.21
-1.53
UK Absolute Return A Acc
5.00
158.0000
+0.30
JPM Multi-Man Gwth A Acc
3.00
*983.0000
+2.1000
Jupiter Global Emg Acc
–
71.13
-0.23
M&G Glbl High Yld Bd A Inc
3.00
*50.38
-0.07
UK Alpha A Acc†
5.25
153.3000
+1.20
JPM Multi-Man Gwth A Inc
3.00
*899.4000
+1.9000
Jupiter Global Eq Inc Acc
–
*70.24
+0.47
M&G Glbl High Yld Bd A Acc
3.00
*131.8
-0.19
UK & Irish Small Co A Acc
5.00
659.3000
+3.20
JPM Natural Res A Acc
3.00
*627.7000
+6.1000
Jupiter Global Eq Inc Inc
–
*61.45
+0.41
M&G Global Macro Bd A Inc
3.00
81.67
+0.63
UK Equity Income A Inc
5.00
*636.9000
+4.80
JPM Natural Res A Inc
3.00
*44.0000
+0.4300
Jupiter Global Managed Acc
–
*228.59
+0.32
M&G Global Macro Bd A Acc
3.00
123.28
+0.96
UK Index A Acc
–
621.5000
+2.80
JPM Sterling Corp Bd A Grs Acc 3.00
*92.3500
-0.2600
Jupiter Global Managed Inc
–
*219.65
+0.31
M&G Global Themes A Inc
4.00
874.14
+4.61
UK Tracker A Acc
–
278.6000
+1.30
JPM Sterling Corp Bd A Grs Inc 3.00
*55.3900
-0.1500
Jupiter Growth & Inc
–
103.07
+0.82
M&G Global Themes A Acc
4.00
1358.9
+7.17
US Growth A Acc
5.00
994.9000
+4.30
JPM UK Dynamic A Acc
3.00
*205.7000
+1.2000
Jupiter Income
–
568.83
+7.61
M&G Managed Growth A Inc 4.00
110.33
+0.41
JPM UK Dynamic A Inc
3.00
*162.3000
+1.0000
Jupiter India Fd
–
122.90
+0.49
M&G Optimal Income A Inc
3.00
*149.88
+0.08
JPM UK Equity Core E Acc
–
*359.8000
+1.6000
Jupiter Int Financials
–
94.75
+1.22
M&G Optimal Income A Acc
3.00
*211.79
+0.11
*61.5800
+0.2800
Jupiter Japan Inc Fd Acc
–
115.87
+1.19
M&G Property Portfolio A Inc
Name
Init chge
Maitland Discretionary Inc
Sell
Mid
Change
Buy on day
close eye on the
data to try to
work out the
economy’s
underlying
strength, as they
get ready to
debate whether
or not to raise
interest rates at
next month’s
MPC meeting.
Today the
Office for
National
Statistics
publishes
March’s public
finances data.
This shows how
much the
Government cut
the budget
deficit by in the
year 2017-18.
Analysts
anticipate a
monthly deficit
of £3bn, which
would take the
annual figure to
around £44.3bn
– the fifth
consecutive
annual fall in
borrowing.
3.00 2356.21 2508.95
+7.79
AXA Investment Managers UK
Limited
7 Newgate Street, London, EC1A 7NX
www.axaframlington.com Cust Svs: 0845 777 5511
Name
Init chge
Sell
Name
Init chge
Sell
Name
Init chge
Sell
Name
Init chge
Sell
È India
S&P CNX500
9347.65
-8.75
-0.09pc
È Japan
Nikkei
22162.24
-28.94
-0.13pc
È Russia
RTS
1145.80
-7.79
-0.68pc
Straits Times
3573.38
-25.35
-0.70pc
Amer Gwth Acc
5.25
*590.9
+3.00
Madrid SE
1004.44
+1.55
+0.15pc
Biotech Acc
5.50
*168.9
-0.70
Emerg Mkts Acc
5.25
269.0
-0.80
130 Tonbridge Road, Tonbridge, Kent TN11 9DZ
Call free: Private Clients 0800 414161
Broker Dealings 0800 414181
European Acc
5.25
877.4
+2.70
Unit Trust
Financial Acc
5.25
*669.0
+10.20
Global Opp Acc
5.25
*1413.0
+5.00
Global Opp Inc
5.25
*1247.0
+4.00
Global Tech
5.25
108.1
-0.10
Health Acc
5.50
1756.0
+2.00
Cash Fd Y
–
100.02
…
JPM UK Equity Core E Inc
–
Cash Fd Y Accum.Units
–
100.34
…
JPM UK Equity Gwth A Acc
3.00
*144.0000
+0.8000
Jupiter Japan Inc Fd Inc
–
90.73
+0.93
M&G Recovery A Inc
4.00
142.16
+1.21
JPM UK Equity Gwth A Inc
3.00
*129.1000
+0.7000
Jupiter Merlin Bal Prtfo Acc
–
181.69
+0.59
M&G Recovery A Acc
4.00
332.55
+2.84
JPM UK Higher Inc A Acc
3.00
*1093.0000
+10.0000
Jupiter Merlin Bal Prtfo Inc
–
126.93
+0.41
M&G Strategic Corp Bd A Inc 3.00
*75.43
-0.09
JPM UK Higher Inc A Inc
3.00
*568.7000
+4.8000
Jupiter Merlin Conserv Prtfo Acc–
*57.85
+0.24
M&G Strategic Corp Bd A Acc 3.00
*116.66
-0.14
JPM UK Sm Cos A Acc
3.00
492.6000
+2.2000
Jupiter Merlin Conserv Prtfo Inc–
*50.02
+0.20
M&G UK Inc Distribution A Inc 4.00
*777.48
+2.68
È Singapore
Ç Spain
È Switzerland
SMI Index
8807.80
-25.38
È USA
Dow Jones
24462.94
-201.95
-0.82pc
È USA
Nasdaq
7146.13
-91.93
-1.27pc
-0.29pc
Commodities summary Friday close
Price
È Gold
Change
per troy oz
$1335.99
-10.13
-0.75pc
per oz
£12.21
+0.08
+0.63pc
Ç Krugerrand
£942.74
+6.23
+0.66pc
Ç New Sovereign
£219.64
+1.68
+0.77pc
Japan Acc
5.25
593.8
+6.40
Ç Maples
£951.29
+6.35
+0.67pc
Managed Balanced Acc
5.25
386.1
+1.50
£650.90
-3.46
-0.53pc
Managed Income Inc
5.25
*141.7
…
Ç Silver
È Platinum
per oz
Ç Palladium
Wealthbuilder
3.50
134.4
+0.8
†Available as an ISA
Investment Funds (OEIC)
Income Funds
per oz
£731.48
+2.98
+0.41pc
grade A
£4979.32
+84.43
+1.72pc
Managed Income Acc
5.25
*992.8
…
Enhanced Inc Fd
3.50
106.2
+0.2
high grade
£15446.05
+329.69
+2.18pc
Monthly Inc Inc
5.25
*255.8
+0.70
Extra Income Fd
3.50
27.61
-0.05
£1666.90
+16.41
+0.99pc
+2.20pc
5.25
*620.4
+1.60
Moneybuilder Bal
–
48.67
+0.04
£2310.85
+49.72
Monthly Inc Acc
special high grade
high grade
£1774.94
+33.40
+1.92pc
UK Growth Acc
5.25
302.2
+2.00
Moneybuilder Inc
–
36.42
-0.08
£10593.31
+29.44
+0.28pc
UK Select Opps R Inc
5.25
*1914.0
+12.00
UK Select Opps R Acc
5.25
*3510.0
+22.00
UK Smllr Cos Acc
5.25
306.8
+1.20
Ç Copper
Ç Tin
Ç Lead
Ç Zinc
Fidelity International
Ç Aluminium
Ç Nickel
Ç Baltic Dry Index*
È Wheat
Ç Brent Crude
1281.00
+80.00
+6.66pc
per tonne
£143.00
-2.75
-1.89pc
Jun settlement
$74.06
+0.28
+0.38pc
*Copyright Baltic Exchange Information Services Ltd.
AXA IM Funds www.axa-im.co.uk
Exchange rates Friday close
Pan Euro HY Bond Inc
5.25
*32.34
-0.02
Pan Euro HY Bond Acc
5.25
*104.9
-0.10
Growth & Income Funds
J.P. Morgan Asset Management
60 Victoria Embankment, London, EC4Y 0JP
Clients:0800 204020.Brokerline 0800 727770
Tourist £1= Sterling £1=
1 Euro =
1 Dollar =
117.21
117.21
+0.01
JPM UK Sm Cos A Inc
3.00
94.0500
+0.4200
Jupiter Merlin Grth Prtfo Acc –
*403.85
+1.22
M&G UK Inc Distribution A Acc 4.00
*7073.64
+24.4
JPM America Eq A Acc
3.00
88.2600
+0.7000
JPM UK Strat Eq Inc A Acc
3.00
*190.8000
+1.4000
Jupiter Merlin Grth Prtfo Inc –
*392.49
+1.19
M&G UK Infl Lkd Corp A Inc
3.00
*114.77
+0.04
JPM America Eq A Inc
3.00
88.2500
+0.6900
JPM UK Strat Eq Inc A Inc
3.00
*113.8000
+0.8000
Jupiter Merlin Inc Prtfo Acc
–
*296.87
+2.49
M&G UK Infl Lkd Corp A Acc 3.00
*118.39
+0.04
JPM Asia Growth A Acc
3.00
*205.3000
-0.9000
JPM Uncons Bond A Acc
3.00
*72.2300
-0.0700
Jupiter Merlin Inc Prtfo Inc
–
*133.38
+1.11
N.A.A.C.I.F. Inc
–
85.94
+0.08
–
8467.05
+7.98
Moneybldr Div
3.50
250.0
+0.6
JPM Asia Growth A Inc
3.00
*113.2000
-0.5000
JPM Uncons Bond A Inc
3.00
*57.2300
-0.0500
Jupiter Merlin WW Prtfo Acc –
289.62
+0.71
N.A.A.C.I.F. Acc
Moneybldr Gwth
–
78.53
+0.39
JPM Div Gth A Net ACC
3.00
261.2000
-0.8000
JPM US A Acc
3.00
*1022.0000
+3.0000
Jupiter Merlin WW Prtfo Inc –
289.60
+0.70
†CAR - Net Income reinvested.
Jupiter Monthly Inc Acc
–
*115.42
+0.28
Jupiter Monthly Inc Inc
–
*30.71
+0.07
146.13
+1.60
Growth Funds
£ > € Rate 1.1421 Change -0.82¢ £ > $ Rate 1.4023 Change -2.00¢
–
Natwest Investment Funds
(RBS Collective Investment Funds Ltd)
PO Box 249, York YO90 1ZY
0117 940 3848
American
3.50
3678
+28
Jupiter N.American Inc Acc
–
Amer Sp Sits
3.50
1489
+16
Jupiter N.American Inc Inc
–
121.76
+1.34
European
3.50
2206
+6
Jupiter Responsible Inc Fd Acc –
*114.90
+0.82
Balanced Inc
5.00
*328.90
…
509.1
+2.0
Jupiter Responsible Inc Fd Inc –
*72.90
+0.53
Balanced Acc
5.00
*422.00
…
Australia
Aus $
1.7265
1.8272
1.5999
1.3030
Canada
Can $
1.6950
1.7840
1.5621
1.2723
Denmark
Krone
8.0657
8.5058
7.4477
6.0656
European Opps
3.50
0.8144
Global Special Sits
3.50
3810
+17
Jupiter Strategic Bond Acc
–
97.37
-0.04
Equity Income
5.00
*349.80
…
Japan
3.50
360.2
+1.9
Jupiter Strategic Bond Inc
–
64.52
-0.03
Extra Income
5.00
*108.60
…
Japan Smaller Cos
3.50
316.9
+2.7
Jupiter Strategic Res Acc
–
53.47
+0.07
Growth
5.00
*392.70
…
Global Focus
3.50
1917
+9
Jupiter Strategic Res Inc
–
52.04
+0.07
High Yield
5.00
*126.60
…
Index UK A Acc
–
106.8100
+0.5000
Jupiter UK Growth
–
328.14
+1.79
Intntl Growth
5.00
*499.60
…
BNY Mellon Investment Funds (ICVC)
Special Sits
3.50
4008
+36
Jupiter UK Smaller Cos
–
368.79
+1.77
Sterling Income Shares
South East Asia
3.50
1347
-4
Jupiter UK Special Sits Inc
UK Select Acc
3.50
288.0
+1.4
Euro
€
1.0868
1.1421
HK $
10.4600
11.0011
9.6326
7.8450
India
Rupee
81.7600
92.6026
81.0826
66.0362
Israel
Shekels
4.4604
4.9521
4.3361
3.5314
Japan
Yen
143.8300
151.0347
132.2456
107.7050
Hong Kong
…
Kuwait
Dinar
…
0.4208
0.3684
0.3000
New Zealand
NZ $
1.8073
1.9420
1.7004
1.3848
Norway
Krone
10.4400
10.9751
9.6098
7.8265
Pakistan
Rupee
152.9200
162.0639
141.9026
115.5700
Riyal
4.9262
5.2588
4.6045
3.7501
Saudi Arabia
Singapore
$
1.7191
1.8457
1.6161
1.3162
South Africa
Rand
15.8200
16.9556
14.8462
12.0913
Sweden
Krona
11.2900
11.8448
10.3712
8.4467
Switzerland
1.1962
0.9741
31.3200
Insight Eq Inc Fund
0%
174.31
+1.29
Target 2020
4.5100
3.6731
Insight Eq Inc Booster
0%
128.1
+0.56
†CAR - Net income reinvested
Insight Glob Abs Ret Inc
0%
110.88
-0.12
Glob Income
5.00
155.97
164.36
+0.56
Insight Glob Multi-Strat Fd
0%
*122.89
+0.12
Growth Fd
5.00
415.07
439.27
+1.01
Insight Inflat-Link Corp Bd
0%
*107.34
-0.06
Long-Term Global Equity
0%
246.64
-0.08
Fundsmith LLP
Newton Asian Income
0%
189.9
-1.19
0%
263.18
+1.51
PO Box 10846, Chelmsford, Essex, CM99 2BW.
0330 123 1815
www.fundsmith.co.uk enquiries@fundsmith.co.uk
0.7131
1.2279
…
Tourist rates for indication use only. www.travelex.co.uk
Rates
Inflation
Kings Meadow, Chester, CH99 9UT
0870 333 1835
Mid
101.77
…
Change
Buy on day
Mid
0%
Change
Buy on day
High Income Inc
–
113.2
113.2
Newton Glb High Yld Bd
0%
60.1
-0.10
Fundsmith Equity T Acc
–
351.26
-2.36
JPM Emg Euro Eq A Acc
3.00
*195.0000
-0.1000
JPM US A Inc
3.00
*141.5000
+0.4000
High Income Acc
–
257.5
257.5
-1.2
Newton Glb Inc Stg Inc
0%
188.07
-0.47
Fundsmith Equity T Inc
–
326.13
-2.18
JPM Emg Euro Eq A Inc
3.00
*43.0800
-0.0100
JPM US Eq Inc £ Hdg A Inc
3.00
*117.9000
-0.7000
UK Select Port Inc
–
344
344
+0.8
+0.20
+3.4pc
Mar 105.00
+0.10
+2.5pc
Halifax house price index
Mar 737.50
1.5pc
+2.7pc
Name
Init chge
Sell
Name
Init chge
Sell
-0.5
Newton Glb Opps
0%
275.91
+1.13
JPM Emg Markets A Acc
3.00
*220.3000
-0.6000
JPM US Eq Inc A Acc
3.00
*167.4000
+0.7000
UK Selection Port
–
623.5
623.5
+1.6
Newton Intnl Bond
0%
228.78
+1.32
JPM Emg Markets A Inc
3.00
*93.8400
-0.2700
JPM US Eq Inc A Inc
3.00
*135.4000
+0.6000
UK 100 Co’s Fund Inc
–
*216.4
216.4
+0.6
Newton Multi-Asset Bal
0%
190.86
+1.04
JPM Emg Mkts Inc A Acc
3.00
*72.4700
-0.1000
JPM US Select A Acc
3.00
*158.4000
+1.0000
UK 100 Co’s Fund Acc
–
*373.3
373.3
+1.1
3.12pc
Newton Mult-Asset Div Ret
0%
154.74
-0.13
JPM Emg Mkts Inc A Inc
3.00
*57.9100
-0.0700
JPM US Select A Inc
3.00
*156.3000
+0.9000
W’wide Man Inc
–
498.4
+1.4
European repo rate
1.25pc
Newton Mult-Asset Gwth
0%
820.08
+1.59
JPM Eur Dyn (ex-UK) £ Hg A Acc3.00
*217.9000
+0.2000
JPM US Sm Cos A Acc
3.00
638.9000
-0.6000
W’wide Man Acc
–
799.6
+2.2
European base rate
0.00pc
Newton Oriental
0%
657.05
-3.42
JPM Euro Dyn (ex-UK) A Acc 3.00
JPM US Sm Cos A Inc
3.00
167.4000
-0.1000
Newton Real Return A
0%
112.07
-0.07
Money
Bank Rate
0.50pc
Nationwide Base Mortgage Rate
Overnight
0.48pc
US Fed Funds
7 day
0.49pc
US Long Bonds Yld
1 month
0.53pc
3 months
0.75pc
6 months
0.86pc
2.50pc
1.50-1.75pc
Major price changes FTSE 100 Week on week
Volume
Close
Change
Ç Direct Line Ins
6.70m
372¾
0%
857.3
+4.79
Newton UK Inc
0%
66.08
+0.27
Asia Pac Cap Gwth A Acc
5.00
3.49pc
Newton UK Opps
0%
325.42
+1.09
2.65m
690⅝
16.73pc
Ç Scot Mort Inv Tst 2.83m
380⅝
10.08pc
Ç TUI AG
0.84m
1624
3.28pc
0.70m
3688
8.15pc
Fallers 19
Volume
Close
Change
Ç Whitbread
0.55m
4235
7.62pc
È Brit Amer Tob
9.08m
3700 -10.17pc
Ç Smiths Gp
2.82m
1618½
6.83pc
È Reckitt Benck
4.62m
5625
-6.48pc
6.50pc
È Lloyds Bk Gp
179.20m
65¾
-3.64pc
0.77m
5630
6.15pc
È WPP
4.59m
1146½
-3.49pc
12.03m
3821½
5.96pc
È Imp Brands
2.95m
2402½
-2.46pc
4.19m
3987
5.34pc
È Standard Life Abr 5.42m
367⅛
-2.37pc
8.27m
1534⅜
È Natl Grid
8.74m
Ç Royal D Shell B
6.58m
2548
5.20pc
È Croda Intl
0.39m
4587
-1.46pc
Ç Smurfit Kappa
0.43m
3136
5.16pc
È Unilever
2.93m
3872½
-1.45pc
Ç Anglo Amer
5.41m
1767¼
4.69pc
È Johnson Matt
0.50m
3265
-1.15pc
Ç Carnival
0.78m
4673
4.54pc
È Diageo
3.53m
2465
-1.08pc
0.41m
5742
-0.73pc
5.25pc
812⅞
PO Box 9023 Chelmsford, CM99 2WB
Enquiries: 0800 832 832
Website: www.janushenderson.com
Newton UK Equity Fund
58.80m
463¼
Janus Henderson Investors
3.50pc
Ç NMC Health
-1.62pc
4.31pc
È Randgold Res
Ç Standard Chart 12.61m
764⅜
4.21pc
È AstraZeneca
1.60m
4976
-0.68pc
Ç Next
5220
4.11pc
È Easyjet
1.89m
1603
-0.50pc
Ç Centrica
Marks & Spencer Unit Trust
Management Ltd
Newton Global Dyn Bd
Mar 278.80
CPI (2015=100 target 2pc)
1997
PO BOX 23850, Edinburgh EH7 5FY
Dealing and Admin 0330 123 3822
Newton Cont European
RPIX (Target 2.5pc)
0.85m
+0.04
+3.3pc
+0.10
0.63m
65.25
Year
Mar 278.30
2525
3.50
Change on month
RPI (1987=100)
Ç Admiral
+0.53
Liontrust Investment Funds
38.4562
0.8756
Ç BHP Billiton
-0.24
5.1508
…
Ç Rio Tinto
92.63
65.79
1.3661
1.4023
3.50m
0%
+0.58
Jupiter US Sm&Md Cap Ret Acc –
43.9201
…
Ç CRH
Insight Corporate Bd
Target Funds
4.8418
1.3417
Ç Ferguson
+1.31
1.3015
$
Ç Shire
119.60
+2.43
71.30
39.2700
£
Ç Glencore
0%
*192.25
Baht
USA
Ç Mediclinic Intl
Boston Co US Opp Fund
–
Jupiter US Sm&Md Inst I Acc –
Franc
UK
Risers 81
Investors: 0800 614330 Brokers: 08085 660000
www.bnymellonim.co.uk,
clientservices@bnymellon.com
Dirham
Thailand
UAE
BNY Mellon Fund Managers
1081.0000
*221.9000
+1.2000
3.00
*99.5800
+0.5500
JPM Europe A Acc
3.00
*1453.0000
+7.0000
JPM Europe A Inc
3.00
*80.7700
+0.3800
JPM Euro Dyn (ex-UK) A Inc
-1.00
Asian Dividend Income Inc
5.00 105.1900 110.5100
…
JPM Euro Smaller Co A Acc
3.00
772.3000
-0.4000
Carvetian Capital
Management Limited
Cautious Managed A Acc
5.00
265.5000
+0.70
JPM Euro Smaller Co A Inc
3.00
100.0000
-0.1000
Cautious Managed A Inc
5.00
153.0000
+0.40
JPM Global Bd Opps A Grs Acc –
*54.3700
-0.1200
Jupiter Unit Trust Managers Ltd
Admin: Stuart House, St John’s St,
Peterborough PE1 5DD
Dealing & Enquiries: 0845 850 0255
China Opps A Acc
5.00
1425.0000
-7.00
JPM Global Bd Opps A Grs Inc –
*49.1000
-0.1200
The Zig Zag Building, 70 Victoria Street, London,
Emerg Mkts Opps A Acc
5.00
207.3000
+1.10
JPM Global Bond A Gross Acc 3.00
*262.2000
-0.6000
5.25
232.8000
+1.30
JPM Global Bond A Gross Inc 3.00
*203.5000
-0.4000
SW1E 6SQ
020 3817 1000
European Growth A Acc†
1629.0000
+7.00
JPM Global Eq Inc £ Hdg A Acc 3.00
*83.3000
-0.2900
Jupiter Abslt Rtn
…
M & G Securities Ltd
PO Box 9039, Chelmsford, CM99 2XG
Enq: 0800 390 390. UT Deal: 0800 328 3196
-0.03
Charibond Inc
–
123.16
Charibond Acc
–
3955.75
-0.81
–
1592.61
+2.33
53.84
+0.19
Charifund Inc
–
905.01
+0.41
Charifund Acc
–
24381.11
+35.75
–
*127.01
-0.76
M&G Corp Bond A Inc
3.00
*40.21
-0.06
–
*117.40
-0.70
M&G Corp Bond A Acc
3.00
*69.41
-0.1
Jupiter China Acc
–
*138.06
-0.52
M&G Dividend A Inc
4.00
60.27
+0.16
M&G Dividend A Acc
4.00
671.16
+1.86
FENIX Balanced Fd
5.00
154.2
…
European Sel Opps A Acc
5.00
Generation Fd
5.00
778.2
+5.20
Fixed Int Mthly Inc A Inc
4.25 *21.9000 22.8500
JPM Global Eq Inc £ Hdg A Inc 3.00
*56.0200
-0.2000
Jupiter Asian Fd
Consistent Unit Trust
Management Co Ltd
Global Care Growth A Inc
4.50
*286.4000
+0.10
JPM Global Eq Inc Fd A Acc
3.00
*96.2000
+0.3400
Jupiter Asian Inc Fd Acc
Global Equity Inc A Inc†
5.25
*59.6300
+0.18
JPM Global Eq Inc Fd A Inc
3.00
*78.3600
+0.2800
Jupiter Asian Inc Fd Inc
Admin: Stuart House, St John’s St,
Peterborough PE1 5DD
Dealing & Client Services 0345 850 8818
Global Growth Acc
4.25 3011.6799 3141.4099
…
JPM Global HiYld Bd A Grs Acc 3.00
*110.8000
-0.1000
–
Global Strategic Cap Acc†
5.00
235.9000
+0.80
JPM Global HiYld Bd A Grs Inc 3.00
*37.0600
…
Jupiter China Inc
–
*132.65
-0.51
Global Technology A Acc
5.00
1678.0000
+1.00
JPM Global HiYldBdAGrsMthInc3.00
*36.7200
…
Jupiter Corp Bond Inc
–
*56.45
-0.10
18.01m
146¼
3.91pc
È Lon Stock Ex
0.90m
4250
-0.47pc
Ç Evraz
È Royal Mail
51.78
52.67
+0.28
Multi-Mgr Abs Ret A Acc
5.00
*141.0000
+0.40
JPM Global Macro Bal A Acc
3.00
*72.6600
-0.4000
Jupiter Dstrbtn Acc
–
*101.56
+0.15
4.14m
560
-0.14pc
5.00
407¼
3.74pc
Unit Tst Inc
3.30m
Ç Experian
2.29m
1606½
3.68pc
È RSA Ins
2.72m
653
-0.12pc
Unit Tst Acc
5.00
133.5
135.9
+0.7
Multi-Mgr Active A Acc†
5.00
*222.5000
+1.00
JPM Global Macro Bal A Inc
3.00
*63.6900
-0.3500
Jupiter Dstrbtn Inc
–
*58.85
+0.09
Ç GKN
12.01m
467⅞
3.59pc
È Rolls Royce
5.94m
866¼
-0.07pc
Practical Invest Inc
5.00
*232.1
249
…
Multi-Mgr Distbn A Inc
5.25
*134.4000
+0.20
JPM Global Macro Opps A Acc 3.00
74.45
-0.49
Jupiter Dstrbtn & Grth Inc
–
*121.75
+0.65
This charge in percentage terms is included in the purchase
price of the units. It is levied by the unit trust manager to cover
administrative costs and commissions.
Ç Royal Bk Scot
13.63m
274¼
3.55pc
È Micro Focus Intl 2.64m
1298½
-0.04pc
Practical Invest Acc
5.00
*1228
1318
…
Multi-Mgr Divrsfd A Acc
–
*85.1900
+0.06
JPM Global Macro Opps A Inc 3.00
73.75
-0.49
Jupiter Eco Inc
–
*377.39
+0.86
* Denotes Ex-dividend
Initial charge:
***
8
Monday 23 April 2018 The Daily Telegraph
Small Business Connect
telegraph.co.uk/connect/small-business
Partners
‘I’m a believer
in saying yes
and working
it out later’
Co-working
spaces give
small firms
room to grow
By Hajra Rahim
Starting a firm is not cheap and finding
office space can be pricey, but with
most small business teams able to
operate from almost anywhere with
plugs and seats, many are taking
advantage of co-working spaces.
If you think that a co-working space
might be for you, here are some tips to
get started.
Finding the right space
Matt Gilbert, founder of furniture
company Animaro, has been using the
Central Research Laboratory (CRL)
co-working space in Hayes for the past
six weeks. He chose CRL because it is
aimed at hardware start-ups, so most
of the companies there are, like him,
building physical products.
Such a network of like-minded firms
really helps, he says. Instead of
spending money on a consultant, if
someone at the space has a
manufacturing problem, there will be
a number of businesses desks away
who can give an immediate answer.
Pots and Co founder Julian Dyer on taking
calculated risks and the war against plastic
J
ulian Dyer wanted to launch
his pudding pot business with
a stunning dessert – a zingy
lemon posset that would
knock customers off their
feet. But his producer had
other plans; it wanted to cut a key
component from the signature dish.
“When I went to visit the factory,
there were no lemons in sight,” says
Dyer, who was reassured that some
artificial flavourings could achieve a
similar citrusy tang to the one that he
was looking for.
The trained chef was unimpressed
to say the least; his vision was to
produce puds made from only the
freshest ingredients – additives and
enhancements were miles away from
the natural, bold flavours that he was
dreaming of. “I remember thinking
that all I needed was some sugar,
cream and lemon, so why not do it
myself?”
He did just that, launching Pots & Co
out of a small rented kitchen to bring a
range of hot and chilled restaurantquality desserts into people’s homes.
He handmade each one and sold
them in coloured ceramic ramekins
sourced from a family-run business in
Valencia. For consumers, it removed
the headache of turning out mixtures
into serving bowls and oven dishes.
For Dyer, who slow-cooks his puds,
it ensured an even bake, resulting in a
superior texture than if he had used
glass, plastic or foil.
“Ceramic was our only option,” says
the business owner, who launched in
Selfridges, but got a call from a major
supermarket a few weeks later.
“Waitrose wanted to squeeze us into
its next product cycle, which was in six
weeks,” remembers Dyer, who agreed
to deliver despite not having a team.
His average order went from 3,600
pots to 19,000.
“I’m a firm believer in saying yes
and working it out later,” he says. “You
must do that as an entrepreneur; you
have to take risks – calculated ones, of
course – but you’ve got to be driven by
a big target like that. Without
something to strive for, you just sit
back.”
Dyer and his tiny team got to work
producing the puds. But with their
focus on natural ingredients
(Devonshire cream, Cornish sea salt
and Madagascan vanilla, for example),
they were working on a product with a
limited shelf life. Each order had to be
made and shipped out very quickly.
“Having a freshly made product is a
‘Businesses have got to
evolve and challenge
themselves; we had a
lot more to offer’
real point of difference for us, but it
makes things tough,” admits the
founder, who has had to maintain a
high rate of sale since day one.
“If we get a supermarket order, we
make it and send it out that day – we
can’t sit on warehouses of stock like
other companies.”
In 2013, Dyer secured a larger
kitchen in north London and some
finishing and depositing machinery.
He also scaled the team, bringing in
professional chefs such as Fraser
Thomson, who used to work at the
Michelin-starred restaurant The
Choosing a location
RII SCHROER
MATTHEW CAINES
Julian Dyer, the founder of Pots and Co, has transformed the pudding making start-up into a business with a £10m turnover
Square. “I couldn’t pay really high
salaries, so offered people lower wages
with shares,” says Dyer, who urges
businesses with tight budgets to sell
their vision and growth trajectory,
instead of potentially bankrupting the
firm. “Offer them a smaller piece of a
bigger pie.”
Over the next few years, Dyer slowly
but surely scaled his operation, the
secret to which is a mixture of staff,
space, equipment and patience, he
says, advising others not to be tempted
to cut corners. “We’ve turned down
some big companies off the back of
that thinking.” Two deals that Dyer did
not turn down were with the airlines
British Airways and Delta, which he
secured in 2016 off the back of a travel
food industry show. For this he
designed some smaller 50g plastic
pots that packed more of a flavour
punch. It brought his weekly pudding
production rate to more than 200,000.
The founder admits that he never
saw the airlines as a purely commercial
play: “I’ve actually seen it more as
marketing; there’s a bit of margin, but
it’s not significant.”
A lot of Pots & Co’s international
buyers have discovered the puds on
flights in and out of the UK. “For us, it
is about making something small and
hard-hitting that’s packaged well, but
also costs us very little, which is no
easy task,” he says, adding that the
flight deals presented a great
opportunity to make a big impact.
People spend hours on planes
sitting down and focused, he says, so
get it right and you can get them to
spend some quality time with your
product. The business, which has 80
staff and registered turnover of £10m
in 2017, has seen significant success in
the US over the past 14 months, with
the premium puds sold in 90pc of
Costco stores there.
“The UK is definitely the capital of
the world when it comes to retail food;
a lot of the big buyers come to the UK
to copy what we’re doing,” says Dyer.
He was surprised to find a pudding
scene that was somewhat lacking
Stateside. “The US has great apple pie,
cheesecake and ice cream, but that’s
about it.”
That left some room for Pots & Co’s
rich desserts, which are made in the
UK and shipped out. “Dairy over there
has not got the same fat content and
you really have to search for the good
chocolate,” he says.
In terms of what’s next, Dyer has
just completed a brand refresh, which
will be visible in the shops in three
weeks. “It was a hard process for me,
because I was in that mindset of: what
was wrong with the last branding? But
businesses have got to evolve and
challenge themselves; we had a lot
more to offer.”
One thing that won’t change any
time soon are Pots & Co’s ceramic
dishes, which are recyclable and
reusable as seed pots, candle holders
and desk tidies. “It’s a good time to
have a product in a ceramic pot,” says
Dyer, who sees the tide turning against
plastic (the company uses a minimum
of 75pc recycled plastic in its lids).
“It’s great to see the public taking a
stand and we’re constantly rethinking
our packaging to ensure that we’re as
sustainable as possible.”
Telegraph Small Business Connect is a
specialist community dedicated to
helping small business owners and
directors – find out more at
tgr.ph/smeconnect
Co-working spaces often provide
multiple locations from which to work,
which can help small business teams
that have to travel a lot.
“Finding a commercially viable
office in London that enabled us to
easily service clients across all corners
of the city was really hard,” says
Benjamin Bolton of video analytics
company Tubular Labs. “We chose the
WeWork in Moorgate because it’s so
well-connected transport-wise.”
With 33 WeWork offices in the
capital, it also gave the company the
option to choose new locations as it
grew. The only minor drawback,
thinks Mr Bolton, is the cost.
“Depending on where you’re located,
you could pay £500 to £600 to be in a
private office, but you pay £600 to
£700 per desk per calendar month to
be in a WeWork location.”
Make sure that you have the option
to upgrade or downgrade your
membership as your team size
changes, advises Meetra
Eskandarpour of Shoreditch coworking space Huckletree.
Putting the kettle on
Being in a co-working environment
isn’t just about having a desk, says
Jamie Hopkins, chief executive of
Workspace; it’s also about the
amenities. “The layout – including the
volume of breakout areas, dedicated
team rooms and access to power – will
affect employee satisfaction and
productivity,” he says.
And do not forget the importance of
internet connectivity and technology
infrastructure.
But there are downsides to having
add-ons like kitchens – namely
popularity, says Jeff Kofman, founder
of software firm Trint. “In some spaces
where we co-worked, there were not
enough places for private calls and we
had to sit in stairways or on corridor
floors,” he says.
Trint now uses the Second Home
co-working space, but with more than
30 staff, its founder is contemplating
renting the company its own office.
“It will be expensive, but we need
somewhere that’s furnished, with
good lighting,” he says.
To make a real difference, support
a green cause beyond your office
SIR JOHN
TIMPSON
ASK JOHN
Straight-talking common
sense from the front line
of management
Q
I’ve resolved to reduce my media
agency’s impact on the
environment. Most of our work is
digital and done online, so we’re not
producing tons of waste, but I feel
like our office space (we’re seven
people in a fairly remote location
outside of London) could be greener
– any ideas for quick wins?
A
As a small digital business, you
won’t change the world with a few
solar panels, banning plastic cups,
replacing biros with pencils or
encouraging your colleagues to cycle
to work, but they will all send the right
message and are good places to start.
If it makes you feel good, put an
environmentally friendly message at
the end of every email. You know the
sort of thing: “Before you print off this
email, think of the environment;
emails save paper – don’t waste it by
making a copy.”
But for companies to make a real
difference, they need to pick a cause
outside of their office hours and walls.
I know a businessman who has done
just that – a gritty Yorkshireman called
Thomas Black who’s leading a personal
anti-litter campaign. You can find out
more on YouTube, where he has
posted three short, self-funded films.
The latest one (and my favourite) is
called Cleaning up the Laybys – a
catchy song to the tune of George
Formby’s When I’m Cleaning Windows.
It’s funny, entertaining and to the
point, so do take a look.
I’m reminded of his song every day,
when I pass a bit of waste ground on
my way to work. The fly-tippers must
come in the hours of darkness,
because each time that I drive by,
there’s another washing machine, hub
cap, pram, useless lawnmower or
mouldy mattress. All these items are
accepted at a recycling centre just over
two miles away, which is open from
8am to 6pm every day, save for
Christmas and New Year.
Of course, I should have done
something about that rubbish years
ago, but like hundreds of others, I
drove by and did nothing. While
writing this piece, my conscience has
been pricked into action and I will be
writing to the local council.
I may have been at fault on the way
to work, but I have been a regular
litter-picker on the grass verge outside
my house. Over the past 30 years, I can
report that regular users of the A54
between Winsford and Chester have
thrown away more McDonald’s
containers than Burger King; more
Cadbury wrappers than Maltesers; and
more cans of Carling than Carlsberg.
I’m wondering whether my verge
could be used for market research.
Fly-tipping and tossing junk food
out of car windows are in sharp
contrast to the obedient way that
householders follow the regulations of
the wheelie bin world.
Conscientious citizens remove the
plastic windows from envelopes
before putting them in with other
papers for recycling, and are able to
follow the comprehensive rules that
specify exactly what to put in the
green, blue and black bags.
You should be encouraging the
same at your company; these
behaviours aren’t just for the home.
If there was a Nobel Prize for
recycling, perhaps it should be
awarded to Iceland founder Sir
Malcolm Walker and his son Richard,
who are committed to eliminating all
plastic packaging from their own-label
products by 2023. It’s an approach that
I’m sure will make a big difference,
and much preferred to the technique
that I’ve heard used by one lone
campaigner, who insists on removing
all the unnecessary packaging before
leaving her local supermarket (I pity
the poor people behind her in the
checkout queue).
In the Eighties, I was a governor at
Brookway High School. Just across the
road from my office and not far away
from the tip that I see on my way to
work, Winifred Blackburn, the
school’s head, went on a litter patrol
every morning, setting an example for
her pupils to follow.
Perhaps you could do the same for
your staff by making your own mark in
the war against litter.
Sir John Timpson is chairman of the
high street services provider Timpson.
Send him an email at
askjohn@telegraph.co.uk
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