BUSINESS LIVE: Anglo American snubs BHP bid; NatWest profits fall; Pearson English language boost

Just before close, the FTSE 100 was 0.79% up at 8,142.82.

Meanwhile, the FTSE 250 was 1.16% higher at 8,142.82.

(PA) – Whitbread is set to reveal a rise in revenues and profits for the past year as investors will be keen for a positive outlook for hospitality spending.

The Premier Inn and Beefeater owner will unveil its latest annual results in an update on April 30.

Shareholders will be on the lookout for positive signals about future trading, with the company’s share price currently at its lowest levels for a year.

It comes amid a challenging backdrop for the hospitality sector, with many Britons opting to spend time at home in favour of going out to pubs and restaurants in the face of the higher cost of living.

Nevertheless, the group is predicted to reveal a 14% increase in revenues to £2.99billion for the 2023/24 financial year.

A consensus of analysts have also forecast that it will show pre-tax profits of £565million for the year, from £413.4million a year earlier.

Being in a position where you can afford to keep a pension untouched for your grandchildren is ideal if you want them to gain a benefit from your savings in potentially the most tax-efficient way.

Sipps, as self-invested person pensions are known, are a popular form of personal pension that allow people to invest within a pension ‘wrapper’, giving them a lot of control over how what investments they hold.

Jungheinrich – the company is a forklift truck manufacturer that has become a leader in the industrial automation sector.

Automated electric trucks and their exciting new automated compact storage system that vertically sorts and retrieves parts for a workstation are going to help transform the way the industrial economy works.

(PA) – Educational publisher Pearson said 2024 “started well” as sales grew on the back of strong demand for English language and work skills courses.

The company also said it has seen positive engagement for learning tools where it has integrated AI technology, with plans to grow its use of AI features over the rest of the year.

Nevertheless, shares dipped in early trading despite largely matching analyst expectations.

The FTSE 100 firm told investors on Friday that it is “on track” to meet its guidance for the year after growth in the first quarter.

It revealed that sales grew by 2% over the first three months of the year, with this at 3% excluding parts of the business currently under review.

Pearson told shareholders its assessments and qualifications division record a 2% increase, although it was impacted by its US assessment performance.

Rocketed? Soared? Took off? Whatever word you choose, news that Elon Musk’s SpaceX could become a major Filtronic shareholder definitely set a fire under the AIM-listed microwave technology company.

Filtronic on Wednesday confirmed that it will supply ‘E-band Solid State Power Amplifier’ modules for SpaceX’s Starlink satellite constellation under a $19.7million deal.

Darktrace could be the latest high-profile name to leave the London Stock Exchange after it agreed to a $5billion (£4.3billion) takeover bid by a US private equity firm.

Thoma Bravo is now offering £6.20 per share, 20 per cent higher than Darktrace’s closing price on Thursday and a 44.3 per cent premium to its average share price over the past three months.

(PA) – Sir Paul Marshall is stepping down from the board of GB News after three years, amid reports the hedge fund manager is considering a new rival bid to buy the Daily Telegraph.

His resignation coincides with the appointment of politician and businessman Lord Theodore Agnew as the new director of its owner, All Perspectives.

Sir Paul, who was an early investor in the news channel, said: “I joined as a director for the start-up phase but now GB News is on a secure growth trajectory, I want to focus on my other business and philanthropic interests.

“I remain very engaged as a co-lead investor.”

Sir Paul was among a raft of potential bidders for the Telegraph newspapers last autumn, until Abu Dhabi-backed investment fund RedBird IMI said it had struck a deal to take control of the business.

But the takeover is at risk of collapse after criticism from politicians and industry bosses over the link to foreign governments.

The hedge fund millionaire’s decision to resign from the GB News board comes as other potential bidders, including regional newspaper group National World, have renewed their interest in buying the Telegraph.

Sainsbury’s have claimed that customers love their self checkout machines and value the ‘speedy checkout’ despite consumer backlash against the machines which has seen some stores strip back the technology.

Boss Simon Roberts said that Sainsbury’s had invested in more self checkouts in recent years but was committed to having non-automated belt checkouts as well.

NatWest Group is the latest bank to report much lower first-quarter profits, amid peaking interest rates and mortgage lending pressures.

The banking giant’s pre-tax profits slumped by 27 per cent to £1.33billion in the opening three months of 2024, although this was above analyst expectations of £1.26billion.

The most popular investments picked by early bird Isa savers are US, global and India funds, plus some household name UK financial stocks, new research reveals.

A technology tracker fund and investor favourite Fundsmith Equity round out the top buys among Hargreaves Lansdown clients who paid into a stocks & shares Isa during the first 10 days of the new tax year.

For most people, heading to a loan shark is the stuff of Guy Ritchie films and gritty crime dramas.

However, for masses around the country, illegal money lenders have become the only way to afford necessities, from household bills to baby formula.

Anglo American has rejected rival BHP Group’s £31.1billion takeover proposal, which the London-listed miner said significantly undervalued the company and its future prospects.

But analysts last night said BHP would have to improve its offer, which faced political opposition in South Africa and investors describing the bid as ‘opportunistic’ due to Anglo’s ‘depressed’ valuation.

Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown:

‘The FTSE 100 has reached yet another untouched summit, as investors remain in a positive mood. There has been a flurry of strong results from big hitters like Barclays and AstraZeneca on Thursday, which has helped carry the FTSE to these new highs.

‘The market’s also reacting to the news that consumer confidence has improved slightly, according to data from GfK. Anglo American has also rejected BHP’s surprise takeover bid, deeming the multi-billion pound offer as unattractive.

‘The proposed deal would hugely reshape the business, and the Anglo board has suggested the current bid isn’t reflective of the opportunity. There’s every chance BHP will come back to the table, and these conversations will remain the core cause of market reactions for both groups.’

Private equity firm Thoma Bravo has agreed to buy British cybersecurity firm Darktrace for about $5.32billion in cash.

The agreed price of $7.75, or around 620p per share represents a 44 per cent premium to Darktrace’s average share price in the three months to Thursday Thoma Bravo said.

Shares in the company jumped 16 per cent after the announcement to 601 pence.

John Moore, senior investment manager at RBC Brewin Dolphin:

‘Like its peers, NatWest has seen profits fall – but it has still beaten expectations in a more competitive mortgage market and peaking interest rates environment.

‘Costs are stable and returns on equity remain high – albeit, not where they were a year ago. Unlike Lloyds and Barclays, NatWest doesn’t have to deal with legacy car finance and investment banking issues, so the bank has those advantages on its side along with its more streamlined business model.

‘The key, as ever, is the sale of the government’s stake, which should be addressed in the near future, and NatWest is in a positive position going into that process.’

The boss of the company that owns London’s stock market is set to become one of the highest paid Footsie chief executives despite the crisis engulfing the exchange.

Some 89 per cent of London Stock Exchange Group (LSEG) shareholders voted in favour of more than doubling David Schwimmer’s maximum package from £6.25million to £13million.

British companies have been labelled ‘sitting ducks’ as foreign predators hunt takeover bargains in London.

The swoop on Anglo American – the second FTSE 100 firm to receive a takeover bid this year – has sparked speculation over which company will be next.

City analysts think vulnerable blue-chip stocks include BP, Unilever, BP, Reckitt Benckiser, Standard Chartered, Entain and Burberry, (whose values are listed above).

FTSE 100 education company Pearson has posted a 3 per cent rise in adjusted underlying sales for the first quarter, with the firm expecting growth to accelerate in the second half.

English Language Learning sales led growth after expanding 22 per cent, ‘with inflationary pricing in Argentina having a positive impact which will dissipate through the year as comparative FX rates normalise’.

Pearson boss Omar Abbosh said:

‘The year has started well. Financial performance was in line with our expectations, thanks to strong execution across the business, and we maintain a sharp focus on delivering against the priorities that I outlined.

‘The year is unfolding as we anticipated, and we continue to expect an acceleration of growth in the second half, which will see us achieve our guidance for the full year.

‘We look forward to providing an update on our strategic progress with our half year results in July.’

More than £100billion was wiped off the value of Meta as fears mount over the Facebook owner’s huge spending on artificial intelligence (AI).

Shares in the company, which also owns Instagram and Whats- App, fell 10.6 per cent in New York after it said expenses would be higher than previously forecast.

That wiped £105billion off Meta’s value. In an update on Tuesday, the group said it will fork out as much as £32billion in 2024 – up from a previous forecast of £30billion.

NatWest profits fell by a less than expected 27 per cent in the first three months of 2024, with the lender hit by competition for savings, lending and mortgage products squeezing margins across the sector.

The British bank said pre-tax operating profit for the January-March period was £1.3billion, down from £1.8billion a year earlier and just above the average of analyst forecasts of £1.2billion.

Chief executive, Paul Thwaite, said:

‘Our performance is grounded in the vital role we play in the economy and in the lives of our 19 million customers. Though macro-uncertainty continues, customer confidence and activity is improving, with both lending(1) and deposits up in the quarter and impairments remaining low, reflecting our well-diversified business.

‘We are ambitious for this bank, and by succeeding for our customers, we will succeed for our shareholders. Our first priority is delivering disciplined growth across our three businesses by serving our customers well. At the same time, we are becoming simpler, more productive and easier to deal with.

‘As a result, we aim to generate returns that allow us to support our customers, invest in our business and deliver attractive distributions to shareholders.

‘We are also pleased with the recent momentum in the reduction of HM Treasury’s stake in the bank. Returning NatWest Group to private ownership is a shared ambition and we believe it is in the best interests of both the bank and all our shareholders.’

Anglo American has rejected rival BHP Group’s £31.1billion takeover proposal, which the London-listed miner said significantly undervalued the company and its future prospects.

Stuart Chambers, chairman of Anglo American, said:

‘Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends.

‘With copper representing 30% of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the Board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises.

‘The BHP proposal is opportunistic and fails to value Anglo American’s prospects, while significantly diluting the relative value upside participation of Anglo American’s shareholders relative to BHP’s shareholders.

‘The proposed structure is also highly unattractive, creating substantial uncertainty and execution risk borne almost entirely by Anglo American, its shareholders and its other stakeholders.

‘Anglo American has defined clear strategic priorities – of operational excellence, portfolio, and growth – to deliver full value potential and is entirely focused on that delivery.’