Below are the key morning and weekend press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Vimto-maker Nichols (NICL) has warned profits could be hit hard next year by a tax on sugary soft drinks in Saudi Arabia and the United Arab Emirates. The Middle East is an important market for Nichols because growing numbers of Muslims break their Ramadan fast with a glass of Vimto. The 50% tax on the retail price of non-carbonated sugary drinks was brought in at the start of December. Merseyside-based Nichols, which is also behind Levi Roots and Sunkist drinks, said it would not be able to determine how badly sales would be affected by the price increase until the end of the Ramadan trading period. However, it warned the impact could result in 2020 profits falling “materially below current expectations” - The Guardian
Anglo American (AAL) has received a crucial permit to carry on adding mining waste to a storage facility in Brazil, preventing the shutdown of one of its biggest mines. The group had been waiting months for an operating licence for the “tailings” dam at Minas-Rio in Minas Gerais state after increasing the height of the structure. Although the construction work was permitted in 2018 and completed in August, Anglo could not continue using the enlarged facility without the licence. The licence renewal was thrown into doubt in January when the Brumadinho disaster led to renewed scrutiny of tailings dams across Brazil. - The Times
NMC Health (NMC) gave its share price a booster jab yesterday after it opened an independent review to examine claims made by an aggressive short-seller. The beleaguered firm has brought in an unnamed leading accountant to delve into its books and assess whether an attack by US hedge fund Muddy Waters has any merit. The climb came after it shed more than half of its value last week after Muddy Waters said it had taken a short position in the group and raised ‘serious doubts’ about NMC’s finances and relationship with its auditor. In a detailed rebuttal, NMC denied Muddy Waters’ claims.Yesterday Muddy Waters, which is run by short-seller Carson Block, was quick to double down on its allegations, saying such reviews ‘are usually exercises in whitewashing that provide little to no transparency or accountability’. But this did little to dent investors’ relief that the Middle East-focused group could shake off the allegations. - The Mail
The new US owner of the UK defence company Cobham (COB) has pledged to keep jobs and investment in Britain as the government faces increasing criticism for allowing the £4bn takeover to go ahead. The world-leading expert in air-to-air refuelling said its private-equity buyer, Advent International, had committed to maintaining a UK headquarters and to continue funding research and development at its Dorset offices. It has also vowed to keep using the company’s name, which references Sir Alan Cobham who founded the firm in 1934. The deal had been delayed for months after fears were raised that Advent International’s acquisition could undermine national security, because of Cobham’s sensitive military contracts. It has extensive deals with the British military and also manufactures electronic warfare and communications systems for military vehicles.- The Guardian
Shares in NAHL Group (NAH) fell after it warned profits will fall by as much as 10% this year. The firm, which provides marketing services to legal firms, said a poor performance in its residential housing division would drag it down. The homes arm connects people buying houses with surveyors and other services, and has suffered a slowdown. It has also struck a £5million deal to exit a joint venture with National Law Partners. - The Mail
Ryanair Holdings (RYA) has failed in its legal bid to prevent one of its former executives joining a rival airline. Justice Senan Allen ruled in the High Court in Dublin that Peter Bellew was free to join easyJet (EZJ) next month. In his judgment, he told the court that even though the non-compete clause was valid, it was overly restrictive. “I find that the covenant in this case, properly construed, would prevent the defendant from taking up employment with any European airline, including the legacy carriers, and so goes beyond what the plaintiff has shown to be justified,” Justice Allen said. - The Telegraph
Centamin (DI) (CEY) announced after the market closed that it has requested an extension to a takeover deadline until January 14. Canadian group Endeavour approached Centamin with a £1.5billion merger offer this month but only had until December 31 to make a final offer. Both companies said they had not been able to delve into each other’s books enough to make a final decision. Endeavour then asked Centamin to arrange an extension until the end of January, with Centamin compromising by giving Endeavour a two-week reprieve - The Mail
Shares in BAE Systems (BA.) rose after analysts at JP Morgan undertook a bit of “year-end housekeeping” and trimmed its earnings forecasts for the next three years by 3% as a result of unfavourable currency movements and higher pension costs. But they lifted their price target to 600p, claiming that BAE was worthy of a slightly higher valuation multiple since the election. “We believe the Conservative victory in the UK election has reduced BAE’s risk profile — a Corbyn Labour government would have brought many risks, in our view — and we now apply a slightly higher target multiple to set our price target,” said David Perry, an analyst at JP Morgan. - The Times