Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
International Consolidated Airlines Group SA (CDI) (IAG) issued a profit warning after taking a hit from the 48-hour strike action by its pilots earlier this month. The strike cost the group around £121million and further passenger disruption triggered by threatened strikes by staff at Heathrow Airport has cost the firm £299.2million to date, meaning IAG’s annual profits will come in lower than expected. IAG’s boss has confirmed it is looking to snap up the stricken holiday group’s plane slots at Gatwick airport. Willie Walsh said: ‘If there’s slots available we’ll be looking at slots, but through the normal way, through the slot pool. ‘But if there is an opportunity to acquire some slots through the administration … We clearly see Gatwick as an opportunity for us and that is something we will be looking at.’
Former bosses of Thomas Cook Group (TCG) , its auditors and financial regulators are to face public questions from MPs about its collapse. The Commons business, energy and industrial strategy committee will investigate Thomas Cook as concerns grow over its executives’ pay, accounting practices and the role of its auditors. The committee, chaired by the Labour MP Rachel Reeves, said its inquiry would seek to question executives including the chief executive, the finance director and the chairman, its auditors, PWC and EY, the Financial Reporting Council and the Insolvency Service.
Panicked traders have wiped almost £7bn off Britain’s tobacco firms since Donald Trump launched a crackdown on vaping. Imperial Brands (IMB) slumped more than 9% on Thursday as it warned that action by the White House and individual US states has triggered a marked slowdown in electronic cigarette growth over the past three months. It means that since President Trump announced plans earlier this month to ban flavoured vaping products, Imperial has lost £3.4bn ofr its market value – with fellow London-listed producer British American Tobacco (BATS) down £3.3bn. Tobacco companies have embraced vaping as a way to boost their profits as Westerners turn away from smoking.
Barclays (BARC) chairman Nigel Higgins has shaken up the bank’s board by hiring two well-known financiers following pressure from investors to bring in fresh faces. The bank has hired Dawn Fitzpatrick, the investment chief for billionaire George Soros’ fund management firm who oversees assets worth about $25bn, and Mohamed El-Erian, the chief economic adviser at Allianz and former boss of Pimco, as non-executive directors. The pair are both veterans in the finance industry, and are particularly well-known in fund management circles.
Investment manager Shore Capital Group Ltd. (SGR) is planning to delist from London’s junior stock market. The cancellation, which would will take effect on Nov 1, requires the consent of at least 75% of shareholders at the annual meeting next month. The London stockbroker – which advises small companies that think there is a benefit to being listed – said its Aim listing undervalued the business and comes at “considerable” expense. It also costs management time to maintain the company’s public admission, outweighing the benefits of retaining it. The company added that it now “has sufficient and significant capital to meet its growth ambitions”.
Pearson (PSON) has warned that sales of its US university textbooks will fall by a fifth this year, wiping more than £1 billion off its stock market value. The publisher, which is in the midst of a prolonged overhaul designed to boost sales of digital learning tools, warned that trading at its American higher level business had been much weaker than forecast. US students had bought far fewer textbooks than expected when they returned to their universities and colleges after the summer break, it said. The warning rekindled fears over a transformation plan that, as recently as July, appeared to be bearing fruit. “This is a disappointment and painful and we’re in no doubt that it’s a difficult day for shareholders,” John Fallon, chief executive, said. “However, it does help us get to the future state more quickly.”
The chief executive of Mitchells & Butlers (MAB) said the pubs takeover frenzy was good for the sector but shrugged off speculation that the All Bar One operator could be the next target. Phil Urban, 56, said the bids for Ei Group and Greene King had highlighted the value in pub businesses, adding: “It’s good that the wider world is looking at the sector again.” Asked whether M&B could become the next target, he said: “Who knows? We’ve got a strong shareholder base and supportive board.”
Alfa Financial Software Holdings (ALFA) has blamed political uncertainties for a sharp fall in profits. The figures were in line with a profit warning last week that prompted a share price fall. Andrew Denton, chief executive, said customers had less “discretionary spending” due to the uncertain political and economic backdrop, with the company hit by delays to projects. Profit margins were further squeezed by the rising cost of hiring skilled workers.
Marks & Spencer Group (MKS) chairman Archie Norman bought nearly £100,000 worth of the company’s shares as they crashed to their lowest level for nearly two decades. Norman has said the latest five-year plan is on track but stressed his changes will not bear fruit for years. The first opportunity for positive signs to appear is in November when interim results are published. Investors will be hoping for good news after years of disappointment and turmoil in the boardroom.
Verditek (VDTK) shares rose after the solar panel maker secured another order with a Nigerian distributor. Verditek said further orders are in the pipeline. The company is also looking to raise £650,000 through a share placing of 14.4m shares, which it will put towards its growth plans.