THREE EX-BARCLAYS BANKERS CONVICTED OVER LIBOR SCANDAL

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10 NEWS TUESDAY 5 JULY 2016 Sainsbury’s set to shutter 16 Netto UK stores HELEN CAHILL @HelCahill SAINSBURY’S is ditching its partnership with European discounter Netto and plans to close 16 Netto UK stores in August. Around 400 jobs in the stores are now at risk as Sainsbury’s focuses instead on its acquisition of Argos owner Home Retail Group. Sainsbury’s had been looking to grow a footprint in the discount grocery market, but after reviewing trading data, customer insights, and expansion costs, decided Netto would not be able to grow quickly enough. Mike Coupe, chief executive of Sainsbury’s, said the company had learned about the discount grocery market from the trial, but said “Netto would need to grow at pace and scale, requiring significant investment and the rapid expansion of the store estate in a challenging property market” for the venture to work. “Consequently, we have made the difficult decision not to pursue the opportunity further and instead focus on our core business and on the opportunities we will have following our proposed acquisition of Home Retail Group,” Coupe said. Analysts blamed tough competition in the market for the decision. “Netto couldn’t match the competition it faced from the likes of Aldi and Lidl,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said. The joint venture between Dansk Supermarked Group’s (DSG) Netto and Sainsbury’s began in June 2014. Per Bank, chief executive of DSG, said: “While we are pleased with the performance of the stores to date, it has become clear to both partners that the business requires greater scale over a short period of time to achieve long-term success. Reaching scale has Slug and Lettuce is one of Stonegate’s major bar brands. It also owns Yates bars Revenues up at Slug and Lettuce owner Stonegate Pub Company FRANCESCA WASHTELL @fwashtell SLUG and Lettuce owner Stonegate Pub Company toasted healthy double-digit revenue growth in its first-half results yesterday. Total revenue across Stonegate’s 660 pubs and bars was up 12.8 per cent to £342m for the 28 weeks to 10 April. Like-for-like revenue increased 2.1 per cent, while likefor-like pub profit rose 10.6 per cent. Stonegate acquired Maclay’s and TCG in July and September of last year respectively. It said it has traded well since April and has capitalised on the Euro 2016 sports championship this summer by offering customers both Sky and BT in 394 of its pubs. CITYAM.COM Britons shun shops to spend on experiences FRANCESCA WASHTELL @fwashtell BRITONS are increasingly spending their time and money on experiences rather than shopping, according to research from Deloitte. Spending on leisure activities such as going out for meals, holidays and TV streaming services is growing nearly twice as fast as the retail sector. The industry as a whole is now worth £117bn and since 2010 has grown at a rate of five per cent per year. In the first quarter of 2016, 95 per cent of 3,000 survey respondents said they had spent money on leisure activities. The most popular activity was eating out (85 per cent), while 77 per cent channelled their funds into inhome activities such as film, TV and music streaming. “Leisure is no longer defined as an out-of-home activity,” Simon Oaten, partner for hospitality and leisure at Deloitte, said. “In-home leisure has continued to grow since the recession and consumers now regard these activities as part of their day-to-day leisure routine.” More trouble for supermarkets as short-sellers bet against the sector Leeds fund snaps up Ambulance converter JAKE CORDELL @JakeCordell TRADERS believe the worst is far from over for the UK’s embattled supermarkets, as short-sellers have piled in to bet against the sector in the next few months. More than three times as many shares are held by people hoping to profit from a near-term fall in the share price of the UK’s leading supermarkets as in any other sector on the FTSE 350, according to Bloomberg data compiled by Liberum. So-called short-sellers bet against a share price going up, so they make a profit when the company value drops. It is the opposite of the traditional ‘long’ position, where investors hold a share and benefit when the company pays out dividends or its share price goes up. Measured as a share of the sector’s total market value, around seven per cent of shares in the supermarket sector are held by short-sellers. This compares to just 1.5 per cent for the wider retail industry and is more than three-times the next most-shorted sector, capital goods. OLIVER GILL @ojngill TURNAROUND investor Endless has bought one of the UK’s leading vehicle converters. The Leeds-based fund yesterday announced the deal to buy Oughtred & Harrison (O&H), with the promise to refinance the group and inject additional working capital. O&H was established in 1988 and specialises in converting vehicles into ambulances and other types of wheelchair accessible transport. The company is based in Goole, East Yorkshire with 234 employees. It has 13 main customers that comprise public and private ambulance trusts as well as local councils. Endless is also one of the potential bidders for Tata Steel.
CITYAM.COM TUESDAY 5 JULY 2016 NEWS 11 Pharma industry in UK could gain from Brexit vote BILLY BAMBROUGH @BillyBambrough THE UK pharmaceuticals sector could benefit from the country’s vote to quit the European Union, according to new research. A loss of some funding and a socalled brain drain as employees relocate abroad in the short term is not expected to have a significant impact on long term growth, business intelligence firm BMI Research found. “While the bearish case for the UK’s pharmaceutical research and development (R&D) sector as a result of Brexit has been widely articulated, the upside risks are underappreciated,” the report authors wrote. BMI found the UK’s strong scientific base and existing R&D partnerships with companies and organisations across the EU will allow it to enter negotiations for the continued access to EU R&D funds. The report did warn over the risks associated with renegotiation of the UK’s trade deals. “Hammering out deals with the EU over the coming years will entail a great deal of time and uncertainty, and there is a risk that the UK will receive a punitive deal as it will be negotiating from a perceived position of weakness,” BMI analysts wrote. “However, amid the negative sentiment surrounding the UK’s prospects of going it alone, we highlight that the UK’s world class science base, its strong position within the global R&D arena and the country’s international research collaborations will work towards keeping British science at the forefront of research.” Pharma accounted for the highest level of business R&D expenditure for a product group in 2014, according to the Office for National Statistics. It represented 20 per cent of total expenditure and clocked up almost £4bn of spending. It was followed by computer programming and information services activities at £2.35bn. SUPER RESULTS High street chemist Superdrug sees profits rise 62 per cent SUPERDRUG is set to file accounts at companies house showing operating profit of £62.2m in 2015, up from £38.2m the year before. Sales from like-for-like stores increased by 6.6 per cent, with make-up and beauty growing 11 per cent. Small business confidence fell before Brexit HELEN CAHILL @HelCahill SMALL business confidence was at a four-year low before the EU referendum, according to data from the Federation of Small Businesses (FSB). A survey from the FSB, conducted before the Brexit vote, also found smaller companies are planning to cut jobs for a second quarter in a row. Members said their profits are falling due to the increased cost of labour and tax burdens. Only 12.2 per cent of businesses surveyed said they planned new capital investment over the next year - down from 31.9 per cent a year ago. Mike Cherry, FSB chairman, said the government should push forward on expanding small business rate relief and that the Low Pay Commission should be “especially vigilant” when making recommendations on minimum wage rates next year. “We need to do everything we can to support small firms to grow, create jobs, and weather the harsh economic headwinds,” he added. Clarkson’s share price sinks after it warns profits will be lower this year HELEN CAHILL @HelCahill SHIPBROKER Clarkson’s share price tanked 16.1 per cent to 1,850p yesterday after the group said its profits will be “materially lower” this year. The group said global economic uncertainty and an imbalance between supply and demand in shipping and offshore meant the industry “remains depressed”, despite the recovery of oil prices. The FTSE 250 group said: “While recent strengthening of the US dollar against sterling, if sustained, will offer some limited enhancement to reported profits, the board anticipates that as a consequence of the challenges... profits for 2016 will be materially lower.” CLARKSON 2,300 P 2,200 2,100 2,000 1,900 1,800 1,700 4 July 1,850.00 28 June 29 June 30 June 1 July 4 July Fund manager to keep London as European base after Brexit WILLIAM TURVILL @wturvill COLUMBIA Threadneedle has committed to keeping its European headquarters in London after Brexit. The fund manager confirmed it has “begun the process of applying to expand the scope of our Luxembourgbased management company to enable us to establish an asset management presence in the EU”. But a spokesperson added: “We will not be moving our EMEA headquarters from London and the vast majority of our employees can expect to remain where they are currently located.” The commitment to London comes at a time when several asset managers are being linked with staff and fund movements away from the UK. The Investment Association is holding a meeting today to discuss the impact of Brexit with its asset manager members.
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THREE EX-BARCLAYS BANKERS CONVICTED OVER LIBOR SCANDAL

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