Boohoo’s (BOO) plan to widen the goalposts for management to take home huge bonuses has passed a shareholder vote, with 63 per cent support. Major shareholders include founder Mahmud Kamani and billionaire Ken Griffin, who runs hedge fund Citadel.
Kamani is not part of the bonus scheme but if all five levels of the plan are reached, chief executive John Lyttle can receive £50mn, CFO Shaun McCabe is up for £25mn and co-founder Carol Kane £20mn. Boohoo, one of London’s most-shorted shares, is trading at a fraction of its 2020 peak of over 400p, at 54p. It has already done well this year, however, climbing 45 per cent. AH
Read more: Boohoo risks shareholder revolt over executive pay
Aviva ups payouts by £300mn
The market’s generally positive reception to Aviva’s (AV.) results was partly down to adjusted operating profits, which were 35 per cent higher at £2.21bn. A further £300mn of share buybacks was announced alongside the results.
This takes the company’s total capital returns since 2021 to over £5bn and represents the windfall from Aviva’s various overseas business sell-offs, as well as pressure from activist investor Cevian Capital to bump up payouts. JH
Entain shares down as profits slide
Ladbrokes and Coral owner Entain’s (ENT) revenues were up 12 per cent to £4.3bn for the year to 31 December, as retail growth offset a 2 per cent fall in online sales. But pre-tax profits fell by almost three-quarters to £103mn as higher costs and foreign exchange losses took their toll. The shares were down 6 per cent. CA
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Kier’s bottom line improves
Contractor Kier Group (KIE) reported a doubling of pre-tax profit to £25.4mn on 3 per cent revenue growth to £1.53bn. Although its adjusted operating profit only nudged up by 6 per cent to £57.2mn, the company incurred fewer restructuring costs and other one-off charges. Its order book grew by 26 per cent to £10.1bn. MF
Windfall tax ‘all but wipes out’ Harbour profit
Harbour Energy (HBR) has revealed a $2.45bn (£2.1bn) tax bill for 2022, taking its post-tax profit to $8mn on sales of $5.4bn for the year. The company has lobbied heavily for changes to the government’s energy profits levy, which was increased to 75 per cent on profits in November. Harbour boss Linda Cook said the levy was having a significant impact on the business. “For Harbour, the UK's largest oil and gas producer, it has all but wiped out our profit for the year,” she said. “This has driven us to reduce our UK investment and staffing levels.”
The eye-popping tax number does need some scrutiny, however - for the 2022 calendar year, the current tax expense is $706mn, including $326mn from the windfall tax. The lion’s share of the $2.45bn is from $1.5bn in a “one-off non-cash deferred tax charge” which comes from the revaluation of tax losses that came from the Premier Oil takeover, using the new 75 per cent tax rate out to 2028. AH
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Upbeat guidance fuels NWF’s rally
Shares in food and fuel distributor NWF Group (NWF) jumped by 7 per cent in early trading after it said that its headline pre-tax profit for its May year-end would be “significantly ahead” of expectations. The company expects to make a profit of “not less than £17.5mn”, which is comfortably ahead of the current consensus of £12.3mn. The company said its third quarter performance had been better than expected, which included that of the Sweetfuels business it bought in December. MF
Inflation cools at fan maker Volution
Shares in Volution (FAN), the maker of air quality and heat pump systems, rose by 7 per cent after the company reported gains in revenue and profit, and said signs of inflation and supply chain strains were easing. The company reported a 9 per cent increase in revenue to £162mn for the six months to January 31 and 6 per cent growth in pre-tax profit to £22.6mn. MF
