Testing times
Lab processing
The NHS’s ability to process Covid-19 tests has been disrupted by problems at Swiss healthcare giant Roche (SW:RCH). Roche provides some of the essential equipment needed by labs to process virus tests. The group said that it deeply regretted the delayed dispatch of some products because of “unforeseen issues” endured during the move to a new UK warehouse. It is “confident that the plans we have put in place will deliver significant improvements by the weekend to the supply of the tests affected by these logistical issues. We will be well on the way to resolution by the end of next week.”
Big Tech’s reckoning
449-page report
As we explore in our news section this week, a report from the US House of Representatives’ sub-committee on anti-trust has come down hard on Big Tech. It argues that “companies that once were scrappy, underdog startups that challenged the status quo have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons”. The House in question is Democrat-controlled, and the report ostensibly signals how Washington could manage the likes of Apple (US:AAPL) and Alphabet (US:GOOGL) under a Biden administration.
Working from home
Longer-term plans
Nearly three-quarters of company directors in the UK have said that they plan to keep increased home-working even after the pandemic. More than half said that they plan to reduce their long-term usage of work-places. That’s according to a survey of 958 company directors conducted last month by the Institute of Directors (IoD). The IoD said that the government should help small- and medium-sized enterprises (SMEs) to adapt to this new environment by improving SME tax incentives, improving access to management training and reducing employment costs.
Mulberry cuts dividend
Challenging period
Shares in Mulberry (MUL) slipped on Tuesday after the luxury fashion retailer reported on a “challenging period”, knocked by Brexit uncertainty, lower consumer confidence and “dramatic” Covid-19 disruption towards the end of the financial year. It expects the recovery in its sales to be “gradual” over the medium-term and has opted not to pay a dividend, with a view to maintaining adequate liquidity. The group noted that tourism in London and other capital cities – important locations for shopping – will be non-existent for the time being.
Aim fundraisings
Nearly £4bn
According to accountancy group UHY Hacker Young, Aim-listed companies have raised £3.8bn through secondary fundraising this year – up by almost three-quarters year-on-year. UHY said that London’s junior market has “more than proven its value through the coronavirus crisis as a quick way for smaller companies to raise emergency capital”. It also noted that more Aim companies are conducting secondary placings in order to buy new assets, rather than just recovering from the early shocks of the crisis. Initial public offerings (IPOs) could now be picking up again, after a hiatus during the pandemic.
Ola taxi ban
Licence expiry
Transport for London (TfL) has banned taxi company Ola, arguing that it “is not fit and proper to hold a private hire operator licence”. Ola, a competitor to ride-hailing platform Uber (US:UBER), started operating in London in February 2020. TfL said that it will not be issued with a private-hire operator licence after the expiry of its current licence on 3 October. It explained that Ola had recently made it aware of “a number of failures” which had potential public safety consequences, with unlicensed drivers and vehicles undertaking over 1,000 passenger trips on behalf of Ola.
Weir disposal
Oil and gas
Engineering and services firm Weir Group (WG.) says it will “significantly enhance” its earnings stability by selling off its oil and gas division. Caterpillar, mainly known for its heavy equipment business, has agreed to pay $405m (£313m) for the division, which made an adjusted operating loss of £4.4m in the first half. The company’s shareholders need to back the sale. Given that its shares climbed by 16 per cent on the news, this seems unlikely to be an issue.
