Almost £1 billion was wiped from the value of S4 Capital, Sir Martin Sorrell’s advertising company, yesterday after it suddenly pulled the publication of its annual results.
S4 Capital’s shares slumped in late trading on the London Stock Exchange after the company said it had been informed by its external auditors at PwC that they were not able to complete the work in time. The stock closed down 172p, or 35.7 per cent, at 310p,
Sponsored
In a brief statement, about half an hour before the stock market closed, the company said that at 2.30pm it had been informed by PwC that “they were unable to complete the work necessary for S4 Capital to release the preliminary statement” this morning.
British Airways suffers IT meltdown AGAIN: Flights are grounded, planes are diverted mid-air and fuming passengers left unable to check in and stranded on the tarmac across Europe after weeks of issues at airline
British Airways reportedly hit with 'IT system failure' causing flight delays
Heathrow customers 'are unable to access boarding information or check-in'
Several flights scheduled for Heathrow have now been diverted elsewhere
Hundreds of BA flights have been disrupted in recent weeks due to IT issues
Are you stuck waiting for a BA flight? Email william.cole@mailonline.co.uk
Travellers hoping for a relaxing spring getaway have slammed British Airways when a 'technical issue' caused dozens of flights across Europe to be cancelled or delayed.
Customers were reportedly met with huge queues at check-in desks and were unable to access any boarding information at Heathrow's Terminal 5 on Wednesday.
Are you stuck waiting for a BA flight?
Email: william.cole@mailonline.co.uk
Passengers who landed at the London terminal were also met with headaches as they claimed they were made to wait up to two hours to disembark.
At least two flights were diverted mid-air from Heathrow to London Gatwick, more than 40 miles away.
Some travellers who spoke with MailOnline were reportedly told that there had been a 'major IT system failure' and that the backup system had 'also failed'.
Natalie Stimson, who has waited for almost two hours at Heathrow after landing from Prague, said staff appeared 'clueless' as to the IT problem.
Zjelko and Helena Ivos were due to fly on the 9.25pm flight to Johannesburg, South Africa, but arrived to discover the flight had been delayed until 11am tomorrow.
Helena, from Loughton, Essex, told MailOnline: 'It is appalling. We cannot speak to anyone and have just been given a leaflet.
'We have to find a hotel and now have to get PCR tests as the ones we had will have expired by the time the flight leaves.
'It is just dreadful and there is no one from the airline who can help. There must be thousands of people trying to get through on the phone. No one has given us any information.'
Another passenger on a flight from Northern Ireland to London told MailOnline: 'We are stuck on the tarmac at Belfast City airport on the plane.
'The pilot told us all BA flights suspended due to massive IT issue. None allowed to take off. And sounds like they can't land at Heathrow.
'We have no idea what is happening. One passenger next to me said there is more information coming out of Putin's bunker than BA.
'No one, including pilots, has a clue what's going on. It's utter chaos. Fellow passengers are convinced it's a major cyber attack.'
Flight disruption was also reported by customers waiting to depart on flights from Copenhagen, Paris and Nice bound for the capital.
One eyewitness claimed that staff onboard one BA flight were seen using their personal mobile phones in an attempt to reach the office.
Customers were reportedly met with huge queues at check-in desks and were unable to access any boarding information at Heathrow Airport on Wednesday
Passengers who landed at the London terminal were also met with headaches as they claimed they were made to wait up to two hours to disembark. Pictured: Huge queues at Heathrow departure gates on Wednesday
Some travellers who spoke with MailOnline were reportedly told by BA staff that there had been a 'major IT system failure' and that the backup system had 'also failed'
Flight disruption was also reported by customers waiting to depart on flights from Copenhagen, Paris and Nice on Wednesday
There was no luggage in sight for some BA customers Heathrow on Wednesday
Several BA flights initially scheduled for Heathrow have now been diverted to London Gatwick almost 40 miles away
Pensioner Doros Partasides (left), 76, said BA's passengers were left stranded on the tarmac at Larnaca Airport in Cyprus for two hours
Danny Johnson 34, was due to fly to Nice but was told his flight was cancelled.
He said: 'How come this keeps on happening to BA. They must have the worst IT system out of any airline. With the long queues at immigration this airport is a bit of a joke.'
ITV's former top footballer commentator Clive Tyldesley also posted about being impacted by the fault: 'Heathrow is er not working at all.'
Another customer said they had been left waiting for more than two and a half hours and were unable to check in.
Big Jet TV, which soared to mainstream fame after livestreaming during Storm Eunice last month, tweeted: 'We're live at Heathrow and hearing British Airways IT systems are down.'
Pensioner Doros Partasides, 76, said BA's passengers were left stranded on the tarmac at Larnaca Airport Cyprus for two hours. 'The captain told us the IT glitch in London Heathrow T5 means no planes are allowed in or out,' he said.
Gavin Megaw, crisis consultant and host of White Swan podcast, who is presently stuck on a plane on the tarmac in Belfast said: 'It appears to be a significant IT failure and many are already speculating about the possibility of a cyber attack.
'It has seemingly caught BA off guard, highlighting a likely gap in the crisis communications plans BA has in place for such problems.
'The pilot and crew are doing everything possible to look after customers, but it's clear they are not receiving the information they need from their HQ to make and communicate decisions.'
Customers were reportedly met with empty check-in desks, unable to access boarding information and huge queues at Heathrow Airport on Wednesday. Flight disruption was also reported by customers waiting to depart on BA services from Copenhagen and Nice
British Airways travelers hoping for a relaxing spring getaway were plunged into chaos today as thousands were left in the lurch after a 'technical issue' caused flights to be delayed. [File image]
A BA spokesman said: 'We experienced a technical issue for a short time this afternoon which affected our operation at Heathrow Terminal 5. This has now been resolved and we're resuming flight operations. We've apologised to those customers who have been inconvenienced.'
Reacting to the delays, Michael Foote, personal finance expert and editor of Quotegoat.com, said: 'If your flight is cancelled, you should be asked whether you want a full refund or to re-book on an alternative flight.
'BA should cover the cost of transport if you need to travel from a different airport to catch your replacement flight.'
Wednesday's technical glitch marked the latest in a string of high-profile gaffes that have already plagued the airline this year.
Last weekend, almost 200 BA flights were disrupted, with passengers left queuing for more than an hour to check in their bags and others forced to return home without their luggage.
And in February, passengers were also hit by chaos from BA as more than 500 flights were cancelled or delayed after the airline suffered its biggest IT meltdown for years.
In an internal message to staff, chief executive Sean Doyle admitted passengers and employees are 'fed up' with the recent issues, which included IT issues and staff shortages.
BA said flights would have to be cancelled over the next few weeks, through the Easter holidays and until the end of May.
The issues have come at the worst time for BA, with bookings at their highest levels since the start of the pandemic after the UK and most European countries ditched Covid traveller tests for fully vaccinated holidaymakers.
Over the weekend, passengers at Heathrow said there were 'not enough staff to explain what was going on' and a lot of the desks looked 'unmanned' at the baggage check-in at Terminal 5.
Have you been affected by the chaos at Heathrow today? Share your experience with Jacob.Thorburn@mailonline.co.uk
IKEA's store in Tottenham, London, is set to close down
IKEA UK says 450 workers will be impacted by the planned closure of their Tottenham store in London.
The Swedish-founded company said they are committed to retaining as many staff as possible.
The retailer said the decision comes as part of its overhaul of London stores, including the opening of a smaller format site in Hammersmith and plans to open a store in the former Topshop site in Oxford Circus next year.
In the UK, there are 27 IKEA stores, but expansion has now shifted from its big-box format to smaller store formats, such as pop ups.
The flatpack furniture giant hopes to create 600 other jobs across the capital this year with its £1billion investment strategy.
An IKEA spokesperson said: “Last year, online represented almost half of the retailers’ total sales and the demand for different services as well as convenient deliveries accelerated.
“This, combined with the redevelopment of the area where the store is located, prompted the retailer to assess the long-term viability of the site.”
Signage for Ikea outside their store in SouthamptonAndrew Matthews
New Sustainable Living Shop area in IKEA GlasgowMark Runnacles
IKEA’s Tottenham store first opened its doors in 2005.
Bosses will launch a period of collective consultation with the 450 co-workers affected by this proposal.
Peter Jelkeby, IKEA’s UK and Ireland boss, said: “Taking care of our co-workers is our highest priority and we will lead with respect and compassion throughout the process.
“The decision to propose closing the Tottenham store has not been taken lightly but we believe it is the right thing to do for our customers and business as we strengthen our position for the future.
“We will do everything we can to support the co-workers affected and our hope is that as many as possible will continue their career journey with us.”
It was not immediately clear when the Tottenham store will shut permanently.
IKEA, which was founded in 1943, employed 225,000 workers as of 2021. This is an increase of over 70,000 staff members compared to 2013.
Along with ready-to-assemble furniture, they sell home appliances and accessories, as well as hot food such as their infamous Swedish meatballs.
In 2021, IKEA was the eighth most valuable retailer in the world, making it the most valuable furniture retail brand, valued at over £14billion.
Earlier this month, they were the latest company to halt operations in Russia as it temporarily closed all stores and factories across the country in a move impacting 15,000 workers.
It shut 17 outlets across Russia and paused all export and imports going in and out of the country and Belarus.
Londoners are left without power for nearly 24 hours: Thousands of homes STILL have no electricity, water or internet after cable failure hit supplies across 41 postcodes
The outage ripped across London causing chaos as internet and lights went out
Officials said that it was caused by a fault on a high voltage underground cable
Meanwhile a blaze started at electrical substation, shutting Rotherhithe Tunnel
Many services resumed during the evening but thousands were still cut off
Large areas of London are still without power this morning after blackouts yesterday forced key transport links to close and left thousands of homes and businesses without electricity.
UK Power Networks data shows swathes of the capital - from as far north as Barnet to as far south as Bromley - are continuing to experience problems today, with bosses estimating service may not be restored until 11.30am.
As many as 41 postcodes remain affected, nearly 24 hours on from when the problems first arose, after a high-voltage cable failed and a fire broke out at an east London substation.
It sparked chaos across the city, including rush-hour congestion on the roads and Docklands Light Railway, while a number of City employees had to work from home.
At one office, there were reports of staff being stuck in lifts for an hour as a result of the disruption.
'I'm surprised that there wasn't any contingency plan for such massive outage,' a Citi bank employee told EfinancialCareers.
At its height, the substation fire and power cut is reported to have impacted as many as 38,000 people, though that figure is thought to be significantly smaller this morning.
Meanwhile, frustrated Londoners took to social media to tell of their own personal woe caused by the outages.
UK Power Networks data shows swathes of the capital - from as far north as Barnet to as far south as Bromley - are continuing to experience problems today, with bosses estimating service may not be restored until 11.30am
The power cut sparked traffic chaos in Deptford during yesterday's rush hour
One wrote: 'I wasn't even supposed to go into the office today but a bloody powercut made me and now I'm in the Chinese a few pints down spending way too much money and getting prepared to be too drunk than I should be.'
Another said: 'The power, Internet and water is still off in our part of #Limehouse, after almost ten hours, so we've made the typically British response to a time of national crisis and decamped to Wetherspoons #E14 #powercut'
A third added: 'When is this power cut gonna be sorted out??? I can't take this any longer.'
Meanwhile another user described the blackout as 'terribly inconvenient' but shared a picture of them using their recently acquired wind-up gramophone.
The substation fire broke out just before 1pm and was brought under control by around 6pm, the London Fire Brigade said.
The Blackwall and Limehouse Link tunnels in the east of the city closed due to a loss of power, but reopened during the evening. The Rotherhithe Tunnel remained closed late yesterday.
A round 5,000 people were left without electricity in homes and businesses, with some outages continuing through the night.
Locals reported the power cut had reached as far away as Wimbledon and Cricklewood as 37 postcodes were plunged into disarray.
UK Power Networks said the blackouts were caused by a fault on a high voltage underground electricity cable.
Meanwhile a blaze broke out at an electrical substation in Poplar and closed Rotherhithe Tunnel
The fire sparked closures of the DLR, Blackwall Tunnel, Rotherhithe Tunnel and roads around south-east London, causing disruption into rush hour
Traffic chaos coming in and out of London from Kent after the Rotherhithe Tunnel closed
Londoners were left confused when their computers switched off and traffic lights went dead around 12.30pm.
One man wrote: 'This was significant - looking outside of my window (and I have a view) everything was KO, including the DLR up to at least 3/4 stations from here.'
He added: 'First power cut in London since I've been here, but nothing in the news yet.'
Another posted on Twitter: 'Been stuck on the DLR bc of a power cut - today is not my dayyyy.'
One put: 'Got a power cut and letting my lunch continue to cook in the residual heat of the oven. wish me luck.'
A woman commented on social media: 'Yep, power cut in limehouse PureGym as well as Lidl.'
Another said: 'Haven't had a power cut since moving in and now today, the day after my electricity was transferred to a new company (outside my control), I've had two in one day.'
A man posted: 'Just walked home from doing a 50 minute Crossfit class at the gym to find there's been a huge power cut in my building... and I live on the 18th floor. I could cry.'
And one more added online: 'There's a powercut in my area and I can't heat up my food fgs.'
UK Power Networks said: 'We're aware of a power cut affecting the E1, E1W and E14 areas of London.
'Our engineers are working to get the power on as soon as possible. For the latest information in your area visit our power cut map.'
A spokesman added: 'Our engineers are on site following a fault on the electricity network at 12.27pm, resulting in a power cut across parts of East London.
'We are working as quickly and safely as possible to restore customers supplies. We apologise for the disruption and inconvenience caused.'
London Fire Brigade said: 'Four fire engines and around 25 firefighters have been called to a fire at an electrical substation on Castor Lane in Poplar.
'Part of the ground floor of a two-storey electrical substation is alight. A 25-metre cordon is in place as a precaution.'
Station Commander Colin Digby added: 'The fire is causing power outages which could affect around 38,000 customers.
'The whole of the Docklands Light Railway line is suspended. Blackwall Tunnel and Rotherhithe Tunnel are also closed whilst crews work to make the scene safe.'
LondonShares in Barclays fell as much as 6% in early trading on Tuesday, after one of its top investors offloaded a $1.2 billion chunk of stock in the lender at a discount overnight.
An unnamed investor sold 599 million shares on Monday evening, facilitated by Goldman Sachs. The shares are roughly equivalent to a 3.6% stake, according to Refinitiv Eikon data.
The sale deals a further blow to Barclays just a day after it disclosed a compliance blunder leading to an estimated £450 million ($589 million) loss for overselling structured products in the United States.
Barclays(BCS) shares were down 3.3% at 115.22 pence at 05.04 a.m. ET on Tuesday. They had tumbled 4% on Monday after the bank said it oversold billions of pounds worth of the securities over a period of about a year, overshooting a $20.8 billion limit agreed with United States regulators by $15.2 billion.
The products involved include two exchange-traded notes linked to crude oil and market volatility, a source familiar with the matter said. Barclays suspended sales and issuance of both this month.
The Barclays stake sale was priced at 150 pence ($1.96) on Tuesday, towards the top of the target range of 147.50 pence to 150.75 pence, but this still represented a discount greater than 6% to Monday's closing price, pressuring the share price.
The sale was slightly bigger than the 575 million shares outlined on Monday evening, netting the seller £899 million ($1.18 billion), a person involved in the deal told Reuters, adding the book was multiple times oversubscribed.
Capital Group offloaded 399 million shares on Monday, according to Eikon data, but it was unclear whether the sale was connected to the transaction managed by Goldman Sachs.
Capital Group — one of the world's largest investment firms, and parent to the American Funds brand that is popular among millions of US investors and retirement savers — declined to comment.
Other top Barclays shareholders with around a 3% stake in Barclays include the Qatar Investment Authority (QIA) and Blackrock, according to Refinitiv Eikon data.
Blackrock(BLK) declined to comment when approached by Reuters on Monday, while QIA was not immediately available for comment.
Barclays said it would have to delay a planned £1 billion ($1.3 billion) share buyback because of the loss on US structured products, which it will have to incur as a result of buying back the securities in question at their original purchase price.
The regulatory blunder is an early test for C.S. Venkatakrishnan, the newly-appointed chief executive of Barclays, whose previous roles included heading the bank's global markets and risk operations.
Asda ramped up the price war between the supermarket giants as it launched a budget range to compete with rivals.
The grocer will roll out its Just Essentials range at all its stores and online in a bid to keep prices down for shoppers struggling with the cost of living crisis.
But the move immediately sparked a legal challenge from Waitrose, whose lawyers wrote to Asda claiming to have trademarked the ‘essentials’ name.
Price war: Asda will roll out its Just Essentials range at all its stores and online in a bid to keep prices down for shoppers struggling with the cost of living crisis
The announcement came as Asda reported sales of £20.4billion in 2021, 0.6 per cent higher than 2020.
Its profit jumped by 42 per cent in the same period to £693.1million because it was no longer saddled with Covid-related costs, it said.
It was the first set of annual results since the billionaire Issa brothers bought the grocer in 2020 for £6.8billion with the backing of private equity house TDR Capital.
The deal sparked fears that under private equity ownership Asda would be loaded with debt and would fail to remain competitive on price.
Morrisons, which is the UK’s fourth biggest supermarket, has also fallen into private equity hands. It was bought by New York-based Clayton, Dubilier & Rice for £7bn in October.
The two have lagged behind rivals in terms of sales growth, according to recent Kantar grocery market figures, raising questions about whether buyout barons are good stewards for the supermarkets.
They have also been criticised for raising prices by more than their rivals, with Asda’s goods becoming around 5 per cent dearer in the past year as it grapples with increasing costs.
But Mohsin Issa said Asda’s price pledge would help it reclaim its spot as the UK’s second biggest supermarket.
It has been behind Sainsbury’s in terms of market share since the end of 2015. Issa said: ‘We are confident we can achieve this long-term ambition by providing customers with exceptional value wherever and however they choose to shop with us.’
The Just Essentials range includes 300 products such as meat and fish, baked goods and cupboard staples.
It is 50 per cent bigger than Asda’s Smart Price range, which it will eventually replace.
Asda said the range of products is ‘the biggest in the market’ and strengthens its position as the cheapest of the UK’s four biggest grocers.
The big four is made up of Tesco, Sainsbury’s, Asda and Morrisons. Sainsbury’s and Tesco have both committed to keeping prices down for customers as inflation spirals.
Waitrose, which has around 1,000 products in its Essential Waitrose range, said it was ‘surprised’ to hear Asda had used the name.
A spokesman said: ‘As we’ve also protected the name as a trade mark, we have raised this with Asda and are awaiting a response.’
For the global brewers, as they grapple with changing consumer tastes and gently declining beer consumption in established markets like the US, Germany, the UK and Japan, Russia has been comparatively resilient.
Russia, the world's fifth largest country in terms of overall beer drinking, was one of the few major markets around the world where beer consumption actually rose during the pandemic-hit year of 2020. It also grew by a further 3.3% during 2021.
That is why the decisions today from Carlsberg and Heineken to pull out completely from Russia will have been difficult.
For Carlsberg, in particular, this is a big deal. The Danish group owns Baltika, Russia's biggest brewer, which has a market share of just shy of 30%. Carlsberg, which last year made 10% of its total sales and 6% of its operating profits in Russia, had already said that it will stop selling its flagship brand there and will not make any new investments in the country.
Image:Carlsberg is more exposed to Russia than its international rivals
Cees 't Hart, Carlsberg's chief executive, said the company deeply regretted the consequences of its decision for its 8,400 employees in Russia but made clear it had had little choice.
Advertisement
He said: "The war in Ukraine, and the escalating humanitarian and refugee crisis, shocks us all. We continue to strongly condemn the Russian invasion, which has led to so much loss of life, devastation and human tragedy.
"On 9 March, we announced a strategic review of the Carlsberg Group's presence in Russia. Based on this review, we have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment. Upon completion we will have no presence in Russia."
More from Business
He said Carlsberg would incur a "substantial" impairment charge on the disposal but declined to give further details.
Shares of Carlsberg, which had fallen by 22% since Russia invaded Ukraine, rallied by just under 3.5% on the news.
The Danes probably had little choice in the matter after, earlier in the day, Heineken announced it was pulling out of Russia.
It is a slightly less painful decision for the Dutch giant, which is second only to US giant AB InBev in the global brewing league table, as Russia makes up around 2% of global sales.
Image:Russia accounts for 2% of annual sales for Heineken. Pic: AP
Heineken will take a €400m hit as it seeks "an orderly transfer" of the business to a new owner. It will not seek to profit from the disposal. The company had previously halted the sale, production and advertising of the Heineken brand in Russia and had suspended new investments and exports to the country.
Heineken, whose local beer brands in Russia include Bochkarev, Okhota and Tri Medvedya, is the third largest player in the country with roughly 10% of the market.
It said: "We are very shocked and very saddened to see the war in Ukraine continuing and escalating.
"Following the strategic review of our operations already announced, we have concluded that Heineken's ownership of the Russian business is no longer sustainable or enduring in the current context."
The decisions from Carlsberg and Heineken to withdraw completely from Russia will put further pressure on a number of other western consumer goods companies.
Image:Nestle has faced criticism from Ukraine for its decision to continue selling selected goods in Russia
To date, only a handful have pulled out of Russia completely, among them the UK tobacco giants Imperial Brands and British American Tobacco.
But the likes of Nestle, Procter and Gamble, Reckitt, Unilever, PepsiCo and Danone have all, to date, decided against a complete pull-out from Russia and have continued to sell some products judged to be essential.
That has proved controversial and Nestle, in particular, has come under fire for its approach.
Denys Shmyhal, Ukraine's prime minister, had tweeted on 17 March: "Talked to Nestle CEO Mr Mark Schneider about the side effect of staying in Russian market. Unfortunately, he shows no understanding. Paying taxes to the budget of a terrorist country means killing defenceless children and mothers. Hope that Nestle will change its mind soon."
The Swiss giant subsequently widened the number of brands it will no longer sell in Russia.
Please use Chrome browser for a more accessible video player
0:59
Sanctions can only be lifted if Russia withdraws
Aside from the other big consumer goods companies, Carlsberg and Heineken's move will throw a spotlight on the other big international brewers playing in the relatively consolidated Russian market.
Sitting between the pair In second place, with a market share of 27%, is a joint venture between AB Inbev, the owner of Budweiser and Anadolu Efes, the Turkish brewer.
The pair operate 11 breweries and three malt factories in Russia and employ some 3,500 people in the country. Efes is the controlling partner and there are thought to have been disagreements between the pair as to how to go forward. AB Inbev reportedly asked its Turkish partner to suspend the sale and production of Budweiser in Russia more than two weeks ago but Efes is understood to have argued against a complete shutdown on the grounds that this would hurt its local employees and the farmers who supply the business.
The partnership has continued to produce beers other than Budweiser but AB Inbev has since sought to ring-fence its interests in the country and has pledged to forego any profits from Russia. A decision to completely exit Russia would be painful for Efes since the country is estimated to account for some 44% of its sales and 34% of its earnings.
Please use Chrome browser for a more accessible video player
0:26
'Sanctions were a little late'
Expect pressure to mount on them both to announce a full withdrawal in coming days.
For Carlsberg, in particular, it is the end of an era and the latest twist in a story that is intertwined with that of Scottish & Newcastle, the last of the so-called 'Big Six' British brewers, all of which have now disappeared into foreign hands.
S&N acquired a 50% shareholding in BBH, the owner of Baltika, when it bought Hartwall, a Finnish drinks group, for £1.2bn 20 years ago. Its co-owner was Carlsberg and the business thrived under the pair's joint ownership, buying up a number of smaller competitors and becoming a major source of growth, particularly as Russian beer consumption grew during the mid-noughties while beer drinking stagnated or fell elsewhere.
S&N even struck a deal to produce Baltika, Europe's third-biggest beer brand after Heineken and Amstel, in 2007.
At the time, the move seemed a masterstroke, enabling S&N to tap into the growing number of Russians moving to Britain.
It was the first time a Russian brand had been licensed to a western company and, in a signing ceremony at Edinburgh Castle, Baltika's president, Anton Artemiev, said: "The start of licensed production in western Europe of Baltika is a natural step in the process of integrating Russia into the world economy."
How long ago that now seems. Carlsberg and Heineken teamed up to buy S&N for £7.8bn in March 2008 and, as part of the deal, Carlsberg took full control of Baltika.
The takeover was completed just as the global financial crisis was erupting and, subsequently, the pair were widely thought to have overpaid for S&N.
It is a reasonable bet, particularly in the wake of today's news, that the Danes, especially, now regret the move.
Heineken and Carlsberg announced plans to offload their operations in Russia on Monday and take “substantial” hits to their businesses, as the international brewers became the latest consumer companies to bow to pressure to exit the country following the invasion of Ukraine.
Dutch group Heineken said it would transfer its business to a new owner in a move that would cost it €400mn in a non-cash impairment charge. Hours later, Danish rival Carlsberg announced it would “seek a full disposal” of its operations in Russia, saying it would also face a “substantial” charge.
While Heineken employs 1,800 people in Russia and makes 2 per cent of global sales in the country, Carlsberg has more exposure to the market than any other international brewer, making 9 per cent of revenue in the country and employing 8,400 staff.
Both companies will continue to pay staff, with Heineken committing to doing so until the end of the year. Carlsberg said it “deeply regret[s]” the consequences of the decision for its Russian employees.
Heineken said its ownership of the business in Russia “is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia.”
It added: “We will not profit from any transfer of ownership and we expect an impairment and other non-cash exceptional charges of approximately €400mn in total.”
Carlsberg said its business in Russia “will be reassessed at a fair value, which will result in a substantial non-cash impairment charge”. From an accounting perspective, its Russian business would be treated as an “asset held for sale until completion of the disposal”, it added.
The company said it would give more details on the accounting impact of the sale and the reintroduction of earnings guidance, which it suspended earlier this month, at a later date.
The announcements on Monday followed similar declarations by tobacco companies such as Imperial Brands and British American Tobacco, which said it was transferring its business to avoid the risk of a backlash from Russian authorities.
Consumer businesses have come under pressure to pull out of Russia but some have been more reluctant to do so due in part to their large staff bases in the country.
President Volodymyr Zelensky and other Ukrainian leaders have criticised companies including Unilever, Mondelez and Nestlé for their continued operations in Russia, with the KitKat maker bowing to pressure last week and halting sales of dozens of brands.
Businesses with large numbers of employees in Russia have faced difficult decisions over their safety and future employment. Beyond paying staff until the end of 2022, Heineken said it would “do our utmost to safeguard their future employment”.
Anheuser-Busch InBev, the world’s largest brewer and maker of brands including Budweiser, continues to manufacture and sell in Russia.
Having fallen 29 per cent this year, Carlsberg’s share price was up 7 per cent in afternoon trading in Copenhagen, climbing sharply after the announcement.
Amsterdam-listed Heineken’s share price remained largely flat. Its shares have fallen roughly 11 per cent this year.
National Grid has been criticised for its sale of a large chunk of Britain’s gas pipeline infrastructure to foreign investors for more than £4bn.
The company quietly announced on Sunday that it had sold 60% of its gas transmission business - which sends gas around the UK to heat homes and businesses - to Australia's Macquarie Asset Management and Canada's British Columbia Investment Management Corporation.
National Grid will receive £2.2bn in cash for the deal, and £2bn in debt financing - and said the move would help it transition towards electricity, a key component of the UK's 2050 net zero goals.
National Grid chief executive John Pettigrew said that the new owners have lots of experience owning big infrastructure and a "long-term commitment to the UK".
"I look forward to our partnership and continuing to deliver safe and reliable gas service at the least cost to consumers," he said.
Advertisement
Image:National Grid chief executive John Pettigrew
But Vince Cable, the former business secretary, has now weighed in, criticising Macquarie’s track record of owning important public utilities.
He specifically pointed to the company’s management of Thames Water, the UK's largest water utility, saying it raised "questions over its suitability to run a crucial utility".
More on Energy
Related Topics:
Macquarie owned Thames Water for more than a decade, leaving it saddled with debt when it sold the company in 2016.
The bank earned billions in huge dividends from the company, while paying next to no corporation tax.
Mr Cable told The Times that Britain's gas networks needed "longer-term investment cycles than [Macquarie is] used to".
Meanwhile, Sir Ed Davey, leader of the Liberal Democrats and a former energy secretary, said that "any firm seeking to profit unfairly from the gas network needs to be told loud and clear they will be stopped".
In 2021, National Grid purchased the UK's largest electricity distribution business for £7.8bn.
The company responsible for keeping Britain's lights on said 70% of its assets would now be focused on electricity in a bid to enhance its role in the delivery of the UK's energy transition.
But Gary Carter, national officer at trade union GMB, told The Times the sale of National Grid's gas transmission business contradicted the government's recent push towards energy independence.
"Flogging more of the national silver to a foreign company doesn’t immediately look like a good way to improve our energy security,"” said Mr Carter.
Over the past 15 years Macquarie claims to have invested £50bn in UK infrastructure.
National Grid has sold a majority stake in its gas transmission business to the same Australian bank which attracted heavy criticism for its past ownership of key UK infrastructure assets.
The FTSE 100 group confirmed in the early hours of yesterday that it had agreed to sell a 60 per cent stake in its UK gas transmission and metering business, which it calls NGG, to a consortium of overseas investors, including Macquarie.
Sponsored
The other party involved in the consortium is BCI, one of Canada’s biggest institutional investors.
The sale implies an enterprise value of £9.6 billion for NGG, about what analysts had thought it was worth. Macquarie and BCI have the option to buy the rest of the business next year.
Gatwick Airport's South Terminal has reopened after shutting during the coronavirus pandemic nearly two years ago.
The terminal has not been used by passengers since 15 June 2020.
It means the number of flights the airport can handle each day has almost doubled, from 300 to 570.
The news is an economic boost for the area, with the terminal's retailers back in business and airport service industries recruiting more staff.
"We live for coming in and it being busy and alive and something different every single day," Gatwick's senior passenger operations manager, Pete Coombes, said.
"And the last 18 months we've gone from 100,000 passengers to zero almost overnight, and now to see that all coming back, we just can't wait."
Stewart Wingate, Gatwick's CEO, said: "Behind the scenes you can imagine the airport teams, the airline teams and also the ground handlers have all been working really hard to make sure that all of the systems are working, and I'm pleased to say that we've opened the terminal and the flights are leaving on time."
The task of bringing the mothballed retail units back into use has been described as "huge".
Nick Williams, head of retail operations, said: "It's effectively been like opening a new shopping centre from scratch."
'Huge relief'
For CAE, a Crawley-based company providing pilot training in its 18 simulators, Gatwick becoming a two-terminal airport once again means a steady climb out of the nose dive caused by the pandemic.
"It's a huge relief because we went down as low as 20 to 40% utilisation of our equipment, and we're now ramping up to 85, 90%, so it's vital for us," centre manager Yannick Kerriou said.
The firm is now recruiting more trainers to meet demand.
Several airlines, including British Airways, Ryanair and Aer Lingus, have switched their operations from the North Terminal back to the South Terminal.
Follow BBC South East on Facebook, on Twitter, and on Instagram. Send your story ideas to southeasttoday@bbc.co.uk.
Friday saw stringent new rules come into effect across the UK as drivers will now be fined for touching a mobile phone while behind the wheel in “virtually any circumstance.” The fine is up to £1,000 and six points on a licence.
But anyone caught using a phone in the car while supervising a learner driver will also be fined under the new rules.
That means if the law deems that you’re technically supervising another driver, you could be hit with a £200 and six points on your licence even as a passenger.
The new rules apply to anyone even touching the front of a phone screen to check the time unless it’s in a holder.
Drivers are also exempt if they’re using a phone to pay for food in a drive-thru queue.
Despite the obvious danger, this loophole allowed users to continue using their phones while driving.
It is believed that the delay in introducing the new law meant that up to 256,000 drivers escaped hefty fines.
To help enforce the new rules, roadside cameras with the ability to automatically detect drivers touching their mobile phones are to be installed nationwide.
These cameras can take clear images of fast-moving vehicles, making it much more difficult for motorists to avoid being caught.
A trial of these cameras recorded one in 200 drivers using their phones on the motorway.
This amounts to over 4,600 motorists per day who have been able to use their hand-held devices without consequence when driving.
Ryan Fulthorpe, car insurance expert at GoCompare, said: “The purpose of these laws is to ensure the safety of drivers and other road users.
“However, where loopholes exist, we encourage motorists to act in ways that do not distract their attention from the road.
“Four to six points on your licence can increase the cost of an insurance policy by an average of 56 percent, but there is much more at stake with dangerous driving - putting the safety of you and others around you at risk.
“We welcome all support from the Government in making the roads safer by outlawing dangerous driving practices and we also urge all drivers to abide by these rules and practice sensible driving.”
Drivers will now be deemed to be breaking the law if they use a mobile phone for “any use”, including taking photos, recording videos, scrolling through music playlists and playing games.
The new laws were proposed in parliament in November 2021, following a public consultation in which 81 percent of respondents supported tougher measures.
![British Airways travelers hoping for a relaxing spring getaway were plunged into chaos today as thousands were left in the lurch after a 'technical issue' caused flights to be delayed. [File image]](https://i.dailymail.co.uk/1s/2022/03/30/15/56009623-10668753-image-a-4_1648652185749.jpg)
