City round up: Proxy adviser backs boohoo board; new NED at On the Beach; NWF outlook; Regional REIT pays off borrowing
Glass Lewis, the independent proxy adviser, has recommended that boohoo shareholders vote against resolutions to put Mike Ashley of Frasers on the board.
Glass Lewis confirms that “appointing a director with significant historical ties to Frasers, without a comprehensive agreement in place to mitigate potential conflicts of interest, could raise further concerns among investors”.
Further, that the refusal by Frasers to provide the necessary governance commitments, “raises questions about [their] commitment to addressing the governance and conflict-of-interest concerns highlighted by the Company and may suggest that their intentions are not fully aligned with the interests of the Company’s broader shareholder base”.
Glass Lewis concludes that “shareholders would not be well served supporting the appointment of the Dissident Nominees [Mike Ashley and Mike Lennon] at this time”.
Their support for the boohoo board follows statements earlier this week from Institutional Shareholder Services Inc (ISS) who will also vote against the Frasers resolutions.
Dan Coatsworth, investment analyst at Manchester investment platform, AJ Bell, said: “Boohoo continues to beat the drum that it doesn’t want shareholder Frasers muscling in on how the business is run.
“Having flagged the view of proxy adviser ISS earlier this week that investors shouldn’t vote in favour of Frasers’ push to get two board seats, boohoo is now doing the same for Glass Lewis’s latest report. This proxy adviser also recommends that shareholders vote against Frasers’ resolutions.
“With eight days to go until the shareholder meeting, there is plenty of time for Frasers to retaliate and step up its campaign to win over boohoo investors. Frasers doesn’t do things by halves, so reach for the popcorn and wait for the drama to unfold.”
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Victoria Self
A director of Manchester-headquartered online travel business On the Beach is to step down. David Kelly has fulfilled his nine year tenure as a Non-Executive Director and will be replaced by Victoria Self from 3 February 2025.
She has been the Managing Director of Player Experience at Entain plc, a global digital gaming group since 2023 having previously worked at comparethemarket.com, Marks and Spencer Group plc, Currys plc, Carphone Warehouse, Urban Outfitters and Mothercare plc.
She said: “On the Beach is a great business and I am really excited to join the Board at this pivotal moment in the journey. I look forward to working with Shaun and the executive team as the Group expands its proposition into cities and significantly increases its addressable market.”
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NWF Fuels
Specialist distributor NWF told the markets this morning that in the half-year ended 30 November 2024 profit before tax was lower than the prior year, reflecting the increased IFRS16 interest arising from the acquisition and fit out of the Lymedale warehouse.
It also said cash generation focus remained strong in the Period and the Group retains a robust financial position with net cash as at 30 November 2024.
The company is actively pursuing several acquisition opportunities for its Fuels division in line.
In its Food business profit contribution in the Period was behind the prior year, reflecting a number of factors including lower throughput related to specific customers, a slightly slower build-up of additional customer stock and higher than anticipated costs of moving stock from offsite storage into Lymedale. The business continues to progress its customer pipeline which is delivering additional volume.
In Feeds volumes were ahead of the prior year, reflecting an increase in the overall market following the wet summer and autumn and an increasing milk price supporting feed demand. The milk price has steadily increased since September whilst feed commodity prices have been stable.
Chris Belsham, Chief Executive of NWF Group said: “We had a good first half and are trading in line with our expectations, with improved performance in Fuels and Feeds offsetting the short-term weaker performance in Food. During the period, we continued to progress our key performance initiatives, aimed at enhancing our commercial approach and operational efficiency, and remain active in our pursuit of Fuels acquisitions in line with our strategy. Supported by a very strong financial position, we remain confident in our growth potential and prospects.”
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Stephen Inglis
Property specialist Regional REIT has repaid £33.4m of borrowings, ahead of schedule. The repayment is £7.1m above the expected £26.3m earmarked from the successful July 2024 equity capital raise.
The additional repayment has been sourced from the property disposal programme, thus reducing borrowings to £319.9m (as at 11 December 2024).
Stephen Inglis, Head of ESR Europe LSPIM, Asset Manager commented: “The Company is pleased to announce that borrowings have been reduced, ahead of schedule, to £319.9m. The Company continues to focus upon the asset disposal programme, leverage reduction and driving shareholder value by undertaking accretive capital expenditure to provide vibrant spaces for our current and potential tenants.”
