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Trainline (TRN), Boohoo (BOO), Close Brothers (CBG), Intermediate Capital (ICG) and Hochschild Mining (HOC)
Shares in Trainline (TRN) dipped after the Department for Transport (DfT) announced that the new state-owned railway company, Great British Railways (GBR), will sell tickets online by “bringing together individual train operators’ ticket websites”, with some investors taking the view that a unified site could be a potential competitor.
The DfT stressed it would “work alongside a thriving private sector retail market, where all retailers can compete in a fair and open manner”.
Exact plans for how tickets will be sold online by GBR are still being developed, though, and the DfT said there would be further consultation under the Railways Bill being tabled through which the state-owned operator will be set up.
Trainline chief executive Jody Ford said it welcomed the government’s “unequivocal commitment to a competitive retail market, underpinned by a level playing field”.
Trainline’s shares dropped 6 per cent in early trading. Broker Shore Capital said setting up GBR was likely to take years, and that Trainline had an opportunity to “leverage an increasingly digitalised UK rail market” and continue pursuing opportunities in Europe. MF
Read why we’re bullish on Trainline
Kamani survives Frasers’ bid to kick him off Boohoo’s board
Boohoo (BOO) co-founder and executive vice-chair Mahmud Kamani survived an attempt by Frasers Group to remove him from its board.
Of the 80 per cent of shareholders that voted in Tuesday’s meeting, 63 per cent voted down a motion tabled by Frasers Group (FRAS) to remove Kamani, while 37 per cent voted in favour.
Chair Tim Morris said that 99 per cent of shareholders not connected to Frasers had voted against its proposal.
Frasers, which is the biggest single shareholder in Boohoo, had accused Kamani of presiding over an “abysmal trading performance”. Boohoo’s shares have lost 90 per cent of their value and Frasers argued that the company lacked transparency, stating that the board had been “ultimately run by Mr Kamani, for the benefit of Mr Kamani”.
Boohoo made changes following Frasers’ requisition, which included Kamani stepping back to a new role of executive vice chair and the promotion of non-executive Morris to independent chair.
Following this, proxy advisors Glass Lewis and Institutional Shareholder Services both recommended that shareholders reject Frasers’ motion.
“We want to put this disruption and distraction behind us,” Boohoo chief executive Dan Finley said. “Our focus is on maximising value for all shareholders.”
Boohoo’s shares closed down 3 per cent. MF
Banks rally after Treasury wades into motor finance row
Shares in Close Brothers (CBG) and Lloyds Banking Group (LLOY) have shot up following news that the Treasury is trying to protect lenders from potentially huge compensation payments.
Chancellor Rachel Reeves has sought permission to intervene in a forthcoming Supreme Court case about alleged mis-selling in the motor finance market, according to a Financial Times report. Judges are set to review the Court of Appeal’s decision that it is unlawful for car dealers to receive a commission from a lender unless it is properly disclosed to the customer and the customer gives informed consent to the payment.
If the Supreme Court upholds the decision, analysts have suggested that compensation across the industry could reach £30bn.
However, the Treasury’s intervention could limit losses, according to broker Shore Capital. Analysts at RBC Capital Markets agreed that the news was “clearly positive” for UK banks. “Nevertheless, it's worth noting that we have a clear separation of powers in the UK, so the ultimate outcome will be solely determined by the views of five Supreme Court Judges hearing the case in April,” they concluded.
Close Brothers and Lloyds are believed to be most involved in the motor finance market. However, Bank of Ireland (BIRG), the UK arm of Banco Santander (ES:SAN), Barclays (BARC), Vanquis Banking Group (VANQ) and Secure Trust Bank (STB) all have some exposure. JS
Intermediate Capital raises $7.2bn
Alternative asset manager Intermediate Capital (ICG) showcased a strong third quarter after an update showed that the company’s capital raising efforts had yielded new inflows of $7.2bn (£5.9bn), as clients subscribed twice as much in funds compared with this point in 2023. The heightened subscription levels meant that fee-earning assets-under-management were up 8.1 per cent year-on-year to $71bn.
The trading update prompted a 4.5 per cent rise in the shares price in early trading. Broker Investec noted that over $5bn of the funds came from structured finance and private equity clients. The broker said it would put its forecasts under review for 2025. JH
Hochschild Mining shares drop 18 per cent on higher debt, costs
South American precious metals miner Hochschild Mining (HOC) saw its shares drop 18 per cent on Tuesday morning after announcing 2025 cost and spending guidance ahead of market expectations. The company’s share price is still up 120 per cent in the past 12 months. The Q4 operational update and 2025 guidance pointed to operating costs (inclusive of capital spending) of around $1,640 (£1,327) per gold equivalent ounce (oz) mined, 5 per cent ahead of RBC Capital Market’s forecast and 12 per cent ahead of targets outlined by management in 2023.
Production for this year is expected to be 350,000-378,000oz, compared to 347,374oz in 2024. Net debt also came in ahead of analyst forecasts at $216mn, compared to the $161mn Peel Hunt had pencilled in. AH
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