Proactive Investors -
- Blue chips down 34 points at 7,896.
- Ocado (LON:OCDO) slides on boss bonus dispute.
- Gas Prices up on attacks in Ukraine.
Ocado shareholders told remuneration policy is of ‘high concern’
More on Ocado, and it was a weekend report from Institutional Shareholder Services which sent shares in the grocery delivery firm lower on Monday.
Plans to offer the likes of chief executive Tim Steiner a £14.8 million bonus are of “high concern”, according to the proxy advisor.
Such concerns have been “exacerbated by the shareholder experience, with no dividend and a general decline in the company’s share price over the past few years”, it said.
Shareholders will vote on Ocado’s new bonus policy and performance share plan at next month’s annual meeting, with the grocer due to update on its first-quarter performance later this week.
FTSE 100 falls back
The FTSE 100 reversed on some of its strong gains seen last last week come mid-morning on Monday, falling 32 points to 7,898.
Among the index’s biggest fallers was Ocado Group PLC, which dipped 3.3% to 452.9p on reports the grocery delivery firm faced a shareholder revolt over chief executive Tim Steiner’s proposed £14.8 million bonus.
As per The Times, proxy advisor Institutional Shareholder Services recommended shareholders vote against Ocado’s new remuneration plan, arguing offers were “materially above market norms” and “not in line with UK market standards”.
Spirax-Sarco Engineering (LON:SPX) also faced hefty losses, falling 3.4% to 10,235p after last week’s strong performance.
Pershing Square (NYSE:SQ) was among the day's risers meanwhile, climbing 1% after unveiling a net asset value return of 26.7% for the year.
Gas prices jump on Ukraine attack
Gas prices jumped on Monday morning on supply concerns following Russian attacks on underground storage sites in Ukraine.
UK natural gas climbed 5% to 73.75p per British thermal unit come mid-morning after the attacks on a facility in western Ukraine on Sunday.
“With both countries attacking energy infrastructure, the supply of gas and fuel is once again being called into question,” Saxo Bank’s Ole Hansen commented.
“For gas, not least the latest attempt by Russia to hit an underground storage site in Ukraine has raised the temperature today.”
London’s Black Sheep Coffee eyes US IPO
The City of London could be set for yet another blow as Camden-founded Black Sheep Coffee reportedly eyes up a US stock market listing.
As per hospitality newsletter Propel, the coffee shop chain is currently raising £15 million in order to ramp up its expansion plans.
Such plans include exploring an initial public offering across the Atlantic, the newsletter said.
London has faced repeated blows in recent months as firms, including chipmaker Arm and building materials giant CRH (LON:CRH), have relocated listings to the States in search of higher valuations.
UK nuclear industry ‘running to catch up’ - minister
Andrew Bowie has admitted the UK is playing catch up in terms of both nuclear energy and defensive capabilities as the government readies to unveil public funding for the sector on Monday.
“I make no bones about it, we should have done this years ago. We are running to catch up,” nuclear minister Bowie told LBC Radio.
“But we have just this year delivered our civil nuclear road map, we have announced our intention to build a third gigawatt project, we are investing £350 million in new nuclear power to ease Vladimir Putin out of the nuclear fuels market, we are actually committed to delivering small modular reactors through our competition which will conclude this year.
“But of course, this should have been done years ago, which is why we are having to take the action in the way that we are right now.”
Prime minister Rishi Sunak is poised to commit £200 million to the sector over the next decade on Monday, to complement investment from BAE Systems (LON:BAES), Rolls-Royce (LON:RR), EDF (EPA:EDF) and Babcock (LON:BAB), which they say will create thousands of jobs.
Direct Line slumps after Ageas walks
Shares in Direct Line Insurance Group PLC (LON:DLGD) lost over 12% on Monday morning, after potential suitor Ageas said on Friday night it was no longer exploring a takeover.
Belgium’s Ageas ruled out making any further offers in a statement on Friday night, after explaining that two bids had been rejected by Direct Line.
“Ageas regrets that it has not been able to work collaboratively together with the board of directors of Direct Line towards a recommended firm offer,” it said.
“Ageas was not able to identify additional elements based on publicly available information that would justify significant adjustments to the terms of its possible offer.”
Direct Line shares fell 12.5% to 182.91p on Monday as a result.