Latest news with #NickRead
CNBC
6 days ago
- Business
- CNBC
CNBC's UK Exchange newsletter: An all-too-familiar dial tone from Vodafone
Long-term followers of Vodafone could have been forgiven for feeling a touch of déjà vu as they surveyed the mobile operator's full-year results last week. Of particular interest was the assertion by Chief Executive Margherita Della Valle that Vodafone is at an "inflexion point." That was reminiscent of how in July 2019 the company, then led by Nick Read, Della Valle's predecessor, claimed it had reached a "turning point" in its financial performance. Or, further back, the moment in November 2015 when Vittorio Colao, Read's charismatic predecessor, suggested Vodafone had reached an "important turning point." Such comparisons might be considered unfair. But they underline just how long this company has been disappointing investors. Vodafone's fortunes are an apt metaphor not just for corporate Britain, but the country as a whole. The company as we know it today was born in 1982 when, as part of her drive to widen consumer choice, former British Prime Minister Margaret Thatcher awarded Racal Electronics, a military radio specialist, one of two licenses to run what was then called cellular telephone networks (the other went to the then state-owned British Telecom). After being demerged and renamed Vodafone, it expanded overseas in the late 1990s under Chief Executive Chris Gent just as Tony Blair, Britain's youngest prime minister in nearly 200 years, was wowing diplomatic circles. This was an exciting time to be reporting on Vodafone's fortunes. It covered the blockbuster $66 billion acquisition of Airtouch, taking Vodafone into the U.S. and other key markets, and the purchase of German mobile operator Mannesmann, valued around $180 billion — the biggest-ever takeover by a British company and the largest foreign takeover of a German company. It confirmed Vodafone as the world's largest mobile operator and the biggest company in the FTSE 100 index. That it is, at the time of writing, the 31st most valuable company in the FTSE gives you an idea of what happened next. From expansion to retrenchment — and a record-breaking annual loss After years of flag-planting in foreign territories, a long period of retrenchment under Gent's successor Arun Sarin began. The next decade was marked by disposals and, crucially, write-downs in the valuation of previously acquired assets. Vodafone set another record — this time, unwanted — when, in May 2006, it reported an annual loss of £14.85 billion ($20.13 billion at current prices), the biggest ever for a U.K. company (Royal Bank of Scotland and BP have both since broken the record). Vodafone gradually retreated from some important markets, most notably the U.S., where in September 2013 it sold its 45% stake in Verizon Wireless for £130 billion. More recently it has exited Italy — previously one of its biggest markets — and Spain. There are two major exceptions where Vodafone has continued to expand. The first is Germany, where in 2018 it acquired Liberty Global's cable assets to become the biggest cable operator and second-largest player in converged fixed-line and broadband services after the market leader, Deutsche Telekom. The second is Vodafone's home market, the U.K., where at the end of last year it was finally allowed to pool its operations with those of Hong Kong-owned Three UK, reducing the number of players in the market from four to three. This is expected to be transformative in a market that, for many years, has been pockmarked by low investment returns. So the modern Vodafone is smaller than it once was — just as the U.K. economy now feels rather less globally significant than in the recent past. It also means the company is far more dependent on just a handful of markets. If shareholders have not exactly benefited from their exposure to Vodafone — shares are down around 40% over the last five years — it is still providing plenty of business for brokers. It has just completed a 2 billion euro ($2.27 billion) share buyback program and last week announced a fresh 2 billion euro scheme. Investment bankers, who have also enjoyed plenty of fees from Vodafone over the years, will be hoping that the European Commission's ongoing review of merger guidelines leads to further consolidation activity. For investors, though, the big question is whether Della Valle's assertion last week of an inflexion point is justified. She can argue, reasonably, that Vodafone is now a simpler business and one that is outperforming rivals in key markets. She can also say, again with some justification, that Vodafone has begun to improve its customer experience — which she identified as her chief priority when she took over as chief executive two years ago. While heavily dependent on mature European economies, Vodafone also retains market-leading positions in a number of big African markets such as South Africa, Kenya and Mozambique. Africa currently accounts for 20% of Vodafone's revenues but is expected to grow in importance. Turkey, where the company is the second-largest operator and which now accounts for around 8% of group revenues, also offers much promise. And yet Vodafone remains a deeply frustrating company. Rather than traditional metrics such as operating profit, it prefers investors to focus on free cash flow and a baffling measurement called EBITDAal (earnings before interest, taxes, depreciation and amortization, after leases). Yet, even on this metric, the numbers went backward in the latest financial year. There always seems to be something dragging on the bottom line, whether it be hyperinflation in Turkey, write-downs in Romania or a change in cable TV contracts in apartment blocks in Germany. The latter, Vodafone's biggest single market, is crucial in determining investor sentiment toward Vodafone. Should new Chancellor Friedrich Merz's fiscal loosening stimulate the German economy, Vodafone ought to benefit. But this is a company that has seen countless false dawns and investors, mindful of its recent past, would be wise to be cautious. The UK government is on track and focusing on growth, says Barclays CEO C.S. Venkatakrishnan, Barclays' group chief executive, discusses the global economy, the bank's business outlook, the U.K. economy, M&A and more from the Barclays Leadership Conference in London. UK doing a 'fairly good job' on foreign policy and trade deals, economist says Kallum Pickering, chief economist at Peel Hunt, discusses the recent trade deals the U.K. has agreed with the U.S., India and European Union. Most Brits want UK and EU to have a more pragmatic relationship, Jonathan Portes says Jonathan Portes, professor of Economics and Public Policy at the School of Politics & Economics at King's College and London senior fellow at UK in a Changing Europe, reacts to emerging details around the U.K.-EU reset has delivered some key wins for the UK recently. So why is the British prime minister so unpopular with voters? Britain's economy is showing some positive signs. Economists are divided, however, about what the latest data means for the U.K.'s bigger economic picture. Summer travel demand is soaring, according to the EasyJet CEO. But delivery delays at Boeing and Airbus are fueling a commercial jet a downbeat couple of months dominated by global tariff fears, U.K. stock markets are back on the up in May. The FTSE 100 is currently on course for a gain of around 2.6% this month, which would be its best performance since January. The more domestic-oriented FTSE 250 is over 4% higher over the month to date. It's also been a strong month for sterling, which has climbed against both the euro and U.S. dollar. These moves were boosted over the last week by better-than-expected retail sales data, consumer confidence and energy prices, which are set to fall more than previously thought. There was also a surge in inflation to 3.5% in April from 2.6% in March, leading investors to expect more caution from the Bank of England in cutting interest rates this year — with higher rates generally good news for the home currency. A final tailwind for U.K. assets was provided by Westminster's trade deal with the White House, establishing a 10% baseline tariff rate on its U.S.-bound exports while most other countries remain mired in negotiations. U.K. government borrowing costs have ticked higher this month, in step with much of the rest of the world. The yields on U.K. bonds, known as gilts, are little changed this week — but investors are monitoring a report from the Financial Times that the U.K.'s Debt Management Office is pivoting to more shorter-term borrowing as demand wanes for longer-dated debt.
Yahoo
20-05-2025
- Business
- Yahoo
Post Office to pay out Horizon victims after personal details leaked
Hundreds of former subpostmasters whose personal details were leaked on the Post Office website will receive compensation. Names and addresses of the 555 victims of the Horizon IT scandal, including Sir Alan Bates, who won a High Court battle against the organisation were accidentally published online in June last year. The Post Office has said individuals could receive initial payouts of up to £5,000, with the potential for more if impact on themselves or their family can be evidenced. At the time, Nick Read, the then-Post Office chief executive, said the leak – which showed the victims' full names and home addresses – was a 'truly terrible error'. The Post Office said victims would receive £5,000 or £3,500, depending on whether they were then living at the address published. 'We have written to all named individuals either directly, or via their solicitors,' it said. 'If there are any individuals whose name was impacted by last year's breach, but who have not received information about the payment for some reason, they can contact us or ask their solicitors if they have legal representation.' They added the company would 'consider any special cases if any individuals consider they are entitled to further amounts'. Chris Head, a former subpostmaster, welcomed the Post Office taking accountability, but said it had still taken the company too long. 'Although this is welcomed by those affected, it took far too long to get here, almost a year,' he told The Telegraph. 'It was [as though] the Post Office had learnt nothing from its past actions and had to be threatened with new legal action before they agreed to make what I would say is a much fairer offer. 'However, the impact on some people may have been far greater than this sum compensates them for and it is right that these should be on an interim basis, which allows them to bring further claims should there be sufficient evidence. 'I hope after this further episode, and the terrible impact it has had on already damaged people, the Post Office will learn from this and never allow such a thing to happen again.' Freeths, the law firm which acted on behalf of Sir Alan Bates and the other victims in the landmark High Court case, said it had secured the payouts on behalf of all those affected and their legal representatives. Will Richmond-Coggan, a lawyer, said: 'We welcome the progress we have made with this case, but there is still a long way to go to recognise the devastating impact of this breach for those affected.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
20-05-2025
- Business
- Telegraph
Post Office to pay out Horizon victims after personal details leaked
Hundreds of former subpostmasters whose personal details were leaked on the Post Office website will receive compensation. Names and addresses of the 555 victims of the Horizon IT scandal, including Sir Alan Bates, who won a High Court battle against the organisation were accidentally published online in June last year. The Post Office has said individuals could receive initial payouts of up to £5,000, with the potential for more if impact on themselves or their family can be evidenced. At the time, Nick Read, the then-Post Office chief executive, said the leak – which showed the victims' full names and home addresses – was a 'truly terrible error'. In a statement to the BBC, the Post Office said victims would receive £5,000 or £3,500, depending on whether they were then living at the address published. 'We have written to all named individuals either directly, or via their solicitors,' it said. 'If there are any individuals whose name was impacted by last year's breach, but who have not received information about the payment for some reason, they can contact us or ask their solicitors if they have legal representation.' Chris Head, a former subpostmaster, welcomed the Post Office taking accountability, but said it had still taken the company too long. 'Although this is welcomed by those affected, it took far too long to get here, almost a year,' he told The Telegraph. 'It was [as though] the Post Office had learnt nothing from its past actions and had to be threatened with new legal action before they agreed to make what I would say is a much fairer offer. 'However, the impact on some people may have been far greater than this sum compensates them for and it is right that these should be on an interim basis, which allows them to bring further claims should there be sufficient evidence. 'I hope after this further episode, and the terrible impact it has had on already damaged people, the Post Office will learn from this and never allow such a thing to happen again.' Freeths, the law firm which acted on behalf of Sir Alan Bates and the other victims in the landmark High Court case, said it had secured the payouts on behalf of all those affected and their legal representatives. Will Richmond-Coggan, a lawyer, said: 'We welcome the progress we have made with this case, but there is still a long way to go to recognise the devastating impact of this breach for those affected.'
Yahoo
14-05-2025
- Business
- Yahoo
Versatile home with annexe for sale at £700,000
A detached family home in Wissett is for sale for offers over £700,000. Selling agent Durrants said Woodville is 'individually designed,' whilst offering space that can be adapted for varying lifestyle choices. Inside is accommodation comprising a kitchen/dining room, living room, two bedrooms, bathroom and a utility. The open-plan dining area and kitchen (Image: Nick Read) The kitchen features integrated appliances and plenty of storage space (Image: Nick Read) At the heart of the home is the kitchen/diner, which is great for hosting guests for dinner parties. In the kitchen is a breakfast bar, which is ideal for sitting at and enjoying a morning coffee. There are plenty of wall and base level units, as well as integrated appliances, such as a hob with extractor above and an oven. A door from the dining space leads outside to the decked area, perfect for alfresco dining. The sitting room has a wood burner, ideal for warm nights in front of the fire (Image: Nick Read) One of the two bedrooms in the main part of the house, with the master including an en suite (Image: Nick Read) The family bathroom includes a bath and separate shower (Image: Nick Read) The family bathroom also has Jack & Jill sinks and a bidet (Image: Nick Read) The sitting room is triple aspect and benefits from views over the garden. The focal point of the room is the wood burner, allowing for cosy nights in front of the fire during the colder months. READ MORE: Chocolate box cottage with one-bed annexe for sale in rural village Two double bedrooms are in the main part of the home, with the master offering triple-aspect views, and an en-suite bathroom that has a shower, WC and wash handbasin. A family bathroom serves the other bedroom, and features a bath, separate shower, WC, bidet and Jack and Jill sinks. The studio has a multitude of uses (Image: Nick Read) There is a set of stairs in the hallway that lead down to a dual aspect studio, which has the potential for a variety of uses, including a cinema room, home office, gym or even an artist's studio. The home also has an attached annexe suite, which is perfect for multigenerational living, or perhaps as a holiday let to provide an income source. It is at the opposite end of the home and has its own entrance, with its accommodation including a kitchen, living room, dining room, two bedrooms, bathroom and separate WC. The annexe has a fitted kitchen (Image: Nick Read) The sitting room in the annexe also has a wood burner (Image: Nick Read) There is two bedrooms in the annexe, ideal as a holiday let or for multigenerational living (Image: Nick Read) The L-shaped sitting room and dining room has open-plan living, with double doors out to the garden. The fitted kitchen has space for further electrical appliances, while the two bedrooms are good-sized doubles. READ MORE: Georgian townhouse in Woodbridge for sale at £1.75 million guide Outside, Woodville sits on a plot of approximately two acres and is approached by a driveway with ample off-road parking, which leads to an integral double garage and workshop area. The driveway leads to a double garage (Image: Nick Read) The gardens are diverse, with a woodland area that offers shade during the warmer months (Image: Nick Read) The gardens are diverse, with the lower garden including raised flower beds, while the main garden is laid to lawn and has a woodland area. It is ideal for those seeking shaded relaxation, or those who want to observe the local wildlife. Woodville is in Wissett, a small village two miles from the market town of Halesworth, where there are amenities including schooling, retail and eateries. For more information, contact Durrants. PROPERTY FACTS Woodville, Wissett OIEO: £700,000 Durrants, 01986 872553
