PRIVATE equity firm Dbay Advisors has evinced interest in the UK’s largest social care provider CareTech Holdings.
It made a non-binding offer of 750p a share to buy out CareTech. The Indicative price is 25p more than the offer made by its co-founders, the Kenyan-born Sheikh siblings - Haroon and Farouq.
In a filing to the London Stock Exchange, CareTech said Dbay’s proposal included “a partial non-voting share alternative to allow shareholders to roll over some of their investment and retain an interest in CareTech's future”.
The brothers initially offered 710p a share last month and then raised it to 725p before Dbay came up with the possible cash offer on Friday (1).
CareTech shares, traded on the alternative investment market (AIM) platform of the LSE, gained 0.54 per cent on Wednesday (7) to close at 744p. However, the stock has soared 52p from 692p levels since Dbay made its offer.
CareTech provides specialist social care and education services for about 5,000 adults and children with complex needs.
It was founded in 1993 and has more than 550 residential facilities and specialist schools in the UK with an employee count of about 11,500.
Spearheaded by Farouq as its executive chairman and Haroon as its CEO, the social care provider has a range of supported living schemes that include individual flats, houses and grouped accommodation arrangements.
Dbay has already bought a 1.8 per cent stake in CareTech from the open market.
CareTech’s founders told The Times last month that they were in the early stages of forming a consortium, including with the investment house THCP, for a possible offer for the firm.
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Prudential to list Indian asset management venture
Feb 14, 2025
INSURER Prudential plc announced that it is considering a partial listing of its stake in ICICI Prudential Asset Management, one of India's leading investment firms. The news sent Prudential's shares soaring by 5.8 per cent to close at 722p on the London Stock Exchange.
The FTSE 100 company currently holds a 49 per cent stake in the Indian joint venture, which market analysts estimate to be worth around £4 billion. ICICI Bank, which owns the remaining 51 per cent, has confirmed its intention to maintain its majority shareholding, emphasising its "long-term commitment" to the partnership that began in 1998, reported the Times.
ICICI Prudential Asset Management has established itself as a significant player in India's investment landscape, managing assets worth approximately £86bn and serving more than 11 million investors across 133 different investment schemes.
The company ranks among India's top asset managers, though it trails behind market leader SBI Mutual Fund, which manages about £112bn in assets.
Prudential said it would return the net proceeds from any potential share sale to its shareholders, though it has not yet specified how much of its stake it plans to sell or which stock exchanges it might choose for the listing. The company maintains dual primary listings in London and Hong Kong.
This potential listing marks another significant step in Prudential's strategic shift towards Asian and African markets. The company, founded in London in 1848, has moved away from its British roots, with chief executive Anil Wadhwani and other top executives now based in Hong Kong. The group even held its annual general meeting in Hong Kong for the first time last year.
Bank of America analysts view the potential divestment as a positive catalyst for Prudential's share price, noting that the joint venture holding represents approximately a quarter of Prudential's total market value when compared to similar Indian asset managers. However, they cautioned that "any listing process could incur costs and lead to a discount."
Despite the planned partial exit, Prudential stressed its continued commitment to the Indian market.
"India is a strategically important market for Prudential with compelling growth prospects. We will continue to explore opportunities to grow our business in the market," the company said in its statement.
The announcement comes as Prudential continues its £1.6bn share buyback programme and follows strong performance in its core business. The Asia-focused insurance group reported a 10 per cent increase in new business profits to about £1.8bn in the nine months to September 2024.
Brian Hanratty, head of equity capital markets at Peel Hunt, noted that while the year has had a "quiet start," he expects "activity to pick up in the second quarter" as companies finalise their full-year accounts before considering public listings.
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The bank has set a new performance target, aiming for a return on tangible equity of 15-16 per cent in 2025 and above 15 per cent by 2027. (Photo: Reuters)
What’s driving NatWest’s better-than-expected profit growth?
Feb 14, 2025
NATWEST reported higher-than-expected annual profit on Friday, supported by its growth strategy, improved productivity, and capital management efforts.
The bank, which once had assets worth 2.2 trillion pounds—more than twice the size of the British economy—has undergone years of restructuring to focus mainly on domestic consumer and mortgage lending.
"We have positive momentum behind us and a clear ambition to succeed with customers as we continue to build a simpler, more integrated and technology-driven bank that is capable of even greater impact," chief executive Paul Thwaite said.
Our 2024 performance is grounded in the support we provide to over 19 million customers in every nation and region of the UK.
Read more about our FY performance from our CEO Paul Thwaite: https://t.co/sbJi4fyFtn pic.twitter.com/GGQiy46Pfl
— NatWest Group (@NatWestGroup) February 14, 2025
For the year ending 31 December, NatWest's pretax operating profit stood at 6.2 billion pounds, matching 2023 levels and exceeding analysts' forecasts of 6.1 bn pounds.
Shares in the bank have risen 109 per cent in the past 12 months, driven by its 4 bn pound capital redistribution plan and recent acquisitions aimed at expanding its home loans business in a competitive market.
However, the stock fell by up to 2.2 per cent after the results before recovering some losses. It was last down 1.5 per cent at 430 pence. Earlier this week, shares reached their highest level since 2011.
Thwaite has positioned NatWest as an active player in acquisitions, purchasing billions of pounds in assets from retailer Sainsbury’s and Metro Bank in 2024. He indicated that more deals could follow.
"In respect of acquisitions, it's a very high bar," Thwaite told reporters. He added that the bank remains strong and would continue to evaluate inorganic opportunities that create shareholder value, add scale, or enhance capabilities.
The bank has set a new performance target, aiming for a return on tangible equity of 15-16 per cent in 2025 and above 15 per cent by 2027.
However, it faces competition in the UK mortgage market, particularly following Nationwide’s acquisition of Virgin Money.
The Financial Times reported that NatWest had held discussions with Spain’s Santander regarding a potential acquisition of its UK operations.
Santander has denied any plans to sell, though its executives have spoken about the high cost of capital for the business. NatWest has declined to comment on the speculation.
Loan growth
NatWest’s 2024 profit and outlook contrast with concerns over the UK economy, which has been affected by weak growth, public finance concerns, and global trade tensions.
Jefferies analysts said NatWest's results support the bank’s overall strategy and reflect wider trends in the sector, adding that shares were already well supported.
Total loans reached 372 billion pounds, up 3.5 per cent year on year, marking the bank’s sixth consecutive year of loan growth.
Loan impairments fell to 359 million pounds in 2024, down from 578 million pounds in 2023.
On Friday, the UK government’s stake in NatWest dropped below 7 per cent, down from 38 per cent in December 2023.
The bank remains on track to return to full private ownership this year after its 45 bn pound bailout during the 2008 financial crisis.
(With inputs from Reuters)
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A general view shows the London's financial district from an office window in Canary Wharf. (Photo: Getty Images)
Economy grows 0.1 per cent in fourth quarter, defying expectations
Feb 13, 2025
THE UK economy expanded by 0.1 per cent in the final quarter of 2024, contrary to forecasts of a contraction, according to official data released on Thursday.
The growth, supported by a stronger-than-expected 0.4 per cent rise in December, offers some relief to chancellor Rachel Reeves as she navigates broader economic challenges.
Economists polled by Reuters had predicted a 0.1 per cent contraction in the quarter. Over the full year, GDP grew by 0.9 per cent, up from 0.4 per cent in 2023. However, when adjusted for population growth, output per capita declined by 0.1 per cent, reflecting continued pressure on living standards and public finances.
Sterling rose by as much as a third of a cent against the US dollar following the release of the data.
"A pleasant surprise, but we're not out of the woods yet. Beneath the surface of these latest figures, domestic demand via consumption and business investment was weaker than expected," said Scott Gardner, an investment strategist at Nutmeg, a wealth manager owned by JP Morgan.
December’s growth was driven by the services sector, including wholesalers, film distributors, pubs, and bars, along with machinery and pharmaceutical manufacturers, the Office for National Statistics said.
However, the data also showed that growth relied on government spending and stockpiling by businesses, while business investment fell sharply by 3.2 per cent and household spending remained flat.
The drop in investment was largely due to a decline in transport equipment, a volatile component that had been strong in the previous quarter.Economic outlook
Last week, the Bank of England cut its 2025 growth forecast to 0.75 per cent, while the National Institute of Economic and Social Research predicted a higher growth rate of 1.5 per cent.
The economy recorded moderate growth in the first half of 2024 as it emerged from a shallow recession in late 2023. However, growth stalled in the second half, with the third quarter showing no expansion.
Businesses have raised concerns about a £25 billion increase in employment taxes introduced in Labour’s first budget on 30 October, warning of potential job cuts and price hikes.
Other economic pressures include weak demand in Europe, higher energy costs, and potential disruptions to global trade due to US tariffs under president Donald Trump.
Reeves and prime minister Keir Starmer have pledged to reduce planning delays and regulatory barriers to support investment.
After the latest data release, Reeves reiterated the government’s commitment to economic growth.
"We are taking on the blockers to get Britain building again, investing in our roads, rail, and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand," she said.
The Conservative opposition highlighted the fall in GDP per capita, arguing that Reeves was overseeing a decline in living standards, even if the economy avoided a technical recession.
With borrowing costs rising and economic growth subdued, Reeves may face pressure to announce spending cuts next month to stay within her fiscal targets when government forecasters update their projections.
(With inputs from Reuters)
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Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand. (Photo: Reuters)
BP reports lowest quarterly profit in four years, plans strategy reset
Feb 12, 2025
BP reported a quarterly profit of £943 million on Tuesday, falling short of expectations and marking its lowest in four years.
The company said it plans a "fundamental reset" of its strategy, days after reports that Elliott Management had taken a stake in the oil major.
Like other oil companies, BP has faced lower earnings in 2024 following record profits in the past two years, as energy prices stabilised and global oil demand weakened. However, BP has underperformed compared to its peers, increasing pressure on CEO Murray Auchincloss to make changes.
Its shares were up 0.6 per cent at 467.90 pence shortly after the market opened. On Monday, BP shares had risen sharply after reports of Elliott Management’s undisclosed stake, which investors expected would push for strategic changes.
Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand.
"We now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns," Auchincloss said in a statement.
Auchincloss has been working to regain investor confidence after the sudden resignation of his predecessor Bernard Looney in September 2023 over undisclosed relationships with employees.
BP’s quarterly earnings were impacted by lower realised refining margins. Its fourth-quarter average refining marker margin was $13.1 per barrel, down from $18.5 per barrel a year earlier.
The company expects refining margins to remain low in the current quarter and foresees a lower level of refinery turnaround activity compared to Q4.
BP's underlying replacement cost profit, its measure of net income, fell to £943 million for the three months ending 31 December, down from £2.41 billion a year ago.
Analyst forecasts had estimated £1.02 billion in a company-provided survey and £968 million based on LSEG data.
(With inputs from Reuters)
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Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)
Shein cuts valuation to £40 billion for London listing
Feb 08, 2025
SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.
This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.
The online fast-fashion retailer has been impacted by the recent decision by the Trump administration to end the "de minimis" duty exemption in the United States. The rule had allowed Shein to keep prices low by avoiding import duties.
Analysts and industry experts say the removal of the measure could affect Shein's profitability and increase product prices in the US, its largest market.
One of the sources said the final IPO valuation will depend on the effect of the de minimis change on Shein’s business. Since the removal took effect only this week, it will take time to assess the impact, the person added.
Shein and its competitor Temu accounted for more than 30 per cent of all packages shipped daily to the US under the de minimis provision, according to a 2023 report by the US congressional committee on China. The rule had exempted shipments valued at less than £645 from import duties.
The Reuters sources declined to be named as they were not authorised to speak to the media.
The de minimis removal is part of Donald Trump's decision to impose an additional 10 per cent tariff on China, which he described as an "opening salvo" in a trade dispute between the world's two largest economies. Nearly half of all packages under de minimis came from China, the congressional committee report said.
Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China, Reuters reported last month.
The company was valued at £53 bn in its last fundraising round in 2023, down about one-third from its peak a year earlier, sources have told Reuters. If Shein goes ahead with the lower IPO valuation, it would mark the second consecutive down round for the company. The reasons were not immediately known.
The UK government has been encouraging regulators to adopt a pro-growth approach and has introduced changes to listing rules to attract companies to the London market. A UK government source, who was not authorised to discuss the matter publicly, said it remained interested in Shein launching an IPO in London.
Shein confidentially submitted documents to Britain's Financial Conduct Authority (FCA) in early June, sources told Reuters last year. However, the regulator has not yet approved the listing, and the process has taken longer than usual.
A separate source said the FCA has not made any decision on the IPO approval. Market experts note that such approvals typically take several months. An FCA spokesperson previously stated that timelines depend on the specifics of each case.
Shein switched its IPO plans to London last year after abandoning an attempt to list in the US, where it faced opposition from lawmakers over alleged labour practices and lawsuits from competitors.
The IPO will also require approval from Chinese regulators, particularly the China Securities Regulatory Commission (CSRC), sources have told Reuters.
(Reuters)
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