LIVE BUSINESS: Activist increases Entain stake; Mittie’s sales hit a record £4.5bn; Wood Group agrees to extend the PUSU

Investors have slapped British Gas owner Centrica on the wrist for an £8.2m payday for its boss.

Around 10 per cent of shareholders yesterday opposed the package handed to chief executive Chris O’Shea in 2023, an increase of almost £4m on the previous year.

London-listed shares have risen at the open, boosted by expectations of a rate cut by the European Central Bank later today, while mining company Antofagasta adds profits.

The ECB’s monetary policy decision will be made shortly after midday and comments from central bank President Christine Lagarde will be scrutinized for clues about the path of interest rates.

On Wednesday, the Bank of Canada led the fight among G7 countries by starting its rate easing cycle.

The Bank of England is set to align itself closely with the ECB’s next rate action. Britain’s central bank is scheduled to meet in two weeks.

John Wood Group is up 9 percent after the oilfield services and engineering firm said its board decided to collaborate with Sidara on an enhanced acquisition proposal.

Antofagasta is the top gainer on the FTSE 100 with a jump of 2.5 per cent after the miner signed a $1.5 billion investment deal to improve water supply at its mining operations in Chile.

Vodafone Group and National Grid are the biggest losers on the benchmark index as they trade without the right to receive their latest dividend payments.

Adam Vettese, eToro analyst:

‘Mitie Group appears to have improved in terms of meeting its 2024 targets, with record revenue and operating profits up 30% from last year. With contract values ​​for next year £2bn higher than last year, investors could see room for the strong performance to continue with the shares up 20% as early as 2024.

‘Understandably, the facilities management company’s business has been hit hard during the pandemic. We are now seeing a shift towards returning to the office and remote working less frequent than it was, helping to drive demand for Mitie Group.

‘It is worth taking a warning note about the loss of a couple of key contracts; However, if the pipeline is as solid as indicated then this could easily be compensated for. Investors will now look for stocks to reach the pre-pandemic price within 18% or more.’

Investors believe Labor will renege on its promises and raise income and corporation tax if it wins the election.

In a survey of more than 70 city institutions, six in ten expect Sir Keir Starmer’s party to increase income and corporation taxes. The survey by investment bank Nomura found that only three in ten said they expected taxes to remain stable after a Labor victory.

John Wood Group said last night it would collaborate with Sidara on an enhanced acquisition proposal and give the Dubai-based engineering and consulting firm access to due diligence materials.

Last week, Sidara raised its takeover offer for the British oilfield engineering and services company for the third time, saying the cash offer of 230 pence each was its “final offer”.

The UK Takeover Panel has given Sidara until July 3 to announce a firm intention to make a bid for Wood or withdraw under the UK’s ‘put up or shut up’ (PUSU) takeover rules.

Sidara, whose previous offers were rejected by Wood over concerns related to valuation and future prospects, said last week that the London-listed company had not engaged with her since its first approach was made.

Outsourcing giant Mitie has reported record annual sales after winning new projects with the UK government and developing AI-based security to combat retail crime.

The FTSE 250 listed company works with leading companies in the UK and around the world for services such as cleaning, security, engineering and construction work.

The company said its revenue rose 11 per cent to £4.5bn during the year to the end of March, compared to the £4.1bn generated the previous year.

This was driven by its work with the UK Government and Technical Services which recorded double-digit sales growth and a steady flow of commercial services contracts for cleaning and security.

Three major retailers struck an optimistic tone yesterday as the economic recovery continues.

Inditex, owner of Zara, discount chain B&M and WH Smith said they were optimistic about the coming months as they recorded a rise in sales.

It comes amid hopes of interest rate cuts this summer, which would bring relief to both homeowners and businesses.

Activist investor Eminence Capital has increased its stake in Ladbrokes owner Entain to 5.8 per cent, making it the third-largest shareholder in the gaming giant.

This follows Entain’s decision to give Eminence, which started the month with a stake of around 4.7 percent, several board seats last month.