Cybersecurity firm Darktrace said an independent review by Ernst & Young didn’t find issues in its processes that weren’t already known to the company and it won’t have to restate any financial releases as a result. The announcement comes after short seller Quintessential Capital Management earlier this year questioned the company’s accounting practices.
(Bloomberg) — Cybersecurity firm Darktrace said an independent review by Ernst & Young didn’t find issues in its processes that weren’t already known to the company and it won’t have to restate any financial releases as a result. The announcement comes after short seller Quintessential Capital Management earlier this year questioned the company’s accounting practices.
Here’s the key business news from London this morning:
In The City
Darktrace Plc: The company said it doesn’t see any impact to past financial statements after EY concluded its independent review. Still, EY reported a number of areas where systems, processes or controls could be improved.
- The company sees “early signs of recovery” across the global economy, it said in a separate trading update, adding that its customer base grew by 18% in the past year
Ocado Group Plc: The online grocer’s loss widened as it stepped up efforts to improve business at the joint venture with Marks & Spencer Group Plc.
- The pretax loss was £289.5 million in the 26 weeks through May 28
- Ocado Retail, the joint venture with Marks & Spencer Group Plc, returned to profit on an Ebitda level in the second quarter as price-cutting coaxed shoppers back to online delivery
Food Industry: Food and drink manufacturers cut their prices in June for the first time in more than three years, after their own costs continued to fall, according to a survey by Lloyds Banking Group.
- The reduction will come as a relief for households struggling with their budgets, as rising interest rates bump up mortgage costs and inflation remains more than four times the Bank of England’s target at 8.7%
Liontrust Asset Management Plc: French billionaire Xavier Niel’s investor group said it plans a partial public tender offer for GAM Holding AG, the latest twist in the takeover drama around the Swiss money manager.
- In May, GAM’s board agreed to London-based Liontrust’s all-share offer worth 107 million Swiss francs
- But the proposal has also met resistance, with some shareholders drawing parallels between the Liontrust deal and investors who lost out in the recent UBS Group AG takeover of Credit Suisse
In Westminster
More than half of Britons would vote to rejoin the European Union for the first time since the nation opted to leave the bloc seven years ago, YouGov polling showed.
Rishi Sunak has attracted chief executive officers from major British companies including AstraZeneca Plc and Shell Plc for his new Business Council as he looks to rebuild his party’s relationship with corporate Britain.
Meanwhile, the UK announced a funding package to support nuclear power generated by small modular reactors in a bid to boost energy security while lowering Britain’s reliance on fossil fuels.
In Case You Missed It
Microsoft Corp.’s once imperiled $69 billion bid for Activision Blizzard Inc. has fresh momentum. At a hearing on Monday, Britain’s Competition Appeal Tribunal “conditionally” paused a fight against a proposed ban on the deal handed down earlier this year by the Competition and Markets Authority.
Here’s a deep dive into the world of British billionaire Jim Ratcliffe, who’s currently looking to acquire Manchester United. Ratcliffe wants to take his sports investments to another level. The trouble is that he’s up against superior riches.
Finally, for more than a decade, Barclays Plc has been the go-to bank for Indian billionaire Gautam Adani, leveraging a relationship forged when only a few global firms were working with the emerging conglomerate. An explosive report by short-seller Hindenburg Research in January has changed all that.
Looking Ahead
A fresh CPI print will take centre stage tomorrow morning, with headline inflation forecast to have eased in June. Still, core inflation is expected to remain at a 31-year high of 7.1%. That’s expected to keep the pressure on the BOE to raise interest rates again and further drive up mortgage costs.
On the corporate front, miner Antofagasta Plc, investment platform Hargreaves Lansdown Plc and utility group Severn Trent Plc are among the companies scheduled to update the market.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
–With assistance from Gabriela Mello.
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