BUSINESS LIVE: Nadhim Zahawi to chair The Very Group; Diploma lifts guidance; Phoenix CFO to depart

Cerillion shares rose on Monday after the software firm won a large contract and revealed record half-year results.

The London-listed group said the deal with the unnamed ‘leading provider of connectivity solutions’ will initially run for five years and be worth $11.1million.

(PA) – Digital marketing firm Mission Group has rejected a takeover approach from rival Brave Bison, which owns the Social Chain agency founded by Dragons’ Den star Steven Bartlett.

Brave Bison – which last year bought Social Chain – tabled a possible all-stock offer worth around 29p a share, valuing fellow Aim-listed rival Mission Group at about £27million.

But Mission said its board unanimously rebuffed the approach, which it said was “opportunistic and significantly undervalues the group and its prospects”.

Brave Bison, which is backed by billionaire Lord Michael Ashcroft, said it was in talks with Mission’s board and major shareholders to garner support for a deal.

Brave Bison said a tie-up between the pair would create one of the UK’s largest independent digital marketing agencies on Aim, a combined group with sales of around £120million and underlying earnings of about £14million.

Brave Bison said the enlarged group would be headed up by brothers Oliver and Theo Green, executive chairman and chief growth officer of the firm, who took over the company in 2020.

The American market for pharma and health products is expansive, the mark-ups generous and any multi-national which sought to ignore it might as well give up the ghost.

Yet the United States also exposes corporations to regulatory and litigation banana skins.

Business leaders have called for a flagship scheme to get young people into work to be overhauled as the system is a ‘complete waste of money’.

Household names including John Lewis, Tesco and Marks & Spencer say rules around the apprenticeship levy limit them from using the funding pot, even though they pay in millions of pounds.

Starling Bank is selling a slice of its success to banks around the world as the next phase of its growth.

Last month, it launched Salt Bank in Romania. This is the first time a bank has launched using its Engine software outside of the UK.

Recruitment in the private sector has fallen for the tenth month in a row, which is the longest decline since records began.

Accountancy firm BDO said its employment index, which tracks the UK job market, slumped to the lowest level in more than a decade in April.

Chief financial officer of British insurer Phoenix Group Rakesh Thakrar will step down this year, after about four years in the role.

Stephanie Bruce, former CFO at British asset manager Abrdn , will join the group in June and will thereafter take over as interim group CFO.

‘Rakesh has been a great colleague and his counsel, knowledge and experience have been invaluable to Phoenix over the course of his tenure. 

‘We thank him for his significant contribution to the Group’s journey to become the UK’s largest long-term savings and retirement business, which has included his oversight of a number of transformational projects.

‘I am grateful to be working with him and Stephanie during the handover period and wish him every success for the future.’

Diploma has lifted full-year profit expectations after the FTSE 100 distributor of industrial components’ sales beat forecasts in the first half, boosted by six acquisitions.

Revenues came in at £638million for the six months to the end of March, up 10 per cent year-on-year.

Diploma now expects constant currency revenue growth of 16 per cent for the year, up from its previous forecast of 11 per cent, and an operating margin of 20.5 per cent, up from 19.7 per cent.

Chief executive Johnny Thomson said: ‘We’ve delivered another strong first half with good volume-led organic growth in a more challenging market environment.

‘Our momentum is encouraging going into the second half, underpinning our upgrade to full year guidance.’

London’s stock market has been given a shot in the arm as tech firm Raspberry Pi and fast fashion giant Shein accelerate listing plans.

Cambridge-based Raspberry Pi has chosen London for its initial public offering, which could launch within the next ten days.

An IPO would value the business – which helps children learn code – at up to £500m, the Sunday Times reported.

Former chancellor Nadhim Zahawi will become non-executive chair of Littlewoods-owner The Very Group when the Tory MP stands down at the next General Election.

Zahawi said: ‘As one of the UK’s largest digital retailers and flexible payments providers, the Company has an important role to play in helping families get more out of life.

‘With a heritage of over 100 years, Very has an unrivalled knowledge and understanding of its customer, demonstrating resilience even in the face of challenging conditions.

‘I am excited about the strategic opportunities for the Group and look forward to working alongside the management team as they further develop and grow the business for the future.’