Mohsin Issa, the billionaire CEO of Asda, has dismissed claims of a family feud amid rumors that his brother, Zuber, is looking to sell his stake in the supermarket chain. Mohsin and Zuber, along with TDR Capital, acquired Asda in a £6.8 billion leveraged takeover in 2021. Zuber is reportedly close to a deal to sell his 22.5% stake to TDR, leading to speculation of a falling out with his brother.
However, Mohsin has denied any rift, telling The Sun that there is ‘absolutely no rift between us.’ He declined to comment on Zuber’s future involvement with Asda but expressed his commitment to the company’s ownership.
Mohsin also addressed personal matters, confirming his engagement to Victoria Price, a former partner at EY, Asda’s former auditor. He declined to discuss his divorce from his wife of 30 years, Shamima, but acknowledged that it may have caused friction between the brothers.
Regarding Asda’s performance, Mohsin reported a 7.1% increase in sales to £21 billion last year and a 24% rise in adjusted earnings to £1.07 billion. The company has also reduced its leverage to three times its earnings.
Despite these positive results, Mohsin noted that Asda had invested £415 million in wage increases and expanded its store network to 1,200 by rolling out 479 convenience stores. The company has also reduced prices, including through a price match promotion against Aldi and Lidl.
In other news, Thames Water customers face significant bill increases of £52 per month, a 44% jump from current rates. The troubled water company is seeking approval from regulators to invest £1.1 billion in environmental projects, bringing the total investment to £19.8 billion. This will result in an additional £19 billion in costs for customers, raising their annual bills from £432 to £608 by 2030.
Model train maker Hornby has attributed an 8% decline in fourth-quarter sales to disruptions in the Red Sea. Container ships carrying its miniatures have been delayed due to vessels taking a longer route to avoid conflict with Houthi rebels. Hornby’s shares fell by 12% yesterday, and the company expressed caution in its outlook.
A bizarre row has erupted at London-listed CBD and vape company Chill Brands after suspending its chief executive, Callum Sommerton. Shares in Chill lost a fifth of their value following allegations about Sommerton’s ‘use of inside information.’ The suspension comes days after a major shareholder called a meeting to remove two other directors amid claims of plotting against Sommerton.
Former Dragons’ Den star Duncan Bannatyne has seen his gym empire thrive, with profits rising to £10 million last year from £1 million the year before. Bannatyne Group repaid its Covid loans, and sales climbed by 8% to £138 million.
Lastly, Tyman, a 186-year-old windows and doors business, has become the latest British company to be acquired by a foreign entity. New York-listed Quanex Building Products will take over Tyman in a £780 million deal. The acquisition raises concerns about the vulnerability of UK firms to foreign takeovers.
