10 The Sunday Times December 20, 2020 BUSINESS Liam Kelly first. BDO said the RICS’s finished with milder tickings- by Paul Marcuse. This is success of TV drama Strike Bosses of the rickety treasury, reserves and off over interbank transfer where the four NEDs sat. and the West End play Harry investment policies were processes and the Many of the RICS’s 134,000 Potter and the Cursed Child. “not properly version- implementation of actions. members are already The reason for the RICS are on the ropes controlled, appear to be out The report was not shared irritated at having to pay fees dividend damage pre-dated of date and have never been beyond the RICS’s audit to an organisation that seems the pandemic: higher costs The Royal Institution of annual fees of about £540 are communicated to the committee until four NEDs to do little more than chase squeezed pre-tax profits at Chartered Surveyors (RICS) now due — more details of treasury team”, who “just got hold of it, tried to speak them endlessly about “CPD” Brontë — which Rowling runs responded to last weekend’s the report their institution follow instructions ... and to then president Chris — continuing professional with her long-time agent Neil revelation that four non- has strangely failed to share. rely on their own experience Brooke about it — and had development. Those who Blair, 54 — from £7.2m to executive directors had been The 152-year-old body, from previous ... roles”. their contracts terminated pressed £500,000-a-year £4.8m. However, newly filed dismissed for trying to raise which sets professional The second was banking. for their efforts. chief executive Sean accounts reveal that the alarm over a report standards in the property The accountants found many The RICS’s governance Tompkins for answers on “stringent cash conservation critical of its treasury industry and offers of the organisation’s global structure is convoluted. A governance last week were measures are in place” until management by saying the qualifications, asked the branches had opened bank governing council, now referred to the official RICS theatres are able to reopen. matter “had already received accountancy firm BDO to accounts without putting the chaired by Brooke, reports to statement, which said that it While the divi has fallen, appropriate scrutiny over a examine its treasury UK on the mandate. Of 35 the privy council. Beneath was “financially sound”. Prufrock is sure Rowling, 55, year ago”. “Nothing in this management in late 2018. international branches, the the governing council are If Brooke and chums are so will not be short of cash this article is new,” it said. BDO’s report, which went to RICS was able to produce several boards, including the confident the treasury issue Christmas: she has a £795m This came as a surprise to four people, including then mandates for just nine. management board, chaired has had appropriate scrutiny, fortune, according to The Prufrock: before publication, finance director Andrew “For the 26 remaining why are they afraid of an Sunday Times Rich List. the RICS had tried to claim McManus, gave the lowest locations, the institution is independent inquiry? This [email protected] the information was possible “no assurance” neither sure of how many fusty, self-interested body confidential and implied that rating for the effectiveness of bank accounts are in could do with a shake-up. it might sue. Given its newly the RICS’s controls. It looked existence nor how much TWITTER POLL relaxed attitude, the RICS at six areas, four of which it funds they hold,” the report Bubble Going mainstream will surely not object if we flagged as “high priority”. said. BDO warned that this Harry Potter’s give members — whose Documentation was the Chris Brooke, chairman of the RICS’s governing council exposed the RICS to the withering divi “potential misappropriation” 64% 36% 6 For those struggling to get into a festive mood, Bank of of funds. Many are having to grapple England staff may have just the ticket. They run a Christmas JUST SAYING . It was no more reassuring with hits to their income this quiz on their Bank Underground blog. This year’s head- on cashflow forecasting, year — even famous authors. scratchers include: why is the 2008-9 financial crisis still saying the directors “may JK Rowling has seen her pushing up the price of Christmas trees? Four options: Nordic As chief executive of the FCA find themselves in significant dividend from Brontë Film governments’ 10-year emergency stimulus for tree farmers between 2016 and 2020, I cashflow difficulties post- and Television, which has ended; Lehman Brothers creditors accidentally executed December 2018, which they develops and produces a futures contract for trees that they cannot sell; post-crisis apologise to London Capital are unable to resolve in adaptations of her Harry After Bitcoin broke through regulatory reforms prevented suppliers hedging against price sufficient time” — or on bank Potter and Cormoran Strike the $20,000 mark, do you uncertainty; or, a shortage of mature trees caused by farms & Finance bondholders account reconciliations, novels, plunge from £12.9m think it’s a bubble about to going out of business in the crisis. (Spoiler alert: it is the last Bank of England governor Andrew Bailey warning of the “risk of to £2.4m. burst — or a currency that’s one.) More cheerful is: which country is the world’s biggest says sorry to more than 11,000 people errors, manipulation or Sales soared 33% to £18m finally going mainstream? exporter of Brussels sprouts? (Hint: it’s not Belgium.) who invested in the collapsed bond firm undetected fraud”. BDO Payout pinch: JK Rowling last year, powered by the @ST_Business DATABANK INSIDE THE CITY SAM CHAMBERS THE WEEK IN THE MARKETS THE ECONOMY Consumer prices index current rate prev. month FTSE 100 DOLLAR The main attraction (other Group empire show it is finally FTSE 100 USD > GBP 0.3% 0.7% than a bombed-out share accepting it cannot stop the CPI including housing current rate prev. month There’s 8,000 price) is M&S’s timely jump rot without some bold action. $1.35 0.6% 0.9% into online food through last Declining clothing sales are U 0.03 still time year’s £750m acquisition of made all the more painful by 12-month high: $1.36 Retail prices index current rate prev. month 7,000 low: $1.15 a 50% stake in Ocado’s retail M&S’s long, inflexible leases, 0.9% 1.3% business, which grew sales by which add up to a £2.5bn EURO for Marks 6,529.18 Average weekly earnings on prev. month on last year 6,000 EUR > GBP 35% last quarter as shoppers liability that will not ease 17.57 H: 7,674.6 shunned supermarkets significantly until a tranche 0.27% L: 4,993.9 £560 U 0.9% U 2.7% Unemployment current rate prev. month to sparkle because of Covid-19. of sale and leaseback 5,000 €1.10 M&S’s market value of agreements expires in 2026. FTSE 250 U 0.01 12-month high: €1.20 1.69m 4.9% 4.8% As Archie Norman unveiled £2.6bn implies that the City Although M&S still throws 2020 low: €1.06 Source: Thomson Reuters Eikon Manufacturing output on the year on last month yet another turnaround plan has, understandably, given off enough cash to fund the YEN for Mark & Spencer, the up on its perennially liabilities, its older, asbestos- RISERS FALLERS Signature Aviation: 368.9p U 45.9% Avon Rubber: £30.60 V 18.7% on profit YEN > USD V 7.1% U 1.7% chairman surveyed sceptical underperforming clothing ridden stores are in the on takeover tussle Polypipe: 568p warning Airtel Africa: 77.1p V 14.8% on Retail sales on the year on last month analysts and journalists in business, where the virus forefront of investors’ minds. U 24.3% on earnings upgrade Dixons Nigeria changes Capita: 38.9p V 14.3% front of him and quipped that has turned steady decline That could encourage Carphone: 213.5p U 21.4% on profits on education sale Astra Zeneca: £75.08 ¥103.32 U 2.4% V 3.8% 20,116.29 boost Aston Martin Lagonda: £16.54 V 8% on Alexion deal Petrofac: 153.6p V 0.69 the retailer’s middle name into something resembling Norman, 66, to shore up the U 16.7% on sentiment AO World: V 7.7% on analyst downgrade 12-month high: ¥112.11 494.14 H:22,108.3 low: ¥102.34 was “False Dawn”. freefall. Shore Capital, house balance sheet with a sale of 2.52% L:12,829.7 415.5p U 16.1% on lockdown boost Source: Refinitiv/AJ Bell UK trade latest 3 mths prev. 3 mths latest 12 mths More than two years later, broker to M&S, has forecast the rest of its international OIL balance (£bn) +1.73 +12.85 +27.79 his remarks appear prescient: that like-for-like sales over the business or even revive a DOLLARS/BARREL DOW JONES FTSE EUROFIRST Gross domestic latest quarter prev. quarter annual change M&S’s shares have more than peak festive trading period much-discussed plan to spin HANG SENG product halved to 134p, its dividend will be down 28% on last year. off the clothing business. 30,179.05 26,498.60 1,528.72 $52.26 U 15.5% V 19.8% V 9.6% 2.29 has been canned and the M&S’s interest in acquiring Critics of the M&S/Ocado 132.68 H:30,303.4 7.27 H:29,056.4 19.99 H:1,690.8 U Budget deficit latest month prev.