Mark Kleinman is Sky News’ City Editor and the man who gets the Square Mile talking in his City AM column

Five words might have given it away: “Ocado confirms that the CEO and the board continually engage in long-term succession planning and regularly engage with potential candidates,” said the somewhat terse statement (my italics) issued in response to my report on Sunday on Sky News that the retail technology provider was in talks to identify a successor to Tim Steiner, its co-founder and veteran boss.

Chief executive succession at public companies with a conventional share register is, principally, a matter for the chairman and their slate of non-executives. The reference to Steiner’s engagement in the process implies that something unusual is going on at Ocado. As I reported at the weekend, one of those approached about taking over from him is Niklas Heuveldop, chief executive of Ericsson subsidiary Vonage. A technology industry source tells me that Heuveldop was approached by headhunters some weeks ago, although whether his appointment is imminent – or will take place at all – is unclear.

For Ocado shareholders, it has been a sorry story since the share price peaked during the pandemic in September 2020 at over £29. Yesterday, it closed at 178.1p. That suggests that as pioneering as he has been, the company would benefit from a fresh pair of eyes at the top. Steiner’s relentless ‘jam tomorrow’ optimism has worn thin; there is little conviction among shareholders that sustainable profitability is around the corner, particularly after disappointing news in its North American operations over the last 12 months.

True, it has just struck a partnership with Asda in the UK, and other deals are said to be in the works in international markets. Steiner might take some small crumb of comfort from the five per cent fall in its stock on the day that Ocado confirmed that it was looking for his successor; chief executives who see their employer’s shares surge on such news should probably head for the door without stopping for their coat. Steiner isn’t in that category, but handing over to a successor capable of resolving its long-standing dispute with Marks & Spencer and injecting fresh energy into its technology and partnerships pipeline is probably overdue.

Thames Water’s funding taps need new plumbing

Well that’s really cleared things up. Last week’s intervention by Emma Reynolds, the environment secretary, into the three year-long saga over the future of Thames Water, has only served to deepen confusion over the company’s future, just as a prime minister in favour of nationalising utilities prepares to move into Downing Street.

“I understand that there will be some bill impacts in this price review period and further rises in the next period as a direct result of these regulatory adjustments,” Reynolds told Ofwat.

“I am concerned that consumers will ultimately bear an undue cost for these adjustments. The proposal also requests reduced performance standards, impacting both the environment and consumers.”

She is correct that the creditors’ proposal is replete with compromises, fudges, deferrals and trade-offs; and Reynolds would probably also be right to assume that the London & Valley Water consortium’s ‘best and final’ offer – which is not subject to the Takeover Code and its associated binding undertakings associated with that term – is still open to a further sweetener.

Her timing, though, is bizarre, and appears almost designed to destabilise an already highwire act-like process. Thames Water will run out of money this autumn, and with the company requiring a going concern opinion from PricewaterhouseCoopers, its auditor, next month, time is running out as quickly for the company as it is for Sir Keir Starmer.

Sources say the creditor group is mystified about the nature of the environment secretary’s objections, given its commitment not to increase customer bills by more than the amount already agreed with Ofwat.

Whether or not you agree with the principle of utilities being in private ownership, Reynolds’ letter offers more evidence of corporate Britain being used as a political pawn to suit ministers’ short-term agendas. That’s no way to run a country.

Former minister puts FDI money where his mouth is

A case of putting his money where his mouth is? Two-and-a-half years after publishing his government-sponsored review of foreign direct investment in Britain, Lord Harrington of Watford appears to be practising what he preached. This week, GeoPura, a privately owned hydrogen energy producer, was bought by Nasdaq- and Toronto-listed Ballard Power Systems in a £275m deal – the latest in a string of investments by foreign technology providers in an industrial sector where the UK can stake a claim to be a global leader.

Alongside Andrew Cunningham, the GeoPura founder and chief executive, Lord Harrington will join the Ballard board on completion of the deal. The British-based company provides zero-emission power solutions “that help organisations replace diesel generation, strengthen energy resilience and accelerate electrification where grid connections are unavailable, constrained or insufficient”, according to an announcement this week.

“This kind of investment is transformative,” the Tory peer said. “It is exactly why I wrote my Foreign Direct Investment report on how we can encourage deals such as this to ensure UK expertise at GeoPura and so many other British manufacturers, can be exported all over the world.”

Among GeoPura’s investors is the National Wealth Fund, which invested £30m in the business two years ago. Ensuring the hydrogen company’s technology and jobs are maintained in Britain will be another test of Lord Harrington’s own FDI strategy.