Mitie sees gains in rivals’ demise despite City doubt over outsourcers. Outsourcer Mitie Group (MTO) said the wipe-out of rivals like Carillion and Interserve should deliver more contract wins in future despite triggering fears about the industry. Shares fell 8% on Thursday to 137.7p in a sign of the nervousness gripping investors over the outsourcing sector. Mitie’s operating profit guidance for the current year of between £84 million to £87 million was slightly below City estimates of £89 million but still higher than last year’s £83 million. Chief executive Phil Bentley said the end of Carillion and administration of Interserve had hurt confidence in outsourcers but thinning out the playing field of rivals will benefit Mitie.
Competition watchdog vows crackdown on rip-off funerals. The competition watchdog on Thursday threatened to clamp down on undertakers after finding vulnerable customers were paying over the odds to bury their loved ones. The Competition and Markets Authority has started a phase two investigation into funeral providers after discovering larger-than-necessary price hikes over more than a decade. The CMA could force more transparency on price lists, a code of practice, the setting-up of a regulator and price caps. Prices have risen around 6% a year since 2003, with the average UK cost around £4,300, plus £2,000 on flowers and catering. The only listed funeral provider, Dignity (DTY), saw shares fall 3% to 668.5p. It has promised to work with the regulator
Debenhams nears £200 million loan in snub to Mike Ashley bid. Struggling Debenhams (DEB) on Thursday pressed ahead with its restructuring plans after bondholders backed it, in a snub to Mike Ashley’s , which is mulling buying the business. The department store chain needed bondholders’ consent to borrow £200 million from its existing lenders, including Barclays, HSBC and Bank of Ireland. This will allow it to pursue restructuring options to secure the company’s future, but could wipe out shareholders, such as Sports Direct. The business said more than half its bondholders have agreed to tweaks to the 5.25% senior notes due in 2021. The rest have until 5pm to accept the offer.
Adnams calls for fairer tax relief regime for larger beer brewers. Adnams plc (ADB), one of Britain’s remaining handful of family brewers, on Thursday called on the Government to reform a system that the company claims favours start-ups and penalises bigger firms. Chairman Jonathan Adnams welcomed a new Government review into Small Breweries Relief — a system that gives firms producing fewer than around 10 million pints a year significantly reduced tax rates. The Suffolk firm, founded in 1872, is too big to benefit from the relief. If Adnams, which makes Ghost Ship ale, paid the same duty rates as its smaller competitors, it would save about £7 million per year.
Redrow agrees New Malden land deal for next London homes project. Redrow (RDW) on Thursday said Britain’s imminent departure from the EU is not deterring it from buying land, as it inked a deal with Tesco paving the way for 447 new south-west London homes. The FTSE 250 housebuilder has agreed to buy a 1.2-acre site in New Malden that the supermarket does not need. It will invest in a £180 million scheme designed by TP Bennett Architects which will also feature communal gardens. Construction of the 1-3 bedroom homes is expected to start next year. Commitment to build comes despite some rivals reporting weaker consumer confidence ahead of Brexit
