Next (NXT) is ‘weathering the retail storm’ as it enjoyed a rise in half-year profits, the store’s boss revealed. Lord Wolfson, 51, said his business was adapting well to the online world. The Brexiteer shrugged aside the issue of political uncertainty, saying customers’ buying habits were affected more by the weather. His comments came as a struggling High Street saw retail sales fall 0.2% in August after a healthy summer, the Office for National Statistics reported. Online sales also tumbled 3.2%, the biggest fall since May 2015. An ONS spokesman said: ‘Shoppers spent less on both food and clothing while department stores resumed their downward trend after a brief rally in July.’ But Next – which this week launched a collection by TV presenter Emma Willis – said profits in the six months to July were 2.7% higher than in same period last year at £320million.
Royal Mail (RMG) has admitted its parcels arm broke competition laws by striking a deal with a smaller firm to not approach each other’s customers. The ‘anti-competitive agreement’ between Parcelforce Worldwide and Salegroup, a Nottinghamshire-based delivery firm trading as Despatch Bay, ran from August 2013 to May 2018, said communications watchdog Ofcom. It saw them share details of customers so they would not approach the same ones. This meant some customers who could have been offered a cheaper price for services by one firm or the other were never contacted, leading to less competition and higher prices.
Kier Group (KIE) chairman is quitting as the embattled contractor announced a £245million loss yesterday. Philip Cox will step down as soon as a successor is found, the company said. He has been chairman since August 2017 but, since then, Kier’s shares have plunged nearly 90% as the company has been rocked by crisis after crisis. The company has had an emergency cash call shunned by shareholders, ousted former boss Haydn Mursell, disclosed an accounting error and has warned on profits.
Troubled De La Rue (DLAR) has been sniffing around for a contract to print money in Sudan. The 206-year-old passport and banknote business, which is reeling from the loss of the contract to print British passports, has been chasing Sudanese officials in London and is poised to put itself forward if the government in Khartoum requests formal bids, sources said. The Serious Fraud Office, however, is currently investigating De La Rue over suspected corruption in Sudan’s neighbour, South Sudan. The Basingstoke-based firm – which has a regional manufacturing facility in East Africa – designed and printed South Sudan’s maiden currency when it broke away from Sudan in 2011.
Hargreaves Lansdown (HL.) announced the removal of its exit charges today and called for all its rivals to do the same. The move follows the lead of Interactive Investor and Fidelity, which have already scrapped the controversial fees that hinder competition by putting a barrier up for investors who want to switch to another platform. Hargreaves Lansdown’s decision also comes ahead of a potential ban on exit fees, with the financial watchdog having threatened such a move. Hargreaves Lansdown scrapped nine of its charges in a ‘simplification of its fee structure’ including its transfer fees, which were £25 for transferring cash or £25 per holding. Its account closure fee, which was previously £25 plus VAT, has also been removed.
Petards Group (PEG) warned profits would be hit by delays to some of its orders, which it blamed on the time it takes contract decisions to be made by the Department for Transport. The security and surveillance systems developer also revealed that pre-tax profits had fallen by almost 60% to £206,000 in the six months to June 30 when compared with the same period of 2018, as turnover fell 8% to £8.9million and the firm plunged into debt.
IG Group Holdings (IGG) shares surged after it posted first-quarter turnover of £129.1million – up by the thinnest of margins from £128.9million last year. Investors breathed a sigh of relief as the spread-betting firm added more customers and cashed in on the rollercoaster ride that took over global stock markets in August. A candidate has also been lined up to replace outgoing chairman Andy Green, who stepped down after the annual meeting yesterday, though the replacement needs a green light from regulators. IG’s expectation-beating results were described as a ‘robust performance’ by Shore Capital analysts, in what is seasonally a slower quarter.
Saga (SAGA) rocketed 16.3% higher to 52.8p, despite profits tumbling by more than 50% to £52.8million. The group kept its previous guidance for the full-year, reassuring traders. And it also had an encouraging start to new, three-year fixed-price home and motor insurance policies, selling 175,000 during the first half. Chief executive Lance Batchelor, who will leave in January, said Saga was ‘open minded’ about its future after US activist investor Elliott bought a 5% stake. Batchelor looks likely to hit the ground running when he leaves. As well as plans to do lots of sailing, he has agreed to be chairman of one company and is in talks to chair another two.
