The chief executive of Sainsbury (J) (SBRY) has called for a radical overhaul of planning rules as part of the scramble to revive Britain’s crisis-hit high streets. Mike Coupe railed against restrictions which make it hard to switch what empty stores can be used for – and said the next government must make reform a priority. It comes as droves of shoppers desert bricks and mortar stores to buy online from US titans such as Amazon instead. Around 70,000 retail jobs were lost last year. Speaking as Sainsbury’s unveiled a drop in sales, Mr Coupe said: “There are very tight restrictions on the type of retail you can do on high streets. “If they liberalise it, the market would very quickly respond to that”
One of Britain’s largest housebuilders is splashing out just over £1bn on a rival’s residential business – marking the biggest deal in the industry in more than a decade. is buying cash-strapped Galliford Try (GFRD) Linden Homes and Partnerships and Regeneration businesses, creating the nation’s fourth largest housebuilder which can build up to 12,000 homes a year. Bovis first made an approach in May, offering Galliford investors new shares. It was rebuffed, but Galliford has now accepted after the deal was sweetened with £300m in cash. This will help Galliford pay its debts of £186m.
The boss of Rolls-Royce Holdings (RR.) has blamed problems with its latest engine on “amazing coincidences” that have left it nursing a multi-billion pound hit. Warren East revealed an £800m increase to £2.4bn for the total bill to resolve issues with the Trent 1000 engine used by the Boeing 787 Dreamliner. The higher costs also meant Rolls’ full-year operating profit forecast has been downgraded, with it now expected to come in at the “lower end” of the previously announced £600m to £800m range. Parts of Trent 1000s have been wearing out faster than expected, causing planes to be grounded and running up huge bills for the company as it fixes the 600-plus engines affected.
BAE Systems (BA.) has warned that a political upset in the December general election could hurt its prospects this year. The British defence giant said a promised increase in UK defence spending along with a growing military budget in the US meant it was on course to raise its underlying earnings per share from the previous level of 42.9p. However a Labour victory at the election could see this go awry, with the company admitting it was “subject to geopolitical uncertainties including the forthcoming general election”. It added that its guidance was based on “an assumption of average sterling exchange rate of $1.30”.
Struggling fashion chain Superdry (SDRY) said it will discount fewer clothes after another slump in sales as it tries to turn itself around under co-founder Julian Dunkerton. The retailer, which has almost 250 stores in 11 countries, saw its sales drop to £367.8m from £414.6m for the six months to the end of October. Mr Dunkerton narrowly emerged victorious in April from a bitter battle with the retailer’s previous management. He launched a campaign to be reinstated at the helm having left the business in March 2018 after disagreeing about the design of the clothes and how its wares were sold online and in stores.
Questor: Lloyds Banking Group (LLOY) future looks bleaker. We’re dismounting the black horse and selling. Questor Income Portfolio: profits may be about to peak and we fear the share price has already done so. We’ll limit our losses and seek dividend growth elsewhere
