Afternoon Financial Press Update
Below are the key headlines from today’s updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Battered housebuilder Persimmon bids to repair image with cash pledge. made a bid to rebuild its battered reputation on Thursday by giving customers the chance to keep part of their cash for new homes until faults are fixed. The housebuilder has had a turbulent time amid rows over corporate pay and complaints over the quality of its homes, leading to speculation that it could even be kicked out of the Government’s Help to Buy subsidy scheme which has boosted industry profits. Under plans announced today, from July homebuyers’ solicitors will keep 6% of the build cost of every new home — equivalent to an average of £3600 per property — until any faults identified are fixed.
Brexit is not putting off shoppers, says . The high street fashion retailer Next said there was no evidence that uncertainty surrounding Brexit was affecting consumer behaviour in the retail sector as it reported full-year results in line with expectations. Lord Wolfson of Aspley Guise, 51, the chief executive of Next and a supporter of Britain leaving Europe, also said that customers could benefit if Britain left the EU without a deal because tariffs would be cut by between £12 million and £15 million. He said that Next would pass any savings on to customers. Lord Wolfson said that the company felt that there was a “level of fatigue” around Brexit that “leaves consumers numb to the daily swings in the political debate”. He said: “It appears to us that consumer behaviour (in our sector) will only be materially changed if the UK’s departure from the EU (or continued uncertainty around this subject) begins to affect employment, prices or earnings. It does not seem to be having any adverse effect on these variables at the present time.”
A profits warning from the mid-cap precision measurement engineer because of slowing demand in Asia. It now expects full-year pre-tax profits of £123 million to £141 million, down from a range of £146 million to £166 million. The shares dropped 452p to £37.50. Russ Mould, at AJ Bell, said: “With only 5% of its sales going to firms based in the UK and a wide spread of client industries, Renishaw has a good insight into what is going on globally and it is always worth listening whenever this high-quality company speaks.” He added that the company had suffered just seven drops in earnings in the past 25 years, all during times of “a slowdown or recession around the world”.
Shares in retailer have risen over 4.5% this morning after the group posted a 20.3% rise in first-half profits to £14.8million. The company said improved profitability was down to better margins and the delivery of £4.9million in cost savings. Revenue at Game slipped by 4.7% to £492.9million in the 26 weeks to January 26. The Board said it had decided not to declare an interim dividend for the period, ‘reflecting the decision to continue to focus on the expansion and investment in the Group.’ The continued downturn in pre-owned games took its toll, while hardware sales were weaker amid tough competition, the group said. Game took the decision to reduce the amount of promotional activity over Black Friday week, resulting in lower sales.
Billionaire retail tycoon Mike Ashley has renewed his call for a clear out of the board as he strives to install himself at the helm of the struggling department store chain. In a statement to the stock exchange, Ashley’s firm said it has requisitioned a meeting of Debenhams shareholders to appoint him to the board and remove all other members, except new finance boss Rachel Osborne. Sports Direct, which owns Debenhams’ main rival House of Fraser, made a previous attempt to take control on March 7, but this was foiled by a technicality. It said its first attempt was ‘invalid’ as its shares in Debenhams were being held by a third-party nominee.’Sports Direct would like the matter of Debenhams board appointments to be put to the vote of the Debenhams shareholders as soon as possible,’ the company said.
profits fall in first full-year results since ‘hug-gate’ scandal. Under-fire fashion retailer Ted Baker on Thursday said it is determined to learn lessons from the “Hug-gate” scandal as it reported a fall in profits. Founder and boss Ray Kelvin took a leave of voluntary absence in December following complaints he imposed a culture of forced hugs. He denied misconduct allegations but resigned earlier this month. Pre-tax profits in the year to January 26 fell 26% to £50.9 million, hit by increased industry discounting and consumer uncertainty. The firm also lost £600,000 when House of Fraser collapsed. Group sales rose 4.4% to £617.4 million, and acting chief Lindsay Page said there is no evidence shoppers have left the brand in the wake of the controversy
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