BUSINESS LIVE: Consumer confidence boost; BHP faces multi-billion-pound court claim; Superdry losses widen

WH Smith anticipates ‘another year of significant growth’ after 2023 profits were boosted by resilient travel demand.

Turnover in the retailer’s global travel division grew by 16 per cent on a constant currency basis for the 20 weeks ending 20 January, with UK travel sales up 15 per cent.

There’s something lurking in Helium One Global Ltd’s basement, but in the best possible way.

The exploration firm revealed that it successfully drilled the Itumbula West-1 well in Tanzania to its total depth of 961 metres, with the well encountering elevated helium shows described as “over twenty times the background levels”.

The boss of the UK’s second largest energy company has criticised in-home displays for smart meters, as households face problems with faulty devices.

Greg Jackson, founder of Octopus Energy, said in-home display devices are ‘so bad’ in a response to a customer on social media network X.

The approval of bitcoin spot ETFs in the US theoretically opened-up crypto markets to billions of dollars of fresh capital, but the investment case for the digital assets ‘remains weak’, according to UBS.

The US securities regulator has finally given the green light for the launch of exchange-traded funds tracking the price of bitcoin, marking a watershed moment for crypto assets.

The Securities and Exchange Commission on Wednesday gave approval for the launch of 11 Bitcoin ETFs, with funds lined-up from Wall Street giants BlackRock and Fidelity, as a long-running regulatory saga nears its end.

(PA) – Saga has said it is exploring options for its cruise business, which could see it bring in an external firm to invest in the division.

Shares in the business shot higher on Friday morning as a result.

The move came after reports from Sky New that the company, which specialises in insurance and holidays for over-50s, could sell a stake in its ocean cruises division.

Saga currently runs two flagship vessels, Spirit of Adventure and Spirit of Discovery, through its ocean cruises operation.

In a statement to the stock market, the firm said: “The board is exploring opportunities to optimise Saga’s operational and strategic position in cruise, where exceptional demand for its boutique ocean cruise offer means it is operating at close to capacity.

“It has concluded that a partnership arrangement for ocean cruise would be consistent with group strategy to move to a capital-light business model to support further growth and crystalise value, reduce debt and enhance long-term returns for shareholders.”

It stressed that no decision has yet been made and there is no certainty that any partnership deal will take place.

The UK has accused Canada of not being ‘serious’ about a trade deal after talks broke down over restrictions on beef and cheese.

Negotiations have been taking place for two years on deepening the arrangements that were part of the wider pact with the EU.

Superdry finance boss Shaun Wills will step down at the end of March after the struggling fashion retailer reported a wider half-yearly loss.

The group blamed unusual weather and the cost-of-living crisis for an adjusted pre-tax loss of £25.3million for the six months to 28 October, up from a £13.6million loss last year.

(PA) – Wickes has said it expects profits for the past year to have been at the top end of forecasts, after improved trade demand in the latest quarter.

Shares in the DIY and building supplies firm moved higher on Friday as a result.

Chief executive David Wood hailed a “robust performance” over the year despite an overall decline in sales.

Wickes, which has 229 stores, told shareholders that like-for-like sales dropped by 0.3% in 2023 as it was affected by weaker consumer demand for larger projects and IT disruption.

The group’s Do It For Me business, which links customers with potential traders, performed particularly weakly over the second half of the year.

Do It For Me sales were down 1.7% for 2023, with a sharp decline of 13.7% over the final quarter of the year.

This slump in sales “reflected a more subdued consumer environment for larger projects, as well as delivery delays from the new software implementation”, the company said.

However, Wickes’ core trade and DIY business saw like-for-like sales rise 0.1% for the year.

It said these sales grew 1.2% in the latest quarter as strong volumes helped to offset the impact of price deflation.

Trade sales were particularly strong during the year it added, with double digit growth through its TradePro membership.

A bit like planting a tree, the best time to start a business is 10 years ago.

If you planted a tree 10 years ago, you could be sat in the shade. If you started a business ten years ago, you could be benefiting from it.

Lloyds Banking Group is to axe 1,600 jobs across its branch network as it reshapes its business towards online banking.

In a move set to enrage the many who value face-to-face service, it claimed changes will enable customers to ‘see us how and when they want to’.

He’s the East End boy who became one of Britain’s richest men in a rags-to-riches story that included the acquisition of Tottenham Hotspur, a beauty queen girlfriend less than half his age and a sprawling business empire.

But the downfall of Joe Lewis was complete when he pleaded guilty to insider trading at a Manhattan federal courthouse on Wednesday.

Investment in Vodafone by the United Arab Emirates is a security risk, the Government has declared.

Deputy Prime Minister Oliver Dowden said the near-15 per cent stake held by state-controlled Emirates Telecommunications poses a threat to Britain given Vodafone’s work with Government departments and its influence on the UK telecoms industry.

John Coldham, co-head of the retail sector (UK) at Gowling WLG:

‘Although the retail sector continues to battle ongoing challenges with households limiting their spending and rising overheads, WH Smith’s dominance at railway stations and airports remains unabated with a lack of competition.

‘The retailer’s high street stores may not be thriving, similar to many others in the sector, but the success of its travel arm has led to the company opening franchises in hospitals across the UK as well to enhance its growth.

‘This is a savvy move as like its stores at travel hubs, it will provide guaranteed footfall as a necessity for patients and visitors alike with few other retail options to choose from.

‘Internationally, the business is continuing to perform well and shareholders will be keen to see this progress, especially as profits are reinvested and it uses the UK as a template for its other regions.’

WH Smith sales rose 8 per cent year-on-year in the 20 weeks to 20 January as the retailer was boosted by resilient travel demand.

The upswing in footfall at train stations and in airports has brought brisk business, with Travel UK, the company’s largest division, posting a revenue increase of 15 per cent for the period.

‘The Group is trading well and is in its strongest ever position as a global travel retailer. We are confident of another year of significant growth in 2024.’

Fashion house LVMH celebrated a Christmas sales rise.

The bumper festive quarter helped the group cash in record sales and profits for 2023 but there were worrying signs that demand for luxury goods has wavered.

Superdry finance boss Shaun Wills will step down at the end of March after the struggling fashion retailer reported a wider half-yearly loss.

The group blamed unusual weather and the cost-of-living crisis for an adjusted pre-tax loss of £25.3million for the six months to 28 October, up from a £13.6million loss last year.

Superdry has named Giles David as its interim CFO, effective 29 January.

Julian Dunkerton, founder and chief executive, said:

‘This has clearly been a difficult period for Superdry. A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the Group.

‘These macro and external factors have been further exacerbated by the underperformance of our Wholesale segment. Whilst, to some extent, this was expected due to the decision to exit our US operations and the sale of the brand rights in non-core territories, the segment continues to prove challenging.’

BHP Group’s Brazilian unit will review a decision from the Federal Court of Brazil regarding a 155 billion Brazilian real (£24.8billion) Federal Public Prosecution Office claim over the 2015 collapse of the Fundao dam owned by Samarco.

The group told investors this morning:

‘BHP Brasil has not been served with a decision by the Court and will review the decision to assess its implications, the potential for an appeal and any potential impact to the Group’s provision related to the Samarco dam failure.

‘BHP Brasil is fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Fundação Renova, which is a not-for-profit, private foundation that was established following the Fundão tailings dam failure to implement 42 remediation and compensatory programs in Brazil. ‘

European Central Bank (ECB) chief Christine Lagarde yesterday insisted that talk of interest rate cuts was ‘premature’ even as storm clouds gathered over Germany, its largest economy.

The ECB left rates on hold at 4 per cent and did little to substantiate expectations that it will cut rates five times this year.

UK consumer confidence has strengthened to its highest level since January 2022, boosting optimism over Britain’s economic prospects over the next 12 months, according to the closely-watched GfK Consumer Confidence Index.

Linda Ellett, the UK head of consumer, retail and leisure markets for KPMG, said: ‘While inflation and interest rates are gradually reducing, prices are still increasing and consumers are seeing costs still going up.

‘Many people still face the prospect of large jumps in their mortgage when their fixed deal ends this year. And even more face higher costs for the likes of insurance premium renewals, or in-contract increases for mobile and broadband provision.

‘Household spending power is still gradually being eroded and in this environment it is little surprise to see that there is limited appetite for spending dwindling savings on major purchases, except perhaps – for those who can afford to – to temporarily take a break from it all on holiday.

‘In KPMG research, households feeling worse about their financial security outnumber those feeling more secure by almost two to one.’