BUSINESS LIVE: UK GDP flatlined in April; DFS makes profit warning; Legal & General unveils new strategy

The Goldman Sachs-backed bank has hooked in millions of savers in recent years and it has informed customers that on 15 June the rate on its online saver will drop from 4.75 per cent to 4.55 per cent.

Legal & General shares fell on Wednesday after the firm’s new chief executive unveiled a shake-up of the group’s strategy and structure.

In a raft of sweeping changes, new boss António Simões has put the firm’s housebuilder, Cala Homes, up for sale and set out plans for a single asset management division.

DFS Furniture has made its second profit warning in three months amidst continued disruption in the Red Sea.

The sofa seller now anticipates underlying pre-tax profits of between £10million and £12million for the 53 weeks ending June, compared to prior guidance of £20million to £25million.

(PA) – Tools and equipment hire group HSS has seen its share price tumble by a tenth on Wednesday after revealing that a major client was walking away from a contract.

HSS Hire Group told shareholders that infrastructure business Amey had decided to switch to a different supplier for its equipment rental services.

The deal with Amey had accounted for about 7 per cent of HSS’s revenues and a tenth of its adjusted earnings in 2023, the firm said.

The two businesses had held an agreement for nearly nine years, with it set to end by the end of this year.

The announcement came as a blow to shareholders, raising questions over how HSS will fill the gap in its income after the contract ends.

The London-listed company, which rents and sells equipment such as building supplies and gardening tools, is set to update investors on its trading performance at its annual general meeting later this month.

Drivers in Britain are throwing away hundreds of millions of pounds every year by making one simple mistake with their cars that takes just a matter of minutes to rectify, according to a new study.

Motorists driving with under-inflated tyres are said to be wasting at least £112million annually by burning through rubber more quickly – and are also avoidably increasing their fuel bills in the process, according to The Motor Ombudsman.

The pound has continued its solid gains against the euro since the start of the year this week, with sterling now trading at a 22-month high against the eurozone currency.

Sterling overcame an initial dip in the wake of a higher UK unemployment rate to add nearly 0.3 per cent against the euro to €1.19 yesterday, having risen by around 2.8 per cent since the start of 2024.

Voters have called on the next government to help the most vulnerable with their energy bills.

Almost two-thirds (57 per cent) of the public want to see a social tariff launched to offer cheaper energy to those in real need, according to campaign group Warm This Winter.

Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK GDP figures:

“April’s lack of growth should come as no surprise. ‘Rain stopped play’ is the best way to describe things as builders shunned roof tops and shoppers deserted high streets in favour of their warm, dry sofas.

“The long-term trend for construction is more worrying. Output has fallen for three consecutive months and there’s little surprise that so much focus has been placed on housebuilding by political parties, all hoping their policies can deliver a sustained growth spurt for the UK.

“But no growth is better than negative growth and taken alongside the latest wage figures there doesn’t appear to be much evidence to suggest that Bank of England ratesetters will feel ready to change course quite yet.

And there’s already a frisson of excitement in the air that big events like the Euros and Taylor Swift’s Eras tour will help deliver a decent boost to the economic picture by the time we get the half-year result.

With summer finally approaching, I was keen to buy a cheap desk fan to keep me cool.

If you pop into John Lewis, the cheapest one you can find is £15; on Amazon you can get one for £12.99.

Severn Trent’s boss raked in £3.2million in the last financial year after pocketing a bumper bonus despite rising sewage spills.

Amid a crisis engulfing the water industry, Liv Garfield was handed a £584,000 bonus on top of her £799,600 base salary.

Oxford Instruments surged ahead as it closed in on the takeover of a rival and outlined plans to restructure its business.

The FTSE 250 firm, which makes and sells X-ray cameras, microscopes and magnets to academic researchers and commercial customers, is buying a Zurich-based company for £15million.

Raspberry Pi shares soared by more than 40 per cent yesterday on a bumper debut on the London stock market.

The Cambridge-based computer-maker listed at 280p a share to give it a value of £542million.

The UK economy recorded no growth in April, according to the Office for National Statistics.

Gross domestic product (GDP) was flat during the month, following growth of 0.4 per cent in March, the ONS said.

Nicholas Hyett, investment manager at Wealth Club, comments on the altest UK GDP figures:

The market had low expectations for the UK economy in April, and it duly delivered.

Economic growth was flat, held back by a third month in a row of contraction in the construction industry and weakness in the manufacturing sector. Admittedly the numbers aren’t helped by rain that was 155% of the long term average.

That will be no surprise to anyone who’s lived through the wet and gloomy start to 2024, but has nonetheless severely dented output in house building and associated industries. After strong growth in March it’s a return to a less than compelling trend.

In an election month, where every data release will be being watched closely, there’s little here to change the narrative.