Nando's to open new restaurants across UK after slashing loss

Retail & Consumer

Vodafone and Three's £16.5bn mega merger approved by competition watchdog

The UK's competition watchdog has given the green light to Vodafone’s monumental £16.5bn merger with CK Hutchison’s Three UK, forming the country's largest mobile operator. In a statement released on the London Stock Exchange, Vodafone characterised the deal as a "once-in-a-generation opportunity to transform the UK’s digital infrastructure," CEO Margherita Della Valle celebrated the birth of a "new force" in the telecoms market. This approval comes after nearly 18 months of consideration by the Competition and Markets Authority (CMA), which had previously expressed concerns that the merger could result in increased bills for millions of customers, as reported by City AM. Last month, the CMA indicated it would back the deal if both companies committed to an £11bn plan to enhance the merged group’s UK network. On Thursday, Vodafone and Three vowed to invest £11bn and establish "one of Europe’s most advanced 5G networks," set to serve over 50m customers. The statement confirmed this commitment would not require any public funding. Stuart Mcintosh, the chair of the CMA’s inquiry group, stated: "After extensive feedback, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement our proposed measures." Vodafone’s Margherita Della Valle asserted that consumers and businesses would benefit from "wider coverage, faster speeds and better-quality connections across the UK," following the merger. Canning Fok, deputy chairman of CK Hutchison and chairman of CK Hutchison Group Telecom Holdings, has expressed his approval following the green light for the telecoms deal. He remarked: "Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications." Fok emphasised the company's enduring commitment to the UK market, stating: "We have been operating telecoms businesses in the UK for over three decades and Three UK for the past two. " He underscored their contributions, adding: "We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to UK businesses and consumers."

Retail & Consumer

TalkTalk may cut nearly 25% of consumer staff, including roles at Salford HQ

Nearly a quarter of TalkTalk's consumer staff, including some based at the company's Salford headquarters, are at risk of losing their jobs. It is estimated that around 130 out of 530 colleagues could face redundancy, equating to almost 25 per cent of the consumer team, the Manchester Evening News and BusinessLive have revealed. The company is expected to extend the redundancy consultation period over the Christmas fortnight. Last year, TalkTalk Group split its main operating business into three independent companies: TalkTalk Consumer, which serves over two million broadband customers, TalkTalk Business Direct, and PXC Communications, which provides services to other telecoms providers. Earlier this year, TalkTalk had warned it could potentially collapse unless a new finance deal was secured. In its July annual report, the directors expressed concerns about potential insolvency as early as 'August 2024 or sooner'. A source close to the company disclosed that following the demerger, the business is 'simplifying ways' to ensure a 'sustainable business model' for the future. The changes are expected to affect roles across the UK, particularly in centralised head office functions, reports the Manchester Evening News. While Soapworks in Salford Quays remains the company's HQ, it is unclear how many roles there could be impacted. It is understood that customers will not be affected by these changes. A spokesperson for TalkTalk commented: "This is the first stage in a multi-year transformation of our business to deliver differentiated service and product to our customers. We are simplifying our business to ensure that we can continue to offer great value connectivity to our millions of customers across the UK." "As part of this, we have made the difficult decision to launch a consultation about the future of some roles at TalkTalk's consumer business." The telecom firm's executives have been actively working to refinance the substantial £1bn debt accumulated since the company went private in 2020, amidst escalating costs and increased competition. In a positive turn for TalkTalk, August saw a tentative agreement on a transaction, providing the company with a £400m financial boost. Regarding the financing, they stated: "The proposed transaction will leave the company well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk, continuing to capitalise on their strong positions in the market." In the latest financial report up to February 29, it was disclosed that TalkTalk's consumer and PXC divisions employed approximately 1,857 individuals - 1,229 in administrative roles and another 628 in sales and customer management. Back in 2019, TalkTalk relocated its headquarters to the Soapworks building in Salford Quays, a site once home to Colgate-Palmolive's toothpaste, detergents, and dishwasher liquid production. The group said: "It's been amazing to be able to bring everyone together under one roof to create a world-class, state-of-the-art campus for our entire business." The company also operates from locations in Gateshead and London.

Retail & Consumer

British Gas owner Centrica adds £300m to share buyback plan amid nuke boost

FTSE 100 stalwart Centrica has bolstered its share buyback initiative with an extra £300m, taking the total shares repurchased over the past two years to a staggering £1.5bn. In a trading update today, British Gas's parent company signalled that it foresees its full-year earnings and net cash for 2024 mirroring market expectations, as reported by City AM. Analysts project an adjusted earnings per share of 18.5p for Centrica in 2024, alongside an anticipated net cash position of £2.6bn. "The usual uncertainties remain for the balance of the year, including weather, commodity prices and asset performance," the energy firm highlighted. Since commencing in November 2022, Centrica's ambitious share buyback plan is on track to acquire roughly 20% of its stock by September 2025. Just last week, the company announced the extension of the operational life for four of its nuclear reactors until March 2027 – a year longer than previously planned. Nuclear output in the United Kingdom has been incrementally rising throughout 2024, registering a 2% increase since the year's start, as per analysts from Jefferies. In another sector insight, domestic gas consumption in UK households was six per cent higher than the three-year average from September to November. Coinciding, electricity and gas prices have surged by 20-30%. These updates surrounding its nuclear ventures contributed to a 12.7% rise in Centrica's share price over the past month. Despite this jump, the company's shares are still trailing seven per cent behind since January started.

Retail & Consumer

Watches of Switzerland hails US market as sales tick up

Watches of Switzerland has announced a surge in revenue, buoyed by robust demand in the US market, even as luxury watch sales remain static in the UK and Europe. In its latest trading update, the high-end watch retailer revealed that group revenue for the 26 weeks ending 27 October climbed by 4 per cent year-on-year to £785m, as reported by City AM. While the UK market showed signs of positivity, the company highlighted the US as a significant contributor to its recent financial achievements, with revenues there jumping 24 per cent to £355m. Revenue from the UK and Europe dipped slightly by one per cent compared to the previous year, settling at £430m. Brian Duffy, the CEO of Watches of Switzerland, attributed this performance partly to the firm's acquisition of the Roberto Coin business in North America earlier this year. Duffy commented: "Our newly acquired Roberto Coin business in North America has traded strongly since acquisition and is now making a good contribution to our Group." He continued, "Integration is progressing well, and growth plans are underway. We are also encouraged by the performance of the Rolex Certified Pre-Owned programme and the sustained growth in our overall pre-owned business." The company has also expanded its digital footprint by acquiring a New York-based media company specialising in wristwatch editorial content earlier this year, aiming to bolster online growth. Hodinkee, known as an influential editorial and e-commerce platform for new and vintage wristwatches, joined the London-listed group for an undisclosed sum.

Retail & Consumer

Manchester Airport owner reports record passenger numbers - but warns of challenges ahead

Manchester Airports Group (MAG), which encompasses Manchester, London Stansted, and East Midlands airports, has flown to new heights with its pre-tax profit hitting £139.6m for the first half of their financial year ending on 30 September, 2024. This marks an increase from the previous £115.9m, buoyed by a 6.9% rise in traffic to 37.3m passengers, as reported by City AM. MAG's success story also includes its subsidiary travel services business CAVU contributing to a revenue surge to £768.5m from £705.6m. Notably, Manchester Airport celebrated a milestone, managing 17.8m passengers during this period and reaching an unprecedented annual total of 30 million travellers in September for the first time ever. In comparison to international counterparts such as La Guardia New York and Melbourne Airport Australia, Manchester Airport establishes its stature by entering their league. Meanwhile, London Stansted broke its own record for passenger numbers in a half-year with 16.7m visitors. MAG also witnessed its busiest day on record during October when it serviced 107,000 passengers within a single 24-hour timeframe. Additionally, East Midlands Airport saw a steady flow of 2.8m individuals over the six months. Despite facing increased taxes and operational costs, MAG CEO Ken O'Toole highlighted the group's achievement stating: "Across the summer, one in five UK air passengers chose to fly through a MAG airport for business, leisure, to study or visit friends and family." "This is testament to the strength of our route networks, our commitment to providing great choice and value to all our customers, and to always striving to deliver a positive passenger experience." "While our industry faces challenges both in the UK and globally, such as increasing taxation and rising costs linked to the push towards full decarbonisation of air travel, MAG’s strong financial and operational performance makes us well-placed to drive forward our investment programmes as we continue to grow."

Retail & Consumer

Procook shares dip as kitchenware retailer posts first-half losses

Kitchenware retailer Procook says it is “confident” in delivering growth after reporting an underlying operating loss of £1.8m for the first half of the year - up from £1.5m a year earlier. The Gloucestershire-based firm said it had “outperformed” the market over the 28 weeks ended October 13. Revenue over the period increased 7.5% to £28.3m, with underlying revenue up 4.2%. In the first eight weeks ending December 8, including Black Friday and the early part of Christmas trading, total revenue increased by +7.5%, with like-for-like revenue up 0.9%. The company opened four stores in the period, with plans in the pipeline for 10 new sites in total over the financial year. But shares in Procook fell 16% on the news of its increased first-half losses. Lee Tappenden, chief executive, said Procook had delivered a "strong performance" in the first half and had grown the company's customer base. “We have made good progress against our strategic priorities and continue to invest carefully in the areas that will support profitable growth in the medium term," he said. “We are pleased with trading results in the first half of the year. Whilst the important Q3 trading period had a subdued start in the early weeks coinciding with the Budget event, and a later Black Friday year on year, we are well positioned to take advantage of the improved momentum we are now experiencing, supported by our Christmas campaign, new product launches and strong inventory levels." Procook's expectations for the full-year remain unchanged. It added that it anticipated a "typical second half weighting" of revenue and profitability.

Retail & Consumer

Channel 5 loses £160m in major blow ahead of major rebrand

Channel 5 has maintained that its operating model remains stable despite revealing a loss of nearly £160m in 2023. The channel, which is set to rebrand as '5' in April 2025, attributed the loss to a £273m impairment in the value of its investment in Viacom Interactive, a subsidiary of parent company Paramount Global, and not to Channel 5’s trading business. This led to a pre-tax loss of £159.5m for 2023, following a pre-tax profit of £78.1m in 2022. Recently filed accounts with Companies House show a rise in turnover from £370m to £398m, boosted by a payment of £80.9m, plus £9.1m in interest, from Channel 5’s sales partner due to a correction in that firm’s internal reporting between 2017 and 2023, as reported by City AM. Excluding this payment, the channel’s turnover totalled £318m. The channel’s operating profit increased from £80.1m to £112.4m in the year. However, excluding the payment, its profit totalled £22.7m. The 2023 results were made public after being filed with Companies House on 6 December, past the 30 September deadline. A statement approved by the board said: "Despite the tough commercial environment, Channel 5’s portfolio – which includes 5STAR, 5USA, 5Select and 5ACTION – achieved a fifth consecutive year of share growth (five per cent), making it the only public service broadcaster (PSB) to increase its total share of the UK viewing audience." "In addition, Channel 5 was the only commercial PSB to increase its audience share in peak time (one per cent) as well as its share of ABC1 viewers in peak time (four per cent)." "For a fourth consecutive year, My5 achieved growth in its viewing, reflecting the success of the free streaming service and the appeal of Channel 5’s content to a streaming audience." On its future, the business added: "Looking ahead, the business continues to work to future proof its offering and enhance the experience for viewers, advertisers and content partners."

Retail & Consumer

Boohoo shares rebound from historic low as battle over its future continues

Shares in the fast fashion giant Boohoo have rallied from a record low as the company faces another pivotal moment ahead of a decisive vote this festive season. The Manchester-based conglomerate, which owns brands such as Debenhams and PrettyLittleThing, experienced a drop in its share value in July from 35p to 27p. However, Boohoo's shares have since rebounded to their pre-slump levels amidst ongoing debates about its strategic direction and management. Despite the recovery, Boohoo's shares are still trading lower than the 41p mark they hit in January 2024, and far below the peak of 413p during the height of the Covid-19 pandemic, as reported by City AM. This morning's uptick occurred as a leading shareholder advisory firm, Institutional Shareholder Services (ISS), advised Boohoo investors to oppose Mike Ashley’s attempt to secure a board position at the emergency meeting scheduled for later this month. Boohoo confirmed that ISS had recommended a vote against the proposal on 20 December. The fashion retailer is currently locked in a dispute with businessman Mike Ashley’s Frasers Group, which holds a 27% stake in Boohoo. On Sunday, Ashley penned an open letter to shareholders criticising the company for what he described as an "egotistical founder who has an unhealthy grip on the board" and claimed the company was "in desperate need of the guidance I can provide". He also cautioned against a scenario where there is a "fire sale of assets at knockdown prices", including the Debenhams brand, which he argued should not be sold. Ashley expressed his intention to take on the role of Boohoo’s chief executive to aid the brand and "prevent any dishonest profiteering" off investors. In retort, Boohoo maintained that Ashley was acting in pursuit of his own commercial interests, not those of its shareholders. On Monday, Boohoo articulated in a release: "ISS states that Frasers has offered a superficial view of performance and no specific plans for change and the two Frasers candidates, Mike Ashley and Mike Lennon, have real conflicts of interest, concluding that board change at Boohoo Group is not warranted." Chairman Tim Morris endorsed the support from ISS, stating it aligns with the board's recommendation to dismiss the proposals from Frasers Group. Shareholders are set to cast their votes on Ashley’s bid for a board position at the company before Christmas. A representative for Frasers commented: "The ISS opinion pre-dates the statements from Mr Ashley yesterday." They added, "Mr Ashley set out clearly in his letter of 8 December his determination to work on behalf of all boohoo shareholders and support Dan Finley to deliver on the opportunities to turn around the fortunes of the group and restore shareholder value." "He has been very clear he would not want Debenhams sold or any fire sale of assets and has put on record his commitment to transparency and shareholder consultation, something badly missing under the current board." "To achieve this, boohoo shareholders must vote for the resolutions on 20 December." AJ Bell investment analyst Dan Coatsworth commented: "Boohoo says it is not deliberately seeking confrontation with Frasers, yet this is more than just a simple war of words." "Its battle against the Sports Direct retailer is being played out in the public domain for all to see." "Each week brings a new form of attack from one side or the other, the latest being Boohoo latching onto a recommendation from proxy adviser ISS to vote against Frasers’ quest to get Mike Ashley a seat on Boohoo’s board." "Recommendations from ISS or fellow proxy adviser Glass Lewis rarely form the backbone of an announcement to the stock market, but Boohoo has seized upon ISS’s latest recommendation to launch another attack on Frasers." "This follows comments at the weekend from Mike Ashley that Boohoo must avoid a ‘fire sale’ of assets." "The fate of Boohoo will be in the hands of its shareholders when they vote on 20 December." "At 35.88p, Boohoo’s share price is on its knees, trading at a fraction of the 400p+ level seen in 2020." "Long-suffering shareholders might welcome someone of Ashley’s calibre joining the board and offering a different viewpoint to revive the business." "Equally, some shareholders may not take kindly to his vulture-like tendencies and view a board appointment as a pre-cursor to Frasers muscling in and taking Boohoo out on the cheap."

Retail & Consumer

Amazon buys rights to Warhammer 40,000 games

Amazon is poised to launch a series of films and television shows based on the popular game Warhammer 40,000 from Games Workshop. In a stock exchange announcement this morning, Games Workshop confirmed it had established "creative guidelines" and secured a deal with Amazon to bring the Warhammer 40,000 universe to life in film and TV adaptations, along with associated merchandising rights for any Amazon-produced content, as reported by City AM. "This update was largely expected, but it is the important final step in bringing Warhammer to a global audience," commented Peel Hunt analysts Charles Hall and Andrew Ford. Set to join the FTSE 100 later this month, Games Workshop boasts an extensive library of intellectual property that has only recently started to be exploited commercially. According to the company's latest financial results, licensing revenue soared by 150% year-on-year to £30m, significantly surpassing analyst predictions and enhancing profitability. "This push into licensing is a big part of the company’s future growth strategy," said Susannah Streeter, head of money and markets at Hargreaves Lansdown, in a discussion with City AM. Today's agreement grants Amazon exclusive rights to any Warhammer 40,000 film or TV project, with the option to license similar rights in the Warhammer fantasy realm following the debut of an initial Warhammer 40,000 screen adaptation.

Retail & Consumer

Tui profit soars but shares slide as holiday giant warns growth will slow

Tui, Europe's largest tour operator, has reported a significant increase in profit for the last financial year, with underlying earnings before interest and taxation (EBIT) rising by 33% to €1.3bn, up from the previous year's €977m. This comes as more than 20 million customers chose to travel with the package holiday provider, as reported by City AM. Revenue also saw an increase, climbing 12% to reach €23.2bn. Tui's CEO, Sebastian Ebel, praised the company's performance, describing it as a "very good year" and stating that the firm is "well positioned" for future success. Despite this, shares in the company fell by over 5% in early trading due to slower growth forecasts for the upcoming year. The company's guidance for full-year revenue growth currently stands at 5-10%, with underlying EBIT expected to grow by 7-10%. Tui, which recently switched its London listing for Frankfurt, also reported an increase in prices throughout the year, with costs for winter and next summer predicted to rise by 5% and 3% respectively. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "Consumers continue to prioritise travel, meaning more customers have been willing to pay higher prices to enjoy a break away from everyday life." Chiekrie also highlighted the diverse nature of Tui's business, which includes an airline, cruise ships, hotels and resorts, as a factor in its resilience to wider trends.