Lloyd's of London insurer says hurricane losses will not impact profit target

Professional Services

Changes at the top announced by North East legal company Jacksons Law Firm

Changes at the top have been announced by North East legal business Jacksons Law Firm as it closes in on its 150th anniversary. Two new top roles have been created at the business, which has bases in Newcastle, Stockton-on-Tees and Sunderland, after Tony Wentworth announced he is stepping down from his role as managing partner. Erica Turner, partner and head of commercial property, is to take up the role of head of legal at the firm, while Amie Callan becomes head of operations. The pair said they are looking forward to taking Jacksons, which was named Law Firm of the Year at the recent Northern Law Awards, further forward ahead of its 150th trading year in 2026. Ms Turner said: “It is a privilege to be at the helm of Jacksons as it approaches its 150th year. I joined the firm in 2004, working alongside studying at university, and did not ever anticipate that 20 years on, this would be what the future held. This is testament to the mentoring, development and career opportunities that the firm provides - and which I am committed to delivering and developing moving forward.” She added all successful businesses have to remain dynamic to succeed - and Jacksons is no exception. “We’ve proven that, notwithstanding the firm’s heritage, the firm remains relevant, ambitious and successful as the firm’s recent Law firm of the Year and Practice Management Award wins demonstrate,” she said. “Within our strategic planning, we are constantly looking at how we can do things differently and better.” Ms Callan, who joined the firm in 2018, said: “We have a dynamic and fast-paced partnership with a results-driven approach that drives change and improvements in all areas, from client experience through to employee culture. This would not have been possible without the support and mentoring of others such as Tony, Jane Armitage and Erica, showing the great stewardship of the company but also the role the culture plays in succession and ensuring people have the skills to succeed.”

Professional Services

Sainsbury's continues financial services exit with £720m Argos credit card sale

Sainsbury's has finalised an arrangement to offload its Argos credit card portfolio for an estimated £720m, moving away from financial services to concentrate on its core retail operations. The supermarket chain has indicated that the deal is set to conclude at the end of the first quarter of 2025 and the sale price closely matches the loan balances and related provisions for the portfolio, as reported by City AM. This latest agreement with the London-headquartered NewDay Group is a continuation of Sainsbury's strategic shift towards bolstering its retail division following earlier, lacklustre efforts to boost competition in the banking industry. Previously, in June, Sainsbury's entered into an agreement with Natwest for the latter to take over the bulk of Sainsbury's Bank, and then proceeded to sell off its network of cash machines three months thereafter. Sainsbury's doled out £125m to purchase its banking arm from Natwest, but anticipates that Sainsbury's Bank will ultimately reimburse the grocer with at least £250m in surplus capital to be distributed among its shareholders. This move took place four months after Tesco divested its principal banking segment to Barclays for £600m, aligning with its "food first" initiative. After these transformations, Sainsbury's financial services division now primarily generates commission-based income by levying fees on partners allied with its brand and store locations. The retailer envisages an annual revenue of no less than £40m through March 2028, which would be sourced from its insurance, foreign exchange, and automated teller machines (ATMs), as well as earnings from the freshly established partnership with NewDay. Sainsbury's has revealed that the Argos credit cards account for approximately 20% of the brand's sales and are used by around two million customers. The company further stated that there will be no immediate changes for customers as a result of this deal. NewDay, a provider of credit to shoppers, took over the John Lewis Partnership's rewards card from HSBC two years ago. HSBC has been the owner of M&S Bank since 2004. Over the past twenty years, supermarkets have been exploring ways to generate additional revenue from their customers beyond food and drink, including ventures into telecommunications, broadband, restaurants, energy and more.

Professional Services

Former JP Morgan man leads acquisition of £3.5m stake in Atom Bank

A former JP Morgan executive is at the helm of bid to buy a stake in North East-based challenger bank Atom, it has been reported. Sanjiv Somani, who led the US giant's digitally only Chase UK bank until last year, is leading investment firm Lexham Partners, which was set up last year by venture capitalist Dominic Perks. The firm is said to be negotiating the purchase of a stakeholding from existing shareholders. The move, which was first reported by Sky News, means Mr Somani - who also led digital wealth manager Nutmeg after its acquisition by JP Morgan in 2021 - will manage the stake in Atom. Lexham is reported to be looking at £3.5m worth of stock at 40-per-share, valuing Atom at £400m. It comes a year after Atom raised £100m in new equity capital from long-term shareholders BBVA, Toscafund and Infinity Investment Partners - money which was used to boost balance sheet growth. At the time, Atom said the funding round formed part of a long term strategy to "deliver a liquidity event in the future". with CEO Mark Mullen saying the bank was working to make itself a "credible candidate for IPO". In June Atom published results for the year to the end of March 2024, in which it said it had generated a 600% increase in operating profit to £27m. Net interest income was boosted 31% to £99.5m thanks to strong loan book growth of 39% to £4.1bn on the back of growth in residential mortgage balances to £3.2bn. The results were said to be the best since the bank's launch in 2013, and also saw operating income rise to £88.3m from £65.8m, while the pre-tax profit of £6.7m was compared with the previous year's pre-tax loss of £10.1m. The bank, which has switched to a four day working week, also grew its headcount, surpassing 500 staff. In May, Atom appointed former Virgin Money chief financial officer Lee Rochford as chairman. Mr Rochford was instrumental in Virgin Money's stock market flotation in 2014. At the time of its results, Mr Mullen said: "This has been our best year yet at Atom bank. We have achieved profitability across all measures, grown our loan book significantly, maintained robust credit quality, avoided fraud losses altogether, kept our costs tightly controlled and enhanced our already industry leading customer experience metrics. “We begin the new year with tailwinds in the form of strong asset pipelines, excellent technology, a highly engaged team, supportive investors and an enviable reputation with customers. Beyond the confines of banking, we have exciting plans to further reduce our impact on the planet and to create even more opportunities in our local community.

Professional Services

FTSE 100 climbs sharply as US-focused UK firms benefit from Trump's presidency

The FTSE 100 experienced a significant rise at the start of trading today, while sterling took a hit as traders evaluated the potential impact of Donald Trump's presidency on the global economy and the UK. London's leading index saw an increase of over 1.4 per cent in early trading, driven by a nearly six per cent surge for US-focused equipment rental company Ashtead, along with substantial increases for Barclays and IHG, as reported by City AM. Ashtead, which generates approximately 85 per cent of its revenue from the US, has reportedly contemplated shifting its listing to New York within the past year. "Trump did not mention tariffs in his victory speech, and this is why we are seeing UK firms with US exposure rallying on Wednesday," commented Kathleen Brooks, research director at XTB. "A win for Trump is also seen as being good for the US economy, which is also boosting big UK companies who export to the US." FTSE 100 constituent Rolls Royce, a major exporter to the US, also saw a rise of around 4.5 per cent. London's markets have greater exposure to the American economy than many European counterparts, with roughly 28 per cent of revenues generated in the US, according to Bloomberg Intelligence analyst Kaidi Meng. Pharmaceutical and consumer-related companies are "susceptible to drug re-pricing risks and tariff, " Meng stated today. "While a potential 10 per cent tariff [...] brings risk to UK exports, other possible impacts include drug-price renegotiation for health-care industry, wage increase and reflation risks from reshoring US manufacturing, higher defence spending and renewable energy disincentivizing," she added. The FTSE 250, more exposed to the domestic economy, also saw an increase of around two per cent. Pershing Square Holdings, led by billionaire New York hedge fund chief Bill Ackman, also experienced a near four per cent rise before 8:30am. Ackman has been a prominent business supporter of a Trump presidency. However, the pound has seen a significant drop to 1.28 against the dollar as investors flock to so-called Trump trades.

Professional Services

Scunthorpe accounting firm Jackson Stapleton secures £150,000 funding deal

A Scunthorpe accountancy is set to take its growth to the next level on the back of a £150,000 funding package. Jackson Stapleton Accountants, which was established in 2017, has secured the funds from the Midlands Engine Investment Fund II, following assistance from fund manager for the East and South East Midlands, Maven Capital Partners. The business expanded its UK footprint in 2021 through the acquisition of a Lincoln-based office, previously known as Fawcett & Co. Now the new funding will allow the business to grow further and develop its client base, through the addition of a practice in Retford. Mark Jackson-Stapleton, managing director at Jackson Stapleton, said: “In September 2024, we proudly acquired our third office in Retford, formerly known as Mill Accountancy. This acquisition marks another significant milestone in our journey, as we remain committed to surpassing past successes and setting new standards of excellence in accounting services. "We believe that by continually investing in advanced technology and the ongoing development of our staff, we can offer more efficient and tailored services to meet the evolving needs of our clients. I would like to extend my sincere thanks to Richard and the Maven team for their excellent support in securing the necessary finance for this acquisition. Their expertise and dedication have been invaluable to our continued growth.” Richard Altoft, investment director at Maven, said: “Maven are excited to be supporting Jackson Stapleton through the Midlands Engine Investment Fund II as it expands its business. The business has a highly experienced management team, capable of growing the business and taking its service offering to the next level. “ David Tindall, at British Business Bank, said: “It is great to see finance from the Midlands Engine Investment Fund II being used by Jackson Stapleton Accountants to build on its success and explore new opportunities for growth and expansion while creating a positive impact in the local economy in the Midlands.”

Professional Services

Lancashire officials urge faster rollout of banking hubs to revive high streets

The rollout of banking hubs designed to fill the void left by the decline of traditional high street branches is not happening quickly enough in Lancashire, according to county councillors. They argue that Lancashire needs more such hubs, which are opening nationwide, to maintain face-to-face services in town centres abandoned by banks. To date, only two such facilities have been launched in the county, with another four in the pipeline. These hubs offer a range of banking services that were once commonplace on most high streets until the collapse in branch numbers began about a decade ago. Unlike their predecessors, these new hubs serve all customers, regardless of their banking affiliation. They cater to individuals and businesses who need or prefer cash transactions, as well as ensuring banking access for elderly and disabled residents who may find transitioning to digital banking challenging or undesirable. At a Lancashire County Council meeting, members unanimously agreed to form a working group to investigate how the establishment of banking hubs could be expedited in areas most impacted by the dismantling of the branch network. County Cllr Matthew Maxwell-Scott, who proposed the initiative, commented: "With the exception, perhaps, of our largest towns, the bank is finished...but banking isn't – and this is a way of keeping it going.", reports Lancs Live. He also mentioned that "some pressure" should be applied to Cash Access UK, the entity responsible for the new hubs which operate under Post Office branding, to expedite their introduction in Lancashire. "The decline of the high street bank is perhaps something that we mourn, but ultimately, as a consumer, I don't want to be paying for bricks and mortar that don't really deliver anything that I need, that then results in higher fees and charges." However, he acknowledged the necessity for certain demographics, stating: "But...for those who do require more support – often older citizens [and] those who run cash small businesses – they still need the [services] of...a high street bank. The banking hubs effectively replicate those," explained County Cllr Maxwell Scott, representing Lancaster Rural East. Currently, only two such hubs have been launched in Lancashire, located in Barnoldswick and Great Harwood, with plans for additional hubs in Bacup, Darwen, Kirkham, and Morecambe. Notably, Bacup and Morecambe are slated to open in February and September 2025, respectively. Banking hubs operate from 9am to 5pm, Monday through Friday, and some feature 'community bankers' from specific banks who visit on predetermined days, allowing customers to discuss complex issues with a representative from their own bank. The UK has seen over 6,000 bank branch closures since 2015, as reported by the consumer group Which? earlier this year. County Councillor Noordad Aziz highlighted at the meeting the need to address cash availability beyond banking hub hours. "If you look at the number of free-to-use cash machines that have disappeared from our high streets across the county, they are significant," he remarked. He also pointed out that those ATMs which charge for withdrawals can impose "a significant amount of money."

Professional Services

Shawbrook Bank's loan and deposit books surpass £15bn amid robust demand in real estate

Shawbrook Bank has announced that its loan and deposit books have surpassed £15bn for the first time, following a surge in lending demand during the first nine months of the year. In today's trading update covering the first three quarters, the retail lender reported an 18 per cent annualised increase in its loan book to £15.1bn, up from £13.3bn the previous year, propelled by "strong net lending volumes across our core specialist real estate and SME markets", as reported by City AM. The bank's deposit book also experienced significant growth, expanding by 16 per cent to over £15.2bn, compared to £13.6bn last year. "Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15bn for the first time," Marcelino Castrillo, Shawbrook Bank's chief executive, commented. "We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3." "Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus." However, the bank did note an uptick in the number of clients in arrears, rising to 2.8 per cent from 2.3 per cent, a figure which the firm stated remains within its credit risk appetite. "As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and Real Estate," Marcelino further added.

Professional Services

The Bank of England's latest interest rate decision is a sign of things to come

At a notably bustling period for economic policy, the Bank of England has made a key interest rate decision. Just over one week ago, Chancellor Rachel Reeves put forth the new government's foremost Budget, hinting at a shift in fiscal strategy, as reported by City AM. Compounding this, Donald Trump's ascension to the US presidency was verified, with potential ramifications for global trade policies due to his protectionist tendencies. In this context, Bank policymakers faced numerous concerns. Nonetheless, the vote among rate-setters concluded with an eight to one majority in favour of reducing interest rates to 4.75 percent. To put this into perspective, August saw a more divided outcome at five to four when the Bank first implemented a rate cut. The minutes from the Bank imply little anxiety regarding inflation trends. The explanation appears straightforward: inflation has been subsiding more swiftly than anticipated by the officials. Specifically, inflation plummeted to its lowest since April 2021 in September. Services inflation, a key indicator for the Bank, also recorded lower than projected figures. "The disinflation process not only continues but actually has been faster than we expected, and that's good and encouraging," remarked Governor Andrew Bailey at a press briefing post-announcement. Bailey repeatedly emphasized a "gradual" pace in interest rate reduction, echoing his sentiments from September. Thus, the question arises amidst these developments, what has fundamentally altered? The Bank of England's recent forecasts, released alongside the rate decision, indicate that the Budget's measures will drive up inflation. According to their central projection, the headline rate will be 0.5 percentage points higher than it would have been otherwise, peaking at 2.75 per cent in the middle of next year. Economic growth is expected to be around 0.75 per cent higher, suggesting the economy will operate at full capacity for the next couple of years. These significant adjustments to the Bank's forecasts suggest reduced leeway for aggressive rate cuts. However, opinions on the magnitude of this change vary, depending on initial expectations regarding the likelihood of aggressive rate cuts. Governor Andrew Bailey appeared sceptical, stating: "I don't think that it's sensible to conclude that the path of interest rates will be particularly different," and highlighted that inflation is projected to return to the two per cent target within the forecast period. Yet, the actual impact could exceed the Bank of England's central projection. The Bank anticipates only a "small decrease in potential supply" and a "small upward impact on inflation", contingent on how businesses respond to the tax increase. Firms have several options: they might absorb the additional costs, pass them on to consumers, restrict wage increases, or reduce employment. Bank of England officials have highlighted the uncertain implications of various factors on inflation, stressing the difficulty in making precise predictions at this stage. Governor Andrew Bailey has suggested a cautious, gradual approach to interest rate adjustments, allowing the Bank "time to assess the impact" of recent national insurance hikes. Undoubtedly, the election of Donald Trump as US President poses additional potential risks to the inflation outlook due to his threats to impose significant tariffs on foreign imports. Such measures, if reciprocated by other nations, could inflate prices and dampen economic growth. Estimates from the National Institute of Economic and Social Research (NIESR) indicate that UK inflation rates could rise by three to four percentage points, with interest rates potentially climbing by two to three points as a consequence of these tariffs. While the Bank did not deliberate over the specific effects of such tariffs, Governor Bailey appeared cautious about conjecturing on Trumps likely policies, stating it was "not useful or wise" to speculate.

Professional Services

Profits rise at Womble Bond Dickinson following year of sustained growth

The region’s biggest law firm has highlighted sustained growth and client successes following a jump in profits in a shorter trading year. Newcastle based Womble Bond Dickinson UK LLP, formed when Bond Dickinson merged seven years ago with US firm Womble Carlyle Sandridge & Rice to create a trans-Atlantic practice, moved its accounting reference date, leading to the the firm posting strong results for an 11-month period. Published accounts for the period ending March 2024, show a drop in turnover from £116.9m in the 12 months to April 2024, to £114.6m, in the 11 months to the March 31 2024. Operating profit, however, rose from £24.2m to £26.7m, while pre-tax profit jumped from £24.1m to £28.7m. Total members interest also increased, from £37.4m for the group to £37.8m The accounts detail how profits are shared among the members in accordance with agreed profit sharing arrangements and that members are required to make their own provision for pensions from their profit shares. During the year there were 99 members, two more than in 2023. With its head office in Newcastle, the wider Womble Bond Dickinson group has bases across the US and UK, with offices in London, Bristol, Edinburgh, Leeds, Newcastle, Plymouth, Southampton and Teesside. The company made significant investments in the North East two years ago, moving more than 400 employees from its former offices on Newcastle Quayside to new sustainable offices within The Spark at Newcastle Helix quarter. It also refurbished its Leeds office and expanded its presence on Teesside. Following on from the investments the company said its 2023/24 year had seen it roll out its new strategy “giving clarity to our vision, our position in the market, the types of work we will target for growth and where we need to focus in order to achieve our ambitions”. A report within the accounts highlights how it made a number of key hires during the year, extended its work with US bases and also secured a number of legal panel appointments. The report says: “Sustained growth and client success continues to headline our day-to-day work. We were appointed to the legal panels for clients including Atom Bank, Bellway Homes, HydraB Group, Natwest and Shell International, and acted as lead advisor on landmark work with clients across the UK, including Centrica, The Department for Energy Security & Net Zero, Lloyds Bank, LV and RES. “Collaboration with our US colleagues increased significantly, led by our brand refresh and first global awareness marketing campaign. We worked together on more international tenders and cooperated on various joint thought leadership projects. “Our expertise continues to be recognised by the wider market. We won Planning Law Firm of the Year at the 2023 Planning Awards and our IP dispute management team won Impact Case of the Year at the EMEA Managing IP Awards. We were also named in key publications such as The Times Best Law Firms report and in legal directories including The Legal 500 and Chambers and Partners, being particularly commended for our experience in energy, renewables and planning.”

Professional Services

Research consultancy Kada choses Gateshead for second UK base

A consultancy specialising in economic development work has chosen Gateshead as its second office in the UK. Sheffield-based Kada research has already been working in the North East and has now decided to launch permanent base in Gateshead's Baltic Quarter. A handful of highly skilled research jobs have been created in the move which sees the firm take space in Baltimore House. Kada specialises in creating evidence-based reports and recommendations for clients including governmental bodies, academic institutions and community organisations. Its team has already worked with the former to research "inclusive productivity" for the Our Economy 2023 report, and has produced a Digital Framework for Hull and East Yorkshire LEP, among other projects. Newcastle and Gateshead’s destination and inward investment agency, NewcastleGateshead Initiative (NGI), initially supported Kada in its search for office space, and continues to provide introductions to key partners in the region. Karl Dalgleish, Kada’s managing director, said: “Our economic development projects are place-based, and we like to be embedded in places to help deliver these. Gateshead and Baltimore House fits Kada’s ethos with similarities to Sheffield where the business originates.” Kada’s North East director, Sam Nair, added: “Having been based in the North East for nearly 15 years I am excited about what devolution will bring for the region and the opportunity to grow the Kada team in Gateshead. Kada is passionate about helping partners in Gateshead and the North East to achieve sustainable and inclusive economic growth and creating job and placement opportunities for young people at Kada too.” Jen Hartley, director of Invest Newcastle, NGI, said: “I’m pleased to welcome Kada Research to Gateshead. Their emphasis on economic and social impact research and inclusive growth strongly aligns with our regional priorities making this a great match. Wider participation and access is also a key focus for the work we do at NGI so I look forward to continuing to support their team as they grow and expand here.” Coun Leigh Kirton, cabinet member for economy and communications at Gateshead Council, said: "Kada Research’s choice to expand to Gateshead is a great reflection of our growing reputation as a place for forward-thinking businesses to invest. Their commitment to evidence-based insights and inclusive growth aligns well with our ambitions for the borough, and we’re proud to welcome Kada to Gateshead’s thriving business community.”