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.
Relief for households as inflation stays at 2.4%. Inflation was unchanged at 2.4 per cent last month as higher oil prices were offset by the continued unwinding of the effects of sterling’s plunge after the referendum. Consumer prices matched the slowest annual rate of growth since March 2017, holding steady against forecasts for a small increase from September to 2.5% in what economists took to be a sign that underlying price pressures are easing. Softening inflation will help household finances, coming as it does at a time of strengthening pay. Regular wage growth hit a decade high in September of 3.2%. The combination of steady prices and better pay promises lasting relief for workers as living standards recover. After adjusting for inflation, though, average earnings have yet to return to the pre-crisis peak.
GVC Holdings (GVC) , William Hill (WMH) – Government makes U-turn to end delay to £2 FOBT maximum stake. Reduction to take effect in April 2019 following MPs rebellion and minister’s resignation. A cut in the maximum stake on fixed-odds betting terminals (FOBTs) will be brought forward to April 2019 after the government backed down in the face of a growing rebellion that made allies of MPs across the political spectrum. The chancellor, Philip Hammond, said in the budget that a reduction in FOBT stakes from £100 to £2 would not take effect until October next year, a decision that handed bookmakers a £900m windfall and triggered the resignation of the sports minister, Tracey Crouch
Small businesses to the rescue after Speedy Hire’s Carillion setback. Speedy Hire (SDY) plan to target white van men and local builders paid off after a surge in SME customers offset the collapse of Carillion. The rental hire group increased small-scale customers numbers by 4000 to 46,000 by using telemarketing to advertise and AI to detect which customers were likely to spend more. The company has put greater focus on luring smaller customers, who typically spend less than £10,000 a year, to complement the money made from its larger clients such as Balfour Beatty and Costain. The downfall of Carillion, one of Speedy’s biggest customers, would have led to lower revenue if not for the increase in SME customers.
British Land Company (BLND) loses £42m as retail chains bail out. One of Britain’s largest property companies has swung to a £42 million loss in its first half as the challenging retail climate led to a 4.5% fall in the value of its retail property portfolio. British Land, which owns Meadowhall in Sheffield, posted the pre-tax loss after recording a £238 million profit a year ago. The developer said that “challenges in the market” had led to a writedown of its retail property to £6.3 billion in the six months to the end of September. British Land suffered a £14.7 million hit over the past 18 months from retailers in its portfolio carrying out company voluntary arrangements or going into administration. Of that space, British Land said that £5.5 million had either been re-let or was in negotiations to be re-le
SSE (SSE) losses deepen as households switch suppliers. Losses at SSE’s household energy supply business deepened to £62 million in the six months to September as thousands of customers left in advance of its proposed merger with Npower. Britain’s third largest domestic supplier blamed “lower demand, higher energy costs and the decision not to further raise tariffs” for the worsened financial performance, which compares with a £7 million loss in the same period a year earlier. It lost 320,000 gas and electricity accounts over the period. The figures, a day after Npower said that it would make a loss this year, underscore the difficulties facing the proposed merged company, which has been delayed amid doubts over its financial viability
Grainger, one of Britain’s biggest residential landlords, plans to ask its shareholders for £347m as it looks to ramp up its investment in private rented flats. The FTSE 250 company has agreed to spend £396m on the 75% of investment trust Grip REIT that it does not already own in a move that will add 1,700 homes to the more than 8,000 it already has. Grainger (GRI) launched Grip as a joint venture with Dutch pension fund APG in 2014 and already manages the properties on its books. Helen Gordon, chief executive, said the deal would add £32.5m of annual rents to Grainger’s coffers. “It’s so unusual that you get an opportunity to buy a business that you’ve been running for five years,” she said.
Sir Martin Sorrell has hailed S4 Capital (SFOR) quarterly performance as a “good start” after the advertising venture posted its first results since going public. The digital advertising company reported revenues of €29.3m (£26.2m) for the quarter to September, up 45%. Gross profit was up 32% to €20.4m. Sir Martin’s new venture went public after a reverse takeover deal with cash shell Derriston was completed earlier this year. Dutch advertising agency MediaMonks, S4 Capital’s main trading company, which it acquired earlier this year, reported a operating profit margin at 20pc before interest, depreciation and amortisation in the quarter.
Lloyds Bank payout to author of HBOS Reading scandal report. Lloyds Banking Group (LLOY) has agreed to pay compensation to the author of an explosive leaked report into the HBOS Reading fraud scandal. Sally Masterton, who wrote the Project Lord Turnbull report leaked online in May, agreed a settlement with the high street bank to recognise the “distress and inconvenience” caused to her by the saga. The former Lloyds senior risk officer found herself in the spotlight after an unredacted version of the report was published online by campaigners and included her mobile phone number. The Project Lord Turnbull report, given to police and regulators in 2014, claimed HBOS had covered up a fraud at its Reading branch ahead of its Lloyds rescue in the midst of the financial crisis.
Shaftesbury (SHB) agrees deal with KERB for big new Seven Dials food market. The West End is set to get its first permanent covered food market at a former banana and cucumber warehouse near Covent Garden, the Evening Standard can reveal. The venue will be called Seven Dials Market and have space for about 26 traders and seating areas for hundreds of visitors. Street food operator KERB, known for hosting stalls in the City and Paddington, has agreed to operate inside a building for the first time. Although there are open-air markets such as Soho’s Berwick Street Market operating in the West End, the nearest covered foodie destination is Borough Market across the river. The new venue will be yards from the site of the former fruit, vegetable and flower markets in Covent Garden piazza, which relocated to Nine Elms in 1974
Flybe put up for sale as profits fall at the airline. Struggling regional airline Flybe Group (FLYB) on Wednesday put itself up for sale after being burdened with higher fuel costs and currency headwinds. The carrier revealed its strategic review as it posted a 54% slump in first-half pre-tax profits to £7.4 million. It also warned that it is grappling with softer demand in the short-haul flights market. Flybe said it is “in discussions with a number of strategic operators about a potential sale of the company”. Chief executive Christine Ourmières-Widener declined to say whether the suitors were rivals, or whether Southend airport-owner Stobart may revisit talks. It abandoned plans for a takeover deal earlier this year.
