Poundland to create 2,000 jobs

18 August 2010 Last updated at 19:02 ET

Discount retailer Poundland plans to open 50 new stores in a move it says will create up to 2,000 jobs.
The chain of 263 stores which sell everything for £1 said tough economic times meant more shoppers were flocking through its doors.
Poundland on Wednesday posted annual operating profits up 81% to £21.5m, on turnover up 28.7% to £509.8m.
Jim McCarthy, chief executive, called the results “impressive” and promised further profits growth and expansion.
He said: “With the economic uncertainty continuing, we are seeing many more first time shoppers joining our… customer base and with this trend set to continue, I remain confident of our prospects for the current financial year.”
Poundland employs more than 7,500 staff, and created about 2,000 full- and part-time jobs during the financial year ending in March 2010.
The firm, based at Willenhall, West Midlands, opened 56 outlets during the last financial year, many of which are based at former Woolworths stores.
Mr McCarthy said that a similar number of new stores would open this year, and he believes Poundland could have 800 outlets within the next few years.
“Market research shows… we have several more years of growing,” he said.
The chain, owned by the private equity company Warburg Pincus, is gradually increasing the average size of its stores, and also stocking more branded items and food.
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Wedding company in administration

17 August 2010 Last updated at 06:41 ET

Wedding supplies business Confetti has gone into administration with the loss of 94 jobs.
The Manchester-based company runs five high street stores, a mail order division and website confetti.co.uk.
Administrators RSM Tenon have already closed the shops in Glasgow, Leeds, Birmingham, Reading and London to concentrate on the online operation.
It said 46 jobs were being retained to support the online business and provide key administrative services.
RSM Tenon want to find a buyer for the firm before 5pm next Monday.
Joint administrator Kenny Craig, director with RSM Tenon in Glasgow, said: “Confetti is a very high profile market leading online brand and enjoys a large customer base.
“The business has great potential for further development and the administration presents an outstanding opportunity for a retail business or entrepreneur to acquire an immediate presence in the wedding and celebrations market.
“We would urge interested parties to make contact in the next day or two to ensure they have a chance to bid for the business.”
Confetti sells supplies for weddings and celebrations such as invitations, wedding dresses, gifts and also offers venue hire.

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BSkyB announce healthy rise in profits following a surge in subscribers

By Mail Online ReporterLast updated at 3:46 PM on 29th July 2010

Broadcaster BSkyB announced a 10 per cent rise in operating profits today following a surge in customer numbers during the final three months of its financial year.
At the end of June, BSkyB’s customer base had risen to 9.86million after adding 90,000 subscribers, 30 per cent of which are now subscribing to Sky’s high definition services. One in five customers now have TV, broadband as well as telephony – an increase of 36 per cent on last year.
Chief executive Jeremy Darroch said SkyHD boasted twice as many customers as a year ago after 429,000 net additions in the fourth quarter, adding, “we’ve had another good quarter to bring our financial year to a strong close.”

BSkyB’s profits have soared 10 per cent after attracting 90,000 new subscribers

BSkyB reported adjusted operating profits of £855 million, up 10 per cent a year earlier, while bottom-line pre-tax profits rose to £1.17billion due to the disposal of shares in ITV, after a write-down on the holding a year ago.
The company recently rebuffed a 700p-a-share approach from Rupert Murdoch’s News Corporation for the 61 per cent of BSkyB that NewsCorp does not currently own, a move valuing the FTSE 100 Index company at around £12billion.
BSkyB called for an offer in excess of 800p a share, although it agreed to begin work on the regulatory process required for a tie-up. BSkyB is to increase prices for its sports customers from September in a move that will also trigger higher charges for wholesale customers such as BT.
 

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Coalition stands by Equality Act

The home secretary had expressed doubts about the laws in opposition

The government is pressing ahead with Labour legislation which could require employers to disclose whether they pay women as much as men.
Home Secretary Theresa May said the Equality Act, passed in April, would be implemented next October.
Mrs May, who is also Equalities Minister, said it would make it easier for firms to comply with anti-discrimination rules.
Business group the CBI said the act should not become law without changes.
It said the government should have taken the opportunity to drop provisions requiring firms to conduct a “gender pay audit” where there was “evidence of unfairness”.
Drawing nine separate pieces of legislation into a single act, it was passed on 8 April but has not yet become law.
Among its measures, it imposes a new duty on public bodies - like education authorities and health trusts - to consider reducing socio-economic inequalities, for example with policies preventing poorer children from missing out on places at the best schools.

Continue reading the main story
The Equality Act will help businesses treat staff fairly and meet the needs of a diverse customer base
Theresa May
Home Secretary

It also stops employers using pay secrecy clauses to prevent employees discussing their own pay, bans age discrimination by employers and includes provisions aimed at extending the rights of disabled people.
In opposition as shadow minister for women, Mrs May had expressed fears that many of the act’s clauses would be too bureaucratic and expensive.
However, she now insists the act demonstrates the coalition government’s commitment to equality.
“By making the law easier to understand, the Equality Act will help businesses treat staff fairly and meet the needs of a diverse customer base,” she said.
“The law will be easier to understand and better able to protect people from discrimination.
“A successful economy needs the full participation of all its citizens and we are committed to implementing the Act in the best way for business.”
‘Misleading’ Trevor Phillips, the chair of the Equality and Human Rights Commission, welcomed the speed with which the government had moved to implement the legislation.
“The Equality Act will make Britain a fairer country for all,” he said.
However, CBI director of human resources policy Katja Hall said the company audit measure was likely to be misleading.
“Forcing companies to publish average salary figures for men and women could mislead people into thinking that women are paid less than men in the same role, which is rightly illegal, when differences will actually reflect the proportions of men and women in higher-paid jobs,” she said.
“The policy is also likely to backfire. Companies that have too few women in higher paid roles, and are trying to attract more, would be forced to publish a statistic that could deter female applicants and compound the problem.”
Some shipping companies have complained that the laws will force them to quit the UK because they would have to pay UK rates to foreign-based seafarers who do not have the burden of British living costs.

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Carpetright sees signs of recovery as profits shoot up 64%

Last updated at 10:43 AM on 29th June 2010

Flooring firm Carpetright reported a 64 per cent rise in annual profits today after seeing a return to sales growth in the UK.Sales rose 3.1 per cent on a like-for-like basis across its 586 stores in the UK and Ireland.But underlying profits of £28.2million for the year to May 1 are still far short of the £62million made in 2008 and the group reiterated warnings over consumer spending outlook.

Chairman and chief executive Lord Harris (left) - a retail veteran with
more than 50 years in the business
Carpetright’s sales staged a marked recovery early last year -
reaching double digit growth before December - but this slipped to 1.5 per cent
in the fourth quarter.
Chairman and chief executive Lord Harris - a retail veteran with
more than 50 years in the business - said it would be a ‘very tough’
year for consumer spending amid Government cuts and tax hikes.
He said the group would push further to secure contracts with
insurance firms and with housebuilding groups to offset weak retail
conditions.

It is also striking deals in the public sector, offering discounts
to the police service and health workers in an attempt to tap into a
vast customer base.
Carpetright is likewise linking up with estate agency Countrywide to offer promotional schemes to customers.
‘It’s difficult and it’s challenging, but on the other side there’s opportunities,’ said Lord Harris.
The group hopes the impending VAT rise to 20 per cent next January
may drive sales at the end of 2010 as customers rush to make purchases
before the hike comes in.
It is also optimistic that Government austerity measures may be less
harsh on lower paid workers - the bulk of its customer base, with 60
per cent of Carpetright customers spending less than £100.
Today’s results come after Carpetright warned over profits in March following worse than expected sales.
The group did not provide any update on trading since the year end, saying only that consumer spending was ’subdued’.
Carpetright has 537 stores and 49 concessions across the UK and Ireland under the Carpetright, Storeys and Sleepright brands.
It also has 117 outlets in the Netherlands and Belgium, where
trading has been improving, with underlying operating profits up 10.3
per cent in the year to May.
The business recently pulled out of Poland after a review last autumn.
Shares in Carpetright slipped more than 5 per cent on the group’s cautious comments.
Singer Capital Markets analysts said the biggest risk facing Carpetright was the threat of another housing slump.
‘Although there are numerous initiatives to deliver growth, these risks could yet impact forecasts adversely,’ they said.

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Asos turns up style with profits rise

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Asos today reported that annual pre-tax profits rose by 44 per cent and international sales soared, helping to shake off speculation that its days of exceptional growth were in the past.
The online fashion retailer, which targets 16 to 34-year-olds with clothes and accessories styled on celebrities, made a pre-tax profit of £20.3 million in the year to March 31. This was in line with analysts’ forecasts, according to Thomson Reuters, and up from £14.1 million the previous year.
Group revenues rose by 35 per cent to £223 million and international sales rose by 95 per cent to £63 million.
Asos, which is in its tenth year, ships to 167 countries with all sales driven through its British website and minimal country-specific marketing or sales initiatives.

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Nationwide bans small withdrawals

Nationwide Building Society is to stop some customers taking out less than £100 over the counter at its branches.From 7 June customers with cash cards who want smaller amounts will have to use a cash machine. The change will not apply to people with debit cards, or those who still use a passbook. Nationwide said the change was needed to reduce queues in its branches and that there were alternatives for those affected. But Mike Ivatt, from Kent, told Radio 4′s Money Box his 83-year-old father would not feel happy taking out cash in the street and probably could not remember his PIN. ‘Sad indictment’”The service my father has received at the counter has been excellent,” he said. “Older people need that service.” He said his father may have to stop doing his own financial transactions. “Building societies were established to look after their members and it’s a sad indictment when a large proportion of those members are going to have to hand over the running of their accounts to other people,” Mr Ivatt added.

Nationwide’s divisional director of the branch network, Graeme Hughes, told Money Box that the change was essential. “About a third of all counter transactions are carried out by less than 8% of our customer base,” he said. “And the other 92% say ‘what can you do to speed up the queues?’ So what we’re trying to do is to look at alternative ways of dealing with these customers.” He said people could change accounts, or use cash machines. “I do recognise that for some customers, what we’re asking them to do won’t be particularly good for them,” he said. “What we are looking to do is help them use the cash machines, so we are giving them two months notice so that we can talk to customers to help them.” However, Nationwide is telling another group of customers that they will have to queue up.

It is withdrawing the use of FAST/Selfserve machines for the paying-in of cheques of more than £1,000 - the current limit is £10,000. The reason given is that larger cheques are more likely to be fraudulent and counter staff would be more likely to spot them. But Steve Harrison, a Nationwide customer from Lancashire, thought there was another reason. He said: “It seems like they’re trying to get rid of relatively poorer customers and the low value transactions, and trying to focus on selling products, which the banks have done for a long time. “On principle, I thought the building societies might be different.” The Nationwide leaflet which explains the change says it will “fight fraud as well as giving you the opportunity to talk to one of our consultants to try to help you get the most from your money”. Mr Hughes denied that the change was to do with selling better-off customers other services. “By reducing the amount to £1,000 we are trying to protect our members,” he said. Nationwide is also introducing a £10 charge for drafts of less than £1,000 obtained at the counter, and the same charge for stopping a cheque. What do you think of this new policy? Is it reasonable to turn customers away from the counter if they are withdrawing £100, or less?How important is it that building societies offer a more personal service to customers than banks do?Do you think building societies are becoming more like banks in their approach to customers?Tell us your experiences.

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Prudential plans £15bn Asia deal

Prudential looks set to buy one of Asia’s biggest insurance firms in a £15bn deal, the BBC understands.The UK insurance giant is believed to be in advanced talks to takeover AIA, the Asian arm of US company AIG. Prudential has refused to confirm the huge deal, but the company is expected to issue a statement to the market next week. BBC correspondent Joe Lynam said the move looks like an attempt to tap into the Indian and Chinese markets. “This is a play for the middle classes of India and China as they grow in wealth and numbers in the coming years. The sums involved range up to $25bn, which could make it the biggest overseas purchase by a UK firm,” he added. AIA is regarded as a crucial part of AIG with about 20 million customers, or close to a third of AIG’s total customer base. AIG was bailed out by the US government in 2008 and is now 80% owned by it. In total, the firm has received $182.5bn of government funding.

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Noble Foods to get just desserts in £35m deal for Gü

Gü, the premium pudding maker, was on the brink of being sold last night for
up to £35 million.

Noble Foods, the egg producer and dessert manufacturer, is expected to
announce its purchase as soon as today. Negotiations were continuing last
night, but insiders said that a deal was “imminent”. Gü was founded in 2003
by James Averdieck with £100,000 in seed capital. He stands to earn a
windfall from the deal.

Noble is thought to have seen off competition from Change Capital Partners,
the private equity group that counts Luc Vandevelde and Roger Holmes, former
bosses of Marks & Spencer, among its partners.

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Bolland looks East to rebuild the fortunes of M&S

By Lawrie Holmes

Published: 11:00PM GMT 21 Nov 2009

According to sources close to the former head of supermarket group Morrisons,
Mr Bolland will use his international experience at Dutch drinks group
Heineken, for whom he worked for 20 years, to seek opportunities in the Far
East. In its last annual report M&S declared its interest in growing
international business from 9pc of total revenues to up to 20pc by 2012.
Last year international sales rose 25.9pc to £897.8m from 300 overseas
stores in 41 countries. This compares to a similar number that rival H&M
trades in and around 70 countries in which Inditex, owner of the Zara brand,
operates.

An industry analyst said: “To be a great national retailer you need to be
international. [Chairman] Sir Stuart Rose has always been of the view that
international growth will be back on the agenda.”

Kate Calvert, a retail analyst at Shore capital, said: “There is an
opportunity to take the M&S brand overseas, but I’d be frightened if he
expands overseas if he hasn’t sorted out the infrastructure first.” She
added that one of Mr Bolland’s challenges will be to upgrade the supply
chain of M&S, which is being addressed by an initiative launched two
months ago.

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