BUSINESS LIVE: B&M boosted by new stores; Workspace portfolio value slumps; WH Smith travel sales soar

Shoppers flocking to snap up clothes for the hotter months helped Zara-owner Inditex’s sales continue to rise sharply in the last few months.

The group, which also owns brands like Bershka and Massimo Dutti, saw its sales rise by 12 per cent between 1 May and 3 June from the same point a year ago.

It’s sensible to be asking this question, particularly when you’re having to shell out so much on rent each month.

Rents have been rising fast. Over the past three years alone, the average UK rental property outside of London has risen by 27 per cent from £853 a month to £1,084 a month, according to the HomeLet rental index.

The world has never had so many rich people and their investments in soaring stock markets have made them wealthier than ever recorded, according to a study published on Wednesday.

The number of ‘high net worth individuals’ (HNWI) – defined as people with liquid assets of at least $1 million – rose by 5.1 percent last year to 22.8 million, according to consulting firm Capgemini.

(PA) – Dozens of investors have written to Amazon raising concerns over the retail giant’s alleged response to trade union membership at its Coventry warehouse.

CCLA Investment Management has sent the letter as part of a group of 50 investors and advisors, including Nest and Storebrand, in defence of worker bargaining rights.

The investors have urged Amazon to prove that they are implementing their Global Human Rights Principles in the letter.

It comes after the GMB union launched legal action against Amazon in April over its long-running battle for recognition at the Coventry site.

The union accused Amazon of posting anti-union messages on message boards and claimed that workers were called into lengthy meetings where managers were critical of unions.

Amazon said it does not believe “there is any merit” in the legal action.

The group of investors said in the letter they believe Amazon’s alleged actions are “misaligned” with the company’s stated approach to human rights.

Electric vehicles will soon need to have their own ‘battery passports’ to prove the origins of the raw material they contain, how much of the content is recycled and their lifecycle carbon footprint, including production and transportation.

From 2027, any new EV sold in the EU will require one – but one mainstream car brand has already introduced battery passports for its latest model.

(PA) – More people have been selling or pawning their jewellery or watches amid higher gold prices and a lack of short-term credit alternatives, retailer and lender Ramsdens has said.

The company, which has 167 stores across the UK, revealed higher profits in recent months.

This was partly driven by a 15% surge in profits from its pawnbroking service.

Pawnbroking allows people to take out a loan against the value of a piece of jewellery or a watch, and if they cannot repay the loan then the pawnbroker sells the item they pledge.

The loans accrue interest on a daily basis and Ramsdens charges an annual percentage rate (APR) of about 154% for a six-month loan.

Chief executive Peter Kenyon told the PA news agency: “Pawnbroking has grown because of the lack of alternative finance providers.

“If you want to borrow £200 you used to be able to get credit, which has been decimated, or payday lending when it was seen as reputable.”

Paragon Banking Group shares jumped to their highest level since 2007 after the firm reported bumper half-year profits and raised its guidance.

The Solihull-based lender’s pre-tax profits soared by 138.6 per cent to £110.6million in the six months ending March, due to lower fair value reversals.

WH Smith’s expansion into travel hubs across the country is more than offsetting a continued decline in its high street business.

The retailer told investors on Wednesday that UK high street and online revenues fell by 4 per cent in the 13 weeks to 1 June, but like-for-like sales were flat.

A Spanish beer boss has accused British brewers of ‘dishonesty’ over selling beers that appear to be Spanish despite being made in the UK.

The boss of Estrella Galicia, Aitor de Artaza, said a ‘lack of transparency’ among UK beer firms is causing confusion amongst customers.

Google’s parent Alphabet must face a mass lawsuit accusing it of abusing its dominance in the online advertising market, London’s Competition Appeal Tribunal (CAT) has rules.

The lawsuit, which seeks damages of up to £13.6billion on behalf of publishers of websites and apps based in the UK, is the latest case to focus on the search giant’s business practices.

Ad Tech Collective Action is bringing the claim on behalf of publishers who say they have suffered losses due to Google’s allegedly anticompetitive behaviour.

Google last month urged the CAT to block the case, which it argued was incoherent. The company ‘strongly rejects the underlying allegations’, its lawyers said in court documents.

Flexible office provider Workspace saw the value of its property portfolio slump 9.5 per cent last year to around £2.4billion, partially reflecting the sale of non-core assets.

The group has been selling non-performing assets to strengthen its balance sheet and invest in more profitable areas.

B&M scored record annual turnover last year thanks to store openings and consumers continuing to turn to discount retailers amid cost-of-living pressures.

The FTSE 100 company, which sells everything from food to stationery, furniture and gardening equipment, revealed sales increased by around £500million to £5.5billion in the year ending 30 March.

Marks & Spencer’s boss hailed a new ‘absolutely knockout range’ designed by Sienna Miller as shares in the company hit their highest for more than six years.

The High Street chain unveiled a ‘boho chic’ collection as it seeks to cement its fashion credentials.

If drivers want to get the best deal when filling up their cars at a supermarket forecourt then they’re best to avoid Asda petrol stations, according to the latest fuel price figures.

That’s because Asda’s big four rivals, Tesco, Morrisons and Sainsbury’s, all sold a litre of unleaded for 2.1p less on average at the end of May, the RAC says.

The threat of global conflict will lead to a decade of rearmament as the West bolsters its defences, the boss of a UK explosives maker warned.

Michael Ord, chief executive of Chemring, said the ‘increase in geo-political tensions around the world’ has prompted governments to raise military spending.

The FTSE 250 company, which specialises in devices to combat chemical and biological warfare, supplies large defence groups and Nato allies.

Oil prices fell to a four-month low amid concerns over plans to raise supplies even as demand cools.

After falling 3 per cent to below $80 a barrel on Monday, Brent crude was on the slide again yesterday and dipped another 2 per cent to $77.

London-listed stocks are in the green this morning, buoyed by weaker-than-expected US jobs data which fuelled expectations of a rate cut in September, while investors await the European Central Bank’s interest rate decision tomorrow.

Investors cheered signs of cooling in the US labour market, where data revealed job openings plunged to their lowest in over three years, reinforcing predictions of a rate cut by the Federal Reserve in September.

Spirits were also lifted by the anticipation of a 25 basis point cut by the ECB, which convenes Thursday.

Among individual stocks, Paragon Banking is the top gainer on the mid-cap index with a 9.1 per cent jump after the lender reported its half-year results.

WH Smith has gained 3.2 per cent after the British retailer reported its results for the 13 weeks ended 1 June.

B&M is the top loser on the FTSE 100 with a 3.2 per cent drop after the discount chain reported its preliminary full-year results.

The threat of global conflict will lead to a decade of rearmament as the West bolsters its defences, the boss of a UK explosives maker warned.

Michael Ord, chief executive of Chemring, said the ‘increase in geo-political tensions around the world’ has prompted governments to raise military spending.

THG founder Matt Moulding has raised his stake in the activist investor besieging his online beauty and nutrition firm.

The tycoon increased his holding in Kelso Group for the third time this year. This means he holds 9.11 per cent of the shares in a company pressuring him to break up his own business empire.

Mark Crouch, analyst at eToro:

‘Workspace Group’s full year earnings will add credence to the growing belief the UK commercial property market is on the road to recovery. Shareholders have been rewarded with a dividend increase of 8.5 per cent.

‘The commercial property market suffered more than most during the pandemic. Work from home models remained in place, and with business owners choosing to downsize to accommodate the hybrid model and cut costs, Workspace Group found themselves in a tight spot.

‘Despite these challenges, demand in the capital has remained strong and although shorter leases have resulted in frequent turnover, Workspace Group have capitalised, using the breaks to nudge rents higher while maintaining an occupancy rate of 88.1%.

‘Interest rate hikes may have put the brakes on the property bull market, which is reflected in Workspace Group property valuations falling nearly 10%. However, with inflation easing the pressure is mounting on central banks to cut interest rates. And while no one can predict when the cuts will happen, Workspace Group is well-equipped to wait it out until they do.’

Russell Pointon, director of consumer at Edison Group:

‘WH Smith’s Q324 trading update showed its booming travel business continues to perform strongly whilst the high street continues to decline and it is reassuring to see the company on track to deliver full year expectations with increasingly decreasing high street revenue.

‘Growth has slowed a little since the interim results but this reflects a very strong comparative from the prior year.

‘This is in line with their interim results in April, where the retailer announced that the high street newsagent division is becoming a smaller part of the overall group.

‘Looking forward, it seems WHSmith will focus on its Travel divisions to capitalise on growth opportunities and offset the high street struggles. It will be interesting to see if the business takes on a more decisive action on its high street business as the sector continues to struggle.’

Adam Vettese, analyst at eToro:

‘B&M’s latest update has shown no signs of letting up with an almost 10% hike in profit. The firm which gives consumers well-known brands at the lowest possible prices has the perfect audience when consumers may be feeling the pinch from higher cost of living.

‘Not only that, they are looking to capitalise by stepping up new store openings to get to a long term target of 1200 in the UK, adding no less than 45 by the end of next year. This is set to compound the firm’s gains on its current trajectory.

‘There is always a risk that opening too many will spread themselves too thin, but given the resilient performance we have seen in these more difficult times, it’s arguably difficult to bet against them.

‘With more benign financial conditions potentially on the horizon, it is possible that maintaining this momentum may prove more challenging.’

The London Stock Exchange’s boss has dismissed a backlash against controversial plans for Shein to list in London – saying the criticism does not make sense.

Julia Hoggett was responding to claims that the UK risked becoming a ‘last resort for companies with poor human rights records’ if it opens the door to a £50billion float by the online Chinese giant.

Amid the furore of an election campaign, in which the desire to be seen as business friendly and pro-economic growth have been dominant themes, the future of the Royal Mail, a vital part of the nation’s infrastructure, barely has featured.

The board of Royal Mail owners, International Distributions Services (IDS), accepted a £3.6billion bid from the Czech billionaire Daniel Kretinsky as if there were no other choice.

WH Smith has said it is well set for the peak summer holiday season as buoyant sales across its travel sites continue to offset weaker trading in its high street arm.

The group posted like-for-like sales growth of 4 per cent for the 13 weeks to 1 June , with a 5 per cent rise across global travel stores and a 1 per cent drop for its high street business.

But the figures showed a slowdown from the 15 per cent sales growth notched up in the first half across its travel shops based in train stations, airports and hospitals.

The group is coming up against strong comparatives from a year earlier, when trading was boosted by the rebound in global travel following the pandemic.

WH Smith said while sales fell overall across its UK high street business, including online, its bricks and mortar stores ‘performed well’ with like-for-like revenues flat over the third quarter.

Flexible office working provider Workspace saw the value of its property portfolio slump 9.5 per cent last year to around £2.4billion, partially reflecting the sale of non-core assets to strengthen the firm’s balance sheet and invest in more profitable areas.

But the group’s net rental income jumped 8.2 per cent year-on-year in the 12 months to 30 March to £126.2million, helping its trading profit to grow 8.7 per cent to £66million.

And Workspace boss Graham Clemett noted the pace of portfolio devaluation slowed in the second half of the period and said he expects the fall to mark ‘the low point of the current cycle’.

He cited expectations of falling interest rates as well as the group’s ‘ability to continue to deliver pricing growth and value-add asset management activity’.

He added: Looking ahead, the future is bright for Workspace as London’s leading provider of flexible, sustainable work space to SME’s.

‘Our scalable operating platform, combined with more than three decades of experience in the flex space, puts us in a strong position to maintain our leadership position in this growing market and continue delivering long-term income and dividend growth for our shareholders.’

Digital marketing firm Mission Group has said it is considering a higher £32.3million takeover approach from a rival.

Brave Bison, which owns the Social Chain agency founded by Dragons’ Den star Steven Bartlett, said on Monday it had put forward an increased possible bid worth around 35.1p per Mission share on May 25 after its first approach was rejected.

It is an increase on Brave Bison’s initial potential all-stock offer, which was worth around 29p a share, valuing fellow Aim-listed rival Mission Group at about £27million.

B&M profits jumped by almost 10 per cent to £629million last year as the discount chain’s bottom line was boosted by the opening of 78 new stores.

The FTSE 100 retailer, which sells everything from garden furniture and electrical items to toys and food, has proved a resilient performer through the cost of living crisis.

B&M revenues soared by 10.1 per cent to £5.5billion in the 53 weeks to 30 March.

‘Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth,’ boss Alex Russo said.