BUSINESS LIVE: Ithaca cuts UK investment; Travis Perkins boss exits; S4 Capital suffers weak ad market

Just before close, the FTSE 100 was 0.05% down at 7,927.05.

Meanwhile, the FTSE 250 was 0.08% higher at 19,792.56.

(PA) – Morrisons said sales have grown at the fastest rate for three years amid efforts from its new boss to revitalise the supermarket chain.

The Bradford-based company revealed stronger trade as Rami Baitieh leads the firm’s bid to recover more market share by competing with German discount rivals Aldi and Lidl on price.

Morrisons said that group like-for-like sales, excluding fuel and VAT, rose by 4.6% over the three months to January 28.

It compared with 0.1% over the same quarter a year earlier, and 3.3% in the previous quarter.

Total sales were up 3.9% to £3.9billion for the period.

The rise in sales comes amid a period of increases in food and drink prices although food inflation has slowed in recent months.

Mr Baitieh, who took over at the private equity-owned retailer in September, said its “next chapter” is in “full swing”.

In January, the former Carrefour boss said Morrisons was developing plans to “reinvigorate, refresh and strengthen” the brand.

Last month, the group became the latest supermarket to try to win back customers from Aldi and Lidl as it announced it would match the prices of some of their products.

Chatbots could take over eight million jobs in the UK – and women will be worst affected, a leading think tank has warned.

Analysis has found nearly two-thirds of tasks carried out by workers could be automated by AI, with admin and entry-level jobs most at risk.

Donald Trump‘s new media company ended it’s day of active first day of trading valued at $8 billion – more than established firms like the New York Times and Mattel – amid warnings investors were putting their money on Trump rather than the firm itself.

People injured in car crashes will get faster and bigger payouts after insurers lost a major court battle on how claimants should be compensated.

The Supreme Court decision also means that a backlog of thousands of cases are now free to get settled.

(H&M) – Fashion giant H&M has said it has seen a positive response from shoppers to its spring collection as it posted a rise in profits.

The firm saw shares in Sweden jump on Wednesday after better-than-expected profit for the first quarter.

Daniel Erver, chief executive of H&M, said it has seen signs it is “on the right track” as it seeks to maintain its market share amid the rapid growth of fast fashion rivals such as China’s Shein.

On Wednesday, the company said net sales dipped by 2% for the quarter to February 29, compared with the same period last year. This was a smaller fall than predicted by analysts.

The group said sales were moving in the “right direction”, with an increase of 2% so far in March.

Meanwhile, it said recorded higher-than-expected operating profits of 2.08billion (£155million) krona for the quarter, up from 725million (£54million) a year earlier.

Mr Erver said: “The quarter’s sales gradually improved during February with well-received Spring collections, which is a positive sign that we are on the right track.

“Our priorities remain firm: to enhance the assortment, always offer the best price, create inspiring experiences in both physical and digital environments, and to strengthen our brands.”

Ocado could be set to expand its robot-picking delivery empire into New York, amid a rapid deterioration in relations with partner M&S.

CMC Markets shares rose sharply on Wednesday after the trading platform lifted revenue and profit expectations.

The group expects its net operating income for the year ending 31 March to exceed previous estimate of between £290million to £310million.

There is something of a mystery going on at the Royal Mail — but nothing to do with the recent Post Office scandal.

Rather it involves a surge in ‘counterfeit’ stamps and a hefty £5 penalty for those who receive (and accept) mail posted using one.

Asda, Asos and Boohoo have promised to ensure customers are given accurate information about how environmentally friendly their clothes are after a 20-month regulatory probe.

The Competition and Markets Authority (CMA) said it had secured agreements from the three companies that commit them to informing their customers properly in the future.

UK tech pioneer Nanoco Group swung to a first-half operating profit after receiving its first-ever commercial production orders.

The University of Manchester spinoff scored a £2.4million operating profit in the six months ending January, compared to a £2.1million loss for the equivalent period the previous year.

North Sea oil and gas producer Ithaca Energy saw its annual profit fall sharply in 2023, which it blamed on the UK government’s energy tax and project impairments.

The FTSE 250-listed firm’s annual profit fell from $1.03billion to $215.6million last year, newly published results show.

Influencers have been warned about promoting financial products on social media as the City watchdog vowed to clamp down on illegal adverts.

The Financial Conduct Authority (FCA) has issued updated guidance to online content creators on how to advertise on platforms such as Instagram.

Shares in Donald Trump’s social media business soared on their stock market debut in New York yesterday – valuing the former US president’s stake at nearly £5billion.

Trump Media & Technology Group, which is behind his Truth Social platform, rose almost 60 per cent to $79 on the Nasdaq in early trading.

A transatlantic bidding war has broken out for London-listed packaging group DS Smith.

The FTSE 100 firm last night said it is in talks with US rival International Paper over a possible takeover offer worth 415p a share or £5.7billion.

S4 Capital’s turnover fell last year for the first time since its founding as clients cut back on advertising spend amid  greater economic uncertainty.

Sir Martin Sorrell’s firm revealed like-for-like net revenues declined by 4.5 per cent to £873.2million in 2023, following double-digit growth over the previous four years.

The advertising agency said corporate customers were taking an increasingly short-term attitude towards ‘larger transformation projects’, leading to longer sales cycles and spending cuts among some smaller clients.

S4 Capital shares were 6.6 per cent down at 41.6p on early Wednesday morning, meaning they have plunged by more than three-quarters over the past 12 months

Travis Perkins chief executive Nick Roberts will step down after five difficult years at the helm of Britain’s biggest building materials supplier.

Roberts, 55, has agreed to remain in the role until a successor is identified, the group said in a statement on Tuesday.

The boss of Blackrock has warned of a global retirement crunch as people live longer but cannot afford to pay for it.

In his annual letter to investors, Larry Fink said: ‘As a society, we focus a tremendous amount of energy on helping people live longer lives.

A transatlantic bidding war has broken out for London-listed packaging group DS Smith.

The FTSE 100 firm last night said it is in talks with US rival International Paper over a possible takeover offer worth 415p a share or £5.7billion.

The discussions come just weeks after DS Smith threw its weight behind a lower offer of 373p a share or £5.1billion from fellow Footsie group Mondi.

That would have created an £11billion packaging giant listed in London.

Sir Martin Sorrell’s S4 Capital reported a 25 per cent drop in core earnings in a ‘difficult’ 2023, illustrating a downturn in advertising markets the firm expects to continue into next year.

There is reluctance among S4 Capital clients to commit to larger projects, while new business.

The group expect clients to remain cautious in the short term as it forecast another fall in like-for-like net revenue in 2024 and earnings broadly around the same level as 2023’s £93.7million.

Sorrell said:

‘After our first four strong net revenue growth years, we had a difficult 2023 reflecting challenging global macroeconomic conditions, fears of recession and high interest rates.

‘This resulted in client caution to commit and extended sales cycles, particularly for larger projects, a difficult year for new business, as well as spend reductions from some regional and smaller client relationships. We saw better relative performance and continued resilience in our top 20 and top 50 clients, with our ten largest client relationships strong.

‘We took significant actions to reduce costs in the year and maintain a disciplined approach to operational efficiency.  We are targeting like-for-like net revenue for 2024 to be down on the prior year, with a broadly similar overall level of profit performance to 2023.’

The chief exevutive of Travis Perkins Nick Roberts will step down from the role after a difficult five years at the helm, Britain’s biggest supplier of building material revealed this morning.

Chair Jasmine Whitbread: ‘On behalf of the Board, I would like to thank Nick for his dedication and contribution to the business over the last five years.

‘While there has been good progress made in modernising the business, the Board fully recognises the under performance of the business over recent reporting periods, in the context of continued economic challenges and end market weakness.

‘We remain fully focused on improving profitability and enhancing cash generation, as well as accelerating changes to our operating model to create a simpler, more efficient business, well positioned to emerge stronger when markets recover and to grow shareholder value.’

The boss of British Gas owner Centrica saw his pay almost double last year after high energy bills boosted the firm’s share price.

Centrica chief executive Chris O’Shea took home £8.2million in 2023.

That compared to £4.5million the year before – a figure he recently said was impossible to justify.

North Sea oil group Ithaca Energy plans to slash investment in the UK after earnings were hammered by Britain’s Energy Profits Levy in 2023.

Ithaca Energy’s full-year profit slumped to $215.6million from $1.03billion last year, as it produced about 70,239 barrels of oil equivalent per day (boe/d), down from record output of 71,403 boe/d the previous year.

The group paid an EPL rate of 35 per cent, meaning it paid $333.4million in the year. It also suffered large write-downs and the impact of weaker oil prices.

The Energy Profits Levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled. The extension of the Energy Profits Levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces.

Interim boss and finance chief Iain Lewi said:

‘The Energy Profits Levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled.

‘The extension of the Energy Profits Levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces.’