BUSINESS LIVE: Boohoo sales slump; Wetherspoon’s raises profit forecasts; Workspace boss leaves

Informa is expanding its share buyback program by almost half, following strong performance in the first four months of 2024.

The fair’s organizer said it would buy back £500 million of shares this year, 47 percent more than previously planned, after buying around £180 million so far this year.

The Bank of England could get ahead of the US Federal Reserve and the European Central Bank this week with a first cut in key interest rates.

Markets are estimating a small but growing chance that the BoE’s Monetary Policy Committee will decide to cut spending at its meeting on Thursday, after a more forgiving tone was struck at the April meeting and an expected sharp decline in upcoming inflation figures.

A select group of Tesco Clubcard shoppers will be given the chance to take part in a trial of the supermarket’s new ‘Clubcard Challenges’ programme.

Tesco will use artificial intelligence to give eligible Clubcard holders ‘personalised’ challenges.

Savers can beat the best one-year fixed-rate accounts by some margin, while a new 365-day savings account pays 5.6 percent.

The account with a notice period of 365 days is offered by the savings and investment platform Bloom*, in a deal This is Money has made exclusively for readers.

Banking group TSB has said it is closing 36 branches and cutting 250 jobs across the business.

The group told employees today that it would cut roles in its fraud operations and central operations, as well as its branch network due to the closure of 36 physical locations.

Brewdog co-founder and CEO James Watt will step down after seventeen years leading the Scottish brewer and pub firm.

Watt, who will retain a 21 percent stake in the company, will remain on the board in the newly created non-executive role of ‘captain and co-founder’ as Chief Operating Officer James Arrow takes the reins.

Boohoo shares fell on Wednesday after the fast-fashion group revealed lower sales and profits for last year.

The group’s statutory pre-tax loss rose to £159.9 million in the year to February 29, from £90.7 million a year earlier, while turnover fell 17 per cent to £1.5 billion.

JD Wetherspoon expects annual profits to be towards the ‘high end’ of market forecasts, amid rising demand for Guinness and vodka among younger customers.

The pub chain’s comparable sales have risen 8.3 per cent so far this year and 5.2 per cent in the thirteen weeks to April 28.

Direct Line Group saw its own brand car customer base fall in the first quarter as price rises drove some policy owners away but delivered double-digit premium growth.

In a trading update, the company said the average premium for car and home insurance was £599 for new customers and £515 for renewal customers, up from £478 and £373 at the same point a year ago.

The rise of online brokers and do-it-yourself investing has revolutionized buying stocks, mutual funds and funds.

Investors can now make huge savings compared to the past when they used their stock broker, financial advisor or went straight to a fund manager.

Saudi Aramco will pay out almost £100 billion in dividends to shareholders this year as the kingdom’s ruling family looks for funds to transform the economy.

The world’s biggest oil producer said it expects to distribute £99 billion by 2024, despite a 14 percent drop in first-quarter profits to £21.7 billion.

Big Four accountants PwC and EY were yesterday fined a total of more than £9 million over their failed audits of a bankrupt ‘mini bond’ firm.

London Capital & Finance (LCF) raked in £237m from 11,625 savers – many of them pensioners and the elderly – before going bust in early 2019.

Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club:

‘Wetherspoons seems to be going in the right direction, after a number of difficult years. Like-for-like sales are growing and profits are expected to be at the higher end of expectations.

‘Wetherspoons will be helped by moderating inflation in combination with a proposal that clearly resonates with consumers.

‘Despite the higher interest rates, consumers continue to spend. However, they are becoming increasingly critical. Wetherspoon’s commitment to low prices and good execution of the basic principles ensures that gamblers remain loyal.

‘With many pub and restaurant businesses struggling, there is an opportunity for Wetherspoons to gain market share in the current environment. Now that costs are also falling, it looks like the profit recovery will continue.’

London-focused flexible office space provider Workspace Group has appointed Lawrence Hutchings as its new CEO, succeeding Graham Clemett, who will step down later this year.

Hutchings has held the top role at British Property Real Estate Investment Trust (REIT) Capital & Regional since 2017.

Disney’s streaming business has turned a profit for the first time as cost cuts begin to pay off.

The media titan posted a profit of £37 million for its Disney+ and Hulu businesses in the first three months of 2024, compared to a loss of £468 million in the same period last year.

This is the first time the unit – which makes shows like Only Murders In The Building – has gone into the black since the launch of Disney Plus in 2019.

JD Wetherspoon has forecast its profits to be near the high end of market expectations after the pub group posted higher sales in the third quarter, supported by strong demand for its traditional ales and vodka.

The group, which owns and operates pubs in Britain and Ireland, reported a 5.2 percent increase in like-for-like sales for the 13-week period ending April 28.

Resilient consumer spending has helped UK pub groups in an uncertain economic environment, even as fears loom that customers will cut back in a climate of high inflation.

Guy Lawson-Johns, Equities Analyst, Hargreaves Lansdown:

‘Booohoo’s annual results were painful for investors. Sales fell by double digits in all regions, including 18% in the US, seen as the group’s route to major growth.

‘For now, it remains a struggling company with a tarnished reputation, which is reflected in the group’s valuation, which has fallen significantly in recent years.

‘Implementing the back-to-growth strategy has not been easy. And as part of its drive for profitability, Boohoo has invested heavily in expanding capacity abroad, where there is more room for growth.

‘International markets, especially the US, are key to the group’s future growth, but extensive investments have so far delivered weak results.

“And with customer KPIs continuing to move in the wrong direction, it doesn’t look like a miraculous recovery is on the horizon.”

MPs have condemned the woke debanking of companies deemed ‘undesirable’.

A Commons Treasury Select Committee report on banking services for small businesses focused on the ‘unfair’ practice of denying accounts to legitimate businesses, from defense firms to gaming machine operators.

Boohoo’s sales fell 17 percent last year, leaving profits 7 percent lower at the lower end of expectations, as the British online fashion retailer continues to struggle against competition from newer rivals such as Shein.

The group, like Britain’s Asos, was a winner during the pandemic-induced online shopping boom but has since been hit by supply chain issues and higher product returns.

Shares are down 24 percent year-over-year.

Boohoo, whose brands include PrettyLittleThing and Nasty Gal, achieved adjusted EBITDA, the favored profit measure, of £58.6 million in the year to February 23, compared with expectations of £58 million to £70 million and the £63.3 million earned in 2022/2023.

At a statutory level, Boohoo’s pre-tax loss rose to £159.9 million, compared to a loss of £90.7 million previously.