BUSINESS LIVE: BT appoints new CEO; Pearson’s earnings skyrocket

Higher profits in the first half were boosted by a recovery in the flexonics business of the British automotive and aircraft parts supplier, which makes fluid transport and thermal management components for land vehicles, power and energy applications.

The engineering firm made a pre-tax profit of £13.5 million for the six months to the end of June, compared to £11.1 million a year earlier.

The Bank of England is under pressure to hit the pause button on rate hikes amid predictions that its own inflation forecast will be revised to ‘near zero’.

Traders expect the Bank to raise its base rate by another quarter of a percentage point this week to 5.25 percent — its 14th straight increase.

It has raised the cost of borrowing from 0.1 percent in December 2021 to curb runaway prices, which took off after the Russian invasion of Ukraine sent food and energy bills soaring.

Capita CEO Jon Lewis will retire at the end of this year and Adolfo Hernandez will replace him as leader of the outsourcing giant.

Lewis will step down from the top position and as a director on the board of directors, but will remain with the company until July to ensure an orderly transition, Capita said in a statement.

Pearson’s profits soared in the first half as the London-listed education group saw strong demand for English language learning, exams and qualifications.

Adjusted operating profit rose 44 per cent to £250 million in the six months to the end of June, helped by cost savings.

Pearson told investors it is on track to meet annual and mid-term targets.

A new consumer duty has come into effect, raising the bar for financial companies and giving customers more assurance that the product they buy does exactly ‘what it says on the tin’.

Overseen by the Financial Conduct Authority, the Consumer Duty sets higher and clearer standards of consumer protection across all financial services, requiring businesses to put customer needs at the heart of what they do.

The implications of the new levy will be far-reaching, woven from the design of financial products to the way companies treat their customers.

Britain will grant hundreds of new oil and gas licenses in the North Sea as part of efforts to become more energy independent, the government confirmed this morning.

Two new carbon utilization and storage clusters would be established in North East Scotland and the Humber regions.

“Now more than ever it is vital that we strengthen our energy security and capitalize on that independence to provide more affordable, clean energy to UK homes and businesses,” Prime Minister Rishi Sunak said.

BT has appointed Swedish telecommunications company Telia CEO Alison Kirby as its new boss, replacing Philip Jansen when he steps down in January next year.

Kirkby has been a non-executive director at BT since 2019.

Jansen confirmed his departure earlier this month, after initiating plans to cut jobs, get leaner and complete the rollout of a nationwide fiber optic network.