BUSINESS LIVE: Nissan UK factory investment; L&G in Boots pension buy-in; Mothercare hit by MENA volatility

Wilko bosses will face questions from MPs next week over the retailer’s collapse.

Former executives and their accountants will appear before the Business and Trade Committee on Tuesday after Wilko collapsed in August – with the loss of around 12,500 jobs and 398 stores.

Sophie Lund-Yates, chief equity analyst at Hargreaves Lansdown:

‘Mothercare needs some self-care after warning more franchise stores could close. Difficult trading conditions, especially in the Middle East, are causing problems for a company that has already had to struggle extremely hard to stay afloat.

‘The group’s turnover fell to £29 million in the first half, compared to £38.5 million last year – and is even further away from the £44.4 million in 2020. An area that needs a laser-like focus from the management needs is net debt. pile, which amounts to many times the amount of the group’s cash profits.

‘There is also a significant pension deficit that needs to be eliminated. For now, profits are supported by deep cost cuts, but these can only continue for a limited time and won’t be enough in the long run. Shares are down a further 4% in recognition of the hard work ahead for this much-loved brand.”

Richard Hunter, head of markets at Interactive Investor:

‘The markets were once again lagging behind because there were no positive leads. The main index fell, with the latest decline in China spreading its wings to cover stocks such as miners, as well as those with particular exposure to the region such as Burberry, Prudential and Standard Chartered.

“Stocks rarely rose as traders sat on the sidelines amid lower volumes. The FTSE100 is approaching the flatline again this year, with current gains of a marginal 0.2% under continued threat.

‘Meanwhile, the FTSE250 continues to feel the reverberations of uncertain economic prospects in Britain. While yesterday’s PMI data turned positive again, the bleak growth outlook against a tight monetary environment continues to weigh on a consumer who has not yet buckled under the weight but is increasingly cutting back as inflation remains high but is declining.

‘The index has lost 2.2% so far this year, and the uncertainty is indicative of Britain’s current status as an investment pariah on the international stage.

‘It remains to be seen whether the increasingly cheap valuations of UK shares compared to global peers will at some point spark interest from foreign investors to consider selective company purchases.

‘There have been some recent examples of bid approaches in the mid-cap sector, but so far the flagship index has remained exempt from what could yet become a feature next year if market conditions improve sustainably.’

James Bond and Christmas-themed toy cars and train sets are flying off the shelves this winter, Hornby said.

The model train maker expects a £49.99 Scalextric James Bond 007 racing set and a £79.99 Santa train set to be popular as they set course for a ‘positive’ second half, with a ‘strong’ order book.

The Margate firm has planned stronger seasonal promotions than in previous years, but added that ‘like everyone else, we see the Christmas trade boom coming later’.

Mothercare’s sales have been hit hard by trading conditions in its key market, the Middle East.

The retailer’s international retail sales through franchise partners fell 15 percent year-on-year to £137.2 million in the first half, due to ‘difficult trading conditions in the Middle East’, where sales fell 20 percent over the period.

Chairman Clive Whiley said: ‘These results are testament to our continued commitment to maintaining the strength of the Mothercare brand in a rapidly changing retail and macroeconomic trading environment.

“Despite significant headwinds in the Middle East, one of our core markets, we are pleased that our business model and disciplined cost approach have resulted in an increase in profitability in the first half of the year.”

British life insurer and asset manager Legal & General has agreed to a £4.8 billion full buy-in into the Boots Pension Scheme, which it says is the largest such transaction in Britain by premium size.

The deal is part of a rising trend in pension risk transfer, with pension scheme administrators, such as Boots’, paying a premium to the insurer to take on some of a scheme’s liabilities, to reduce uncertainty. Reduce.

Rising funding ratios for pension schemes are creating unprecedented demand, Legal & General said, as funds scramble to protect schemes from the vagaries of market movements amid rising interest rates worldwide.

Jeremy Hunt received a double boost yesterday as figures showed the economy returning to growth and experts upgraded their GDP forecasts following his autumn statement.

The UK Purchasing Managers’ Index (PMI) showed that the UK private sector was almost back into expansion mode after three months of decline – and ahead of the still-struggling Eurozone.

Businesses were buoyed by the end of interest rate hikes and falling inflation, the closely watched survey showed.

Nissan will invest £1.12 billion in building electric versions of two popular crossover models at its Sunderland plant. This is a new boost for the UK car industry amid the move to electric vehicles.

The Japanese carmaker said its plans for electric versions of the Qashqai and Juke – currently produced at its Sunderland plant – will require an investment of up to £2 billion in a third battery factory in Britain and infrastructure projects.

Nissan did not provide additional details about these investments.

Japan’s third-largest automaker said it would announce the names of the new EV models and timing for production launches at a later date.

“With electric versions of our key European models on the way, we are accelerating towards a new era for Nissan,” CEO Makoto Uchida said in a statement.