BUSINESS LIVE: Pendragon to sell UK car and leasing unit

Phoenix Group expects cash generation to be at the high end of the forecast range in 2023, after the life insurer’s new long-term cash flows more than doubled in the first half.

The company, which specializes in managing life insurance businesses closed to new customers, had forecast cash generation of between £1.3bn and £1.4bn by 2023.

Phoenix Group CEO Andy Briggs said:

‘As Britain’s largest long-term savings and pensions company, Phoenix executes on its single strategic focus: helping customers towards and through retirement.’

Figures from the Center of Retail Research (CRR) bring into sharp relief the scale of the crisis that has engulfed the sector since the pandemic.

Debenhams and Philip Green’s Arcadia empire – which included Topshop – were among the high-profile victims.

At Wilko, up to 12,500 jobs could be lost forever. Although rivals B&M and Poundland have bought a total of 122 stores, staff are unsure what will happen. The Range bought Wilko’s brand and website, but only saved 36 jobs in the digital team.

British paper and packaging company Mondi has agreed to sell its largest factory in Russia to a unit of Sezar Group, a Moscow-based real estate development company, for 80 billion rubles (£666 million) in cash.

The announcement comes about three months after the company scrapped a 95 billion ruble deal to sell Mondi Syktyvkar to an investment vehicle owned by Russian billionaire Viktor Kharitonin due to a “lack of progress” in obtaining approvals.

Heineken has acquired a minority stake in Ellie Goulding’s cocktail-in-a-can brand.

Served, which was founded in 2020 by the British singer along with entrepreneurial brothers Dean and Ryan Ginsberg, produces ready-to-drink mojitos and pina coladas, as well as hard seltzer alcoholic sparkling water – priced at around £3 per can.

The partnership with the Dutch brewing giant will help Served grow in the UK ‘ready to drink’ product market, which was estimated to be worth £866 million in 2022, the company said.

British car retailer Pendragon plans to sell its entire UK car and leasing business to Lithia UK Holding for a gross aggregate consideration of £250 million.

Bill Berman, CEO of Pendragon, said:

‘Pendragon has built one of the UK’s leading car retail businesses, supported by an industry-leading dealer management system, the quality of our people, long-term relationships with OEMs and excellent customer execution.

“The Pendragon board believes that Lithia is perfectly positioned to build on this progress.

‘Launching Pinewood as a standalone company is a unique and exciting opportunity to create a best-in-class product for customers, which we can market globally and generate substantial value for our shareholders, and In Lithia we have the perfect partner to help accelerate Pinewood’s move into the hugely attractive North American DMS market.”