BUSINESS LIVE: Rio Tinto agrees SEC settlement; Kingfisher slashes profit outlook; Autumn Statement at 12.30pm

Severn Trent has increased shareholder payouts after claiming it remains on track to meet its annual financial targets despite a decline in profits in the first half of the year.

The group’s pre-tax profit from ordinary activities fell by almost a third to £70.7m in the six months to the end of September, compared with £104.7m at the same point a year ago.

Sage Group has unveiled a £350 million share buyback program after its turnover soared over the past year.

The accounting software provider, one of Britain’s largest technology companies, announced that underlying sales rose 10 percent to £2.18 billion in the year ended September, thanks to excellent results across all regions.

At lunch, Chancellor Jeremy Hunt will release his autumn statement: will he seek to rebuild the Conservative party’s reputation as a low-tax party?

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B&Q owner Kingfisher has cut its full-year outlook for the second time in three months amid weak performance in France.

The group’s turnover in the third quarter ended October 31 was £3.2 billion, down 2.1 per cent on last year, while comparable sales fell 3.9 per cent.

Adam Vettese, analyst at eToro:

“This is a difficult time for Kingfisher. Expectations are higher after the pandemic DIY boom, but the reality is that this is a very different market than it was back then.

‘Now consumers are spending less money on DIY, largely due to the cost of living crisis, but also because many workers have returned to the office and are therefore in less of a hurry to renovate their homes.

‘The group also faces fierce competition in many of its key markets, particularly in Poland and France, which has led to the DIY giant cutting its full-year profit forecasts.

‘That said, we do not believe this troubled situation is due to an issue with Kingfisher itself. Market conditions are largely to blame for this. Therefore, we expect things to improve as economic conditions become more favorable and consumers feel better off.”

OpenAI’s future is at stake as its board opens negotiations to bring back ousted co-founder Sam Altman.

The talks started late last night after 747 of 770 employees – 97 percent – threatened to leave unless he is reinstated as CEO.

Sir Jim Ratcliffe’s petrochemical empire Ineos is facing a row of lawsuits over a company sale – as the billionaire closes in on a £1.3 billion stake in Manchester United.

Ratcliffe, one of the country’s richest men, founded chemical technology giant Ineos in 1998.

The humble asthma inhaler will become the latest casualty in the battle to reduce greenhouse gas emissions.

Pharma giant GSK plans to create a low-emission version of its Ventolin drug. That’s because Ventolin inhalers are responsible for almost half of total greenhouse gas emissions.

The Bank of England yesterday stepped up its fight against City expectations of a rate cut, warning that markets are ‘underestimating’ persistent inflation.

Bank Governor Andrew Bailey told MPs that traders were giving “too much weight” to recent figures showing inflation has fallen to less than 5 percent.

Markets expect interest rates to be cut from the current level of 5.25 percent from June next year and some experts even see interest rates falling to 4 percent by the end of 2024.

British software company Sage expects its profit margin to continue rising this year, after a record 2022/2023 year.

The group posted an 18 percent increase in full-year underlying operating profit to £456 million after margins rose to 20.9 percent.

Boss Steve Hare said: ‘We continue to help small and medium-sized businesses succeed, providing them with the tools and expertise they need to simplify their accounting and HR processes, streamline their operations and make more informed business decisions. to take.

“Through the Sage Network, we deliver innovative, AI-powered services to customers faster and more efficiently than ever before.

‘Small and medium-sized businesses continue to digitalise, despite the macroeconomic uncertainty. We are building a resilient platform to deliver sustainable, efficient growth, and I am confident Sage is well positioned to take advantage of market opportunities in 2024 and beyond.”

Kingfisher has downgraded its full-year profit outlook for the second time in three months after the B&Q owner’s underlying sales fell 3.9 percent in the third quarter, with market trends in France weaker than expected.

The FTSE 100 group, which also owns Screwfix in Britain and Castorama and Brico Depot in France and other markets, said it now expects adjusted pre-tax profits of around £560 million for the 12 months to the end of January 2024 .

This is less than the £590 million forecast in September and the £758 million earned in 2022/2023.

CEO Thierry Garnier said: “As we enter 2024, we are focusing on what we can control.

‘Firstly, a continued focus on increasing market share in the UK, France and Poland with the execution of our strategic growth initiatives. Second, encouraging productivity gains to offset wage inflation. And finally, achieving our free cash flow and shareholder return goals.

‘We expect some product cost inflation, albeit at significantly lower levels, and expect rational retail pricing and competitive price indices across all our banners.

‘Over the medium to longer term, we remain very positive for home improvement growth in our markets, and our ability to grow ahead of our markets.’

Rio Tinto has reached a $28 million settlement with the US securities regulator, drawing a line in a lawsuit filed in 2017 over the disclosure of Rio Tinto Coal Mozambique’s (RTCM) impairment as reflected in Rio’s financial statements Tinto about 2012.

Without admitting or denying the SEC’s allegations regarding its books, records and reporting requirements, Rio Tinto will pay the fine and retain an independent consultant to advise on its current impairment policies, procedures and controls, disclosures and project risks.

Former CEO Tom Albanese has also settled with the SEC and will pay a $50,000 fine.

Rio Tinto said: ‘Rio Tinto welcomes the conclusion of the SEC case on appropriate and reasonable terms.

“This settlement concludes all Rio Tinto investigations into this matter.”