Travis Perkins, the builders' merchant, has announced a cut in its profit forecasts due to the ongoing slowdown in the housebuilding sector. The company has revealed that profits will be £65m lower than expected, citing "continued weakness" in the industry. Earlier this year, Travis Perkins had predicted profits of around £240m, but it has now revised this figure to between £175m and £195m. The slowdown in housebuilding has been attributed to higher mortgage costs following 14 consecutive interest rate rises by the Bank of England.
Travis Perkins shares fall as rival companies also issue profit warnings
Following the announcement by Travis Perkins, the company's shares fell by 6.16%. The news also affected shares in rival company Kingfisher, which owns Screwfix. Additionally, brickmaker Forterra issued a profit warning and stated that it would scale back production due to a decline in demand. The number of bricks sold in the last three months was 28% lower than the same period last year. Travis Perkins plans to cut prices by around 3% in an effort to stimulate demand.
Next looks to acquire Fat Face in £100m deal
Next, the high street retailer, is reportedly seeking to purchase clothing brand Fat Face for £100m. Fat Face, which has 180 shops across the UK, already sells its clothes through Next's website. This potential deal follows Next's acquisition of brands such as Reiss, Made.com, and Joules, as well as its partnerships with other third-party brands. Next has been praised for its early entry into online shopping through its catalogue business.
Job market cooling as workers reject new job offers
Recruitment firm Page Group has reported that workers are increasingly turning down new job offers in favour of remaining in their current roles. The company suggests that demand in the labour market is cooling, with firms offering lower salaries and taking longer to hire. Page Group's profits are expected to be lower than forecast as a result. The decline in job market activity has also affected recruiter rivals Hays and Robert Walters.
ITV introduces personalised advertising on live broadcasts
ITV has announced that it will introduce personalised advertising on live broadcasts. Adverts shown during programmes such as Big Brother and Love Island will be targeted to viewers based on ITV's registered-user database. This move towards "addressable ads" follows six years of focus on streaming services. ITV's CEO, Dame Carolyn McCall, has previously warned of a slump in advertising spending comparable to that seen during the 2008 financial crisis.
Pub chain Marston's sees higher sales despite wet summer
Pub chain Marston's has reported a 10% increase in sales over the past six months, despite a wet summer impacting its performance in July and August. The company, which owns Pitcher & Piano among other brands, has seen a growth in pub sales due to the return of after-work socialising and favourable weather conditions. Marston's has also saved £5m by cutting head office jobs, resulting in profits that are expected to exceed City estimates.
Investigation launched into collapse of pre-paid funeral care provider
The Serious Fraud Office (SFO) has launched a criminal investigation into the collapse of Safe Hands Plan, a pre-paid funeral care provider. Customers who paid into the scheme are owed £70m, but administrators predict that they will only receive £10m. It has been discovered that around £30m of customer money was transferred to accounts in the Cayman Islands. The SFO is currently involved in a separate case against the former finance chief of Patisserie Valerie, which collapsed with the loss of 900 jobs.
Asda and M&S cut prices on hundreds of grocery items
Asda and Marks & Spencer (M&S) are reducing the prices of hundreds of grocery items. Asda is spending £9m to lower the prices of 200 products, while M&S is cutting prices on 200 items such as mince and fish. Asda has already reduced prices by £44m since the summer. The move comes as part of efforts by both retailers to remain competitive in the grocery market.
Exxon Mobil acquires Pioneer in £48bn shale takeover
US oil giant Exxon Mobil has agreed to acquire Pioneer in a £48bn deal, making it the world's largest shale producer. The takeover is the largest since Exxon's merger with Mobil in 1999 and represents the biggest deal of the year. The acquisition will enhance Exxon's position in the oil basin between Texas and New Mexico. Despite the growing interest in renewable energy, Exxon's CEO, Darren Woods, believes that fossil fuels will continue to play a role in the future.
