Business news in brief
Mothercare sales falter as store closures continue apace
Retailer Mothercare warned that its financial performance will remain “volatile” as it reported a crash in UK sales. The firm posted an 11 per cent decline in like-for-like revenues in the six months to 6 October, while total sales in the country fell 14.3 per cent to £196.2m. Mothercare said the poor showing reflects “wider market uncertainty and negative brand coverage” relating to the group’s restructuring programme. The firm posted a pre-tax loss of £14.4m in the period, a slight narrowing from the £16.8m recorded last year. Total group revenue, including international, was down 13.1 per cent to £295m. PA
Brexit race to stockpile pushes aerospace suppliers to the brink
A race by aerospace giants Rolls-Royce and Airbus to stockpile parts before Brexit is pushing some small suppliers to breaking point. A string of suppliers told Reuters they are either stockpiling parts, producing
extra goods to be stored by their customers or holding out to see whether a deal can be struck. Bitrez, a speciality chemicals manufacturer based in Northwest England, said some customers now ask suppliers to provide material to their premises, with the customer only invoiced as the stock gets used. Such demands put pressure on the cash flow of small companies and Paul Adams, head of aerospace at consultancy Vendigital, said that was one of the biggest short-term risks for smaller aerospace suppliers. Reuters
Households left without water supply should get higher payouts, says Ofwat
Households that lose their water supply will receive increased compensation under proposed changes following a review of companies’ handling of the Beast from the East. Ofwat has recommended that compensation payments for household customers increase to £30 for every 12 hours they are left without running water after its review of failings during the cold weather in February and March. At present, the Guaranteed Standards Scheme entitles household customers to £20 after 12 hours without supply and a further £10 for every additional 24 hours they do not have water. PA
Mitie sees earnings and order book fall in ‘competitive and challenging’ market
Outsourcing group Mitie has cautioned over “competitive and challenging” industry conditions as it posted lower half-year earnings and revealed a £255m fall in its order book. The firm posted a 4.2 per cent fall in underlying operating profits to £38.4m for the six months to 30 September. It said its secured order book dropped by £255m to £3.9bn, but sought to assure over a “significant increase” of work in the pipeline. The group’s results showed that statutory interim pre-tax profits rose 7.3 per cent to £19m. PA
Mitchells & Butlers profits chilled by snowy weather
Toby Carvery owner Mitchells & Butlers saw profits decline as cold weather and the football kept diners away, but it still managed to beat expectations and increase sales. Adjusted profit before tax slipped from £180m to £178m in the year to 29 September. Analysts had expected profits to fall to £175m, after profitability in the first half was knocked by snowy weather. Adjusted revenue climbed to £2.15bn, while like-for-like sales were up 1.3 per cent. PA
Minority of workers think workplace culture on sexual harassment has improved
Few workers believe international media coverage of the #MeToo movement has helped improve their workplace culture, according to a study. Fewer than two out of five people surveyed by the conciliation service Acas said they would be very likely to report sexual harassment at work. The poll of 2,000 adults suggested that most believed there should be better training for all staff to help reduce sexual harassment at work. PA
Aldi’s Kevin the Carrot launch leads to queues outside supermarkets
Aldi’s Christmas character Kevin the Carrot has inspired shoppers to queue at supermarkets to get their hands on newly launched stuffed toys in his likeness. Queues were reported ahead of stores opening as families woke up early to get their hands on the toys. Earlier this month, Aldi released its Christmas campaign featuring Kevin for a third consecutive year. PA
‘The Match’ Woods and Mickelson get set for their vulgar Vegas showdown