Business news in brief
Compass sales slide as free school meals arm recovers
Catering giant Compass has seen sales slump by a third as its free school meals hamper business looks to rebuild its tarnished reputation after an outcry over poor standards. The group reported revenues tumbling by 33.7 per cent in the last three months of 2020 as the pandemic continued to batter the global hospitality industry and the firm’s school and workplace canteen services. It also faced a storm of controversy surrounding its Chartwells free lunch parcels business after images showing the low standards of its food parcels were widely shared on social media. The scandal prompted Boris Johnson to admit the offering was “disgraceful” and saw Chartwells apologise profusely last month. Compass has pledged to cover the cost of providing free breakfasts to all children currently receiving a Chartwells lunch parcel from 25 January, as well as lunch parcels through the February half-term holidays. PA
German government prepares more economic help
Germany’s governing parties have agreed on more help for families with children and people on benefits, as well as tax help for companies, as they try to keep Europe’s biggest economy on course to grow out of the pandemic. Leaders of Chancellor Angela Merkel’s governing coalition agreed late Wednesday to give a onetime €150-euro (£132) bonus to families that receive child benefit, following a €300 bonus last year, news agency dpa reported. There also will be a €150 payment for people on welfare benefits. Companies that have suffered losses because of the pandemic will be given greater scope to offset those losses against profits from previous years in their tax returns. And a cut in sales tax on food in restaurants and cafes, from 19 per cent to the reduced rate of 7 per cent, will be extended from the end of June to the end of next year. PA
Theme park sues Taylor Swift for trademark infringement
Taylor Swift has been sued by a theme park for trademark infringement over the title of her latest album Evermore. The owners of Evermore, a venue in Pleasant Grove, Utah, allege the pop superstar’s record, which arrived in December, has led to confusion over whether it is linked to the attraction. They say they own the trademark to the name and it was violated when Swift started selling merchandise related to her album. In the lawsuit, lodged in a US District Court in Utah, the theme park’s owners claim they have spent millions of dollars on the attraction, which opened in 2018. PA
BT revenues slip as virus weighs on trading
Telecoms company BT has revealed slumps in revenue and earnings over the nine months to the end of 2020 due to the pandemic. BT told investors that revenues slid by 7 per cent to £16bn for the three quarters to 31 December after its consumer and enterprise operations were impacted by virus restrictions. The closure of retail stores, pubs and clubs for large parts of the period negatively weighed on its revenues, it said. BT added that mobile revenues for the period were also impacted by reduced roaming, amid a sharp decline in travel. It posted a 5 per cent fall in earnings before interest, tax, depreciation, and amortisation to £5.6bn. PA
Beckham-backed venture to list on London Stock Exchange
A David Beckham-backed company which uses cannabis compounds to make skincare products is set to float on the London Stock Exchange. Cellular Goods has sold a stake to David Beckham’s investment vehicle, DB Ventures, as it seeks to trade on the stock market with a £20m valuation. The company uses biosynthetic cannabinoids to make skincare and athletic recovery products. Cellular Goods is different to many competitors in the fast-growing market, by making its products in laboratories, rather than directly from plants. On Thursday morning, Cellular Goods said it intends to raise around £8m through a retail share offering. PA
Greater risk of unemployment for heavy gamblers
A new study suggests heavy gamblers are at greater risk of becoming unemployed, having financial problems and even dying. Researchers at Oxford said high levels of betting are associated with a 37 per cent increase in mortality and found there was a slippery slope from casual punts to problem gambling. Their paper, published by journal Nature Human Behaviour, used data from banks and found individuals with jobs in the highest percentiles of gambling had a 6 per cent likelihood of experiencing future unemployment. PA
New car demand plunges 40 per cent
Demand for new cars fell by 39.5 per cent last month compared with January 2020, according to the Society of Motor Manufacturers and Traders (SMMT). It was the industry’s worst start to a year since 1970. SMMT chief executive Mike Hawes said: “Following a £20.4bn loss of revenue last year, the auto industry faces a difficult start to 2021. The necessary lockdown will challenge society, the economy and our industry’s ability to move quickly towards our ambitious environmental goals.” PA
Unilever profits fall to £9.3bn
Ben & Jerry’s ice cream and Hellmann’s mayonnaise owner Unilever has said it has started 2021 in “good shape” after it missed market expectations for the past year. The consumer goods giant reported a 5.8 per cent decline in underlying operating profits to £9.3bn for the year to December as it was hit by currency fluctuations. Unilever said it plans to accelerate its expansion in the US, India and China as part of its longterm growth strategy. PA