Below are the key headlines from the midday updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
ITV hit by Brexit doubts as firms rein in advertising spend. Big advertisers are keeping a tight rein on spending in readiness for Brexit, hitting revenues at ITV (ITV) . The broadcaster saw income down 4% in the first quarter to £874 million, with ad sales down a more brutal 7% to £417 million. That’s because big brands — Unilever is a name often mentioned in City circles — have withdrawn ads while they prepare for whatever follows the UK’s much-delayed Brexit. ITV made mention of “continuing economic and political uncertainty” and the pre-launch costs of BritBox, the mini-Netflix streaming service that it is working on with the BBC. It aims to offer British TV shows old and new. Chief executive Carolyn McCall said the performance was “very much as expected”. “We remain very focused on delivering in the areas we can control… and we are actively mitigating the factors outside the company’s control.”
Provident warns of £130m cash call if NSF wins takeover battle. Provident Financial (PFG) ramped up warnings about Non-Standard Finance’s takeover bid on Wednesday, claiming the group would need a £130 million rights issue to fix the balance sheet if NSF wins. The company, which issued a five- point list of concerns about Non-Standard Finance (NSF), said the hostile suitor’s plans to spin off doorstep lender Loans at Home and the expenses of the takeover would weaken Provvy’s capital buffers. The enlarged group will be regulated by the Prudential Regulation Authority after a deal because Provident owns Vanquis Bank, which comes under the PRA’s remit. The PRA enforces strict capital rules known as CRD IV.
Motor repair costs put brakes on Direct Line with claims inflation up. Direct Line Insurance Group (DLG) laid bare the parlous state of motor insurance on Wednesday by highlighting the rise in what it costs to repair a car and sluggish motor insurance premiums. The FTSE 100 giant said cost inflation — measuring the rising expense of repairing damaged cars — would be at the upper end of a 3% to 5% range. This is because repair bills Direct Line gets from third-party claims have been higher, with garages charging more because of the higher cost of parts from Europe after the fall in the pound. At the same time, a price war between insurers — good news for insurance shoppers — has hampered Direct Line’s attempts to grow premiums.
Cricket fans help lift sales at Luke Johnson-backed Elegant Hotels Group (EHG) . Entrepreneur Luke Johnson had some relief on Wednesday as the luxury Caribbean hotels firm he backs posted first-half higher sales. Elegant Hotels, which Johnson has a 12.5% stake in, saw a spike in UK customer numbers thanks to Brits heading to Barbados for England’s cricket tour of the West Indies. It also benefited from more demand for all-inclusive holidays, with UK customers seeking ‘locked-in’ prices to avoid potential Brexit-induced currency headwinds. Chief executive Sunil Chatrani said: “Elegant Hotels continues to perform well in the context of a competitive market and against a backdrop of ongoing uncertainty in its core visitor market of the UK.” He added that forward bookings are looking strong.
Miner Cora Gold Limited (DI) (CORA) shares shot up on Wednesday after it said it will start digging at its flagship Sanankoro gold project in Mali. In April it raised £1.3 million from investors — including copper tycoon Lord Farmer and Cora’s boss Jonathan Forster — to fund the exploration. Shares rose 0.75p, or 20%, to 4.5p.
SSE plans more than 400 job cuts as smart meter uptake disappoints. Energy giant SSE (SSE) is planning to cut more than 400 jobs in its retail business covering smart meter installation because of a lack of take-up for the devices from consumers. Staff were told at 11am this morning that there were plans to axe 444 jobs as the supplier battles higher competition, the Government-enforced energy price cap, which came into force this year and limits the amount companies can charge customers on standard tariffs, and higher operating costs. Tony Keeling, operating chief and co-head of retail at SSE, said the company needed to become more efficient and “ensure we have the right number of employees in the right locations to best serve our customers”.
Investors fear vaping has run out of puff as US sales slow at Imperial. Aslowdown in vape sales in the key US market spooked investors in cigarette maker Imperial Brands (IMB) , despite surging profits. Alison Cooper, chief executive, said increased scrutiny from the Food and Drug Administration in November had dented appetite among retailers for its Blu vaping brand but that sales had bounced back in recent months. The FDA said last year it would enact measures to curb teenage purchases of flavoured nicotine products amid concerns over an “epidemic-level rise in youth e-cigarette use”. Imperial said such regulatory statements had “tempered growth of the category”.