Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Booming sales of electric bikes in the run-up to Christmas have helped Halfords Group (HFD) stick to its full-year profit guidance. The car equipment and bicycle retailer said it sold 96% more electric bikes in the 14 weeks to January 3 than the same time last year, and that one in five bikes and scooters sold are electric. Chief executive Graham Stapleton said the rise in sales was powered by customers’ efforts to be more environmentally friendly, as electric bikes are a greener way to travel short distances than diesel cars or motorbikes. Stapleton said: ‘Customers are responding to what they’re seeing on climate. ‘There’s just no doubt that electric is now here – it’s no longer an emergent small trend. It’s becoming a very significant part of our business in both cars and bikes.’ Older customers who wanted to return to cycling were also boosting sales of electric bikes, Stapleton added. - The Mail
Ryanair Holdings (RYA) has demanded that the government extend any “tax holiday” granted to Flybe Group (FLYB) to other airlines or be in breach of competition and state aid laws. In the growing industry backlash against the rescue of the regional carrier, the Dublin-based airline said that it had written to the chancellor, Sajid Javid, to request the same treatment as Flybe’s “billionaire owners” – who include Sir Richard Branson and Delta Airlines. Ryanair’s chief executive, Michael O’Leary, warned that Flybe would “undoubtedly fail once the subsidy ends”. The details of the rescue agreement have been kept under wraps since Tuesday evening, when ministers led by Javid announced that Flybe had been saved. The package is understood to involve the short-term deferral of an outstanding air passenger duty (APD) tax bill of £106m, a possible loan, and the promise to review APD levels before the March budget. - The Guardian
Pearson (PSON) is fighting for its place on the FTSE 100 after a bleak warning about its prospects sent shares tumbling. More than £411million was wiped off the publisher’s market value yesterday as the company, once a titan of the business world which now sells text books, said profits for 2019 would total around £590million. This was at the lower end of its September guidance, of £590 million to £640million. Pearson added that profits in 2020 were likely to fall to between £500million and £580million. The rout has left Pearson, formerly owner of publishers Ladybird and Penguin, with a market value of just £4.4billion – right at the bottom of Britain’s blue-chip index. - The Mail
A raft of store openings and a strong performance on the Continent drove up total sales at Primark over Christmas. Sales jumped 4.5% in the 16 weeks to Jan 4 compared to a year earlier, partly due to a marked upturn in its Eurozone market. Trading was particularly good over November and December, the chain’s owner Associated British Foods (ABF) said, although there was an expected squeeze on profits amid a blizzard of price cuts across the high street. But in the UK there was a small decline in like-for-like sales, which strip out the impact of new store openings and are seen as a better measure of true health. Britain is Primark’s most important market. John Bason, ABF’s finance director, said he was pleased with trading in the quarter. He added that Primark had a “sensational” Christmas period. - The Telegraph
The boss of Magners cider owner C&C Group (CCR) has stepped down with immediate effect after revealing plans to leave the business. Stephen Glancey, 59, who has been chief executive of the drinks firm since 2012, will leave next month following a handover period with chairman Stewart Gilliland taking on an executive position in the interim. Mr Glancey joined C&C Group as chief operating officer in 2009 and has been a board member since 2008. It is thought he plans to retire from executive roles permanently following his departure. - The Telegraph
Whitbread (WTB) Boris bounce juddered to a halt yesterday after a warning over rising costs and continuing economic uncertainty sent the Premier Inn operator’s shares tumbling by more than 5%. The 250p fall to £45.87 follows a 20% jump since October on the back of optimism that the British-based budget hotel chain would be a beneficiary of any rise in consumer confidence resulting from a Tory majority in the election. The group was buoyed by the £3.9 billion sale a year ago of the Costa coffee chain to Coca-Cola, enabling it to return £2.5 billion to shareholders, but trading at its budget hotels has proved tough and last year it launched a £220 million three-year cost-saving programme. Alison Brittain, the chief executive, admitted the political and economic environment and the continuation of “sustained industry inflation” meant it remained “difficult to predict business confidence in the short term and its impact on the market”. However, she insisted the company had the financial strength and business model to tap into the “significant structural growth opportunities in the UK and internationally”. - The Times
Hays (HAS) blamed Australian bush fires and French strikes as it warned shareholders to expect a £24 million slide in profits for the six months to December. Shares fell after it said operating profits would be about £100 million for its first half, less than the £105 million expected and down from £124 million reported for 2018. Alistair Cox, chief executive, said: “Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election.” Total fees in the three months to December fell 7%, while the decline was 4% after adjusting for currency movements. - The Times