Below are the key morning headlines from today’s papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
BP (BP.) rules the waves to lead a North Sea revival. The Clair project has overcome daunting challenges to carry the hopes of British oil. The oil group has announced that it has produced its first oil from Clair Ridge, BP’s biggest project in the UK in two decades. Targeting 640 million barrels of oil over the next 40 years, the project, some 75 kilometres west of Shetland, is the largest start-up in British waters since 2007, according to Wood Mackenzie, the consultancy. At peak it should produce 120,000 barrels per day, one of a series of major projects helping BP to increase its output and, accounting for a tenth of the UK’s oil output, providing a much-needed shot in the arm for the North Sea industry.
British Gas feels the heat of unintended consequences. Beware unintended consequences. Particularly in the thorny world of energy supply. The “Big Six” energy companies have never been happy about Theresa May’s plan to impose an energy price cap. Looking at Centrica (CNA) trading update yesterday, it’s easy to see why. The new cap, in force from January, will now cost the owner of British Gas an unexpected £70m in the first quarter of next year. Centrica insists this is a “one-off” event, but there were other nasties lurking in its statement, including falling oil and gas production and lower output from its nuclear venture with EDF.
Berkeley Group Holdings (The) (BKG) denies bribery claims. One of the most powerful figures in the housebuilding industry was accused of bribing a partner at a leading estate agency, according to legal documents in a claim brought by a former finance boss. The allegations against Tony Pidgley, the founder and chairman of Berkeley Group, were made by Nicolas Simpkin, who was dismissed as finance director in September 2014. Berkeley paid £9.5 million to Mr Simpkin, including legal fees, as part of an out-of-court settlement, its annual report published in August shows
Give me one hour to save the high street, says Ashley. Two years ago Mike Ashley had to be dragged kicking and screaming to appear before the business select committee to answer questions about Sports Direct International (SPD) business practices. Yesterday, the football boot was on the other foot, as the retail tycoon and Newcastle United owner demanded to appear before the housing, communities and local government committee to ask for help for Britain’s beleaguered retail sector. The select committee is conducting an inquiry into “high streets and town centres in 2030”.
Mothercare (MTC) bruised by latest tumble. Sales in Mothercare’s domestic business have fallen to a record low and losses have soared as it struggles to keep its turnaround programme on track. The baby and maternity goods chain said that its interim like-for-like sales had slipped by 11.1% in Britain, which it attributed to market uncertainty and “negative press”. Its online sales in Britain were similarly depressed, down by 7.8%, which helped to push its adjusted loss before tax up from £2.6 million to £6.2 million in the six months to October 6
Majestic Wine (WINE) will bolster stocks to become Brexit-proof. Majestic Wine is to stockpile an extra £5 million to £8 million of bottles above its normal levels to cater for any supply chain disruption after Brexit next March. Rowan Gormley, chief executive, said that the “additional inventory” would mostly be sourced from Europe and that there was “no cause for panic”. He said: “We have been stockpiling wine in warehouses for 30 years. It’s what we do.” Shares in Majestic fell by 14%, losing 52½p to 322p, after in winning new customers for its online business Naked Wines and a “sluggish” British retail market pushed the group to a loss of £200,000 in the half year to October 1, compared with a profit of £3.1 million a year earlier
Regulator aims to strike a chill into water firms. The water regulator has put four of the largest suppliers on notice over their plans to prevent customers from being cut off for days on end over the winter. Thames Water, Severn Trent (SVT) , Southern Water and South East Water were named by Ofwat as being under scrutiny after 200,000 customers were cut off during the “beast from the east” storms in March. Ofwat has demanded detailed, externally audited action plans to prevent or at least deal better with burst mains this winter. The watchdog will impose penalties on companies whose customers lose supply.
Argos embraces Black Friday with dozens of new outlets. Some retailers may be shunning Black Friday but Argos is opening mini-stores, collection points and a new fulfilment centre to win sales today. The electricals retailer, which is owned by Sainsbury (J) (SBRY) , said that it had opened 100 collection points, 14 mini outlets inside Sainsbury’s shops and a £2.5 million centre in Croydon. It said that customers would be able to buy and collect Black Friday purchases from 1,203 locations. John Rogers, chief executive, said: “Black Friday is no longer just about great deals: the new battleground is speed and convenience and getting customers what they want, when they want it.”
Virgin Atlantic hopes to take off with Flybe Group (FLYB) . Virgin Atlantic is in discussions to acquire Flybe, the embattled no-frills carrier that put itself on the auction block last week. The long-distance carrier, part owned by Sir Richard Branson, is hoping to use the regional operator to funnel passengers on to its lucrative transatlantic routes. Flybe carries 9.5 million passengers a year on 78 regional 80-seat aircraft and employs 2,300 people. The discussions — first revealed by Sky News — come a week after Flybe raised the “for sale” sign after a sharp downturn in trading and a slump in its share price. Profits for the six months to the end of September halved amid reduced demand for tickets and a jump in fuel prices.
Toy train maker Hornby (HRN) sees light at the end of the tunnel after putting the stoppers on aggressive discounting. Hornby has signalled to a brighter future today as its losses narrowed in the last six months. The firm, best known for its model trains, trimmed its half-year losses to £3.2million, compared with £5.7million at this point last year, after ‘slamming the brakes’ on an aggressive discounting strategy that was eroding sales.
Fresh revolt brewing at Royal Mail after its American parcels businesses flops costing investors £68m. Royal Mail (RMG) is facing more investor anger – this time over a £68million writedown of its American parcels businesses. Top 20 shareholders have demanded more information about the flop, saying they are ‘not happy’. It could trigger a fresh rebellion by irate investors, just months after the resignation of former chairman Peter Long over sky-high pay.
CMC Markets (CMCX) profits plunge 76% as clients distracted by World Cup and hot summer. Fewer people placed financial bets over the summer as they were distracted by the World Cup and the hot weather, City tycoon Peter Cruddas has said, as profits at his online trading company plunged. Former Conservative party treasurer Mr Cruddas, dubbed the City of London’s richest man, said his business CMC Markets has been knocked by regulatory changes, subdued markets and a slowdown in client activity. Pre-tax profits dived 76% for the half-year
Majestic Wine (WINE) admits it is stockpiling booze in preparation for a ‘no deal’ Brexit as the firm swings to a loss and shares tumble 15%. Majestic Wine admitted today that it is stockpiling wine, amid fears that a ‘no deal’ Brexit could lead to gridlock at ports and disrupt deliveries. The wine, champagne and spirits seller said it will import additional bottles worth between £5million and £8million before the end of its financial year, which coincides with the date set for Brexit – March 29
