Budget Sparks 13% Jump in Business Insolvencies

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GENERAL

Budget sparks 13% jump in business insolvencies - The number of business insolvencies in England and Wales rose 13% in November, as the impact of the Budget continues to hit firms hard. Experts have also warned that things are not going to get better, with April’s looming Employers’ National Insurance increase leaving firms in a “perilous position”. Nearly 2,000 firms went to the wall in November, a double-digit jump from October’s figure that reversed a four-month decline in insolvencies stretching back to July.

A third of all small and medium sized listed companies "at risk of takeover" in 2025 - The City is set to come under siege from a “major and sustained” flow of takeovers of London listed companies next year that could see up to a third of small and mid-cap AIM businesses vulnerable to bids. Peel Hunt predicted that the trend of London listed companies being “taken out” by private equity or foreign based corporate raiders will accelerate in the New Year “absent an unexpected change in circumstances.”

ON THE UP 

Walkers Crisps UK : Sales jump at Doritos , Monster Munch and Quavers owner - Sales at the owner of the UK’s favourite crisps brands, Walkers, jumped by more than £60m during its latest financial year, it has been revealed. The PepsiCo -owned business, which splits its UK accounts across three firms, has only just revealed its results for 2023. Manufacturing arm Walkers Snack Foods Ltd has posted a turnover of £359m for 2023, up from the £309.7m it achieved in the prior 12 months.

Pour Moi Ltd hit record sales as Marks and Spencer partnership bolsters growth - Swimwear and lingerie specialist Pour Moi recorded record sales growth, driven by its recent partnership with M&S. The retailer posted a 66% boost in profits to £3m during the six months to 30 September. Additionally, sales were up 12% to £20m over the same period.

Vitabiotics Ltd : Turnover nears £200m at vitamins giant run by former Dragons’ Den star Tej Lalvani - Sales at Vitabiotics, the vitamins giant run by former Dragons’ Den star Tej Lalvani , jumped towards the £200m mark during its latest financial year as its profits also increased. The London-headquartered business has reported sales of £196.4m for 2023. In the UK, Vitabiotics’ sales increased from £65.8m to £78.1m and from £108.4m to £118.3m in the rest of the world.

Hollywood Bowl Group Plc : Record revenue for ten-pin bowling operator - Ten-pin bowling operator Hollywood Bowl has reported record revenue this year as Brits continue to flock to competitive socialising venues. The firm, which operated 85 venues across the UK and Canada, said revenue rose 7.1% in the year ended 30 September 2024, from £215.1m to £230.4m. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 5.9% to £87.6m.

The Body Shop is back for good … and back in profit, new boss tells staff - The new boss of the Body Shop has told staff the struggling ethical beauty retailer is “back for good” after it booked a profit in its first 100 days under new ownership. The retailer was bought out of administration in September by a consortium led by the British cosmetics tycoon Mike Jatania . The company sank into administration in February leading to the closure of 85 UK outlets but is understood to have reported a £2m profit on £28m of sales in the first three months under its new owners, led by Jatania’s Aurea Group.

IN THE DOLDRUMS

Capita revenue plunges as outsourcing giant hit by contract losses - Outsourcing firm Capita saw its adjusted revenue drop 8% in the first 11 months of the year, as the firm struggled to replace a host of lost contracts. In a trading update, the company revealed that the drop came largely from its experience arm, which fell a whopping 16.3% over the last 11 months. The company credited the plunge to the loss of Virgin Media O2 and The Co-operative Bank plc contracts in 2023, as well as lower volumes on a telecommunications contract, which it said it expected to remain subdued in 2025.

TalkTalk to axe hundreds of jobs in latest cost-cutting drive - Talktalk is set to cut hundreds of jobs as it looks to boost its balance sheet after narrowly avoiding collapse earlier this year. The telecoms giant, which had 1,857 employees at the end of February, outlined plans to cut the roles in the “radical” restructuring in an update last week. The company has already begun redundancies at its Salford-based consumer divisions, with more expected to follow at a wholesale business. 

boohoo ’s £60m head office sale falls through - Boohoo has been dealt a fresh blow after a £60m sale of its London head office fell through. An Israeli investor is understood to have pulled out of talks to acquire the fashion retailer’s Soho office following concerns raised by a survey. Boohoo bosses put the 43,963sq ft six-storey building at 10 Great Pulteney Street up for sale in August in a bid to meet a £47m debt repayment due in August next year.

Chemring shares plunge despite record orders - Chemring shares plunged as production and foreign exchange headwinds dented investor confidence despite booming orders. The FTSE 250 British defence contractor’s order book reached a record £1.04bn in 2024, meaning more than two-thirds of next year’s revenue forecast is already covered.

Shoezone Retail Limited shares dive as halves 2025 profit outlook amid cost rises - Shoe Zone PLC shares plunged as it cut its profit expectations in half and said the UK government’s budget policies have forced it to close some stores. The Leicester, England-based footwear retailer cut its adjusted pretax profit expectations for the financial year ending in September 2025 in half to ‘not less than’ £5.0m from £10.0m.

ONES TO WATCH

Honda and Nissan Motor Corporation hold merger talks - Honda and Nissan are understood to have held exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China. In March, the two Japanese car makers agreed to explore a strategic partnership for EVs. The firms  said: "As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths."

National Grid plans to double energy transmission with huge investment - National Grid plans to nearly double the amount of energy it can transport across the country via an unprecedented £35bn investment over the next five years into its electricity transmission business. The grid operator said its business plan, which covers the period April 2026 to March 2031, would be the “most significant step forward in the UK’s transmission network for a generation.”

Carlsberg Group ’s £3.3bn takeover of Britvic given go ahead by competition watchdog - Carlsberg’s £3.3bn deal to buy Robinsons squash maker Britvic plc has been given the green light by Britain’s competition watchdog, smoothing the way for one of the year’s biggest takeover deals. The Competition and Markets Authority (CMA) had said in September it would launch an initial probe, but confirmed it would be not be referring the tie-up for a full in-depth investigation. The deal is now expected to complete on January 16, with the CMA clearance marking the final hurdle needed for it to go ahead, having already received investor approval and the go ahead from the European Commission.

Royal Mail takeover by Czech billionaire approved - The sale of Royal Mail's parent company to a Czech billionaire has been approved by the government. The £3.6bn takeover by @Daniel Kretinsky's EP Group has been given the go-ahead after agreeing "legally binding" undertakings. The government will retain a so-called "golden share" that will require it to approve any major changes to Royal Mail's ownership, HQ location and tax residency.

Watchdog warns Defra and Ofwat they could face court over sewage dumping - The government, its water regulator and the Environment Agency could all be taken to court over their failure to tackle sewage dumping in England after a watchdog found failures to comply with the law. An investigation by the The Office for Environmental Protection (OEP) found Ofwat , the Department for Environment, Food and Rural Affairs (Defra) and the Environment Agency (EA) all failed to stop water companies from discharging sewage into rivers and seas in England when it was not raining heavily. 

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