(Bloomberg) — Here’s the key business news from London-listed companies this morning.
Made.com: The online furniture retailer is considering putting itself up for sale as squeezed consumers cut down on discretionary spending, leading to a pile up of stock in its warehouses.
- At the same time, soaring costs of global freight that have squeezed its margins
- The company said it will conduct a “strategic headcount review” in order to cut costs, and it is considering a possible capital raising, as well as a sale
Investec Plc: The South African bank and wealth manager said its net interest income benefitted from rising global interest rates in the past months.
The firm also said its fixed operating expenditure had increased, partly driven by inflationary pressure on salaries, investment in technology and normalization of “certain business expenses as Covid-19 related restrictions were removed.”
Revolution Beauty Group Ltd: The beauty products maker’s auditor informed the board that it identified a number of “serious concerns” and isn’t able to sign an audit report in respect of the FY 2022 accounts.
- The company has now appointed Macfarlanes LLP and Forensic Risk Alliance to start an independent investigation, which may take “several months” to complete
- Revolution Beauty’s shares were suspended from trading weeks ago, after the company said it wouldn’t be able to publish its final results for the year ended February 2022
Outside The City
Kwasi Kwarteng will deliver his “mini budget” at around 9:30 a.m. today. The chancellor is expected to announce a slew of measures including throwing out next year’s planned rise in corporation tax. Kwarteng might also give more details about how the government’s multi-billion pound energy cap package will be paid for.
The Treasury confirmed yesterday that this year’s 1.25 percentage-point rise in National Insurance will be reversed from November, and scrapped planned increases in taxes on dividends and worker pay.
The chancellor’s expected statement comes as UK consumer confidence slumped to a new low this month.
In Case You Missed It
This week’s In the City podcast looks at Truss and Kwarteng’s economic vision for the UK, and asks whether the City will buy into the government’s new fiscal plans.
Finally, Britons have just one week left to spend the last £11 billion of paper banknotes that remain in circulate before the cash ceases to become legal tender.
Next week, clothing retailers Next Plc and Boohoo Plc are expected to update the market. Those companies will give valuable insight into how British shoppers’ spending patterns might have shifted in the past months.
Next lifted its profit forecast for the year in August, but torrid retail sales data indicates the UK’s worsening cost-of-living crisis is starting to force consumers to cut back.
For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.