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British Airways owner IAG's profits soar as share buyback announced

2025-04-28 03:18:26 By

IAG, the parent company of British Airways, exceeded expectations with its full-year results, as robust travel demand in the post-pandemic era continued through 2024.

The airline conglomerate reported an operating profit of €4.3bn (£3.6bn), a 22 per cent increase year-on-year and surpassing the €3.7bn forecast by analysts, as reported by City AM.

Revenue also exceeded predictions, rising nine per cent to €32.1bn. Following this strong performance, IAG announced a €1bn share buyback programme to be implemented over the next 12 months.

IAG shares soared in 2024 as the post-pandemic boom in travel demand showed no signs of slowing down. The stock has risen more than 120 per cent over the last 12 months and increased 3.6 per cent in early deals on Friday.

Its subsidiary, British Airways, which announced a massive £7bn investment programme in March, earned more than £2bn last year, significantly exceeding the £1.3bn profit made in 2023.

The London-listed airline is now proposing a dividend of €0.06 (5p) per share, bringing its full-year dividend to €0.09 (7p).

This means investors can expect around €435m (£359m) this year. "These results highlight the quality of our businesses and effectiveness of our strategy, underpinned by the successful execution of our transformation programme across the group," said Chief Executive Luis Gallego in a statement to markets.

Gallego stated: "We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago."

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Enterprise

EG Group grows underlying profits thanks to US and European performance

2025-04-28 03:18:26

Petrol station and retail operator EG Group grew underlying profits by 9% last year, new results show. The Blackburn-based giant saw underlying Ebitda rise 9% to $992m (£785m) thanks to grocery and merchandise and foodservice gross margins increasing. EG said that fuel sales were 'resilient' despite changing market conditions, with a decline of 0.3% and flat margins globally. The group's US business, which includes brands such as Cumberland Farms, Fastrac, Kwick Shop and Quik Stop, generated full year underlying Ebitda growth of 17% over the year, thanks to initiatives around coffee and dispensed drinks pricing, product range optimisation and data analysis and merchandising changes. Meanwhile in Europe, where EG has brands such as GoFresh and works with retailers such as Carrehour, Louis Delhaize and REWE, it delivered 12% increase in underlying Ebitda. In the final quarter of last year, the group delivered a 7% increase in underlying Ebitda thanks to performances across grocery and merchandise, where gross profit grew 10% thanks to initiatives in the US. Fuel performance was said to be challenging in the US and Australia during the quarter, offset by more resilience in Europe. The group - which was founded by the billionaire Issa brothers and is now co-owned by TDR Capital - will be seeking a stock market listing in New York with an IPO that could value the business at $13bn. Last year EG completed the sale of its remaining 218 UK and Ireland KFC franchise restaurants to Yum! Brands' KFC division and in October sold its remaining forecourt business to Zuber Issa. Mohsin Issa, CEO of EG Group, said: "2024 was another successful year for EG Group. We grew full-year Ebitda by 9% on an underlying basis, with notable contributions from our USA and European businesses. This excellent performance is testament to the efforts and commitment of our 38,000 colleagues who continue to deliver great customer service across our grocery and merchandise, foodservice and fuel propositions each day, as well as our financial and operational delivery. "We made significant progress with further reducing the quantum and price of our debt – bolstered by non-core divestments and the repricing of our EUR and USD Term Loans – and we are committed to further deleveraging in a disciplined manner. The actions we took last year have positioned us for further growth and together with our extensive portfolio of assets in nine countries globally, will provide a platform for us to maximise future growth opportunities to further strengthen our position as a leading independent convenience and fuel retailer.

Enterprise

Unilever CEO Hein Schumacher quits after less than two years in role

2025-04-28 03:18:26

Unilever's CEO Hein Schumacher has unexpectedly stepped down from his position after less than two years, as the firm seeks to advance its cost-cutting agenda. The company announced that Schumacher will be replaced by Unilever's finance chief Fernando Fernandez starting next week and will exit the company at the end of May, as reported by City AM. This development comes in the midst of Unilever's extensive "productivity programme," which involves cutting thousands of jobs and spinning off its ice cream division, including the Ben & Jerry's unit. Following a "full review" of separation options, the ice cream business will be incorporated in the Netherlands and maintain its headquarters in Amsterdam, while also having a triple listing in New York, London, and Amsterdam. No specifics were provided about the abrupt departure, but according to the Financial Times, Unilever's board reportedly dismissed Schumacher at a board meeting yesterday, deciding that CFO Fernandez was "better suited" to implement the turnaround plan. Matt Britzman, senior equity analyst at Hargreaves Lansdown, commented on the sudden leadership change: "Markets typically flinch at abrupt leadership shifts but his deep experience, and a clear mandate to push change with urgency, signal a bold move to accelerate the final stretch of Unilever's turnaround," UBS analysts noted that Fernandez is " well known" within the investor community. While Schumacher may have laid the groundwork for the cost-cutting plan, the execution of the plan is becoming increasingly crucial. Shares in Unilever fell by two per cent following the news and have seen a decline of over four per cent since the beginning of the year. Chris Beckett, head of equity research at Quilter Cheviot, commented on the situation: "Losing a chief executive after 18 months is never a good thing," he added, "For Unilever, especially during a strategy turnaround, it does not suggest things were going well behind the scenes or the business was firing on all cylinders." In its full-year results released earlier this month, Unilever reported what analysts described as "exceptionally weak" guidance. Market growth, which decelerated throughout 2024, is predicted to remain sluggish in the first half of this year, with underlying sales growth estimated at between three to five per cent.

Enterprise

Harry Styles' music companies at risk of being forcibly shut down

2025-04-28 03:18:26

Three businesses owned by pop sensation Harry Styles are in danger of being forcibly closed due to their failure to submit their accounts on time. Erskine Records, HSA Publishing and Pleased As Holdings have all received first gazette notices for compulsory strike off from Companies House, as reported by City AM. If the strike offs proceed, their assets could potentially become Crown property, Harry Styles could face a 15-year director disqualification, and access to their bank accounts could be lost. All three companies failed to file their 2023 accounts with Companies House by the end of 2024. However, the strike off notices could be rescinded if the companies submit their 2023 accounts before the next stage is reached. Erskine Records, one of the businesses at risk, was established by Harry Styles prior to his solo career following One Direction's split. The company, in collaboration with Columbia Records, has released several albums including his self-titled album in 2017, Fine Line in 2019 and Harry's House in 2022. American songwriter Mitch Rowland also released Come June in 2023 through Erskine Records. According to its most recent accounts, Erskine Records had net current assets of £63.2m at the end of 2022, up from £31.7m. HSA Publishing, another company at risk, was founded in 2014 by Harry Styles and Irish accountant Alan McEvoy. McEvoy previously established 1D Media Limited with Niall Horan, Zayn Malik, Liam Payne, Louis Tomlinson and Styles as directors. The most recent accounts reveal that HSA Publishing had net current assets of £16.4m at the end of 2022, an increase from £10.7m. In 2021, Harry Styles established Pleased As Holdings when he launched a beauty brand. The latest accounts show that Pleased As Holdings had net current liabilities of £1.8m at the end of 2022, a decrease from £3m. In other news, a company set up by former world heavyweight boxing champion Tyson Fury to engage in real estate transactions was forcibly closed by Companies House earlier this week. Greenwaybalmoral Ltd, registered near Lancaster and listing Fury as its sole director, failed to file any accounts since its inception. Consequently, Companies House issued a formal notice in December 2024 stating it was about to be removed from the register of businesses. This action followed Greenwaybalmoral Ltd's failure to submit its accounts for the year to 31 January 2024, by the 6 October 2024 deadline. At the beginning of 2025, City AM reported that Manchester United star Marcus Rashford's investment company, MUCS Investments Limited, risked being forcibly shut down. Companies House issued a compulsory strike-off notice to the firm, where Rashford is the sole director.

Enterprise

Gatwick expansion 'rationale not impacted by Heathrow third runway' aviation regulator says

2025-04-28 03:18:26

The Civil Aviation Authority (CAA), the UK's aviation watchdog, has given a nod to Gatwick Airport's bid for a second runway by accepting several financial pledges from the airport for the coming four years. On Tuesday, the CAA voiced its belief that Gatwick's expansion plans will still deliver "benefits to consumers", notwithstanding the potential development of a third runway at Heathrow, as reported by City AM. Gatwick has made commitments including a price cap on charges to its airline customers, and revisions to existing service quality targets aimed at consumers. The fresh commitments include setting the maximum increase in the price cap for the initial two years to the Consumer Price Index (CPI) minus one percent. The CAA highlighted that its backing for Gatwick's newfound targets is "conditional" upon the airport maintaining progress in its pursuit of a £2.2bn capacity enhancement. A conclusive verdict on the project is anticipated from Transport Secretary Heidi Alexander by Thursday. Gatwick hopes to convert its standby runway into standard operational use, which it claims could accommodate up to 76 million passengers annually and broaden access to an array of long-haul destinations. Meanwhile, the Labour government has shown support for various airport projects, all aimed at significantly amplifying capacity. Just last month, Chancellor Rachel Reeves delivered a speech on growth, affirming her backing for not only Heathrow's much-debated and perpetually postponed third runway but also for the less extensive proposals put forth by Gatwick and Luton airports. The government's decision in August to approve London City Airport's plans to significantly raise its annual passenger limit from 6.5m to 9m, despite a local council ruling, has also been a point of contention. Critics, including London Mayor Sir Sadiq Khan, argue that Gatwick's expansion plans undermine the need for a third runway at Heathrow, the UK's largest airport. The Civil Aviation Authority (CAA) stated on Tuesday that it had taken into account the "implications of the recent government announcement in relation to the development of a third runway at Heathrow."

Enterprise

JK Lifting to create jobs following six-figure investment at Tyneside base

2025-04-28 03:18:26

Lifting and inspection specialist JK Lifting is creating a number of jobs having invested £150,000 into its Killingworth base. The 42 year-old firm has acquired a new overhead crane capable of lifting 10 tonnes at its premises amid an increase in demand for its services from the manufacturing, renewables and offshore sectors. Now, the 19-strong business plans to recruit five people over the next year, including jobs in its engineering and operations divisions. JK Lifting recently moved into the former Metnor Construction headquarters at Camperdown Industrial Estate and spent £180,000 remodelling it to provide 1,439sqm of space and room for its lifting, testing, inspecting and manufacturing capabilities. The base is in addition to the firm’s 240sqm unit at the Port of Blyth’s South Harbour, which was launched in 2022. James Bright, managing director at JK Lifting, said: “Moving into Lift Point House has been a major turning point for our business, empowering us to expand operations in inspections and compliance for our clients across a number of sectors. The investment we have made in our facilities, particularly our new 10 tonne overhead crane, reflects our continued commitment to strengthening our capabilities, increasing our headcount and growing our roster of clients." Last year the business set out a growth strategy including an ambition to reach £10m turnover by 2030. In September Andrew Mason was appointed operations director at the firm, having spent more than 25 years at energy technology company Baker Hughes in Wallsend. He is working with Mr Bright, who led a buyout of the company in 2019 from founder John Kesson. Among JK Lifting’s 300 customers are Equinor, Helix and PFC Marine. In March last year the firm began working on the world’s largest wind farm, Dogger Bank - helping with movement of operation and maintenance equipment.

Enterprise

NIC proposes electricity bill hikes for UK households to boost network investment

2025-04-28 03:18:26

The National Infrastructure Commission (NIC) has urged for increased billing and a revamp of the UK's electricity network regulation to cater to the surging power demand. The current regulatory framework overseen by Ofgem is deemed "too complex" and deters network operators from making the necessary "proactive investments" to enhance capacity, according to the government's independent adviser in its latest report, as reported by City AM. With electricity demand projected to double by 2050 and investment trailing, there have been hold-ups in securing grid connections, impeding the expansion of renewable energy initiatives. "The UK is heading in the right direction on decarbonising power, but we can't be complacent," stated Sir John Armitt, chair of the National Infrastructure Commission. Armitt called for a "new approach" to regulation that motivates operators to make "prudent local investments" in anticipation of future needs and to lessen climate impact. The NIC's recommendations could see the average annual household electricity bill increase by £5 to £25. "Asking consumers to make a small contribution up front to enable this won't be welcome," conceded Armitt, but he maintained that the potential rewards were significant: "big prize on offer: harnessing the benefits of cheap renewable generation sooner rather than later and building a secure network optimised to support economic growth and decarbonisation, with resilience baked in." The Commission's year-long investigation concluded that Ofgem's price control process, a mechanism to regulate the profits of operators, needs simplification beyond just prioritising low costs for consumers in the short term. The report also urges the government to enact a series of changes to the planning system by 2025, to minimise uncertainty and expedite the approval of new infrastructure projects. These changes include modifying legal acts that facilitate the construction of overhead lines and substations, which transport electricity through the system. An Ofgem spokesperson responded: "Ofgem welcomes the NIC's report and we are encouraged that many of the recommendations chime with work already underway. "We are committed to promoting growth and investment and enabling network operators to invest for the future. Last week we proposed radical reform to speed up grid connections and we are committed to introducing flexibility in the system that rewards customers for using energy during hours when demand is low.

Enterprise

Rise in corporate insolvencies in England and Wales

2025-04-28 03:18:26

The number of corporate insolvencies in England and Wales has risen ahead off business cost rises in April. Figures for January showed that 1,852 firms became insolvent, up 10.7% on a year earlier and 13.1% on 2023. Compared to December the level was up 6.5% Personal insolvencies decreased by 3.4% in January to 9,706 compared to December, but were up 11.6% on a year earlier. Bethan Evans, Wales chair of R3, the UK’s insolvency and restructuring trade body, said:“The monthly and yearly rise in corporate insolvencies is down to an increase in the number of creditors’ voluntary liquidations and administrations. That would suggest that directors may be choosing to close down their firms after years of challenging trading conditions and ahead of the increase in the National Minimum Wage and Employers’ National Insurance contributions in April, and this has pushed corporate insolvency levels to the highest we’ve seen in January in more than five years. “However, there is some positive news in that the increase in administration numbers, suggests that there are more companies that have the potential to be rescued via a sale out of the administration process. “Creditor pressures and ongoing cost issues are continuing to drive corporate insolvencies. A long period of rising expenses coupled with consumers’ reluctance to spend is continuing to take a toll on businesses, and creditors have now largely abandoned the benign attitude they had in the aftermath of the pandemic as they attempt to manage their own debts. We’ve also seen HMRC return to its pre-pandemic approach of pursuing money it’s owed after years of taking a more supportive stance during and after the Covid era.” Ms Evans, a partner at Menzies, said that while retailers have seen an increase in sales, this has largely been driven by discounts and deals. The construction sector has been affected by the weather, client caution around commissioning projects and ongoing rises in costs. She added: “The hospitality sector has also failed to see the rise in revenues it was hoping for at Christmas, although pubs and bars had a better start to the year than expected after many adapted their offerings to accommodate Dry January. “Looking at the wider economy, the projected cut in growth has had an impact on business confidence and led to many directors and management teams becoming unsure about investment or business growth this year, as well as reducing firms’ willingness to invest in growing their workforces ahead of the increase in National Minimum Wage and Employers’ National Insurance contributions. However, this has also led to the Monetary Policy Committee cutting the base rate of interest, which should improve access to rescue finance.

Enterprise

Profits fall at Drax as it warns lack of certainty is holding back clean power

2025-04-28 03:18:26

Operating profits have fallen at power company Drax despite record levels of renewable energy generation, as the company insists 2024 brought a strong performance. The London Stock Exchange-listed group which operates the UK's largest power station and source of renewables reported that operating profits fell from £908m to £850m last year, though adjusted Ebitda grew from £1bn to £1.06bn. The latter was driven by increased renewable generation and improvements in the group's biomass pellet production business. In the results, Drax CEO Will Gardiner directed some criticism at the Government, saying that investment in generation capacity and infrastructure to deliver clean power and net zero required greater policy certainty. He said: "Absent this certainty, the pace of development is likely to be insufficient to deliver what is required and, in that environment, we believe that the value of proven operational assets should increase as growing demand for power - for electrification of heating, transport, and new markets like data centres - moves ahead of supply." The comments follow Drax's signing of a renewed Contract for Difference agreement with the Government in recent weeks. Under the agreement, Drax will continue to receive public subsidies but at a lower rate. Earlier this month Energy Minister Michael Shanks warned that the use of “unabated biomass” is not a long-term solution for the UK’s energy needs. Drax has said it could invest billions at its Selby plant, and create thousands of jobs, through a bioenergy carbon capture and storage system (BECCS) which could capture 8Mt of carbon per year. Bosses said they continue to evaluate the plans for the site but that, as it set out two years ago, the Government must provide policy support to unlock investment. Elsewhere, Drax said it was focussed on pellet production growth - hoping to achieve adjusted Ebitda of more than £250m in that division by 2027. It highlighted opportunities for its use at the Selby plant and in the sustainable aviation fuel market. Mr Gardiner said: "Drax has delivered a strong operational and financial performance while supporting UK energy security. We produced over 25% more dispatchable renewable power in 2024, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain. Signing a heads of terms with the UK Government for a new low-carbon dispatchable Contract for Difference for Drax Power Station is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country, especially when the wind isn't blowing, and the sun isn't shining. "This is an investment in security of supply, which provides a net saving for consumers and helps deliver the Government's Clean Power 2030 goal. It also offers a potential pathway for long-term growth for our business, including options for the development of BECCS and a data centre at Drax Power Station. "We are making good progress with our growth ambitions for flexible generation, pellet production and our international carbon removals business, Elimini. Our strong balance sheet supports returns to shareholders and the development of options for long-term growth, both in the UK and internationally."

Enterprise

Loyalty reward scheme start-up acquired by global software giant in mega deal

2025-04-28 03:18:26

A Bath tech start-up has been acquired by global software company Enigmatic Smile for an undisclosed eight-figure sum. James Courtney came up with the concept for Lux Rewards after winning a business plan competition at the University of Bath in 2015, then aged 21. His idea was to develop "the air miles of the restaurant world". The business started as a dining rewards app, connecting customers with high-end restaurants, later pivoting to partner with major banks, airlines and employee benefit platforms to offer card-linked rewards. Although Lux Rewards received early backing from the Just Eat Accelerator and local angel investors, the start-up struggled in its early years. At one point in 2019, the business was just two weeks from shutting down entirely. “I had put everything into Lux Rewards,” said Mr Courtney. “In those early days, I was literally walking into restaurants, trying to convince them to join the platform. I even worked with The Clifton Sausage to hand out free samples on the streets of Bath just to get people to download the app.” Despite "relentless efforts", growth remained elusive. One "particularly painful moment" came when Mr Courtney spent £1,000 to put on an exclusive event at a wine bar, offering free wine and tapas in a bid to win over a major Bristol accounting firm. “Only one person turned up,” he recalled. “It was the most embarrassing day of my life.” By early 2020, Mr Courtney had resigned himself to the business failing. A Crowdcube fundraise that year provided crucial funding, but the pandemic hit just as the round closed. With restaurants shut and the business burning more than £25,000 per month, Mr Courtney, with his team on furlough, moved back to his family home in Bristol. It was during this period that Lux Rewards, which was co-founded with Tom Munday and Ash Dey, pivoted away from direct consumer downloads to partnerships with businesses. The turning point came in 2021 when the company signed a major deal with Barclaycard, expanding from 1,000 users to 400,000 overnight. Deals with British Airways and Mastercard followed. “Bath and Bristol have been at the heart of Lux Rewards’ journey,” said Mr Courtney, who is now completing an Executive MBA at the University’s School of Management. “The support from the local investor community, SETsquared, and the University of Bath was crucial in getting us here. This city is an incredible place to build a business, and I’m proud to say we’ve proven that a start-up from Bath can take on the world.”

Enterprise

Coca-Cola and Fifa reach agreement in time for Club World Cup

2025-04-28 03:18:26

Coca-Cola, alongside German sportswear titan Adidas, had initiated legal proceedings against football's governing body over sponsorship rights for the expanded Club World Cup. The bone of contention centred on renegotiating new contracts pursuant to the increase in participating teams to 32, as reported by City AM. However, the discord seems to have been mitigated, with Coca-Cola now confirmed as a sponsor for the event. The beverage giant's partnership with Fifa dates back to 1950 and is cemented through a current seven-year arrangement worth $400 million, extending up to 2030. Joining Coca-Cola in supporting the Club World Cup are Anheuser-Busch InBev, electronics heavyweight Hisense, and Bank of America, with Dazn set to broadcast the tournament. Commenting on the agreement, Fifa chief business officer Romy Gai remarked: "The Coca-Cola Company has been involved in stadium advertising at every Fifa World Cup since 1950 and has provided many memorable experiences in global football over the decades." He added, "We are delighted to have such an important and long-standing partner on board as we usher in a new era in global club football with the Fifa Club World Cup." Brad Ross, vice president of global sports and entertainment marketing and partnerships at The Coca-Cola Company, remarked on the importance of associations like the one with Fifa: "Sports partnerships like the one we have with Fifa are an important growth driver for our company, brands, and global system, and the Fifa Club World Cup will be a significant moment." The tournament is set to commence in Miami on June 14, seeing Premier League giants Chelsea and Manchester City join the fray. Despite the excitement surrounding the inaugural edition of this expanded contest, concerns over player welfare persist.