Connect with us

Published

on

Coach travellers will be asked to delay Channel crossings over Easter as ferry companies and the Port of Dover attempt to avoid a repeat of the shambolic delays that blighted the start of the school holidays last weekend.

Thousands of holidaymakers, many of them children on school trips, faced delays of up to 18 hours as a combination of new border controls and bad weather on the busiest weekend of coach travel since Brexit overwhelmed Britain’s busiest port.

Coach traffic is expected to be around a third lower over the Easter weekend, but to try to avoid congestion Dover port authorities have asked ferry operators to spread coach bookings on the Good Friday peak across three days.

This will inevitably lead to some passengers having to delay departures and curtail holidays – and may disrupt onward bookings.

But while authorities hope to avoid a repeat of long waits at Dover in the short term, the government has announced its commitment to post-Brexit checks – after delaying for years – which could add to complications at the port in future.

Read more:
The details of new post-Brexit border checks

Brexit’s role in recent long waits

The post-Brexit requirement for all travellers to have their passports checked and stamped by French border officials was a key factor in last weekend’s delays, requiring every coach passenger to disembark.

The Port of Dover says it has been assured that the French border authorities, Police aux Frontieres (PAF), “are providing a full complement of officials to process outbound travellers despite lower coach volumes”.

The Port is also installing temporary facilities to cope with passengers in the event of long delays.

Car and foot passengers have also been advised to not arrive early for crossings in order to ease the pressure on the notoriously narrow and congested port area.

In a statement, the Port of Dover said: “All Port of Dover stakeholders are acutely aware that last weekend was a horrible situation for many travellers, including the elderly and schoolchildren.

“It is the top priority of all parties to ensure a better experience for travellers this weekend. These additional measures are intended to significantly improve traffic throughout and give travellers a better start to their holidays.”

Please use Chrome browser for a more accessible video player

Former Justice Secretary: ‘No doubt Brexit contributed’ to chaos

New customs controls could add to border complications

The measures to avoid outgoing congestion come as the government announced its intention to finally introduce post-Brexit border controls on imports to the UK from Europe, many of which pass through Dover.

These customs controls have been delayed by almost three years to avoid disruption to supply chains and overwhelming ports, primarily Dover.

This has meant that British exporters have faced full customs controls on goods going to the EU while their European peers have had no additional barriers to exporting to the UK.

In a new border strategy, the government says it is committed to introducing the first wave of controls in October, with many checks being carried out at inland border control posts to avoid congestion at ports.

Controls for some goods will be effectively scrapped as part of a “streamlining” process, but food and animal products will still require safety checks, a move that could cause disruption to dairy and meat imports.

When similar processes were introduced for UK exports in January 2021 it caused volumes to collapse.

Read more:
Downing Street admits Brexit role in chaos
Critical incident at Dover stood down

Post-Brexit checks don’t solve ‘real risks’ to food supply

There are also concerns about the impact on “groupage” – lorries carrying multiple loads from small exporters – which are still expected to be impacted.

The Cold Chain Federation, which represents the refrigerated haulage trade, said the new system would increase the risk of food shortages and increase food inflation.

“Six years since the UK started the process of leaving the EU and after two previous postponements to bringing in the necessary food controls, the proposals today are a massive disappointment.

“They solve none of the real risks facing our post-Brexit food supply chains and will exacerbate shortages on the shelf and food inflation,” said chief executive Shane Brennan.

“When plans to bring in controls starting from July 2022 were cancelled, we were promised a fundamentally new approach to how the UK would manage its border, that is not what this proposal is. None of the fundamental problems have been solved and business have nowhere near enough time to prepare.”

But ministers say that introducing a “more targeted, risk-based system… moves us closer to our goal of creating the most effective border in the world”.

Continue Reading

Business

Bread producers Hovis and Kingsmill close in on historic merger

Published

on

By

Bread producers Hovis and Kingsmill close in on historic merger

The owners of Hovis and Kingsmill are closing in on a definitive agreement to merge two of Britain’s most famous grocery brands following months of talks.

Sky News has learnt Associated British Foods (ABF), the London-listed company which owns Kingsmill’s immediate parent, Allied Bakeries, has proposed paying roughly £75m to acquire Hovis from its long-term private equity backers.

Banking sources said a deal could be formally agreed to combine the businesses as early as the end of next week, although they cautioned the complexity of the transaction meant the timing could yet slip.

Confirmation of a tie-up would come nearly three months after Sky News revealed ABF and Endless – Hovis’s owner since 2020 – were in discussions.

Industry sources have estimated that a combined group could benefit from up to £50m of annual cost savings from a merger.

ABF has also been exploring options for the future of Allied Bakeries separate from its talks with Hovis in the event a deal could not be agreed or is prevented from completing by competition regulators.

If it does go ahead, the merger will unite two historic bread producers under common ownership, with Allied Bakeries having been founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.

More from Money

Hovis traces its history back even further, having been created in 1890 when Herbert Grime scooped a £25 prize for coming up with the name Hovis, which was derived from the Latin ‘Hominis Vis’ – meaning “strength of man”.

Persistent inflation, competition from speciality bread producers and shifting consumer habits towards lower-carb diets have combined to impair breadmakers’ financial health in recent decades, however.

In accounts filed at Companies House earlier this month, Hovis said it had “achieved positive financial progress despite continued tough trading conditions”.

The company reported sales of £439.6m in the 52 weeks to 28 September last year, down from £477.6m in the 53 weeks to 30 September 2023.

Earnings before interest, tax, depreciation and amortisation fell from £20.9m to £18.7m, which Hovis said was the result of the revenue decline and higher distribution costs.

“Overall bread share remained stable, despite significant price inflation and the ongoing cost-of-living crisis, demonstrating the resilience of the Hovis brand and its iconic status as one of Britain’s most loved food brands,” the accounts said.

This week, the trade publication The Grocer reported that Britain’s big four supermarkets, including Asda and Sainsbury’s, had delisted a number of Hovis-branded products.

The publication quoted a Hovis spokeswoman as saying the company was “aware of some adjustments to Hovis product lines in certain stores”.

“We remain fully committed to working collaboratively with our retail partners to grow our mutual businesses.”

The overall UK bakery market is estimated to be worth about £5bn in annual sales, with the equivalent of 11m loaves being sold each day.

Critical to the prospects of a merger of Allied Bakeries, which also owns the Sunblest and Allinson’s bread brands, and Hovis taking place will be the view of the Competition and Markets Authority (CMA) at a time when economic regulators are under intense pressure from the government to support growth.

Warburtons, the family-owned business which is the largest bakery group in Britain, is estimated to have a 34% share of the branded wrapped sliced bread sector, with Hovis on 24% and Allied on 17%, according to industry insiders.

A merger of Hovis and Kingsmill would give the combined group the largest share of that segment of the market, although one source said Warburtons’ overall turnover would remain higher because of the breadth of its product range.

Responding to Sky News’ report in May of the talks, ABF said: “Allied Bakeries continues to face a very challenging market.

“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.”

In a separate presentation to analysts, ABF – which is also in the process of closing its Vivergo bioethanol plant in Hull after pleading for government support – described the losses at Allied, which also owns own-label bread manufacturer Speedibake, as unsustainable.

The company does not disclose details of Allied Bakeries’ financial performance.

Prior to its ownership by Endless, Hovis was owned by Mr Kipling-maker Premier Foods and the Gores family.

At the time of the most recent takeover, High Wycombe-based Hovis employed about 2,700 people and operated eight bakery sites, as well as its own flour mill.

Hovis’s current chief executive, Jon Jenkins, is a former boss of Allied Milling and Baking.

This weekend, ABF declined to comment, while Endless could not be reached for comment.

Continue Reading

Business

Good economic news as sunny weather boosted retail sales

Published

on

By

Good economic news as sunny weather boosted retail sales

Retail sales grew in June as warm weather boosted spending and day trips, official figures show.

Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said.

It’s a bounce back from the 2.8% dip in May, but last month’s figure was below economists’ forecast 1.2% uplift as consumers dealt with higher prices from increased inflation.

Money blog: The odd rules that could land you with a big fine on holiday

Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK.

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

More on Retail

Please use Chrome browser for a more accessible video player

What does ‘inflation is rising’ mean?

Where have people been shopping?

June’s retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up.

While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online.

Read more from Money:
Satellite tracker Spaceflux reaches lift-off with £5m funding boost
Trade war uncertainty prompts halt to eurozone rate cuts

Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years.

Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole.

The June increases suggest that the May drop was a bump in the road. When looked at as a whole, the first six months of the year saw retail sales up 1.7%.

Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth.

When fuel is excluded, the rise was smaller, just 0.6%.

Welcome news

Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings.

The ONS lifestyle survey – backed up by hard data like the Bank of England’s money and credit figures – shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month.

Continue Reading

Business

Former Poundland owner lines up advisers as restructuring looms

Published

on

By

Former Poundland owner lines up advisers as restructuring looms

The former owner of Poundland is lining up advisers to supervise its transition to new shareholders through a court-sanctioned process that will involve store closures and job cuts at the discount retailer.

Sky News has learnt that Pepco Group, which is listed on the Warsaw Stock Exchange, is drafting in FRP Advisory weeks after it struck a deal to sell Poundland to Gordon Brothers.

Industry sources said FRP had been asked by Pepco to act as an observer, with the High Court scheduled to sanction a restructuring plan in the last week of August.

Under the proposed deal, 68 Poundland shops would close in the short term, along with two distribution centres.

More shops are expected to be shut under Gordon Brothers over time, resulting in hundreds of job losses.

Pepco is said to be particularly focused on IT systems which Poundland uses in common with Pepco’s operations in Poland.

Barry Williams, managing director of Poundland, said at the time of the deal’s announcement: “It’s no secret that we have much work to do to get Poundland back on track.

More from Money

“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

Prior to the deal’s announcement, Poundland employed roughly 16,000 people across an estate of over 800 shops in the UK and Ireland.

Tax hikes announced by Rachel Reeves, the chancellor, in last autumn’s Budget have increased the financial pressure on high street retailers.

In recent months, chains including WH Smith, Lakeland and The Original Factory Shop have changed hands amid challenging circumstances.

In June, Sky News revealed that River Island, the family-owned clothing retailer, was also working with advisers on a rescue plan aimed at averting its collapse.

Pepco and Poundland declined to comment.

Continue Reading

Trending