Connect with us

Published

on

Shops were given a surprisingly big boost in January as official figures showed retail sales rose by 1.7%.

Only a 0.3% rise had been forecast by economists polled by Reuters.

It’s the first growth since August and follows a fall of 0.6% in the key shopping month of December, according to Office for National Statistics (ONS) figures.

Not since May has there been a rise this large.

The December drop was even larger than first thought. Initially, only a 0.3% contraction was recorded by the ONS.

Money blog: What are your rights if you have bad phone signal?

The large rise in January came as food shop sales rose 5.6% – the greatest amount since March 2020 when COVID-19 lockdowns began.

More on Retail

Shops across the food and drink sector benefitted, the ONS said, as supermarkets, alcohol and tobacco stores plus specialist shops like butchers and bakers all reported strong trading.

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

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

Read more:
Inflation rises to a high not seen in nearly a year
Thames Water multi-billion pound debt lifeline approved

Combined with other data released on Friday showing improved consumer sentiment the figures show a strengthening economy.

Wage rises and interest rate cuts helped to raise the longstanding consumer confidence measure by market research company GFK.

This increase had also not been expected by economists.

“The biggest improvement is in how consumers see their personal finances for the coming year with an increase of four points that takes this measure out of negative territory”, said Neil Bellamy the consumer insights director at NIQ GfK.

“The rate cut will have brightened the mood for some people, but the majority are still struggling with a cost-of-living crisis that is far from over.”

Continue Reading

Business

English cricket goes into bat with bulk of £520m Hundred windfall

Published

on

By

English cricket goes into bat with bulk of £520m Hundred windfall

English cricket’s governing body will on Wednesday hail a landmark moment for the sport when it announces that three-quarters of the deals to bring in new investors to The Hundred have been completed.

Sky News understands that the England and Wales Cricket Board (ECB) plans to issue a statement confirming that it has received proceeds from the sale of stakes in Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Southern Brave and Welsh Fire.

The two other franchise deals – involving the Oval Invincibles and Nottinghamshire’s Trent Rockets – will be completed on October 1, the ECB is expected to say.

One insider said a statement was likely to be issued on Wednesday, although they cautioned that the timing could slip.

When all eight deals are concluded, they will generate a collective windfall of £520m for the sport’s strained coffers.

Last week, Sky News revealed that unresolved talks between India’s richest family and Surrey County Cricket Club – which hosts the Oval Invincibles Hundred team – were threatening to delay the delivery of a vast windfall for the sport.

One of the outstanding issues relates to the name under which the Oval Invincibles will play in future years, with the Ambani family keen to use a derivative of the Mumbai Indians brand that it also owns.

More on The Hundred

This week’s announcement will come after months of talks after the ECB and the eight Hundred-playing counties agreed exclusivity periods with their preferred investors.

The backers include some of the world’s most prominent financiers, billionaires and technology executives.

Following protracted talks, the ECB has agreed to revised terms with the investors, with host venues now retaining control of their teams’ intellectual property rights.

The investors will also hold an effective veto over future expansion of the Hundred, while the ECB will be barred from launching any other short-form professional version of the sport while the Hundred remains operational.

Meanwhile, the governing body will retain full ownership of the competition itself as well as controlling the regulation of it and the window within which it can be played each year.

The ECB has been waiting for investors in the eight franchises to sign participation agreements since an auction in February, which valued the participating teams at just over £975m.

Some of the deals involve the investors owning 49% of their respective franchise, while India’s Sun TV Network has taken full ownership of Yorkshire’s Northern Superchargers.

The proceeds of its stake sales will be distributed to all of English cricket’s professional counties as well as £50m being delivered to the grassroots game.

The windfalls are being seen as a lifeline for many cash-strapped counties which have been struggling under significant debt piles for many years.

The most valuable Hundred sale saw a group of technology tycoons, including executives from Google and Microsoft, paying about £145m for a 49% stake in Lord’s-based London Spirit.

This year’s tournament kicks off next week with fixtures including a clash between the two London-based franchises.

The ECB declined to comment.

Continue Reading

Business

Italian restaurant chain Gusto on brink of administration

Published

on

By

Italian restaurant chain Gusto on brink of administration

The intense financial pressure facing Britain’s casual dining sector will be underlined this week when Gusto, the Italian restaurant chain, falls into administration.

Sky News has learnt that Interpath Advisory is preparing a pre-pack insolvency of Gusto, which trades from 13 sites.

Sources said that a vehicle set up by Cherry Equity Partners, the owner of Latin American restaurant concept Cabana, was the likely buyer.

Money latest: Supermarkets report further food price hikes

It is expected to take over most of Gusto’s sites although some job losses are likely.

A deal could be announced in the coming days, according to insiders.

The collapse of Gusto, which is backed by private equity investor Palatine, follows a string of increasingly heated warnings from hospitality executives about the impact of tax rises on the sector.

More from Money

Kate Nicholls, who chairs UK Hospitality, said this month that the industry faced a jobs bloodbath amid growing financial pressure on operators.

This week, Sky News reported that the restaurant industry veteran David Page, a former boss of PizzaExpress, was raising £10m to take advantage of cut-price acquisition opportunities in casual dining.

Mr Page is planning to become executive chairman of London-listed Tasty, which owns Wildwood and dim t, and rename it Bow Street Group.

A placing of shares in the company is likely to be completed this week.

Interpath declined to comment on the Gusto process.

Continue Reading

Business

Tide turns as TPG leads talks to lead digital bank fundraising

Published

on

By

Tide turns as TPG leads talks to lead digital bank fundraising

TPG, the American private equity giant, is in advanced talks to take a stake in Tide, the British-based digital banking services platform.

Sky News has learnt that TPG, which manages more than $250bn in assets, is discussing acquiring a significant shareholding in the company.

Sources said that Tide’s existing investors were expected to sell shares to TPG, while a separate deal would involve another existing shareholder in the company acquiring newly issued shares.

The two transactions may be conducted at different valuations, although both are likely to see the company valued at at least $1bn, the sources added.

The size of TPG’s prospective stake in Tide was unclear on Monday.

Earlier this year, Sky News reported that Tide had been negotiating the terms of an investment from Apis Partners, a prolific investor in the fintech sector, although it was unclear whether this would now proceed.

Tide has roughly 650,000 SME customers in both Britain and India, with the latter market expanding at a faster rate.

More from Money

Morgan Stanley, the Wall Street bank, has been advising Tide on its fundraising.

Tide was founded in 2015 by George Bevis and Errol Damelin, before launching two years later.

It describes itself as the leading business financial platform in the UK, offering business accounts and related banking services.

The company also provides its SME ‘members’ in the UK a set of connected administrative solutions from invoicing to accounting.

It now boasts a roughly 11% SME banking market share in Britain.

Read more:
Wise set for resounding win
TalkTalk’s £100m windfall
US could lose, even if Trumps wins

Tide, which employs about 2,000 people, also launched in Germany last May.

The company’s investors include Apax Partners, Augmentum Fintech and LocalGlobe.

Chaired by the City grandee Sir Donald Brydon, Tide declined to comment on Monday.

TPG also declined to comment.

Continue Reading

Trending