B&M Joins Retailers in Price Cut Push: The London Rush

2023-06-29 15:29

The UK government’s push to discourage companies from profiting from inflation seems to be resonating, at least among

The UK government’s push to discourage companies from profiting from inflation seems to be resonating, at least among retailers. Discount chain B&M reiterated its “relentless focus on pricing” to help customers navigate the cost-of-living crisis, while Ocado announced price cuts for over 100 products, following similar moves by competitors in recent weeks. That should bring some relief to Rishi Sunak or, at the very least, help his administration to focus on the unfolding crisis that is engulfing the water sector.

Here’s the key business news from London this morning:

In The City

Bank of England: The central bank’s Prudential Regulation Authority is consulting on a major set of reforms to Solvency II with the aim of creating a new UK regulatory regime for insurance firms, known as Solvency UK, according to an emailed statement.

Proposals include a further streamlining of reporting requirements for all firms and substantially simplifying and improving the flexibility in the assessment of internal models

B&M European Value Retail S.A.: The discount retailer has seen strong trading momentum in recent weeks and is “well positioned” as it transitions to the autumn-winter season.

The company reported revenue growth of 13.5% in the first quarter, with like-for-like sales in the UK rising 9.2% in the period, with both grocery and merchandise segments contributing

Moonpig Group Plc: The online gifting firm expects all of its brands to return to revenue growth in the second half of the year as trading has been in line with expectations despite the current macroeconomic environment.

De La Rue Plc: The printer of King Charles III banknotes sees “encouraging signs of recovery” in currency market activity following a significant downturn over the past 18 months.

The company reiterated its guidance of an adjusted operating profit in the low £20 million range in fiscal 2024, with the first-half trading expected to be “broadly break-even”

In Westminster

Britain needs more planning around securing its water supplies due to rising demand and record hot weather. Although English reservoirs are about 83% full, more erratic weather patterns mean rainfall cannot be relied upon alone for water supply, according to the conclusions of a meeting of the National Drought Group, which includes the Environment Agency, government, water companies and key farming groups.

Climate change has contributed to this month being the UK’s hottest June since records began almost 140 years ago, with warm, dry weather conditions set to continue into July. That’s likely to stir concerns over the sector that is already beset by a turmoil involving Britain’s biggest water supplier, Thames Water.

The utility company, which serves some 15 million people in London and southeast England and is more than £13 billion in debt, is in talks with officials over contingency plans including a temporary nationalization, according to people familiar with the matter. Its bonds tumble on Wednesday, a day after Chief Executive Officer Sarah Bentley suddenly stepped down with immediate effect.

The uncertainties surrounding Thames Water could also be particularly damaging for Rishi Sunak, as they play directly into Labour’s narrative that the Conservative Party has let services crumble.