Develop Resilience
Strongly Recommend It
Bank of England printer De La Rue agrees to £300m breakup
De La Rue, the Bank of England's banknote printer, has agreed to a £300m sale of a division of its business to an American firm. The London-based company announced this morning that it had entered into a definitive agreement for the sale of its authentication arm to Crane NXT, a New York-listed industrial technology company. Upon completion of the sale, De La Rue will solely be a currency printer, abandoning its authentication business that assists government clients in detecting fraud. This sale follows a series of issues for the company, including most recently being compelled to postpone significant pension payments into its retirement fund, as reported by City AM. "Completion of the sale will allow us to repay our existing revolving credit facility in full ahead of its maturity on 1 July 2025 and will provide a springboard to unlock further intrinsic value as we move to find a long-term funding solution for the group's legacy defined benefit pension scheme," stated De La Rue chair Clive Whiley. The company also added that an additional £12.5m in deficit repair contributions will be paid into the pension scheme over the next three years. In July, De La Rue confirmed it was in discussions to sell off a portion of the company, which was announced alongside the printer's full year results that had already been delayed in order for the firm to find a potential suitor. De La Rue reported a decline in earnings in line with forecasts, attributing it to "substantial trading difficulties", as its revenue fell 11.3% from £350m to £310m. Nonetheless, the entity's authentication division enjoyed a 12.5% increase in revenue, exceeding the company's set goal of £100m. "The sale of our authentication division to Crane NXT represents a substantial step forward on our route to realise the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders," remarked Whiley. "We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths and are confident that the authentication division will continue to build on its considerable successes over the past few years." Furthermore, the statement continued, "In addition, we will be able to focus fully on building and growing our world-leading currency business."
Rix Petroleum snaps up fellow Humber business in undisclosed deal
Fuel business Rix Petroleum has snapped up a fellow Humber business to extend its services to domestic customers. Rix – part of 150-year-old family business J R Rix & Sons Ltd based at Two Humber Quays on Hull’s waterfront – has acquired Phoenix Heating Specialists, based on the east side of Hull in Preston, for an undisclosed sum. The move comes after the Hull company acquired two other domestic energy sector businesses to complete the family company’s heating and plumbing services for residential customers across the region. Phoenix Heating Services will be rebranded as Rix Gas Services as part of the deal, and will join group businesses Rix Heating Services, Rix Electrical Services, and Rix Plumbing Services at their base in Bank Side, central Hull. Duncan Lambert, managing director of Rix Petroleum, said the acquisition would ‘future-proof’ the company’s domestic energy services, enabling it to install, service, and maintain oil, gas, electrical, and renewable-based heating systems. He said: “As a business with a 150-year heritage in Hull and East Yorkshire, we have always taken great pride in being able to offer the products and services our customers need to keep their houses warm and dry. But as technologies develop, and the variety of heating systems available expands, we needed to update our skills and services to ensure we can continue to do this. “This latest acquisition completes our offering, giving us comprehensive services across all domestic energy types, including oil, gas, electricity, and renewable technologies. I’m delighted to welcome Phoenix Heating Specialists into the Rix family. The move not only helps to futureproof our business, it ensures we can continue providing the trustworthy service we’ve become known for over the past century-and-a-half.” Phoenix Heating Services was launched by owner-manager Matt Dixon and employs four staff, all of whom will move across to the Rix Group. Mr Dixon said having the backing of the Rix Group would enable the business to grow much more rapidly than if it had stayed independent.
GSK resolves Zantac cancer claims with a £1.7 billion settlement, boosting shares
GSK shares surged today following the pharmaceutical heavyweight's agreement to fork out up to $2.2bn (£1.68bn) to resolve allegations that its heartburn medication, Zantac, was carcinogenic. The now-discontinued drug had been at the centre of 80,000 lawsuits filed by 10 different US law firms and had cast a shadow over the FTSE 100 company in recent times, as reported by City AM. Yet, with the settlement disclosed yesterday, it is anticipated to address approximately 93 per cent of the claims, thereby alleviating concerns about the financial burdens on the corporation. Investor confidence soared, reflected in a more than five per cent increase in GSK's share price as the market reacted positively to the development. Russ Mould from AJ Bell commented that "investors would have been pleased to see the company get this monkey off its back almost regardless of the cost." Prior projections by Morgan Stanley had indicated that the UK-headquartered pharma firm might have been exposed to potential liabilities amounting to a staggering $27bn (£20bn). "While some cases are outstanding it is a small proportion of the total and GSK will now seek to tidy up the loose ends," Mould further remarked. Although GSK has consented to the settlement, the firm has rejected any admission of guilt, citing an absence of "consistent or reliable evidence" connecting Zantac to cancer. Additionally, the company has committed to contributing up to $70m (£53m) towards settling a whistle-blower lawsuit which alleged that GSK intentionally concealed the risks of Zantac from the US authorities. GSK's agreement bolsters the firm's financial standing, following its business performance surpassing projections in recent quarters. Zantac received approval for distribution in the US pharmaceutical market in the late 1980s. Rapidly rising to prominence, Zantac's yearly sales exceeded the $1bn (£764m) threshold. However, it was removed from sale during the pandemic as a 'precautionary measure' due to fears over carcinogenic contamination.
'Truly uncommon leader' Ratan Tata dies aged 86
Tributes have been paid to a "truly uncommon leader" as Ratan Tata dies aged 86. The former chairman of Tata Group, which owns Jaguar Land Rover, Tata Steel and Tetley Tea among a host of other companies, has been remembered for his business acumen and philanthropy. He died in hospital in Mumbai yesterday. Born in Bombay on December 28, 1937, Mr Tata joined the Tata Group in 1961 and became its chairman in 1991, a post he held for 21 years and that he resumed in 2016 following the departure of his successor Cyrus Mistry. He returned to retirement in 2017 when incumbent chairman Natarajan Chandrasekaran took over the role. Mr Tata never married and is survived by a brother, two half-sisters and a half-brother. Tata Group is a vast conglomeration of nearly 100 companies including Tata Motors, Tata Steel and Tata Consultancy Services. Together, they employ more than 350,000 people worldwide with a presence in over 100 countries. BusinessLive is your home for business news from around the country - and you can stay in touch with all the latest news through our email alerts. You can sign up to receive morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss. Visit our email preference centre to sign up to all the latest news from BusinessLive. Among the most well-known of its brands is Jaguar Land Rover, now known as JLR, which has a huge manufacturing presence across Merseyside and the West Midlands, including its global headquarters in Coventry. Tata acquired the luxury car manufacturer in 2008 from Ford for $2.3 billion, a year after it had taken over British steelmaker Corus for $12 billion. Tributes have flooded in from across the business and political world. Mr Chandrasekaran said in a statement: "It is with a profound sense of loss that we bid farewell to Ratan Tata, a truly uncommon leader whose immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation. "For the Tata Group, Mr Tata was more than a chairperson. To me, he was a mentor, guide and friend. He inspired by example. "With an unwavering commitment to excellence, integrity and innovation, the Tata Group under his stewardship expanded its global footprint while always remaining true to its moral compass. "His dedication to philanthropy and the development of society has touched the lives of millions. From education to healthcare, his initiatives have left a deep-rooted mark that will benefit generations to come. "His legacy will continue to inspire us as we strive to uphold the principles he so passionately championed." JLR's chief executive Adrian Mardell said Mr Tata's personal achievements and legacy "are unequalled in society" and the mark he left on the carmarker was greater than that of any other individual. "It was thanks to his singular vision that Tata acquired JLR in 2008 and we owe everything we have become since then to his unwavering support and dedication," he added. "Mr Tata led us on an extraordinary journey. He inspired incredible new chapters in our history. "Under his generous and trusting guidance, we have felt deeply proud to be part of the Tata story." India's Prime Minister Narendra Modi described Mr Tata as a visionary leader and a compassionate and extraordinary human being. "He provided stable leadership to one of India's oldest and most prestigious business houses," he posted on X. "At the same time, his contribution went far beyond boardrooms. He endeared himself to several people thanks to his humility, kindness and an unwavering commitment to making our society better." Andy Street, former John Lewis managing director and West Midlands Mayor until May's election, said: "Rarely does a businessman change the world like Ratan Tata did.
Port Talbot welding skills academy look to retrain hundreds of former steelworkers
A Port Talbot welding skills academy is aiming to retrain hundreds of former Tata steelworks and provide the platform to eventually create up to 100 new jobs. UKSE Steel Enterprise has provided a six-figure loan to engineering contractor JES to significantly increasing the capacity of its training centre. The firm has been a key contractor to the Tata’s steelworks in Port Talbot where nearly 2,000 jobs have been lost after the ending of blast furnace steelmaking. Tata is investing in a new electric arc furnace that will make steel from scrap and will open in three years time as part of a £1.2bn investment, which includes £500m in funding from the UK Government. Read More: Renewables sector criticise Welsh Government over planning decision delays Read More : The latest equity and acquisition deals in Wales The JES skills academy plans to eventually have 80 training bays where fabrication, welding and pipework will be taught offering new career paths to people leaving the steelworks and to others who want to follow this career. The company is expanding its centre, and over the next year has made a commitment to offer training to up to 300 former Tata workers, as well as a range of other candidate to set them on fresh career paths. In the longer term, the firm is aiming to diversify into new markets including oil and gas, petrochemical, renewables and nuclear energy and expand creating between 50 to 100 skilled and semi-skilled jobs based around the workforce trained at the skills academy. The academy, launched last year to support JES apprentices, has secured backing from the the UK Shared Prosperity Fund. Head of the academy, Sam Owen. “Our professional team of tutors will operate a range of courses for which we leverage all possible funding support from government and other agencies. “We are not just about training, but about enabling people to step into work when they leave us.” JES director Justin Johnson said that demand for welding and associated skills was extremely high across the UK. He added: "Research by the Engineering and Construction Industry Training Board (ECITB) demonstrates a UK-wide shortage in this area and demand will almost certainly increase in years to come. “Locally, the new Celtic Freeport in Port Talbot is planned to be a source of jobs fabricating on and offshore wind turbines and other structures in the drive towards energy efficiency and net zero.” The need to bring younger people into the fabrication sector has been highlighted by ECITB research, which shows that 40% of the workforce is over the age of 50. Mr Johnson said: “This is very concerning and underlines the need for training, so that knowledge is passed onto a new generation.” On the funding from UKSE Mr Johnson said: “The investment will be the platform to expand and we are hoping to add between 50 to 100 roles in years to come as we diversify and develop. This investment by UKSE is a major boost for us and we are very appreciative of their confidence in us by supporting the academy in the way they are.” UKSE makes strategic investments in Welsh and UK companies which show the potential to grow and create jobs and prosperity. It provides loan and equity packages up to £1 million and UKSE estimates it has supported 83,000 jobs around the UK since it was established 50 years ago. Howard Thompson, regional executive for UKSE in Wales said the need to build a quality, skilled supply chain was paramount. He added: “There is a UK wide shortage of welders. Almost every document published in connection with economic need and strategic economic planning by the Welsh Government and by local authorities across South Wales, highlights the skills shortage in welding and fabrication as an area of concern worthy of attention and investment. “Welding is set to be one of energy transitions most prized skills and we are delighted to be supporting JES in their journey and wish them every success.”
New strike dates set for Tetley Tea workers amid continuing pay row
Tetley, known as a beloved tea brand across the country, is steeling itself for further upheaval amid an escalating pay dispute. The GMB Union has set 12 additional strike dates which will have nearly 150 employees ceasing work due to what they term as "poverty pay", as reported by City AM. These industrial action dates are slated to take place throughout the next two months, with confirmation of specific days anticipated shortly. GMB representative Paul Clark commented: "These hard-working, loyal and skilled, predominantly women workers have been backed into a corner by poverty pay and bullying bosses." "They're fighting back in the only way they can." "Tetley Tea workers feel saddened and hurt by the way their employer has treated them." "But refuse to back down and will continue to strike until management listens to their concerns." These developments come on the heels of last month's decision by GMB members to engage in industrial action, resulting in strikes on Friday, 20 September, and Monday, 23 September. This series of events follows July 2023's warnings from Tetley Tea's workforce regarding potential strike actions. Such action would have involved 150 employees walking out starting 3 August. Nevertheless, within weeks, GMB members agreed on a revised pay proposition. The 200-odd workforce gave the nod to a 7% pay increase, retroactively applied from 1 April, 2023, marking a substantial improvement over the initially declined offer of a 4.25% rise. However, this was significantly below the 12 per cent that Tata, the owner of Tetley, had previously indicated to City AM that the union was aiming for. Earlier this month, Tata Consumer Products, the manufacturer of Tetley Tea, initiated legal proceedings against the GMB Union in the English High Court. The specifics of the claim are not yet disclosed, with the case categorised as miscellaneous. City AM has learned that the company is allegedly suing over supposed trespassing by striking workers.
McVitie's profits skyrocket to £131.3m, driven by white chocolate digestives success
The launch of white chocolate digestives has significantly boosted the profits of McVitie's owner, Pladis Foods, by nearly £130m in its most recent financial year. The company reported a pre-tax profit of £131.3m for 2023, a substantial increase from the £2.8m it posted for 2022, as reported by City AM. According to newly-filed accounts with Companies House, its revenue also saw an increase, rising from £2.54bn to £2.75bn over the same period. Pladis attributed this revenue growth to innovative strategies across its brands, such as the introduction of new products like McVitie's white chocolate digestives. The group also noted growth in its convenience, impulse and discount channels. The success of McVitie's white chocolate digestives was further credited to their feature in a BBC documentary, which led to sales exceeding all forecasts. In a statement approved by the board, it was emphasised that innovation is crucial to Pladis' operations. The statement read: "It reshapes the way the company works, helping to streamline processes, enhances efficiency and facilitate the means through which some of the company's biggest challenges can be addressed, such as sustainable packaging or the sourcing and inclusion of more natural ingredients." These results follow after UMV Global Foods Holding Company, part of London-based Pladis, reported a revenue of £1.2bn for the 12 months, up from £1.1bn. UMV, the producer of popular snacks such as Mcvitie's Digestives, Jaffa Cakes, Jacob's Cream Crackers, Mini Cheddars, Carrs, Mcvitie's Penguin bars and Jacob's Twiglets, has reported a pre-tax profit surge to £17.3m for 2023, a significant increase from the previous year's £600,000.
Hinkley Point C contractor opens Bridgwater factory and plans to create 150 jobs
A Hinkley Point C contractor has opened a new factory in Bridgwater, Somerset, and is planning to create 150 jobs. Engineering company BGEN said the move followed its appointment to a major electrical and instrumentation project at the nuclear power station. The £84m contract, announced in April, was awarded to the Warrington-headquartered firm by GE Steam Power Systems. GE will supply the two conventional power islands for the nuclear plant, including the Arabelle steam turbine, generator and other critical equipment. BGEN will be responsible for designing, supplying and installing the electrical and instrumentation packages for the Unit 1 and Unit 2 Turbine Halls. The firm's new facility at Carnival Way, close to Junction 24 of the M5 motorway, will initially employ 40 people. The manufacturing plant will be used to pre-assemble materials for the Hinkley Point C project, which is set to start in April 2025. “In recent times the business has expanded significantly as we continue to help deliver major energy security and transition projects across the UK," said David Blackburn, senior project manager at BGEN. “We’re looking for 150 candidates at all levels to help deliver an £84m project at Hinkley Point C, including office-based professionals and skilled craftspeople.” The job opportunities will be in health and safety, planning, project management and quality control. The business will also be looking for site supervisors, site managers, electricians, welders and scaffolders, it said. BGEN will also train up to 10 apprentices during the project.