Today’s news in brief-29/1/25
Lord Wolfson, CEO of Next and Conservative peer, has leveraged his House of Lords position to propose amendments phasing in upcoming National Insurance (NI) reforms. The budget measures, effective April, will raise employers’ NI contributions from 13.2% to 15% and lower the secondary threshold to £5,000 annually. Wolfson supports staggered implementation to mitigate rising business costs and potential job losses, aligning with Baroness Noakes’ amendments. Retail giants Morrisons and Tesco echoed concerns, with Morrisons’ CEO Rami Baitieh warning of a £75m annual hit from NI changes. Chancellor Rachel Reeves aims to generate £40bn through these reforms to bolster long-term growth.
Fashion retailer Quiz faces administration days after delisting from AIM. Sky News reports Teneo will oversee a pre-pack administration, enabling the Ramzan family to restructure the business privately. Quiz, operating 60 UK stores with 1,500 staff, cited financial strain and regulatory burdens for its delisting. December revenues fell short of expectations, compounding November’s underperformance. The move to private ownership aims to facilitate cost reductions without public disclosure constraints.
Morrisons reported a robust FY performance, with revenues rising 3.8% to £15.3bn, driven by a 4.9% Q4 like-for-like sales surge—its strongest in four years. The supermarket sold petrol forecourts to MFG for £2.5bn and expanded its convenience footprint with 36 Channel Islands stores. CEO Rami Baitiéh highlighted improved pricing, promotions, and loyalty schemes, while CFO Jo Goff noted a 40% debt reduction from peak levels and £312m in annual cost savings.
Frasers Group increased its stake in THG to 4.8%, deepening a partnership established in June 2023. The collaboration includes Frasers’ acquisition of THG’s luxury brands and integration of its Frasers Plus credit platform. THG’s demerger of its Ingenuity arm aims to streamline operations, focusing on Beauty and Nutrition divisions. Despite a 2.6% Q4 revenue dip to £552.4m, THG’s Beauty segment grew 4.6% to £1.1bn, aligning with full-year expectations.
Sportswear brand Castore celebrated a record December, with revenues up 16% year-on-year, fueled by 150,000 football kit sales and a 20% rise in Formula 1 merchandise. Women’s product sales surged 30%, reflecting growing engagement in women’s sports. Co-founder Tom Beahon reaffirmed commitment to physical retail, planning 5-10 new stores in 2025, alongside digital expansion and product innovation.
Virgin Wines reported a 6.7% revenue rise over the six-week Christmas period, marking its best performance since pandemic lockdowns. Despite a slight H1 revenue dip to £34.1m, the group outperformed a declining online drinks market, achieving a 25% increase in new customers. Pre-tax profits jumped 20% to £1.3m, with CEO Jay Wright citing strategic marketing and customer loyalty as key drivers. The firm remains optimistic about H2 growth, supported by a strong balance sheet.
