WeWork Forced to File for Bankruptcy in the US

Happy Sunday to you. Slightly later than usual as I've been moving house this weekend. However, I don't want to let you down so here is my weekly Brave Bold Brilliant business news - a great way to check in with what’s happening in the world of business globally.

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There’s certainly a lot happening in the world of business, which is why I’m here every week to bring you the latest business news of what’s going on both in the UK but also globally. Feel free to let me know if there’s anything specific you’d like me to cover in future updates.

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In the meantime happy reading!

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GENERAL

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The Big Four plan to cut 1,800 jobs – but are there more layoffs to come? - Other cost-cutting measures such as pay freezes and cutting bonuses. Many of the cuts have been targeted at the firms’ advisory units amid a huge slump in dealmaking, both in the UK and globally.?In the UK, mergers and acquisitions have cratered to a 14-year low this year as rising interest rates and volatile prices scuppered a predicted wave of takeovers.

ON THE UP?

3i Group raises half-year payout as returns and profit drop - 3i Group plc said its investment returns and profit both fell in its latest half year, but increased its interim dividend and noted the ‘challenging macroeconomic and geopolitical backdrop’. The FTSE 100 London-based investment manager said pretax profit decreased 4.9% to ￡1.67bn from ￡1.76bn. 3i Group also said its gross investment return for the six months ended September 30 decreased 7.4% to ￡1.71bn, from ￡1.78bn the previous year. The gross return for its private equity investments fell 7.3% to ￡1.83bn from ￡1.97bn.

阿斯利康 raises earnings forecast despite evaporation of Covid vaccine demand - Helped by strong demand for its cancer drugs, and reported third-quarter profit and revenue just ahead of analyst expectations even as COVID-19 vaccine sales evaporated. The London-listed Anglo-Swedish drugmaker now expects core earnings per share to increase by a low double-digit to low-teens percentage for the year, compared with a previous forecast of high single-digit to low double-digit percentage growth.

Flutter Entertainment hails ongoing US growth as revenue rises 7.6% in Q3 to ￡2.04bn?- The operator also reported growth across several other segments.?Revenue in the three months to 30 September was higher year-on-year across all segments, with the exception of Australia. Flutter said this success is down to its growth strategy and also highlighted the ongoing impact of the Sisal acquisition.

B&M sees rise in sales and plans wave of store openings - B&M Retail has reported a rise in sales as customers are squeezed by high inflation and the discount retailer plans a wave of new stores, including those formerly owned by collapsed rival Wilko. Its results for the six months to 23 September saw group revenue rise 10.4% on the year prior to ￡2.55bn, driven by an increase in customer transactions.

Sales and profits surge at WH Smith as travel booms?- Retail group WHSmith has revealed sales jumped by more than a quarter over the past year as it was boosted by the continued recovery of the travel industry and new openings. The company said it also saw its profits almost double as it benefitted from a higher numbers of travellers at airports and train stations.?WH Smith reported a headline pre-tax profit of ￡143m in the year to August 31, compared with ￡73m?a year earlier.

Bensons for Beds back in the black as transformation plan pays off - Bensons for Beds has returned to profitability for the first time since 2020 driven by the success of its turnaround plan. Like-for-like sales for the bed retailer jumped 7% for the year to September 30, boosted by a 22% surge in online sales. Bensons attributed its performance to its transformation strategy, which has seen the business return to profitability “despite unfavourable weather and reduced consumer spending affecting footfall”.

马莎百货 revamp pays off with profit boost from food sales and clothing - Profit before tax soared to ￡326m in the six months to 30 September - up 56% on the previous year. It has been focussing on revamping its shops, clothing lines and digital offer as part of a big turnaround plan. Despite the recent boost, its boss warned that the retail giant remains cautious about the year ahead. Its chief executive Stuart Machin said that high interest rates, price rises slowing, global conflict and erratic weather could hit trading.?

JD Wetherspoon - The Ice Wharf hails rise in sales and ups investment in pubs - The Watford, Hertfordshire-based pub company reported that in the 14 weeks to November 5, like-for-like sales were 9.5% higher on-year. Chair Tim Martin said: "Sales in the first 14 weeks of the financial year have continued the pattern of gradual improvement which has followed the ending of lockdowns and restrictions. Inflationary pressures have eased, but energy costs, in particular, remain at far higher levels than pre-pandemic, putting pressure on suppliers and the wider economy."

Rita Ora collaboration helps Primark owner’s, ABF, revenue hit almost ￡20bn - Primark owner Associated British Foods (ABF) has continued to rake in hefty profits despite the cost of living crisis, with group revenue for the full year rising 16%?to ￡19.7bn.?The owner of the budget fashion brand said that revenues at its retail arm rose 17%?to ￡9bn as customers flocked to high street stores to seek out affordable clothing.?

IN THE DOLDRUMS

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WeWork forced to file for bankruptcy in the US - WeWork , the shared office firm that was once valued at $47bn (￡38bn), has been forced to file for bankruptcy in the US. The decision follows the meteoric rise - and fall - of a company which was once seen as the future of the workplace. WeWork's filing will give it protection from its creditors and landlords as it restructures its vast debts. Based on its latest share price, WeWork is now worth less than $50m.

Diageo lowers forecasts amid Caribbean storms - Diageo shares plummeted 11% after it said it expects a slowdown in net sales growth in the first half of 2024, thanks to a performance downturn in Latin America and the Caribbean (LAC). The global beverage company said it expects a 20% drop in net sales year on year in the LAC region as choppy headwinds and consumer downtrading batter its progress.

Redrow says autumn home sales weaker than expected - Redrow PLC said its full-year results are likely to be towards the lower end of its previously guided range, as the UK housing market ‘remained subdued’ through the autumn selling season. The St Davids Park, Wales-based housebuilder said the value of net private reservations in the first 18 weeks of financial 2024, which began on July 1, was ￡384m, down 25% from ￡515m a year before

The Works lowers guidance despite sales growth amid ‘challenging’ conditions - The Works has dropped its profit guidance by ￡4m as it warned on challenging and uncertain market conditions, citing high inflation and low consumer confidence.? In the first half of FY24, the value retailer delivered total sales growth of 3.4% as a total like-for-like sales rose 1.6%. Store like-for-like sales also increased by 3.5%, but online sales slipped 12.2%.

Wizz Air trims profit forecast as Pratt & Whitney engine issues bite - Wizz Air narrowed its annual income guidance for 2024 despite swinging to record profit, as engine issues at a key supplier continue to bite. The low-cost carrier said it now expects net income guidance to come in at a range of €350-400m (￡305m-￡348m) down from a June target of €350m-450m, citing difficult operating conditions.

Co-op Bank reports dip in profits as takeover suitors swirl - The Co-operative Bank plc has doubled down on its guidance for the year today despite a dip in profits, in a key set of results for the lender as it hunts for a potential buyer. The bank notched pre-tax profits of ￡81.1m in the nine months to the end of September, down from ￡103.1m in the same period a year ago, despite a boost from rising interest rates which pushed up its net interest income by 10%.

UK's Daily Mirror owner Reach plans 450 job cuts - British news group Reach plans to cut 450 full-time jobs, or 10% of the Daily Mirror parent company's workforce, next year in a new round of cost-cutting to tackle inflation. Reach, which counts national titles as well as regional papers and websites such as the Manchester Evening News and the Liverpool Echo in its stable, said in July that the cost of printing newspapers had soared by 60% due to high energy prices.

ONES TO WATCH

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Jacobs Media Group agrees to acquire Online Travel Training - Travel Weekly parent Jacobs Media (JMG) has agreed to acquire OTT - Online Travel Training for an undisclosed sum. The deal comes after OTT began exploring options for the company including approaching business rescue specialists last week. The acquisition will secure the jobs of all 14 employees and contractors, who currently work remotely in the UK and overseas. OTT has a range of clients in the sector, including airlines, tourist boards, tourist attractions, hotels and tour operators, providing bespoke training courses, virtual events, webinars, incentives and rewards for staff in the industry.

Pizza Express decides it doesn’t want a slice of Wagamama owner The Restaurant Group - PizzaExpress ’s owner has officially pulled out of the running for The Restaurant Group, which runs chains such as wagamama . Wheel Topco announced that due to “market conditions” it no longer intends to make an offer for the chain.?This comes after Pizza Express said last month, it was contemplating serving up a surprise bid for The Restaurant Group (TRG), but no formal offer was made.?

?Shein mulls Topshop bid?- SHEIN has formally registered its interest in making an offer for TopShop . It comes on the back of Shein’s acquisition of Missguided and intellectual property rights from Frasers Group last week for an undisclosed sum. Asos snapped up Topshop for ￡330m back in 2021 from Sir Philip Green’s collapsed Arcadia retail empire. It emerged late last month that Asos was considering selling Topshop as it looks to shore up its balance sheet after it posted a near-￡300m loss in its last financial year.?

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