BUSINESS LIVE: Boohoo sales slump; Wetherspoon’s lifts profit expectations; Workspace boss exits

Direct Line Group saw own-brand motor customer numbers fall in its first quarter, as price hikes drove some policyowners away but delivered double-digit premium growth.

In a trading update, the company said its average premium for motor and home insurance stood at £599 for new customers and £515 for renewal customers, against £478 and £373 by the same point a year ago.

The rise of online brokers and DIY investing has delivered a revolution in buying shares, investment trusts and funds.

Investors can now make huge savings compared to the old days of using their stockbroker, financial adviser, or going straight to a fund manager.

Saudi Aramco is set to pay shareholders almost £100billion in dividends this year as the kingdom’s ruling family seeks funds to transform the economy.

The world’s largest oil producer said it expects to hand out £99billion in 2024 despite a 14 per cent fall in first quarter profits to £21.7billion.

Big Four accountants PwC and EY were yesterday fined more than £9million in total over their botched audits of a collapsed ‘mini bond’ firm.

London Capital & Finance (LCF) raked in £237million from 11,625 savers – many of them retired and elderly – before going bust at the start of 2019.

Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club:

‘Wetherspoons seems to be moving in the right direction, following a difficult few years. Like-for-like sales are growing and profits are expected to come in towards the top end of expectations.

‘Wetherspoons is being helped by moderating inflation combined with a proposition that is clearly resonating with the consumer.

‘Despite higher interest rates, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon’s commitment to low prices and doing the basics well are helping to keep punters loyal.

‘With many pub and restaurant companies struggling there is an opportunity for Wetherspoons to gain share in the current environment. With costs also coming down, it looks well set to continue its profit recovery.’

London-focused flexible office-space provider Workspace Group has named Lawrence Hutchings as its new chief executive designate, succeeding Graham Clemett who will step down later this year.

Hutchings has held the top role at UK property real estate investment trust (REIT) Capital & Regional since 2017.

Disney’s streaming business has turned a profit for the first time as cost-cutting efforts start to bear fruit.

The media titan posted a profit of £37million for its Disney+ and Hulu arm in the first three months of 2024, up from a loss of £468million in the same period of last year.

This is the first time the unit – which makes shows such as Only Murders In The Building has swung into the black since the launch of Disney Plus in 2019.

JD Wetherspoon has forecast its profit to be towards the upper-end of market expectations after the pub group posted higher third-quarter sales, buoyed by strong demand for its traditional ales and vodka.

The group, which owns and operates pubs across the UK and Ireland, reported a 5.2 per cent rise in like-for-like sales for the 13-week period ended 28 April.

Resilient customer spending has helped British pub groups during an uncertain economic environment, even as fears of customers cutting back amid a high inflationary environment looms.

Guy Lawson-Johns, equity analyst, Hargreaves Lansdown:

‘Boohoo’s full-year results were a painful read for investors. Revenue declined at high double-digit rates across all regions, including an 18% in the US, which is seen as the group’s pathway to major growth.

‘For now, it remains a struggling company with a tarnished reputation, reflected in the group’s valuation, which has come down significantly over the last few years.

‘Executing its back-to-growth strategy hasn’t been easy. And, as part of the drive for profitability, Boohoo has heavily invested in expanding capacity abroad where there’s greater room for growth.

‘International markets, especially the US, hold the key to the group’s future growth, but extensive investment has so far yielded weak results.

‘And with customer KPIs continuing to trend in the wrong direction, it doesn’t look like a miraculous recovery is around the corner.’

MPs have condemned the woke debanking of firms deemed ‘undesirable’.

A report by the Commons Treasury select committee on banking services for small companies took aim at the ‘unfair’ practice of denying accounts to legitimate businesses, from defence firms to slot machine operators.

Boohoo sales plummeted 17 per cent last year, driving profits 7 per cent lower to the bottom end of guidance, as the British online fashion retailer continues to struggle amid competition from newer rivals like Shein.

The group, like UK peer Asos, was a winner during the pandemic-driven boom in online shopping, but has since been hit by supply chain issues and higher product returns.

Its shares are down 24 per cent year-on-year.

Boohoo, whose brands include PrettyLittleThing and Nasty Gal, made adjusted EBITDA, its preferred profit measure, of £58.6million in the year to 23 February, versus guidance of £58million to £70million and the £63.3million made in 2022/23.

At the statutory level, Boohoo’s loss before tax swelled to £159.9million from a loss of £90.7million previously.