BUSINESS LIVE: Gold at record high; Boohoo boss to exit; Retail sales rise

There was that rarest of sightings on AIM this week – the lesser-spotted IPO.

Pulsar Helium, which listed on Friday raising around £5million, got off to a decent start with its shares moving 12 per cent higher in the first few hours of trading to 28p.

A subsidiary of British American Tobacco (BAT) is close to reaching a settlement on a long-running tobacco litigation case in Canada.

Imperial Tobacco Canada (ITCAN) has been in talks with creditors since losing an appeal in March 2019 ordering the company and two other cigarette sellers, Philip Morris and Japan Tobacco, to pay CA$15.6billion in damages.

US stock markets are inching closer to all-time highs as the prospect of further interest rate cuts and the artificial intelligence boom continue to drive investor flows.

The tech-heavy Nasdaq and the S&P 500 are each up roughly 24 per cent since the start of the year, with the latter hitting a record high this week, despite a toxic cocktail of global conflict, flagging economic growth in Europe and China, and recent oil price volatility.

‘Customer friendly’ football results contributed to a £17million hit to William Hill owner Evoke’s revenues in September, as punters beat the bookies.

Evoke, which also owns the 888 brand, told investors on Friday it had taken a £10million hit from sports bets just in the UK and Ireland, contributing to a 13 per cent decline in overall betting revenues in the region for the third quarter of the year.

Britons are buying up gold bullion coins instead of gold bars, the Royal Mint says, as prices spike and customers look to avoid rumoured rises to capital gains tax.

The gold price today breached the $2,700-per-ounce level for the first time, as US election concerns and Middle East tensions boost demand for a safe haven for investments.

Russ Mould, investment director at AJ Bell, comments on media company Future, which announced that its CEO, Jon Steinberg, was standing down:

Future used to be a highly acquisitive business, snapping up titles to expand its empire of media assets which were then used as a platform to earn commission on product or service sales.

The cost-of-living crisis and high interest rate environment knocked the company off track and it has been trying to regain momentum ever since. More recently, it has been shutting down the weaker parts of its business to save money and improve group margins, while at the same time trying to revive growth.

Investors will be asking why Steinberg isn’t sticking around to see through this strategy – has he spotted problems down the line or has he simply been offered a better opportunity elsewhere?

Boohoo’s chief executive will stand down after five years as the struggling fast-fashion retailer embarks on a review of its operations and brands.

The group, which owns Debenhams, PrettyLittleThing and Karen Millen, has kickstarted the search for a successor to John Lyttle as it undertakes a review of options for each division ‘to unlock and maximise shareholder value’.

The Government will launch a consultation into buy-now-pay-later, following a rapid rise in use of the unregulated product.

BNPL allows customers to spread the cost of purchases over the course of a few months – typically in three to six instalments.

Criminals stole £571.7million in the first half of 2024, new figures from UK Finance reveal.

While still a staggering figure, it marks a 1.5 per cent drop in the amount of money lost to criminals compared to the first half of 2023.

London-listed stocks have opened lower this morning as investors digest an unexpected rise in retail sales data, although both indexes are poised to break a two-week losing streak, buoyed by anticipated Bank of England rate (BoE) cuts and healthy corporate updates.

A 1.7 per cent gain in the industrial metal miners sector keeps losses at check, as copper prices rose due to China’s stimulus measures.

Burberry’s 3.6 per cent gain has boosted the personal goods sector to lead sectoral gains.

Consumer-focused stocks are the biggest drag on the benchmark, with heavyweight Unilever dropping 1.4 per cent, while British American Tobacco has lost 1.6 per cent.

Shares in British pest control giant Rentokil Initial soared as investors welcomed progress in the turnaround of its troubled North American business.

As well as reporting a steady 3.6 per cent rise in revenue to £1.4billion in the third quarter, the royal ratcatcher announced a management overhaul at its operations on the other side of the Atlantic.

Savers have been racing to pull cash from their pension funds amid growing fears of a Labour tax raid on retirement pots, the boss of a leading investment platform has warned.

Chancellor Rachel Reeves is said to be considering a cut in the cap on tax-free lump sum withdrawals in her Budget later this month.

Derren Nathan, head of equity research, Hargreaves Lansdown:

‘The FTSE 100 has opened down this morning, giving up some of the gains seen so far this week, with little in the way of corporate news to get excited about.

‘But stronger than expected retail sales should provide some support to some consumer stocks. Volumes grew by 0.3% in September, compared to expectations of a 0.3% decline.

‘But the good news was far from evenly spread. Mobile phones and computers performed best, perhaps reflecting the emergence of AI-enabled hardware from multiple manufacturers. Supermarket sales volumes were less encouraging, falling 2.4%, impacted by the miserable weather and a pull-back in demand for premium products.

‘Online clothing brand Boohoois one retailer that’s not in growth territory. The total value of goods sold fell by 7%, with the UK down 2% and much sharper declines in the US and elsewhere. Revenue fell even faster – at 15%.

‘The likes of Shein and Temu are making this a fiercely competitive market, and it’s taking a toll. . CEO John Little is to step down after a 5-year tenure. With the shares down nearly 90% in that period, few investors will be crying over his departure.

‘The Group’s exploring options to maximise shareholder value, but any successor will need to lean heavily on the tiller from day one to turn this ship around.’

Campaigners have blasted an ‘unacceptable’ drop in women in top corporate jobs.

A stark report showed the number of female executives at Britain’s biggest companies has fallen for the first time in eight years.

More than 5m people signed up to Netflix over the summer as a crackdown on password sharing and a raft of hit shows boosted business.

The US streaming giant said subscriber numbers rose by 5.1m to hit 283m in the three months to September 30.

Steven Fine does not mince his words on the Budget – especially when it comes to capital gains tax (CGT).

Rachel Reeves is reportedly planning to increase CGT on shares in the Budget by ‘several percentage points’ from the current rate of 20 per cent.

Silvia Rindone, EY UK and Ireland retail lead:

‘The next few months will be critical as retailers brace themselves for the ‘golden quarter,’ with key shopping events such as Halloween and Black Friday drawing near. Retailers will be using discounting strategies to stimulate consumer spending and manage stock levels more effectively.

‘Retail sales could still be volatile in the run up to Christmas, with retailers who can target particular customers seeing more success.

‘However, this year’s discounting efforts seem to be more spread, indicating less pressing need to offload stock as retailers have learned improved inventory management. However, the possibility of a ‘Black November’ remains, as retailers spread out the trading period to avoid the intense competition of the year-end rush.

‘As we progress through the final quarter, it will be imperative for retailers to closely monitor sales volumes, inventory, and the competitive landscape.

‘The balance between timely promotions and the risk of premature discounting is delicate; retailers must navigate this with care to avoid the pitfalls of either scenario—be it stock shortages or overstock. It’s a precarious path that demands strategic foresight and agility.’

Boohoo boss John Lyttle is set to step down, the online fashion firm has revealed as it announced a review of strategic options for its various divisions to maximise shareholder value.

The group also said on Friday it has agreed a new £222million debt facility and reported a 7 per cent fall in first half sales by gross merchandise value.

Boohoo executive chair Mahmud Kamani said: ‘The Board is focused on ensuring it takes the right steps to drive boohoo Group in the interest of all its stakeholders.

‘We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the Group.

‘The business has evolved over last few years and has an offer that is much wider than our original focus on young fashion. The time is now right to consider options with regard to corporate structure, with the aim of maximising shareholder value.

‘I would like to personally thank John for the contribution he has made to the Group. John has built a talented and inspiring leadership team who will ensure we are best positioned for sustainable growth.’

UK retail sales rose unexpectedly in September, adding 0.3 per cent for the month, fresh data from the Office for National Statistics shows.

The rise, which compares to forecasts of a 0.3 per cent contraction, was driven by the launch of the latest iPhone and other technology products.

The ONS said telecoms and computers were the main drivers of non-food sales, with the sectors jumping by almost 35 per cent in monthly terms in September.

Gold has breached the $2,700-per-ounce level for the first time ever, as US election jitters and simmering Middle East tensions boost safe-haven demand.

Also aided by global interest rate cuts, spot gold is currently teading at $2,706.30, having added 0.6 per cent this morning and 2 per cent over the last week.