BUSINESS LIVE: Abrdn doubles share buyback as assets fall

Shares in famed investor Warren Buffett’s conglomerate hit a record high as its insurance operations rebounded.

Berkshire Hathaway, which is based in Nebraska, rallied yesterday after the investment giant reported on Saturday that it had swung to a profit of £31.3billion between April and June – from a loss of £34billion in the same period the year before.

Trendy retailer AllSaints enjoyed record sales and profits thanks to shoppers brushing off the cost-of-living crisis to splash out on biker jackets and boots.

The company, which is owned by private equity giant Lion Capital, saw profits surge 50 per cent to £58.6million in the year to the end of January.

Customers have continued to buy its more expensive items, such as a trademark leather jacket which sells for around £319 and has been worn by celebrities including singer Nicole Scherzinger.

Holiday Inn-owner IHG has posted a 17 per cent rise in second-quarter global hotel room revenue, aided by higher room rates and a rebound in China.

IHG’s global revenue per available room (RevPAR), a key performance indicator for the industry, was also yo 9.9 per cent in the three months to 30 June when compared to 2019 levels.

Office rental firm IWG profits surged in the first half thanks to strong demand for flexible work products and higher prices.

Office landlords are slowly recovering from pandemic lows, as employers opt for permanent hybrid working model, where employees need to be in office for a stipulated number of days in a week or a month.

The London-listed owner of the Spaces and Regus brands said adjusted core profit from continuing operations for the six months ended 30 June jumped 48 per cent on a constant currency basis to £198million.

‘We continue to grow as expected, producing a record period for IWG with our highest ever revenue in our over 30-year history, up 14% from the first half of 2022. Importantly, we have achieved this alongside increasing EBITDA and cashflow generation, which is reducing net debt.

‘We have done this through a combination of higher demand for flexible work products, improved pricing and cost discipline and I am looking forward to continuing this momentum into the second half of 2023 and into 2024.

‘During the first half of the year, we have accelerated our capital light growth strategy allowing us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with IWG – in fact we have signed almost as many agreements in the first half of 2023 as we did in the whole of 2022.

‘We continue to be well placed to deliver further revenue, profitable growth and reducing leverage as more companies permanently embrace hybrid working as their preferred model with IWG set to be the biggest beneficiary.’

Rents must be slashed and investment poured into Oxford Street to save it from becoming a scourge of tacky sweet shops, industry leaders have warned.

It comes days after harrowing images revealed the shocking extent of the homelessness crisis gripping Oxford Street, with large numbers of people lying on makeshift mattresses.

While still considered Britain’s premier shopping destination, the shift to online shopping and the impact of the pandemic have left the street a shell of its former self.

Abrdn has doubled a planned share buyback programme to £300million, despite the fund manager’s assets under management falling by £4billion in the first half after market turmoil and economic uncertainty took its toll.

AUM fell to £496billion in the six months to 30 June, compared with £500billion at December-end.

‘We continued to move at pace to execute our strategy over the first six months of 2023 in a challenging macro environment.

‘Thanks to abrdn’s revenue diversification and the resilience we have built into our business with the acquisition of interactive investor last year, we grew revenue by 4% and adjusted operating profit by 10% over the period.

‘We are on track to deliver our £75m cost savings target in Investments as we continue our work to restore that business to a more acceptable level of profitability.’