BUSINESS LIVE: Plus500 profits slump; Lok'n'Store update; FTSE slips

Just before close, the FTSE 100 was 0.35% lower at 7,498.10.

Meanwhile, the FTSE 250 was 0.27% lower at 18,748.84.

Lenders Santander and Barclays have both cut rates on their fixed mortgages.

Santander UK has reduced some of its mortgage rates by up to 0.29 per cent from today – the second time it has made such cuts in 10 days.

The last six months has seen a more than 27 per cent jump in the number of investment funds described by analysts as ‘serious and persistent underperformers’, research reveals.

BestInvest’s latest ‘Spot the Dog’ report shows a combined £46.2billion of savings are withering in so-called ‘dog’ funds, up a whopping 142 per cent since February’s total of £19.1billion.

(PA) – Businesses are being forced to consider selling off property and putting staff pay rises on pause in efforts to cut costs as consumer spending declines, according to a survey.

Consumers spending less because of a cost-of-living squeeze is a big concern for more than half of medium-sized business leaders, accountancy and business advisory firm BDO found.

Nearly two thirds of retail and wholesale businesses said it is a significant concern for them, the latest survey of 500 mid-sized companies revealed.

It comes after homeware retail giant Wilko collapsed into administration last week, exposing the challenges facing the sector worsened by the Covid-19 pandemic and tighter consumer budgets in the face of higher energy costs and mortgage rates.

The chain had tried to shore up cash by making savings in recent years but said “time had run out” to rescue the business.

The failure, which puts some 12,000 jobs at risk, follows stationery chain Paperchase falling into administration earlier this year.

Meanwhile, manufacturers are also worried about a decline in spending as they see order volumes slow, higher materials and energy prices, and complex customs rules following Brexit changes, BDO’s survey showed.

It follows the sector seeing its joint-worst performance for three years in July as activity continues to shrink on the back of weakening exports, according to the closely watched S&P Global and CIPS survey.

To compensate for lower revenues, BDO’s poll found that businesses were trying to scale back spending, with more than a third hoping to reduce overheads.

This includes downsizing premises or selling off property to manage rising mortgage payments, as interest rates stand at the highest rate for 15 years.

Wilko’s administrators have handed the ailing store a lifeline by announcing to its rivals they have until Wednesday to submit any bids to take over the franchise.

Last week, the British high street institution announced it was winding up putting 400 shops and 12,500 jobs at risk.

Shanta Gold looks a potential takeover target after gold production from its Tanzanian mines hit an annualised 100,000 ounces per year.

The company has two mines. New Luika has been in production for several years, while Singida is a recent new addition.

Brits are spending less than two days a week at the office and are never likely to return to the old ways of working, according to an expert on work habits.

A new report reveals that workers are now spending 32 per cent of their working week – 1.6 days out of five – at the office, up from 29 per cent this time last year.

Beauty group L’Occitane International has confirmed that its billionaire chairman and controlling shareholder is considering taking it private.

The Hong Kong-listed company said late on Friday that Reinold Geiger, who already controls more than 70 per cent of the chain, is considering an offer for the rest of the shares he does not already own.

Shares in L’Occitane, which is famous for its ‘en Provence’ line of soaps, luxury creams and oil, closed almost 9 per cent higher at HK$27.75 (£2.80) in Hong Kong on Monday.

Mortgage-holders face a crunch week with inflation figures set to indicated whether interest rates have peaked.

The July figure for CPI is due on Wednesday as the Bank of England mulls whether more action is needed to curb prices.

Shaftesbury Capital has secured a new long-term loan of £200million from Aviva Investors as the West End landlord looks to repay other debts.

Lok’nStore Group ended the last financial year on a high after revenue growth in the second half of the period surpassed forecasts.

The warehouse space provider’s total self-storage turnover expanded by 5.3 per cent for the 12 months ending July, with sales in the latter six months increasing ‘slightly ahead of expectations’ at 11.2 per cent.

Trading was also boosted by the average price per square foot of occupied space jumping by 6.8 per cent.

Plus500 profits slumped in a first half marked by ‘quieter’ trading volumes, reflecting a normalisation after online trading boomed during the pandemic and in the wake of the Ukraine war.

Active customers on its platform, which allows investors to trade on complex financial instruments such as contracts for difference (CFDs), fell by almost 20 per cent compared to a year ago.

However, the FTSE 250-listed Israeli firm announced $120million (£94.5million) of shareholder returns, with a fresh share buyback programme of $60million and the rest in dividends.

Landlords selling a property this year may have missed the top of the market and lost out on more than £10,000 compared to if they sold last year, a top lettings agent has warned.

Hamptons suggested landlords will have made a 10.1 per cent smaller gain by selling their buy-to-let this year compared to those who sold last year.

(PA) – Nearly 100,000 small business have been launched across rural areas of the UK over the past 12 months, according to research.

An increase in women and older founders have helped to drive the boom in new firms across the countryside, according to GoDaddy’s Venture Forward research initiative.

It comes after many Britons moved out of large cities during the pandemic due to increased home working and better value housing.

The latest data from more than 2.3 million British microbusinesses – firms with fewer than 10 employees – has revealed that that 25.9% of Britain’s microbusinesses are now based rurally, up from 24.1% a year ago.

It comes after 94,464 new start-ups were launched in rural areas over the past 12 months, according to the research.

Experts at GoDaddy said improvements in technology have allowed for more businesses to be launched in more remote areas of the country.

London-listed stocks are trading lower this morning with the FTSE 100 weighed down by miners and oil firms shares, as worries mounted over China’s economic recovery and its debt-laden property market.

Energy stocks are down 1.1 per cent as crude prices ease over concerns about China’s faltering economic recovery and a stronger dollar.

Industrial metal miners have slipped 1.2 per cent tracking lower base metal prices.

China’s new bank loans tumbled in July and other key credit gauges also weakened, underscoring its faltering economic recovery.

Geopolitical tensions add to worries after a Russian warship on Sunday fired warning shots at a cargo ship in the southwestern Black Sea.

Shares of Plus500 have gained 3.2 per cent after the British online trading platform reported higher first-half earnings before interest, tax, depreciation and amortization, and announced a new share buyback programme.

Richard Hunter, head of markets at Interactive Investor:

‘Asian markets had a poor start to the week, seemingly being attacked from all angles.

‘Aside from the inflationary concerns emanating from the US, the ongoing technology security spat between the US and China weighed on sentiment, while the strength of the dollar put further pressure on the Japanese yen, although this was of some benefit to exporters.

‘Of particular concern, however, was further evidence of weakness in the Chinese property sector, with some developers apparently struggling to meet repayments.

‘The wall of silence on monetary stimulus from the authorities has been striking, and it remains to be seen whether this will change after further releases this week on retail sales and industrial output which are expected to mirror the country’s current issues.

‘The lead from other major markets left the UK with nowhere to go, although the losses were limited in opening exchanges. In the premier index, companies with a China exposure littered the top of the fallers’ table, including the miners, while the oils followed some overnight weakness in Crude to also drift lower.

‘There was a slither of interest in defensive stocks which mitigated some of the markdowns, leaving the FTSE100 ahead by just 0.8% so far this year.

‘The FTSE250 has also been under recent pressure as the ramifications of likely further interest rate rises from the Bank of England accelerate the possible move towards a recessionary environment, with growth remaining marginally positive but hard to come by. The FTSE250 has given up any previous gains in the year to date and is currently down by 0.3%.’

Crooks, kleptocrats and oligarchs will be able ‘to hide from public view’, it is feared, after ministers stalled efforts to close a loophole in a legal crackdown on dirty money.

The surprise move follows the introduction of transparency rules requiring offshore firms with property in England and Wales to name their ultimate owner in a public register of overseas entities.

Nigel Farage has accused NatWest of kicking its review into the closure of his bank account ‘into the long grass’.

The banking sector is continuing to feel the fallout of the debanking scandal, which came to light when Coutts closed the former Ukip leader’s account without warning due to his political views.

Sales of Graham Norton’s wine are fizzing as drinkers increasingly seek out celebrity alcohol brands.

The TV host’s GN label, which he launched a decade ago, sold more than 3.7million bottles last year, according to its New Zealand maker Invivo.

The firm had to buy more vineyards this year to meet demand.

Plus500 profits slumped 43 per cent in the first half as the online platform suffered a drop in trading volumes.

Core profit for the six months to the end of June fell to $174.1 million, from $305.3 million a year earlier.

Separately, the London-listed company announced a $60million share buy back.

‘In the first half of the year, we executed on our strategy to produce a strong performance, thanks to the power of Plus500’s market-leading proprietary technology and our consistent ability to attract and retain higher value customers over the long term.

‘Our increasingly diversified revenue streams, broadened product offering, deep customer relationships and the structural growth drivers in our end markets, mean we are able to deliver both growth and attractive shareholder returns.

‘With continued operational and financial momentum being achieved, we also made substantial progress in delivering against our strategic priorities, particularly in harnessing the attractive growth opportunities in the US futures market and obtaining new regulatory licences in the high growth UAE market and very recently in the Bahamas

Our track record of delivering outstanding shareholder returns puts us amongst the top cohort of companies on a total returns basis within the FTSE All-Share Index over the past ten years.’