The UK’s first space flight suffered a technical malfunction last night, dealing a blow to the country’s space ambitions. It also sent shares in Virgin Orbit back to earth. And if, like many others, you’re still receiving Christmas cards, you’re not alone — Royal Mail strikes have snarled up the UK’s letter postal system, leading to fewer online sales for companies like Card Factory.
(Bloomberg) — The UK’s first space flight suffered a technical malfunction last night, dealing a blow to the country’s space ambitions. It also sent shares in Virgin Orbit back to earth. And if, like many others, you’re still receiving Christmas cards, you’re not alone — Royal Mail strikes have snarled up the UK’s letter postal system, leading to fewer online sales for companies like Card Factory.
Here’s the key business news from London this morning:
In The City
Card Factory Plc: The greeting card merchant saw a boost in in-store activity last year as people returned to the high street, as well as strong Christmas sales, while its online operations were impacted by Royal Mail strikes.
- The company boosted its earnings expectations for its current financial year and said it has “favourable” currency hedges for the rest of this year
Games Workshop Plc: The fantasy figurines maker told investors it will bring Warhammer to the screen “like you have never seen before,” in the wake of its agreement to explore development opportunities with Amazon.
- But the company said it has “nothing more to say” on the matter, while reporting a “rewarding and successful” first half of the year
Unite Group Plc: The student accommodation investment company says the prospect of savings and certainty for students on their bills has led to a strong demand for the upcoming year, with 70% of rooms now sold.
- Better income from rental growth will help support its property valuations as the market adjusts to higher interest rates
In Westminster
The rocket launched from underneath a 747 jumbo over southern England suffered a technical malfunction during its maiden flight, dealing a crushing blow to the UK’s ambitions to join the ranks of space nations and sending the shares of Virgin Orbit Holdings Inc. tumbling.
The government is cutting energy support to businesses from April as Chancellor Jeremy Hunt seeks savings to help shore up the public finances. A new 12-month program to help Britain’s companies cope with high energy costs will start in April and be worth as much as £5.5 billion. That compares with £18 billion over six months for the program it’s replacing.
Meanwhile, Health Secretary Steve Barclay told union officials he was open to backdating the next pay rise for health workers.
In Case You Missed It
Manchester United, Liverpool FC or Tottenham Hotspur are among England’s top Premier League clubs being targeted by Qatar, the Middle Eastern nation buoyed from hosting the most expensive World Cup ever.
Teneo, the global public relations and consulting firm backed by CVC Capital Partners, is nearing a deal to acquire UK competitor Tulchan Communications, people familiar with the matter told Bloomberg.
GSK Plc Chief Executive Officer Emma Walmsley pointed to potential deals and promising efforts to develop new drugs as part of the British drugmaker’s transformation as she faces pressure from investors to spur growth.
Finally, “Asos Plc is looking as squeezed as one of its bustier dresses,” says Bloomberg Opinion’s Andrea Felsted. “But there is a solution to its tight fit: Sell Topshop.”
Looking Ahead
Sainsbury’s third-quarter results are due at 7:00 a.m. tomorrow. The update will come after robust-looking Christmas revenue at Britain’s No. 2 grocer, with Kantar data showing an increase of 6.2% in the 12 weeks to Dec. 25, compared with overall UK grocery sales growth of 7.6% in the period. Still, traditional supermarkets like Sainsbury are likely “sacrificing” profit margin to keep prices low to fend off German discounters Aldi and Lidl, say Bloomberg Intelligence analysts Charles Allen and Ignacio Canals Polo.
Comments on consumer behavior in the new year will be key, as will any potential change to the company’s adjusted pretax profit guidance for the full year, which it has forecast in the range of £630 million to £690 million. Analyst estimates compiled by Bloomberg point to earnings coming in at the mid-point of £659 million.
For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.