BUSINESS LIVE: Hargreaves Lansdown chair to exit; Water group profits slump; CMA price grocery findings

HM Revenue & Customs (HMRC) is urging Britons to come forward and disclose any unpaid tax on cryptocurrency assets, admire exchange tokens, NFTs and utility tokens.

While crypto users have been able to use other HMRC disclosure facilities to declare unpaid tax in the past, this is the first time HMRC has launched a specific disclosure process for those owning crypto assets.

Wilko could be making a comeback as a retail boss has revealed plans to reopen nearly 300 branches of the high street chain across the UK – with three set to reopen before Christmas.

Billionaire founder of The Range Chris Dawson is reportedly working on deals which are ‘with the lawyers’ to get 50 shops reopened and he plans to extend advance.

(PA) – The High Court has rejected an attempt by a US hedge fund to sue the London Metal Exchange for nearly half a billion dollars over its decisions when nickel prices spiked dramatically last year.

The court disagreed with Elliott Management’s claims that the LME did not have the power to cancel a series of trades.

The advance cost Elliott about $456millio (£360million) in lost net profits, the court in London heard. A second claimant, Jane Street Global Trading, said that it had lost around $15million (£11.8million).

Elliott said it would make a bid to appeal against the decision.

The exchange’s managers suspended trading in nickel for a day in early March last year after an enormous spike in the price of the metal.

Nickel prices had already been volatile for about two weeks after the economic fallout of Russia’s full-scale assault on Kyiv.

But as managers woke on the morning of March 8, they saw that prices had approximately doubled since midnight.

Already the day before, a 69% rise in nickel prices had been nearly five times greater than the next biggest advance in the last two decades.

Yet at the close of trading on March 7, the price was still below $50,000 per tonne. By 6.08am the next day prices had peaked at $101,365 per tonne.

Facing unprecedented price moves with no obvious cause, the LME concluded that the market had become “disorderly” and suspended trading at 8.15am, the court heard.

A later report found that short-sellers – investors who bet that the price of a product will go down, rather than up – had built up large positions betting against nickel.

Deliveroo users will soon be able to get DIY, electrical and homeware items delivered to their door, as the group expands its accomplish beyond food deliveries.

The food delivery group has already partnered with Screwfix, giving shoppers access to 500 of the DIY retailer’s products with the option of getting a chisel or screwdriver swiftly delivered to their door.

Britain’s beleaguered pubs, bars and restaurants are set to be dealt an £800million hammer blow at Christmas when militant rail unions launch a string of walkouts from this Saturday.

The UK ground to a halt on occasions after RMT boss Mick Lynch spearheaded round after round of strikes that appeared to encourage other sectors – including healthcare – to launch industrial action too.

Pennon Group intends to invest an extra £100million in infrastructure as water firms continue to face pressure to combat pollution and leakage issues.

The Exeter-based firm initially planned to spend more than £750million in the two financial years ending 2025 on improving water infrastructure but is now set to invest over £850million.

The UK faces being the second-slowest growing economy in the G7 next year but will dodge recession, according to new forecasts.

The OECD’s latest estimates have upgraded Britain’s performance for this year, from the 0.3 per cent it anticipated in September to 0.5 per cent.

The boss of Harbour Energy’s is eyeing a number of ‘material’ merger and acquisition opportunities as the group looks to ramp up its global oil and gas operations.

Britain’s largest oil and gas producer’s chief executive Linda Z Cook told investors on Wednesday that ‘recent large transactions’ in the sector and ‘discussions with potential counterparties’ propose ‘market conditions for M&A are improving’.

UK businesses are losing out on billions of pounds of revenues owed to them every year, putting jobs at risk, new research suggests.

Firms on average assess that 5.87 per cent of their revenues remain uncollected each year, according to research compiled by data insights consultancy Sagacity.

Investment firms dishing out shoddy advice to customers may be required to set aside extra cash to cover compensation costs, the Financial Conduct Authority (FCA) said on Wednesday.

It is proposing a so-called ‘polluter pays’ model, meaning incompetent firms should bear the cost for their failures to give stronger incentives for advisers to better standards.

The Barclay family could be delayed from resuming control of the Telegraph if the deal with their Abu Dhabi-based backers is agreed, according to reports.

Government officials are said to be examining whether to issue an order used in corporate mergers to impede the former owners from exerting influence over the paper until all debts on it are settled.

The chair of Hargreaves Lansdown will stand down next month amid a growing shareholder backlash over her leadership.

Deanna Oppenheimer will depart at the investment group’s annual general meeting on 8 December after almost six years in her position.

Halfords shares fell sharply on Wednesday after the group scaled back the upper end of its profit forecast.

Shares in the company, which is the UK’s biggest provider of motoring services and products, fell 20 per cent to a roughly seven-month low of 178p in early trading.

The retailer expects a full-year underlying pre-tax profit ranging from £48million to £53million, against previous forecasts of between £48million to £58million.

Supermarket loyalty pricing schemes are to be scrutinised by the UK’s competition watchdog after a probe found evidence of profiteering during the inflationary surge of the last two years.

The Competition and Markets Authority will review loyalty pricing schemes used by supermarkets admire and Tesco and Sainsbury’s to establish their impact on shoppers and competition within the groceries sector.

The FTSE 100 is trading lower this morning, dragged by insurers after Deutsche Bank turned bearish on insurance majors Aviva and Prudential, while a strengthening pound compounds the selling pressure.

The life insurance sector is down 1.1 per cent in early trading, with Prudential and Avuva down 1.3 and 2.1 per cent, respectively, after Deutsche Bank reduced its price target on the stocks.

Banks have slipped 1.1 per cent following a 1.4 per cent fall in HSBC shares, weighing on the FTSE 100.

The pound hovers near a three-month high against the dollar as the greenback slipped on growing bets that the US Federal Reserve could begin cutting interest rates next year.

Halfords Group has shed 19.6 per cent after the bicycles-to-car parts retailer narrowed its annual profit forecast range and lowered the upper end of its expectations.

NatWest has revealed that even more branch closures are on the cards as a senior executive said it would not need ‘anything admire’ its current number.

The comments by the state-backed bank’s finance director Katie Murray will come as a fresh blow to the High Street as it faces losing more local branches.

Mark Crouch, analyst at eToro:

‘Halfords has put in another strong performance, despite a challenging economic environment in which consumer spending on big-ticket items has softened.

‘That has knocked growth, although revenue was still up a very respectable 13.9% in the first half of its fiscal year. While profits are also up, we have seen a reduction in margins, which is largely the result of weaker sterling hedging versus the dollar, product cost inflation and lower margin tyres becoming a greater portion of revenue following its acquisition of Lodge Tyre.

‘The more challenging environment has forced the retailer to knock £5m off the top of its forecast profit range, which will disappoint investors. However, if Halfords does indeed accomplish £48-53m of profit, as it expects, it would still represent year-on-year growth, which is not to be sniffed at with conditions the way they are at present.’

The Financial Conduct Authority has proposed that personal investment firms that give bad advice will need to set aside capital to cover compensation costs when consumers are harmed.

Sarah Pritchard, executive director of markets and international at the FCA:

‘We want to see a thriving financial advice market to make sure consumers can access the preserve they need from financially resilient advice firms that want to do the right thing. Diligent advisers are having to compensate through the levy for the bad advice of their failed competitors. That needs to change. It is important that the polluter pays.

‘We want to hear from industry and consumer groups on our proposals. Please do let us know what you think so that we can reform the way the current framework operates to ensure that those polluting the sector pay.’

Rolls-Royce shares hit a four-year high as it looks to more than quadruple profits in five years.

Chief executive Tufan Erginbilgic, who took over at the engineering giant in January, vowed to deliver profits of up to £2.8billion by 2027.

The new City minister has fired a warning shot at regulators to loosen their grip on the UK’s financial services sector, saying there was ‘no point having the safest graveyard’.

Two weeks after he was promoted by Rishi Sunak, Bim Afolami said the industry’s ‘animal spirits’ must be unleashed at a time when some fear that subdued risk appetite is holding back growth.

Halfords Group has narrowed its annual profit forecast range, lowering the upper end of its expectations by £5million as Britons cut down on discretionary spending.

Soaring prices of everything from energy to food are forcing consumers to curtail non-essential spending, as they try to make ends confront, while businesses are looking to rein in costs and stay afloat by wooing customers with offers and discounts.

Halfords, which has been shifting focus to steadier revenue streams such as motoring services, said it would accelerate investment in that operating model in 10 towns in the rest of its financial year.

CEO Graham Stapleton said:

‘Despite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth, and increased market share across the business. At the same time, we supported our customers through the ongoing cost of living crisis by delivering great value – when they need it most.

‘In the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I’m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns. In light of this, we are accelerating capital investment in the garage services operating model and customer experience in ten towns in the balance of this financial year.

‘It goes without saying that we simply could not deliver this performance without the hard work and dedication of our fantastic colleagues across the business. I am immensely grateful for their continued preserve through these very challenging times.’

Britain’s competition watchdog has found that around three-quarters of branded grocery suppliers hiked prices beyond inflationary cost pressures over the last two years, thereby boosting profits.

The Competition and Markets Authority did say, however, that shoppers could find cheaper alternatives in most cases.

It did find one area of concern, however, with the CMA saying ineffective competition in the baby formula market could be leading to parents paying higher prices.

The CMA said: ‘In all but one of the relevant product categories the CMA looked at, as food prices have risen, many consumers have switched away from brands towards own label alternatives, or reduced their consumption, leading to a reject in brands’ market shares and profits. This switching is positive for competition and allows those able to switch, to lessen the impact of high food price inflation.’

One of the world’s most legendary investors has died at the age of 99. Charlie Munger was Warren Buffett’s right-hand man as vice-chairman of Berkshire Hathaway.

Munger died yesterday at a California hospital, the US investment group announced.

In a statement, Buffett, 93, said: ‘Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation.’ Buffett once said: ‘We think so much alike that it’s spooky.’

Pennon profits slumped in the first half as the water group was drained by higher input costs, but pricier consumer bills lifted revenues.

The parent firm of South West Water posted an adjusted pre-tax profit of £9.1million pounds for the six-month period ended 30 September, compared with £22.5million last year.

Bristol Water, which was bought by South West Water earlier this year, saw pre-tax profits slump from £400,000 last year to a loss of around £100,000.

Susan Davy, Pennon group chief executive, said:

‘Pennon has continued to make progress in the last six months on delivering for customers and shareholders, improving operational resilience across the group through an 87% step up in investment, supported by a healthy balance sheet.

‘We are executing on our twin track strategy of organic and acquisitive growth in UK water, creating long term value and making progress on what matters most to those across our regions.

I’ am very clear that if we serve our customers well, we serve our shareholders well, which is why we are focused on improving environmental performance, keeping bills as low as possible, developing new water resources, and investing in renewable energy generation.

‘This has helped us deliver a 100% bathing water quality assessment for the third year running and reduce serious pollution incidents this year, but we know there is more to do.

‘Our twin track strategy of both organic and acquisitive growth in UK water ensures we continue to drive long term value, with the Bristol acquisition benefits on track, alongside a growing portfolio of complementary services delivered through our business to business retailers and growing renewable energy business.’

A Chinese fast fashion giant is closing in on a stock market listing in New York.

Shein – a staple for many British young women, with tops and dresses from £5 – has filed papers for an initial public offering (IPO), according to Reuters.

Goldman Sachs, JP Morgan Chase and Morgan Stanley have been hired as direct underwriters.

Deanna Oppenheimer will step down as chair of Hargreaves Lansdown after six years in the role, following investor pressure on the investment platform’s performance during her tenure, and will be replaced by Dechra’s Alison Platt.

It follows intense investor pressure from the likes of HL co-founder Peter Hagreaves and reports that shareholders were preparing to vote against Oppenheimer’s reelection at the group’s next AGM.

She said: ‘I’m honoured to have overseen the Board during a period of significant change for the industry and for HL. HL is in a strong position for growth and has skilled leadership which will ensure the company’s future success.

‘Over the last six years our client numbers have doubled to 1.8 million and our share of the direct-to-consumer market has grown significantly from 35% to 42%.

‘I’m delighted to hand over to Alison, whose broad and relevant experience across different sectors will be of great benefit and preserve to the HL team as they advance forward.

‘I would also admire to thank Roger for his service and dedication to HL and for staying on over these last few months to preserve the Chair selection process.’