GB Bank receives £20m capital boost and announces a new chair

Finance

Superdry boss Julian Dunkerton hits out over Shein's 'unfair tax advantage'

The boss of struggling retailer Superdry is calling on the government to take action after claiming fast-fashion brand Shein has been allowed to "dodge tax". Julian Dunkerton, founder of the Gloucestershire-based clothing chain, told the BBC the rival firm had an "unfair advantage" as it does not have to pay import duties on low-priced parcels sent from abroad. Under current rules, imports under £135 being sent to shoppers in the UK from overseas are not charged any tax. Shein did not comment on the claims by Mr Dunkerton on Tuesday but has previously said it meets all its tax liabilities in Britain. It has also said in the past its success is a result of an "efficient supply chain" rather than being exempt from paying import duties. Meanwhile, the Treasury has insisted UK policies around tax need to balance the interests of shoppers and retailers. “The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax,” Mr Dunkerton told the BBC. "We’re allowing somebody to come in and be a tax avoider, essentially. "Personally, I would force them into paying import duty, VAT and possibly even an environmental tax." Superdry stopped trading on the London Stock Exchange in July after months of uncertainty over the brand's future. The beleaguered chain agreed a rescue deal with shareholders in June. The delisting is part of a package of measures that includes a £10m equity raise underwritten by Mr Dunkerton. Superdry, which is headquartered in Gloucestershire, said its plan it will make "material cash savings" over a three-year period.

Finance

£300m investment vehicle for science and tech spinouts launches

A £300m investment vehicle to help university spinout companies in the South of England and Wales has been launched. SETsquared - a partnership between the universities of Bath, Bristol, Cardiff, Exeter, Southampton, and Surrey - and regional investment firm QantX are behind the initiative. The aim is to catalyse the creation and growth of science and technology firms addressing global challenges. Sir Richard Olver, chair of QantX, announced the details of the investment vehicle at Bristol City Hall on Friday (October 11) at the Regional Investment and Health & Life Sciences Summit. Science minister Lord Patrick Vallance, who was in attendance, said: “The UK is home to brilliant innovators, and this investment vehicle that brings together six universities with a private sector investment firm QantX will help turn great ideas into thriving companies that create high skilled jobs and exciting new products." SETsquared is widely recognised as one of the UK’s most successful innovation partnerships. Since 2002, its members have secured more than £5bn in investment and created over 15,000 jobs. Marty Reid, executive director of SETsquared, said: “Creating this new investment vehicle could be a vital step forward in addressing funding gaps we see today, and through a deep connection with our support ecosystem, could inspire a new generation of talent who will get technologies out of the lab and shape the industries of tomorrow." Richard Haycock, co-founder and chief executive of QantX, added: “We're witnessing a surge in university spin-outs led by brilliant founder entrepreneurs. By connecting these visionaries with risk capital and expertise in transformative fields like life sciences, sustainability, and deep tech, we're cultivating a thriving innovation ecosystem." The announcement comes just days before senior execs from some of the world's biggest firms prepare to gather in London for the government's Investment Summit. Ex-Google boss Eric Schmidt and Goldman Sachs chief executive David Solomon are among business leaders slated to attend. West of England's Labour metro mayor, who attended Sir Keir Starmer's first council of regions and nations in Scotland on Friday, will also be in attendance.

Finance

Nationwide takeover of Virgin Money to complete next week after judge approval

Nationwide Building Society’s £2.9bn takeover of Virgin Money is expected to go through next week after the deal was approved by a judge. Lawyers for the lenders secured the sanctioning of the deal at a specialist companies court in London on Friday. It comes after the Swindon-headquartered building society agreed to the takeover of its London-listed rival in March. Nationwide struck the takeover deal with a 220p-a-share offer for Newcastle-based Virgin Money, including a 2p-per-share dividend payout. At the end of a short hearing, Judge Sir Anthony Mann said he was “satisfied” that legal requirements had been complied with. The court heard that 90% of shareholders who voted at a meeting in May had backed the scheme. “It’s obviously a sensible scheme with financial benefits,” Sir Anthony said, adding: “There is no apparent blot on this scheme.” He continued: “I can see no reason not to sanction the scheme and in my discretion I will do so.” Earlier this month, the lenders told the stock market that the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority had both approved the takeover. The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5m customers, more than 25,000 staff and nearly 700 branches. But the move is set to ultimately spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.

Finance

Lush to end largest charitable giving scheme

Cosmetics retailer Lush is planning to end its main charitable giving stream at the end of the month. The announcement comes four months after the Poole-headquartered retailer posted a pre-tax loss of nearly £30m, despite achieving a turnover of more than £700m. Lush launched Charity Pot in 2007 with a target of £1m for grassroots groups working in the areas of animal protection, human rights and the environment. Over the past 17 years, Lush has distributed 17,000 grants worth millions of pounds. Funding has gone to a range of organisations including groups defending the human rights of refugees and displaced people globally; the LGBTQI+ community counteracting prejudice; anti-fracking groups; and non-profits addressing racial discrimination. Lush said that campaigning and charity products would not be disappearing from its business. "Following Lush reaching the significant milestone of over £100 million in donations, the business feels that this is the right time to reflect on charitable giving as a whole and assess the funding needed to meet the current challenges the world faces at this critical time," the company said in a statement. Lush said its biannual prizes would continue and it would also continue to support good causes. It is planning to raise money through product sales instead. The retailer is currently selling 'watermelon slice' soap in shops and online, with 100% of the profits going to childhood mental health services in Palestine. The business is also planning to launch ‘keystone products’, inspired by species that act as ecosystem engineers, regenerating habitats for other species. "Each keystone product will raise money for a project in a priority landscape around the world", Lush added. Lush operates in 51 countries and has manufacturing sites in six, according to latest accounts on Companies House. It also has 857 permanent shops, the financial data states, down from 886. In January, Lush was victim to a ransomware attack that temporarily shut down some of its internal computer functions in the UK and Ireland. The company has since been working with external security specialists to investigate the incident.

Finance

Stanlow refinery owner EET Fuels seals $650m funding deals – as reports suggest Hynet cluster could get billions of pounds in Government backing

Energy giant and Stanlow refinery owner EET Fuels has agreed $650m in funding to support its decarbonisation strategy – as reports suggest the Government could today pledge billions to a green industry plan of which Stanlow is a key link. Essar Energy Transition (EET) Fuels, whose Cheshire refinery supplies 16% of all road transport fuels in the UK, says the three receivable financing and trade credit financing facilities it has agreed show the market is confident in its plans to slash emissions from Stanlow as it continues its push towards hydrogen. Meanwhile the Financial Times is reporting that on Friday the Government will pledge £22bn to support two carbon capture and storage schemes, including the HyNet project that links a cluster of industrial sites in the North West and North Wales. EET Fuels has secured a new receivable facility with ABN AMRO Bank for $150m, has extended and upsized its facility with banks HCOB and UMTB to $200m, and has secured a trade credit financing for $300m with “an international oil company”. The group says its Stanlow decarbonisation plan “is central to these new relationships”. The group is aiming to reduce emissions at Stanlow by 95% by the end of the decade by combining carbon capture technology with the use of “blue hydrogen” from natural gas. Stanlow is also at the heart of the HyNet low-carbon cluster, which aims to grow the low-carbon economy in the North West and North Wales. Satish Vasooja, chief financial officer at EET Fuels, said: “This is an excellent outcome for EET Fuels. Knowing our decarbonisation strategy has the backing of major financing partners, we can continue to develop and invest in our business with confidence.” Tarun Naruka, head of corporate and structured finance at EET Fuels, said: “These new facilities strengthen our balance sheet, adding flexibility to our financing arrangements and demonstrate that major financing partners are aligned to our core strategy, including cost optimisation and continued performance improvement.” The FT says the Government is planning to commit to carbon capture tech in the UK by supporting the HyNet cluster and the East Coast Cluster. Both projects will see emissions from industrial sites captured and stored under the seabed. Under Hynet, emissions from Stanlow and other industrial sites would be storied in depleted gas reservoirs below the Irish Sea. Other partners include Italian energy group ENI, which would operate the CO2 transportation and storage system.

Finance

Sir James Dyson says Labour 'killing off family businesses' with inheritance tax

Billionaire inventor Sir James Dyson has taken a swipe at the Government for “eviscerating” UK family businesses with the inheritance tax measures announced in last week’s Budget. The businessman, whose company employs thousands of people at its base in Malmesbury in Wiltshire, warned that small firms and start-ups will “suffer”, while private equity and public companies escape the taxation. Chancellor Rachel Reeves used her first Budget to make changes to inheritance tax, including reducing reliefs for agricultural and business property from April 2026 in a bid to raise more funds for the public sector. For assets over £1m, inheritance tax will apply with an effective rate of 20% – half the standard 40% rate. But the measure has faced a backlash from those across the agriculture sector who say the levy will affect farms being passed down from one generation to the next. Sir James, who, as well as founding technology firm Dyson, owns a commercial farming business, expressed his frustrations with the new Chancellor’s tax changes. He wrote in The Times: “Make no mistake, the very fabric of our economy is being ripped apart. No business can survive Reeves’s 20% tax grab. It will be the death of entrepreneurship.” He added: “Every business expects to pay tax, but for Labour to kill off homegrown family businesses is a tragedy. In particular, I have huge empathy for the small businesses and start-ups that will suffer.” Meanwhile, companies owned by overseas families, and private equity-owned and publicly-listed firms that are “about maximising short-term profit” will not pay the same taxes, he said. Sir James is a major landowner and his business, Dyson Farming, produces crops on 36,000 acres across the UK. The entrepreneur and his family have a fortune of about £20.8bn, according to the latest Sunday Times Rich List. Ms Reeves has defended the proposed reforms to inheritance tax by claiming it is not “affordable” to keep the current system.

Finance

Reusable mask maker that supplies NHS secures £1.6m

A Cornwall company that makes reusable surgical masks and gowns has secured £1.6m of funding. Revolution-Zero, which was founded during the Covid pandemic, received £1m from the South West Investment Fund via appointed fund manager FSE Group as well as investment from private angels. The injection of equity will help create 20 jobs at the Truro-based medical textiles firm, while supporting the growth of the business. Founder and chief executive Tom Dawson said: "We are thrilled to receive this South West Investment Fund investment via FSE, which will not only accelerate our growth but also further our mission to provide sustainable and effective medical textile solutions. "Our end-to-end service model has already shown significant potential in reducing single-use item dependency in healthcare settings and this funding will help us scale these solutions more rapidly." Founded in 2020, Revolution-Zero has a strong emphasis on environmental, social, and economic sustainability. Initially focused on reusable masks, the company has since expanded to include surgical textile solutions and decontamination/sterilisation units. The BCorp certified company secured accreditations required to supply the NHS in 2021 and has since experienced rapid growth, expanding to 23 staff and more than tripling turnover. With ambitious plans to achieve six operational medical textile processing units by 2026 - rising to 24 by 2028 - Revolution-Zero is aiming to become a £25m turnover business within the next three years. Anna Staevska, FSE investment manager, said: "Revolution-Zero's innovative approach to medical textiles is a game-changer for the healthcare industry. By addressing critical issues related to supply chain vulnerabilities and environmental impact, they are setting new standards for sustainability in the sector."

Finance

Virgin Money's takeover by Nationwide building society is completed

The takeover of Virgin Money by Nationwide has been completed, the leading building society has announced. After getting court approval at the end of last week, the £2.9bn deal has now been made effective, with the entire issued and to be issued share capital of Virgin Money now owned by Nationwide. The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5m customers, more than 25,000 staff and nearly 700 branches. Nationwide has previously said that it would retain the two brands and phase out Virgin Money over the next six years. It has also said it wasn’t looking to cut staff at Virgin Money’s main sites in Newcastle and Glasgow in the short term. Virgin Money chief executive David Duffy has stepped down to be replaced by Chris Rhodes, who was formerly Nationwide’s chief finance officer. Debbie Crosbie, chief executive of Nationwide, said: “Nationwide is now a stronger mutual and able to deliver even greater value through our unique branch promise, leading customer satisfaction, and competitive savings and lending rates. All Virgin Money profits will be retained for the benefit of customers and, for the first time in the UK, a full service business bank will be part of a large and modern mutual.” Chris Rhodes, new chief executive at Virgin Money, said: “This is the start of an exciting new chapter for Virgin Money as it becomes part of Nationwide, creating the UK’s second-largest provider of mortgages and savings accounts.

Finance

Bank of England expected to hold interest rates at 5%

The Bank of England is poised to keep interest rates at 5% after sending a “clear message” that it would not move too quickly to cut borrowing costs. Most economists think that rate-setters on the Monetary Policy Committee (MPC) will keep the UK interest rate on hold on Thursday. This would keep the Bank’s base rate – which affects interest rates on borrowing and saving – at the highest level since 2008, during the global financial crisis. The central bank cut rates from 5.25% in August, implementing the first reduction since 2020 and delivering good news to squeezed borrowers across the country. Governor Andrew Bailey said it was able to do so because inflationary pressures had “eased enough”. However, he stressed that policymakers “need to be careful not to cut interest rates too quickly or by too much”. Matt Swannell, chief economic adviser at the EY Item Club, said the MPC “sent a clear message that back-to-back rate cuts were unlikely” unless subsequent economic data was weaker than expected. He said the latest official data, which showed Consumer Prices Index (CPI) inflation remained at 2.2% in August, would not be enough to prompt the Bank to start cutting rates more quickly. Sanjay Raja, chief UK economist for Deutsche Bank, agreed that the inflation figures “won’t be enough to trigger a surprise rate cut” on Thursday. “Instead, the MPC will likely take this as a positive sign that underlying price pressures are easing, and could warrant a further dial down of restrictive policy in November, when it conducts its next forecast update,” he said. “The MPC will also have more information on the fiscal outlook, with the autumn Budget slated for October 30.” Rob Wood, chief UK economist for Pantheon Macroeconomics, agreed that August’s inflation reading “gives the MPC little reason to rush to cut interest rates again”, with the data staying close to its expectations. He said another month of slowing prices in the services sector, which is watched closely by the Bank, would give rate-setters more “comfort”. Meanwhile, the Bank of England could take note of the European Central Bank (ECB) decision to cut interest rates in the Eurozone last week, the second reduction in a row. The ECB’s rate-setting council lowered the main deposit rate from 3.75% to 3.5% at the meeting.

Finance

Finance lender Atelier launches new Birmingham base

Specialist development finance lender Atelier has opened a new regional office in Birmingham's business district. Following the deployment of £150 million capital to the region, Atelier has launched the new space in 102 Colmore Row which is led by lending director Rav Kudhail. The London-based company said the new base would enable it to expand its provision of custom finance products to developers across the West and East Midlands and further afield towards Leeds and Manchester. It has already worked on several projects in the region including providing finance for the conversion of a grade-II listed building in Birmingham's Jewellery Quarter to create 32 apartments and a 196-studio student development near University of Warwick. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Mr Kudhail said: "I've been based in Birmingham for the last three years and I am proud of the relationships we have built up with developers, intermediaries and professional partners. "The fact we've delivered £150 million of lending in the region so far is evidence of our commitment to being the lender of choice to finance a range of asset classes across central England and the North." Chief executive Chris Gardner added: "The opening of our Birmingham office underscores our commitment to funding property development in the region.