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

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

Alliance Pharma reports 'strong' performance after turbulent few months

Wiltshire healthcare firm Alliance Pharma has posted a rise in profits two months after making its chief operating officer redundant. The Chippenham-headquartered business reported underlying revenue of £84m for the six months ending June 30, 2024 - up from £81.4m over the same period in 2023. Profit before tax rose from £10.3m to £12.7m from the year before. The firm, which sells prescription and over-the-counter medicines, said demand for its scar treatment brand Kelo-Cote drove group revenues over the period. The company’s performance was assessed using so-called ‘alternative performance measures’ which are not defined under International Financial Reporting Standards (IFRS). The method is used by management to monitor ongoing business performance against shorter-term budgets and forecasts, and longer-term plans. Nick Sedgwick, chief executive of Alliance, said: "I am pleased by the performance we delivered in H1 24 as we continue to see the benefits of our investment in both marketing and innovation. Our free cash flow is expected to build strongly throughout the remainder of 2024, which we anticipate will enable us to reduce further our net debt and leverage by the end of the year.” Mr Sedgwick added: “I have also implemented a number of senior management changes to accelerate decision making and to bring the consumer closer to the heart of the business, and I see further opportunity to deliver efficiency gains and capability improvements over time.” News of the results follow tough few months for the company, which replaced its chief executive in May and delayed its results several times after problems with its audit. The business first delayed its results on April 5, on April 22 and then again on May 8. It said at the time its chief executive's departure was not linked to the issues with the audit.

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

Channel 4 invites black British entrepreneurs to apply for TV ad scheme worth £150k

Channel 4 is offering four black-owned British companies the chance to secure television advertising worth £150,000. The initiative - Black in Business - gives firms the chance to create their own commercial for the channel, plus six months of marketing and business mentorship. The scheme, which is being run in partnership with Lloyds, first launched last year. It is open to companies that generated a turnover of at least £250,000 in their last financial year and have not invested in TV advertising before. At least 50% of the founding team must also identify as black. Black in Business was inspired by research led by Channel 4 Sales, which revealed that 56% of black-owned businesses only receive funding once they are successful, compared to just 35% of white counterparts who were given the same requirement by lenders. Last year, the initiative attracted more than 1,000 applications, with the TV adverts for the five beneficiaries seen by 21.5 million people, according to Channel 4. Among the winners of the inaugural scheme was The Turmeric Co - a nutrition brand set up by former footballer Thomas Hal Robson-Kanu. The health drinks company launched in 2018 to help athletes recover from injuries. The drinks are all made in the UK and are stocked in Wholefoods, Planet Organic, Harvey Nichols, and at David Lloyd gyms. “Inclusivity and diversity are such an important aspect of the world today,” said Mr Robson-Kanu. “Less than 1% of supermarket brands have black or multi-ethnic founders. Initiatives like this allow brands and individuals a platform to raise awareness and create opportunities. I think it’s brilliant.” Last year's other beneficiaries of Black in Business include tea manufacturer Dalgety Herbal Teas; ethical fashion brand LØCI; clean eating firm The Gym Kitchen; and hair care brand TreasureTress. Jamelia Donaldson, founder and chief executive of TreasureTress, said: “With the community we serve, it’s so important our voice is amplified, and people will certainly see us on TV. It will also help mainstream haircare brands understand the massive opportunity they’re missing out on.” Channel 4 said that across two years of the initiative, more than £1m of TV advertising would have been made available to black-owned businesses in the UK. “We are excited to connect four black-owned businesses to the transformative power of TV advertising, and, in doing so to help support their growth journeys," said Ewan Douglas of Channel 4 Sales. Elyn Corfield, chief executive of business and commercial banking at Lloyds, added: “Black in Business has proven to be a game changer in the journey towards building a more equitable business landscape. These entrepreneurs are not just growing their businesses - they are inspiring the next generation.” Applications for Black in Business will close on October 28. More information is available at www.channel4.com/blackinbusiness We're celebrating the success of the UK's black-owned businesses - and we want to tell you all about them in our #IAMBOB newsletter! Once a month, we share news, features and comment from companies led by black business leaders - from start-ups and SMEs to blue-chip corporations and household names.

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.