BUSINESS LIVE: Inflation falls to 2.5%; Serco wins $247m contract; Fuller’s enjoys strong

(PA) – US private equity firm Fortress has increased its takeover bid for cafe bar business Loungers after pushback from investors.

Fortress Investment Group said it has now made a 325p-per-share offer to buy the fast-growing hospitality chain, in a move which would value it at £354.4million.

It represents an uplift from the previous 310p-per-share move, which had valued the company at around £338million.

Directors at the business had supported the initial takeover proposal in November by the US owner of Majestic Wines.

On Wednesday, Loungers pushed for investors to agree to the new offer, stating that executive chairman Alex Reilley and chief executive Nick Collins would “find their positions untenable” if shareholders voted against the sale.

It comes after reports in The Times that a number of significant shareholders, including Slater Investments and AXA Investment Managers, had indicated they would vote against the deal.

Mark Slater, whose firm Slater Investments owns a 10.4% stake in the casual dining chain, told the newspaper “it’s the wrong time to be trying to sell”.

The owner of Royal Mail said it remained on track to return to annual profit after a parcel boost over Christmas.

The update was revealed as the group’s £3.6billion takeover by Czech billionaire Daniel Kretinsky nears completion.

HMRC customer service levels have plummeted to such lows that the majority of entrepreneurs say it is now affecting their business.

A survey by the Association of Chartered Certified Accountants (ACCA) shared exclusively with This is Money found 89 per cent of members said poor levels of service at the tax office is having a negative impact.

(PA) – Lloyds Banking Group has revealed plans to shut its office in Speke, Liverpool, later this year, impacting around 500 staff based at the site.

It said the closure is part of broader plans to run “fewer, better-equipped” offices amid efforts to cut costs back.

Lloyds said it has not cut jobs as part of the closure plans. However, around 420 workers at the Speke office will be asked to relocate to its Cawley House office in Chester.

Around 80 other workers based in Speke are working remotely or will be working remotely when the building closes, it added.

A Lloyds spokesman said: “In line with our commitment to enhancing our property estate, we are creating fewer, better-equipped, modern and sustainable offices to suit the future of our business.

“As part of this, we are building hubs and communities in key locations across the UK to help deliver on our strategy.”

Investors must make sure they have their say as a US hedge fund targets popular investment trusts.

US-based Saba Capital Management is seeking to gain control of seven investment trusts and make wholesale changes.

Former Resolution think-tank chief Torsten Bell is the new Pensions Minister after his predecessor was appointed City Minister following a six-month stint in the post.

The abrupt job change for Emma Reynolds follows the resignation of Tulip Siddiq from the Treasury over links to her aunt’s former government in Bangladesh.

Fuller’s said it was optimistic about hitting annual forecasts after enjoying healthy trade over the festive season.

The pub chain revealed its like-for-like sales increased by 10.2 per cent over the five-week Christmas and New Year period thanks to a ‘consistent performance’ across its estate.

House prices rose by £10,000 in the 12 months to November, according to official figures.

The average property price rose 3.3 per cent in the year to November 2024, according to the Office for National Statistics, despite a fall of 0.4 per cent in the final month of that period.

Vistry has warned that market conditions remain ‘uncertain’ this year as the housing sector grapples with affordability and broader economic woes.

However, the FTSE 100-listed housebuilder maintained its 2024 earnings forecast.

Rachel Reeves will have breathed a sigh of relief – though the respite may be short-lived.

Official figures today show inflation in the UK dipped from 2.6 per cent in November to 2.5 per cent last month.

The price of a basic funeral has hit a record £4,285, with increased burial and crematorium fees alongside staff wages driving up costs.

The average price has risen 3.5 per cent over the past year, pushing it above a previous pre-pandemic high of £4,194.

Currys has upped its annual profit outlook after reporting a 2 per cent increase in underlying sales for the key Black Friday and Christmas trading period.

Currys shares rose 11.12 per cent or 9.12p to 91.12p on Wednesday, having surged more than 90 per cent in the last year.

Inflation unexpectedly came in below expectations in December but remains above the Bank of England’s 2 per cent figure.

At its peak, inflation stood at 11.1 per cent. The latest ONS figures show that consumer prices index inflation fell from 2.6 per cent in November to 2.5 per cent in December.

Fiat has slashed the price of two of its electric models from January, having already reduced the cost of other battery cars in a bid to increase flailing demand that has seen the brand’s UK sales shrink by 14 per cent in the last year.

Prices tags for the 600e family crossover and Abarth 500e hot hatch have been trimmed by up to £4,220. Both now start from £29,975 in the hope it will make them more appealing to both private buyers and fleet customers.

Donald Trump will take centre stage at Davos next week when he delivers an address to the World Economic Forum.

The President will mark his return to the global stage when he appears virtually at the annual gathering of business and political leaders in Switzerland on Thursday – three days after his inauguration.

The sale of Royal Mail cleared another hurdle last night after European and American regulators approved a £3.6billion takeover.

International Distribution Services (IDS), which owns the postal service, said the deal has been cleared by the European Commission and the US Committee on Foreign Investment.

BP has postponed a crucial investor meeting as its boss recovers from surgery amid falling profits and slowing production.

The FTSE 100 oil giant yesterday said it has delayed next month’s Capital Markets Day to allow chief executive Murray Auchincloss to recuperate after a ‘planned medical procedure’.

China is exploring a potential sale of TikTok’s US operations to Elon Musk for up to £41billion.

The social media platform, which has more than 2bn users globally, faces a ban in America on national security grounds.

Nicholas Hyett, investment manager at Wealth Club, comments on the latest fall in inflation:

The slowdown will be very welcome for the government. It increases the scope for the Bank of England to cut interest rates, boosting growth and lowering the cost of borrowing.

That would create a little more financial headroom for the Chancellor and reduce the need for substantial cuts to public spending.

However, we think there’s a significant risk that inflation kicks off again later in the year. Employers are set to start paying higher rates of National Insurance in April, pushing up labour costs.

That is likely to see prices rise in sectors like hospitality and retail that employ substantial numbers of people and wear margins are already pretty thin.

That risks sparking an inflationary spiral. It could be a tense few months as we wait and see how things play out.

The boss of the US hedge fund battling to win control of seven London-listed investment trusts has branded the sector a ‘disaster’ – and claims he is the ‘white knight’ needed to save it.

Saba Capital boss Boaz Weinstein said shareholders have lost out due to an ‘ecosystem of greed’ that has damaged the performance of UK trusts. He hit back at the mounting opposition to his plans to overhaul the trusts and replace their directors with his allies.

Thomas Pugh, economist at RSM UK, comments on the latest UK inflation figures:

December’s dip in inflation won’t last long. The combination of firms passing through the large increase in labour costs imposed by the budget, increases in taxes and rising energy prices means inflation will breach 3% in the Spring, forcing Governor Bailey to pen his first letter to Rachel Reeves.

The tick down in inflation in December does raise the chances of a rate cut in February, but rising inflation this year means the Bank of England will cut rates  cautiously.

Embattled Rachel Reeves was offered a surprise respite today as inflation unexpectedly dipped.

The headline CPI rate slid to 2.5 per cent in December from 2.6 per cent the previous month, with core inflation also slowing.