Good morning and welcome to the BusinessLive Breakfast blog on Tuesday, 27 August.
I'm Jonathon Manning and I'll be here with you every morning to give you a round-up of the most important events taking place in the commercial world.
Online estate agents Purplebricks has said it is considering changing its current flat fee pricing structure, admitting that some homeowners do not want to commit to the fees.
The firm, which charges £1,399 in London and £899 elsewhere, said that it had kept its pricing model mostly the same for five years. However, it said in some parts of the country its prices were not attractive.
The changes are being considered after Purplebricks decided to refocus its efforts on the 海角视频 market and pulled out of the US and Australia. CEO Vic Darvey described the overseas expansion as a "distraction".
If you'd like to contribute to the blog, you can contact Jonathon Manning via Twitter at @JonnyAManning or drop me a line at jonathon.manning@reachplc.com. You can also keep in touch with the BusinessLive team on Twitter at .
Key Events
Everything you need to know...
That’s all from me this morning on the Business Live Blog. I’ll be back tomorrow morning with more news from across the world of business.
We’re sure to have more news coming in throughout the day.
Until our next story here are some of the top articles from our regional teams:
Northern leaders push for region’s voice to be heard in HS2 review
The CEO of Housesimple on turning ‘estate agency on its head’
How £60m Littlewoods Building Hollywood movie studio will look as work set to begin
Mystery of the £16m student towers that have never been lived in
Hirehand looks for funds to fuel expansion
A staffing platform business is looking for new funding to fuel its expansion plans after seeing a “worrying” rise in udner-employment.
Company founder Scott Erwin said that although the 海角视频 is enjoying record levels of employment a high number of short-term and zero-hour contracts means that workers cannot make ends meet.
Mr Scott said he launched HireHand to help people working incoherent shift patterns to fill games in their schedules.
HireHand also works with companies, particularly in the food and drink sector, looking for staff at short notice or to fill gaps in rotas. The firm, launched in 2015, has grown in the 海角视频 by predominantly working with street food businesses and restaurants such as Ottolenghi, Rosa’s Thai and Bao.
The company is now looking to expand into New York and the city’s fast group construction sector. To fund its growth it has launched a £1m crowdfunding campaign on Seedrs.
Mr Erwin said:
London has seen a rise in the number of so-called “working poor” despite improvements in unemployment, and HireHand is designed to help those people gain work which fits their schedule to increase their earnings.
The funding will partly go towards moving into the construction sector, because that is an area which faces many of the same challenges we’ve seen working in food and events.
Its all about ensuring the platform helps people find work that suits them, that is flexible enough for modern workers and companies.
Distribution firm Bunzl in 'acquisition talks' as outsourcer posts higher first-half revenues
Distribution and outsourcing giant Bunzl is in talks with “a number of acquisition targets” as it looks to accelerate growth for the rest of 2019.
The FTSE 100 firm reported a 1.6% rise in pre-tax profits to £200.5m for the six months to June 30, while revenues were also higher.
However, Bunzl said it hopes to boost its finances for the rest of the year through “additional deals” and is currently holding “active discussions” with possible acquisition targets.
The company saw revenues for the period rise 4.3% to £4.5bn, although this growth was only 1.2% at constant exchange rates, as it benefited from weakness in the pound.
Chief executive Frank van Zanten hailed Bunzl’s performance considering the “background of slowing macroeconomic and market conditions” across some of its regions and sectors.
He added that its “resilient” operations and “high cash conversion” allowed it to post an increased dividend, continuing a 26-year streak.
He said:
Despite continuing economic uncertainties, the board believes that the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets will lead to further progress.
Looking forward, the group’s expectations for 2019 remain unchanged.
The company said it has already committed to an acquisition spend of £98m so far this year and hopes to be boosted by a further pipeline of deals.
Bunzl was significantly boosted by its continental Europe and North American divisions, which offset declines in the 海角视频 and Ireland.
Its 海角视频 and Ireland arm saw revenues slide 3.7% to £602.5m, while operating profits in the region fell 10% to £35.6m, after it was hit by difficult trading in hospitality and healthcare.
North East: ScS to create 50 new jobs at its Sunderland HQ
North East furniture chain ScS has announced it is creating 50 new jobs at its head office in Sunderland.
The retailer is creating the roles within its customer experience team in an attempt to improve its relationship with shoppers.
Once operational, the team will handle all of customer queries from the point of order, to delivery and aftercare.
David Knight, chief executive at ScS, said:
The creation of a clear, central point of contact for enquiries, aftercare and administration is designed to help us continue to build on our excellent customer experience, and we are delighted to be creating this new team in the North East.
Vans and Timberland's European boss doubles down on 海角视频 investment
The boss of the company behind footwear brands Vans and Timberland has said the 海角视频 will be centre to its strategy after Brexit.
Martino Scabbio Guerrini, group president for Europe, the Middle East and Africa (EMEA) at VF Corporation, told the PA news agency the company’s recent signing of two new shops in the capital showed “a lot of commitment to London and the 海角视频 in a time when there’s questions around that”.
He said:
In this case we are sticking to our long-term strategy and the 海角视频’s a really important market.
VF, which owns a host of brands including The North Face, Eastpak and Kipling, said last month it will be opening a new flagship Vans store at the former Miss Selfridge in Oxford Street.
A few weeks later it was revealed the group had secured a site in Carnaby Street for a new Timberland store.
Despite the challenges facing the 海角视频 retail sector and the uncertainty posed by Brexit, Mr Scabbio Guerrini said the company’s plans for its 海角视频 operations would help it to weather the storm.
To a certain extent there’s a little bit of an overlap in our work to invest into the marketplace, to improve the customer experience and the preparation for various Brexit outcomes.
He added there is scope for more shop openings around the 海角视频 and emphasised VF’s confidence in the future of bricks-and-mortar locations, which he said can co-exist with online shopping.
But he said physical retailers need to keep up with the times to survive.
Commenting on the high number of 海角视频 high street shops struggling in the current climate, he said:
They were not open and somehow bold enough to address change early on.
I always say I’m not afraid of change, I’m scared of not changing. Because the speed of technology today is very different from 10 years ago.
People are shopping on their phones within only a few years. The last five years have quickly turned the company upside down.
Carpetright shareholder bys up retailer's debts
Carpetright’s biggest shareholder has bought the retailer’s debts and vowed to engage with the business to provide longer-term, stable funding.
Meditor will now control Carpetright’s revolving credit facility of £40.7m, instead of previous lenders NatWest and AIB, although a day-to-day overdraft of £6.5m with NatWest and Ulster Bank will remain.
Carpetright has been struggling with a huge debt pile for several years and was forced to turn to Meditor for two short-term loans last year.
The first in March was £12.5m, with an arrangement fee of £1.9m and 3% interest. The second - a £15m loan in May - came with a £2.3m fee and interest of 18%.
But on Tuesday the high street flooring specialist said debts have been falling following the sale of two properties in Amsterdam.
Bosses also played down suggestions that Meditor - a private investment vehicle controlled by former Old Mutual fund manager and poker player Talal Shakerchi - was trying to squeeze the business.
Carpetright said:
Meditor has confirmed it now intends to engage with the company with a view to providing a more stable and longer-term funding platform.
In connection with the arrangements, Meditor did not seek any assurances from the company, did not propose board representation and did not request structural changes in the business.
Last year had been particularly hard for Carpetright, with a company voluntary agreement (CVA) insolvency process leading to creditors taking a hefty cut to their debts.
It also led to 80 stores closing and would see Carpetright pave the way for several retailers to use CVAs.
Earlier this year, the company revealed sales had taken a significant dent - down 13.4% to £386.4m - with customers staying away over fears that the chain could collapse.
Pretax losses improved, however, from £69.8m to £24.8m.
Chop salad chain Choppaluna eyes major expansion amid 海角视频 launch
A German healthy-eating chain is set to open its first 海角视频 restaurant as it eyes a major expansion which it believes could see 300 openings over the next 10 years.
Franchise owner Hero Brands has revealed plans to open the first flagship Choppaluna store in Bloomsbury, London in October.
The chopped salad restaurant is a rebrand of popular German brand Salaid, as it looks to cash in on increasingly health-conscious British consumers.
The central London site is set to be the first of a pipeline of Choppaluna stores, with 12 further locations already agreed as its eyes 60 sites within five years.
Nikras Agha, the founder of the chain, said he believes that 300 Choppaluna stores could open across the 海角视频 over the next 10 years.
Conceived in Berlin, the restaurant business serves healthy meals such as chopped salads, smoothie bowls and choprolls, a wrap containing salad.
After launching in central London, the restaurant business will expand to major cities across the 海角视频 including Birmingham, Manchester, Glasgow and Edinburgh.
Mr Agha said:
We came up with idea in 2015 after I saw chopped salad restaurants in the US with my wife and thought it would work in Germany.
The business has gone from strength to strength, so expanding it in the 海角视频 was the next logical step.
Obviously, a key part of our product is that it is healthy, but it has to taste great as well. People won’t feel like they are being short-changed by having one of our salads.
The launch comes amid a testing period for casual dining chains in the 海角视频, following the recent collapse of the Jamie’s Italian restaurant business.
Healthy eating chains are still burgeoning in the 海角视频, with salad eateries Tossed and Chop’d growing across the country, but still largely London focused.
Athif Sarwar, chief executive officer of Hero Brands, said:
The person having salad for lunch is no longer missing out and wishing they had something less healthy, Choppaluna is bringing guilt-free indulgence and will be a true star in the fast-casual space.
Hero Brands has joined forces with the German business to bring it to the 海角视频, after successfully rolling out a chain of kebab stores.
German Doner Kebab has 33 sites across the 海角视频, with plans to open a further 14 sites by the end of 2019, creating roughly 200 jobs.
Wales: New office space at one of Wales' biggest business parks
One of the biggest business parks in Wales, Mamhilad Park Estate, has brought to market newly refurbished office space with strong tenant interest reported.
The mixed-use estate in Pontypool provides 1.2 million sq ft of industrial space and 300,000 sq ft of office space.
A rolling programme of investment to improve and upgrade the full property portfolio has attracted a growing variety of occupiers.
Currently more than 150 public, private and third sector tenants, employing nearly 2,000 people, are located at the park.
Commercial property specialists Cooke & Arkwright are letting agents on part of the office portfolio for the park’s owner Johnsey Estates.
Tim Lawley, associate director at Cooke & Arkwright, who is marketing the offices and also acts on a referral basis for industrial units at the estate, said:
Refurbishment of the latest high quality office suite of 4,250 sq ft at Mamhilad House has recently been completed and is available to rent.
There is also a range of accommodation from 180 sq ft to 1,000 sq ft available on flexible terms across the office estate. There has been good deal of activity with tenants expanding and signing up, as well as some in the pipeline.
Read more about the site here.
FTSE and pound update
The FTSE-100 index opened at 7094.98.
The pound at 8am was 1.2216 dollars compared to 1.2231 dollars at the previous close.
The euro at 8am was 0.9079 pounds compared to 0.9086 pounds at the previous close.
Purplebricks considers new pricing strategy
Online estate agent Purplebricks is considering a new pricing strategy as it doubles down on its efforts in the 海角视频 market.
Chief executive Vic Darvey, who took up the position in May, said the firm could replace its current flat fee model.
Pruplebricks currently charges £1,399 to sell a home in London and £899 elsewhere.
Mr Darvey warned that pricing changes could be needed if the rate of house sales slows after Brexit.
He said:
We’re going to start to look at how we evolve our pricing over time because our pricing has been pretty much the same for five years, he said.
With any successful business, you need to adapt and evolve your pricing strategy.
In certain markets, in certain pockets of the country where houses aren’t moving quickly, there is a moment of hesitation from customers saying: ‘I know I can save £10,000 but actually do I want to commit to an £899 upfront fee when my house may not sell?”
The possible changes are being considered at a time when Purplebricks is doubling down on its efforts in the 海角视频. The company had also operated in the US and Australia but pulled out of those markets due to underperformance.
Mr Darvey described the firm’s overseas expansion as a ‘distraction’ for the board.
He said:
We were incredibly distracted by overseas expansion.
We’ve admitted we made some mistakes. I think we’ve been really clear in admitting that we’ve made some mistakes and we need to learn from those.