City news: British car industry, Network Rail, Argos profits and high street sales
BRITAIN’S car plants were at their busiest for 12 years in March, driven by overseas demand.
Overseas demand for cars grew 11.1 per cent over the quarter
More than 159,000 vehicles rolled off production lines, one every 16 seconds and a 9.8 per cent increase on last year.
Output rose 10.3 per cent over the first quarter to 443,581, according to the Society of Motor Manufacturers and Traders.
The export market was the main driver as overseas demand grew 14.3 per cent in the month and 11.1 per cent over the quarter to 329,653.
SMMT’s Mike Hawes said new product launches meant, “the prospects for future growth look bright”.
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Network Rail to raise £1.8bn
NETWORK Rail yesterday cleared the way for a £1.8billion asset sale by creating its own property company, writes John Ingham.
It plans to “ramp up” property activities to help fund an upgrade of the railway.
Network Rail is creating its own property company
Options include selling retail space at stations, releasing land for homes and disposing of surplus maintenance depots and underused railway arches.
Managing director David Biggs said: “Our new property company will have greater powers to unlock land for homes, drive economic growth in towns and reinvest money into the rail network to help fund the Railway Upgrade Plan.”
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Argos' profits fell 36 per cent last year
Electricals turn-off for Argos
PROFITS at Argos fell 36 per cent last year as shoppers switched off spending on electricals such as TVs and tablets.
Owner Home Retail Group, which is being bought by supermarket Sainsbury’s for £1.4billion, cut its prices in a fiercely competitive market so while sales were fl at at £4.1billion, operating profit fell from £129.2million to £83.1million.
Home Retail chief executive John Walden said: “Some categories were a drag, in particular electricals, with TVs down 6 per cent.”
It recorded stronger sales of toys and sports equipment. Walden praised Argos’s work to become a digital leader, adding it “is now positioning us for success in the future”.
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Poor weather has hit high street sales
Chill wind hits sales on high street
COLD weather and consumer belt-tightening sent a chill through Britain’s high streets as sales fell at the fastest pace in over four years this month.
A CBI survey of 117 firms found that department stores and clothing chains’ spring and summer ranges were particularly hard hit.
Meanwhile, today’s retail monitor from business law firm Bond Dickinson and the British Retail Consortium found full-time jobs in the sector fell by 0.9 per cent in the first quarter on the same period last year – the sharpest decline for 18 months.
The number of outlets fell 0.5 per cent. BRC chief executive Helen Dickinson said: “These figures confirm that the rate of change within retail is quickening as the digital revolution reshapes the industry, more property leases come up for renewal and the cost of labour goes up – while the cost of technology goes down.”