City News: Lloyds, Kier, Eon, and Mitchells & Butlers
LLOYD’S of London could set up a subsidiary or branches on the Continent to protect its insurance underwriting when Britain leaves the EU.
The 328-year-old insurance market’s chief executive Inga Beale said: “The referendum was a major issue for us to deal with, we are advancing our plans for how Lloyd’s will continue trading with EU countries when the UK’s membership of the EU ends.”
Europe accounts for 11 per cent of its gross written premiums.
Lloyd’s grew half-year pre-tax profit 22 per cent to £1.46billion, helped by investment returns, as gross written premiums rose by 5 per cent to £16.31billion.
Major claims increased mainly due to the Fort McMurray wildfires in Canada and premiums “continue to be under pressure” amid fierce competition.
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Keeping Britain’s economy on the move by upgrading highways and railways will put Kier Group on the road to profit growth.
The construction services firm is expected to benefit from the Hinkley Point nuclear power project, alongside a pipeline of lower value contracts such as maintaining public housing and filling potholes.
Annual pre-tax profit rose 45 per cent to £125million on 26 per cent higher revenue of £4.2billion and Kier is confident of double-digit profit growth on average each year to 2020.
Chief executive Haydn Mursell said: “There is a need for investment in the UK’s roads, power and rail. A low interest rate should encourage Government spending in these areas.”
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EDF boss praises UK government over Hinkley decision
Eon is forking out £3.1million after failing to compensate customers when agents missed appointments.
“It is crucial that suppliers provide customers with a fast and effective service
The power supplier, which told Ofgem in 2014 that it had fallen short on the guaranteed standards scheme, has paid £1.2million to 24,000 residential and small business customers.
It will also pay £1.9million to energy charities.
It admitted to “not consistently” making payments – £20 for a failed gas appointment and £22 for electricity.
Ofgem chief executive Dermot Nolan said: “It is crucial that suppliers provide customers with a fast and effective service, and make amends when things go wrong.”
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Mitchells & Butlers has toasted higher sales over the past two months after warm weather drew punters.
The All Bar One, Harvester and Nicholson’s pubs operator saw like-for-like takings up 1.8 per cent in the past eight weeks.
Drinks were up 3.7 and food 0.4.
But sales in the 51 weeks to September 17 fell 0.8 per cent.