City news: Morrisons, Alitex, self-employed drivers
MORRISONS is expected to report steady sales growth when it releases first-quarter results, despite industry pressures including rising food prices.
Retailer Morrisons has seen a turnaround under David Potts
Like-for-like sales growth is expected to reach 1.7 per cent in the first quarter, according to Jefferies, while Shore Capital is forecasting an increase of between 1.75 per cent to 2 per cent over the period.
Analysts say Morrisons is in a better position to handle a tough trading environment than its peers, with shoppers expected to rein in spending. Food prices have already started to rise as producers pass on soaring costs.
Like-for-like sales growth is expected to reach 1.7 per cent in the first quarter
In April, the Office for National Statistics reported a 1.4 per cent drop in retail sales over the three months to March – the biggest quarterly fall in seven years.
Jefferies expects Morrisons’ first-quarter results “to confirm this industry trend, but also for the business to have made positive progress in like-for-like volume terms (something that we do not expect others to be enjoying at this juncture)”.
Morrisons earlier this year reported a 49.8 per cent jump in pre-tax profits to £325million, solidifying the chain’s return to form under chief executive David Potts.
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Greenhouse firm Alitex said it is important to keep Britain’s ‘brand’ post-Brexit
Britain’s brand vital to success, says greenhouse firm
One of Britain’s most prestigious bespoke greenhouse firms, known for its Kew Gardens structures, has spoken of the importance of maintaining the country’s “brand” post-Brexit.
Alitex managing director Tom Hall said that while issues like increased tariffs stand to impact the firm, the way Britain’s international standing was perceived in future was more crucial to its business.
“We are a sort of brand-led emotional purchase, being particularly associated with England and English gardens and Britain,” he said.
The near 65-year-old company – which is endorsed by the Royal Botanic Gardens, Kew and is a partner of the National Trust – sells around 200 units per year at an average cost of £25,000, though the price for a single bespoke Victorian glass greenhouse or conservatory can range from £8,000 to £1.2million.
Between 15 per cent to 20 per cent of its annual revenue comes from exports, which are destined for markets including the US, Scandinavia, Germany, and Ireland, plus Japan, South America and Australia.
Mr Hall said he was upbeat about the company’s global prospects, despite economic uncertainty. “Opportunities will come,” he said.
“As long as we’re clear about what our offering is, I think our particular marketplace will want the very best in greenhouses and conservatories, and we will be able to provide that.”
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MPs have urged for drivers employed in the gig economy to have worker status
Delivery drivers ‘need protection’
Drivers employed in the so-called gig economy should have worker status to protect them from disadvantage, MPs are urging.
The Work and Pensions Committee called on the Government to close loopholes which may lead to workers being exploited because of apparent self-employment.
An inquiry by the committee, which took evidence from firms including Uber, Deliveroo, Amazon and Hermes, found “starkly contrasting” pictures of their employment practices.
The MPs said denying people the rights that come with worker status failed to protect employees and led to “substantial” tax losses and a possible strain on the welfare state.
They said self-employment could be “highly desirable”, but could also be “negative”. Uber announced last week it was offering its workers a range of benefits such as sickness and injury cover, which it said was the first of its kind for self-employed drivers.
An employment tribunal decided last year that Uber’s drivers were wrongly classified as self-employed and should be classed as “workers”, although the company is challenging the ruling.