Live: Barclays buys Tesco Bank; Bridge completions decreased by 31%; Howden’s £1.1bn war chest

The FTSE 100 index will open at 8am. Among the companies with trading reports and updates today are Barclays, Tesco, Belway and S&U. Read the Friday 9 February Business Live blog below.

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Bellway is burning through cash reserves

Oli Creasy, Property Research Analyst at Quilter Cheviot:

“Worrying for investors is that during this six-month period, Bellway burned through two-thirds of its cash reserves, with cash on the balance sheet falling from £232m to just £77m.”

“This appears to be a result of increased payments to land creditors (most of which represent contracts signed in the last two years), but future land liabilities have declined significantly, and net indebtedness (which includes the impact of future land payments) remains low at c.5%.

“While we expect management to want to rebuild this cash reserve over future periods, the reduction is not as concerning as the headline reduction would suggest.”

Highway achievements decreased by 31%.

Bellway welcomed the easing of affordability concerns and improved booking rates in the first half of its financial year, supported by recent cuts in home loan interest rates.

The British housing market has seen signs of stabilization in recent weeks thanks to the easing of mortgage interest rates, after suffering from weak demand for most of last year, while construction companies remained cautious amid concerns about the macro economy and a lack of clarity about the path of the Bank of England’s monetary policy. .

Reflecting green signs of recovery in the sector, UK house prices rose more than expected in January, while British lenders in December approved the largest number of mortgages since June.

“While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates over the first half has eased constraints on affordability,” Jason Hanneman, the company’s CEO, said in a statement.

Bellway expects to complete 7,500 homes this year, down more than 30 per cent from the 10,945 homes built in the year to July 31, 2023.

Disney is buying the rights to Taylor Swift’s Eras Tour in an effort to boost its subscription service

Disney is hoping to capitalize on Taylor Swift craze to boost its subscription service.

It has purchased the exclusive broadcast rights to the pop star’s Eras Tour concert film.

Barclays buys Tesco Bank

Barclays is set to buy Tesco’s retail banking operations in a deal worth up to £700m, kicking off a 10-year “exclusive strategic partnership” that will see lenders market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand.

CS Venkatakrishnan, Chairman of Barclays, said: “This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses.”

“We are able to bring our partnership card expertise developed over decades in the US to enhance the highly successful Tesco Clubcard loyalty programme.

“Similar to our acquisition of Kensington Mortgages last year, this partnership with Tesco is further evidence of the investment we continue to make in our UK consumer business.

“We look forward to working closely with the Tesco team over the coming months to enable a smooth transition and, subject to completion of the transaction, we look forward to welcoming Tesco Bank colleagues and clients to Barclays.”

(tags for translation) Daily Mail

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