BUSINESS LIVE: Heathrow eyes 81.4m in traffic; Ofgem could up price cap; Naked Wines losses widen

British Airways has embarked on massive £7billion overhaul in a bid to leapfrog rivals and regain its claim to be the ‘world’s favourite airline’.

Bosses have identified more than 600 areas where it needs to improve after years of decline and a series of mass cancellations due to IT failures.

Energy firms are being forced to improve low levels of customer service with new rules from regulator Ofgem.

Gas and electricity firms have long been lambasted over low customer service levels.

Trainline shares soared on Friday after the Government confirmed it would scrap plans for a ‘Great British Railways’ ticket retailing website and app.

The Government’s plans had been a threat to Trainline, whose business model is based on allowing users to plan and book journeys across all UK rail providers, and store tickets on their phone.

Gold hit fresh highs in 2023 as a cocktail of weak economic growth, high inflation and geopolitical turmoil drove demand for the safe-haven asset.

But as inflation recedes and market expectations of a ‘soft landing’ for the global economy in 2024 build momentum, the gold rush could soon come to an end.

Boohoo’s boardroom coup of AIM-listed cosmetics brand Revolution Beauty provided some top-tier drama for the junior market this year.

A majority shareholder with a 26% stake, boohoo has been gunning for a total revamp of Revolution’s board; with this week’s resignation of Revolution’s now-former chief legal officer Elizabeth Lake, the coup is effectively complete.

Everyman Media Group has bought two picture houses in the west of England after the owner went into administration.

The independent chain has acquired two Tivoli cinemas in Bath and Cheltenham, which were previously owned and operated by Empire Cinemas.

British business growth has struck a six-month high, lifting hopes the economy has just enough momentum to avoid a recession for now.

The S&P Global/CIPS UK Composite Purchasing Managers’ Index (PMI) – which covers the manufacturing and services sector – rose to 51.7 for December.

(PA) – NatWest Group has said there is no evidence of discrimination due to political views in Coutts’ decision to close customer accounts, an independent review of the bank found.

Coutts closed about 900 accounts over a two-year period, including those of politicians known as politically exposed persons (PEPs), and not including inactive accounts or customers initiating the closure.

NatWest, which owns Coutts, said lawyers at Travers Smith analysed 84 account closures in the two years to July 28, about a 10% sample of all the relevant cases in that time.

The report found that decision-making was appropriate and consistent with industry standards, and that there was no evidence of discrimination due to political views or affiliations, or any other protected characteristic.

However, Coutts said it recognises there are “lessons to be learned” from the way it communicates with customers.

The investigation was launched in July after former Ukip leader Nigel Farage said the high-net-worth bank unfairly closed his account because it did not agree with his political views.

The first phase of the review found that the bank showed “serious failings” in its treatment of Mr Farage, but that the decision to shut his account was lawful and predominately commercial.

Brits were handed a much-needed boost today as a key survey showed the economy growing at the fastest rate in six months.

The early reading of the closely-watched PMI came in at 51.7, with anything above 50 suggesting activity is in positive territory.

London Heathrow expects revenue and profits to decline next year despite the airport anticipating handling more than 2 million extra passengers.

Britain’s largest airport expects 81.4 million travellers in 2024, a 2.9 per cent increase on the 79.1 million it predicts coming through its terminals this year, as aeroplane travel continues its post-lockdown recovery.

Naked Wines has assured investors it is moving towards ‘a period of sustained cash generation’ after sales slumped and losses widened in the first half.

The online wine retailer saw total revenues slide 20 per cent year-on-year for the 26 weeks to 2 October, to £132.3million, while pre-tax losses from £200,000 last year.

Car insurance premiums have hit a record high – with drivers still waiting for the price cuts they were promised after a shake-up of the whiplash claims system.

Only one in four companies expect their staff to be in the office full time in the coming years, research suggests.

A survey of more than 1,000 businesses indicates around one in six believe their employees will mainly work remotely.

Markets soared yesterday after the US Federal Reserve signalled its cycle of rate hikes was likely to be at an end – and despite the Bank of England sounding a note of caution.

London’s FTSE 100 index surged by more than 2 per cent in early trading to hit its highest level in nearly three months, though later finished 1.3 per cent, or 100.54 points, up at 7648.98 after the rally retreated as the Bank Governor Andrew Bailey pushed back on rate cut hopes.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown:

‘Naked Wines has seen its shares rise 3.5%, despite total revenues in the 26 weeks to 2 October falling 20% to £132.3m, and losses have widened.

‘Potentially more worrying is the double digit decline in repeat revenues, which shows that what should be loyal customers are dropping off. This is a combination of belt-tightening and fierce competition in the online-wine-world.

‘The group’s struggled post-pandemic after the demand surges seen in lockdowns, and issues including attracting new customers and inventory levels have caused problems. The group’s seeing losses from both pipes of the revenue funnel, with both existing and new customers proving fickle and elusive, which makes for an uphill battle.

‘Cost cutting is helping the bottom line, but not enough and it can’t go on forever – a meaningful increase in customer activity will be needed sooner or later. The positive share price bump is likely more a sigh of relief that things weren’t worse.’

Freetrade will this week allow its customers access to UK Treasury bills for the first time, giving DIY investors the opportunity to earn over 5 per cent yield.

Like bonds, Treasury bills are issued by the government to finance its operations, but they have largely been the preserve of wealthy investors with a typical minimum investment of £500,000.

Ofgem is plotting a hike in the energy price cap from April next year in order to help suppliers recover nearly £3billion in debts from customers who cannot pay their bills.

The energy watchdog said it wants energy companies to use the extra funding to support struggling customers and write off bad debts.

It is proposing a one-off price cap adjustment of £16, equivalent to around £1.33 a month, to be paid between April 2024 and March 2025.

Customers on pre-payment meters will not be affected.

Disgraced ex-BP boss Bernard Looney said he is ‘proud’ of his leadership of the oil company despite the board finding him guilty of serious misconduct.

In his first statement since his shock exit in September, he said he was ‘disappointed with the way the situation has been handled’.

Heathrow expects to handle 81.4 million passengers in 2024, up from 79.1 million this year, with Britain’s busiest airport encouraged by a strong recovery in travel demand.

The group said: ‘The strong recovery in traffic at Heathrow continued in the first eleven months of 2023, with a total of 72.5 million passengers travelling through the airport.

‘We saw a significant increase in connectivity across various regions, highlighting an impressive recovery, with Heathrow named the most connected airport in the world by OAG. We remain Europe’s busiest airport, and in October became the 4th busiest airport globally. ‘

Rio Tinto has been dragged into a high-stakes trial pitting the billionaire descendants of Australia’s mining pioneers against each other.

Lawyers for the Anglo-Australian firm have been in the state’s Supreme Court seeking to fend off claims over billions of dollars in iron ore royalties that flowed from discoveries made as far back as the 1950s and 1960s.