Fashion firm Barbour launches second clothing collection with TV star Alexa Chung
Tyneside fashion firm Barbour has teamed up with TV presenter and model Alexa Chung to launch a new clothing collection. The South Shields firm, which can trace its history back to 1894, may have started out making waxed jackets for fishermen but its quilted coats and jackets are now worn by everyone from farmers and footballers to rock stars and royalty. And in more recent years Barbour has worked with famous names including ceramics designer Emma Bridgewater, House of Hackney, William Morris and film director Sir Ridley Scott, as it looks to widen the appeal of its clothing beyond its traditional base in rural communities. Now the firm – which has seen its star rise with young people after its jackets were worn by pop star Dua Lipa, Arctic Monkeys, Lily Allen,and Rufus Wainwright – has teamed up with TV star Alexa Chung for a second time, launching a new capsule collection and a campaign starring the presenter herself. Ms Chung, collaborated closely with the in-house design tea but was creative director and designer for the clothing collection, which draws inspiration from nostalgic camping days as well as Ms Chung’s festival styling. The collection includes outerwear, clothing and wellington boots, with showerproof jackets with tartan liners, bomber jackets with cord collars and knitwear made by Harleys of Scotland. It also includes rubber footwear, including a slip-on clog and a wedged wellington boot. She said: “I’m in love with the second collection I have designed for Barbour. I think the codes and language we have built together are now well established in that we create playful takes on Barbour’s heritage. My particular favourites in the collection are the bright yellow jacket and fire engine red raincoat. I really focused on colour and fun and I think that idea carried through to our camping trip themed shoot, with the legendary Tim Walker. This collection brings me so much joy and I hope you like it as much as I do.”
Investors urge Shein to slash IPO valuation by two-thirds as it plans London debut
Fast-fashion behemoth Shein is facing investor pressure to cut its valuation by two thirds from its peak, should it proceed with its anticipated float on the London Stock Exchange later this year, a report suggests. Shein was valued at $66bn (£52bn) in a funding round in 2023 and as high as $100bn in 2022, but a Bloomberg News report on Monday indicated that its backers are urging a reduction in its valuation to $30bn, as reported by City AM. The "cavernous gap" between Shein's past and potential stock market valuation improves the chances of the IPO proceeding, according to two major investment platforms. "It makes sense that investors want a discounted valuation for Shein before agreeing to back the IPO", stated AJ Bell investment director Russ Mould. "Slashing the valuation gives the IPO a better chance of going ahead... There are so many risks involved with the investment case that investors will want a cut-price deal as compensation," Mould added. Obstacles to Shein's debut on the London Stock Exchange include queries over its alleged use of forced labour in its supply chains, supposed intellectual property infringements and concerns about governance and transparency. The latest worry has been the threat to its business model posed by US President Donald Trump. Trump has vowed to close a shipping loophole which allows fast-fashion giants Shein and Temu to evade customs and tariffs when shipping small packages of goods. The EU may follow suit "[Shein] is highly reliant on keeping prices low and this has been helped by the firm not having to pay import duties on millions of low-value packages," commented Susannah Streeter, head of money and markets at Hargreaves Lansdown. "If Shein can't compete so easily on price in major markets like the US and the EU, it'll be a much harder sell [to investors], particularly given it also faces claims of environmental recklessness and poor working conditions in its supply chains," she added. Despite these challenges, both Streeter and Mould anticipate that the IPO will proceed, though possibly at a reduced valuation. "The fact Shein is still battling it out suggests it remains confident of getting enough investor support to list its shares," stated Mould.
AI platform working with OpenTable and Hawksmoor secures major funding
An Exeter-based AI platform that provides data to companies in the restaurant and hospitality sectors has secured a £350,000 equity investment as part of a £1m funding round. Big Business Intelligence, trading as Distil.ai, will use the cash from the British Business Bank's South West Investment Fund, via appointed Fund Manager The FSE Group, to scale and expand its team. The wider fundraising round also included investment from Waterspring Ventures. Distil.ai's platform provides data insights aimed at helping companies boost operational returns, marketing effectiveness and customer relationship management. The business counts The Devonshire Group, Gordon Ramsay Restaurants, restaurant booking platform OpenTable, and steak restaurant Hawksmoor, among its customers. Gerry McNicol, founder and chief executive of Distil.ai, said: “This funding is allowing us to invest in key activities to accelerate our growth trajectory and solidify our position in the market. Planned developments mean we can continue to provide customers with unparalleled insights at exceptional value." The cash injection will be used to advance platform development, Distil.ai said, including the addition of multi-language capabilities, ahead of a planned Series A funding round. Meg Salt, investment manager at The FSE Group, said: “With its scalable technology and strong foothold in the restaurant sector, Distil.ai is a compelling investment opportunity. The company's unique access to OpenTable data, along with its credible management team, make it an exciting proposition. Distil is well-positioned to achieve significant growth and we are delighted to be supporting them on this journey.” Paul Jones, senior investment manager at the British Business Bank, added: "Distil.ai is a great example of how data-driven innovation is thriving in the South West. By harnessing AI to unlock new value in hospitality and other sectors, the business is helping customers harness their data to drive efficiency and growth. We look forward to seeing how support from the South West Investment Fund accelerates Distil's next stage of development." The South West Investment Fund offers a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2m and equity investment up to £5m.
Tesco, M&S and Sainsbury's shares drop amid FTSE 100 rally after 'trolley wars' warning
The UK's leading publicly traded supermarkets failed to enjoy a post-crisis FTSE 100 surge this morning, as Tesco's annual results ignited concerns of escalating 'trolley wars' within the industry. The FTSE 100 index climbed over six per cent as investors exhaled in relief following the suspension of Trump's 'reciprocal' tariffs last night, as reported by City AM. However, shares in Tesco, Marks and Spencer, and Sainsbury's dropped by seven per cent, three per cent, and five per cent respectively. This sell-off was triggered by Tesco's annual financial report. The country's largest supermarket cautioned that its profit would be impacted by "a further increase in the competitive intensity of the UK market". The retail giant anticipates group adjusted operating profit to range between £2.7bn and £3bn next year, a decrease from £3.13bn for the 2024/25 fiscal year. Edison Group analyst Russell Pointon commented on the situation: "The seven‐month stock low [in Tesco's share price], driven by aggressive pricing tactics from rivals like Asda and Aldi, reveals market nervousness amid ongoing pressures,". Earlier this year, Asda's new chief Allan Leighton spoke of the 'war chest' at Asda's disposal to slash prices and reclaim its competitive edge in the market. This sparked rumours that Asda is set to disrupt the market with a series of price reductions. "Tesco and Sainsbury's have certainly been major beneficiaries of market share from Asda over the last couple of years... While Tesco has the greater overlaps with Asda given its national presence, we think any pain from a resurgent Asda will be shared across the industry," stated analysts at Jeffries. However, there is scepticism among analysts about Asda's capacity to deliver on the scale of cuts it has pledged. "Much of the industry's dynamics will be determined by Asda's ability to improve volume growth over the next three to six months. Google Trends and Kantar data show limited evidence of this to date." "Until [evidence of volume growth] arrives, we expect sector valuations to remain pressured," added the Jeffries analysts. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "Fears of a price war that could squeeze profitability have weighed on sentiment across the sector recently, but it hasn't materialised yet."
Holiday Inn owner IHG expands portfolio amidst robust travel market recovery
Holiday Inn owner IHG is celebrating the acquisition of its 20th brand and heightened returns for shareholders amidst a resurgence in the travel sector. The company, based in Windsor, has seen its fortunes ascend as travel regains momentum post-pandemic, with early projections for 2024 indicating that the hotel industry's revenues have eclipsed those of 2019, as reported by City AM. In a statement to the markets this morning, IHG revealed that its revenue climbed to $2.3bn (£1.82bn) in 2024, marking a 7% increase from $2.1bn in the previous year. Operating profit experienced a 10% rise to $1.1bn, while earnings per share saw a significant 15% climb to 434.4 cents. Despite the positive financial indicators, IHG's share price experienced a slight downturn, dropping by 1.73% in early trading. The hospitality giant, known for owning rights to a plethora of prominent brands including Crowne Plaza, Six Senses, and Staybridge Suites, primarily adopts a franchise business model. This past year, IHG launched 59,100 rooms across 371 hotels, which is a 23% year-on-year surge, bringing their worldwide portfolio to 987,000 rooms at 6,629 properties. Furthermore, IHG's development pipeline is robust, featuring 325,000 rooms across 2,210 hotels, boasting a 10% year-over-year growth. "2024 was an excellent year of financial performance, strong growth and important progress against a clear strategy," commented Maalouf. "We continue to strengthen our enterprise to position IHG as the first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams," she elaborated. In conjunction with its latest results announcement, the hotel conglomerate revealed that it has acquired Ruby, a European urban lifestyle brand, for €110.5m (£91.6m). Ruby, which was established in 2013 and currently operates 20 hotels across Europe, including three in London, has become the 20th brand under the hotel giant's umbrella. "We see excellent opportunities to not only expand Ruby's strong European base but also rapidly take this exciting brand to the Americas and across Asia, as we have successfully done with previous brand acquisitions," said Elie Maalouf, CEO of IHG Hotels & Resorts. The company praised Ruby's "space-efficient designs" and "attractive, flexible concept that IHG expects to rapidly expand globally." "This acquisition demonstrates our focus on building our presence in large, attractive industry segments and using our experience of integrating and growing brands and hotel portfolios," added Maalouf. IHG also announced the completion of its $800m share buyback programme and the payment of $259m of ordinary dividends to shareholders in 2024. It proposed a final dividend of 114.4¢, resulting in a total dividend for the year of 167.6¢ for 2024, up 10 per cent year on year. Furthermore, it launched a new $900m buyback programme, which along with ordinary dividend payments is expected to return over $1.1bn to shareholders in 2025. "We enter 2025 with confidence in further capitalising on our scale, leading positions and the attractive long term demand drivers for our markets, all of which supports the ongoing successful delivery of our growth algorithm," stated Maalouf. This comes after several share buyback schemes following the pandemic. John Moore, senior investment manager at RBC Brewin Dolphin, commented: "IHG has booked a strong set of results. "They reflect the renewed focus and investment in the business, which continues today with the acquisition of Ruby – the company's 20th brand.
UK economic growth forecasts slashed due to Donald Trump's tariffs
City forecasters have significantly reduced UK growth forecasts in light of President Donald Trump's tariffs, which are anticipated to inflict substantial harm on the global economy. European markets are experiencing a downturn today following the implementation of tariffs, indicating that economists and investors are bracing for profit losses, as reported by City AM. New research conducted by polling firm Consensus Economics and the Financial Times provides a sobering perspective, with an average of ten forecasters predicting that the UK will experience a sluggish growth rate of 0.8 per cent this year. This figure is two-thirds of what was previously projected. The Bank of England has predicted that the UK economy will grow by 0.75 per cent this year, while the Office for Budget Responsibility (OBR), the fiscal watchdog, anticipates a growth rate of one per cent. Both central forecasts were made prior to Trump's Rose Garden speech in which he announced a list of tariffs to be imposed on major economies as well as uninhabited islands. The US president's ten per cent tariff on all goods imports has unsettled analysts, who remain uncertain about its potential impact on UK inflation. While markets predict that interest rates could drop below four per cent by the end of the year, economists at Capital Economics suggest that the Bank of England may maintain its stance. "The uncertain influence on CPI inflation from the tariffs may mean the Bank can't conclude that the upside risks to inflation have faded," they remarked. "Moreover, the extra uncertainty caused by tariffs more generally may mean the Bank is more inclined to wait and see how things develop." A separate study conducted by the British Chambers of Commerce (BCC) highlighted how companies are grappling with increased costs resulting from national insurance tax hikes imposed by Chancellor Rachel Reeves. The survey, incorporating responses from over 5,000 businesses, found that merely a fifth of the surveyed firms expanded their workforce in Q1, while a similar number reported a workforce reduction.