BUSINESS LIVE: TUI Returns To Profit

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The FTSE 100 closed up 0.8 per cent or 59.88 points to 7,587.30 this afternoon. Among the companies with reports and trading updates today are Tui, Bellway, Flutter, Coca-Cola HBC, Southern Water, CLS Holdings and Hiscox.
Read the Wednesday 9 August Business Live blog below.

The music investment fund bought the rights from New York based Big Loud Shirt Industries.
As a result, Round Hill owns popular songs such as Before He Cheats and Undo It by the 40-year-old 2005 American Idol winner.","dateModified":"2023-08-09T06:58:03Z","datePublished":"2023-08-09T06:58:03Z","headline":"Music investment fund Round Hill swoops on hits from country music star Carrie website Sheen"}},{"@type":"BlogPosting","articleBody":"Oli Creasey, equity research analyst at Quilter Cheviot:

'The financial year just finished looks like a relatively good one for Bellway. Housing completions and company revenue both fell marginally (c. -2% to -4%), InfoPost, despite the last 12 months being a challenging environment.
'However, this is partly a timing issue - many of the full year 22/23 sales will have been agreed before mortgage rates rose sharply, and the indications are that full year 23/24 will be considerably more challenging for the company.

'The company's private reservation rate has fallen by -36% during the year, and management stated that mortgage rates in June and July 2023 returned to the levels reached during the Liz Truss government, significantly impacting the volume of sales.
'We note that the order book (sales agreed but likely to complete in FY 23/24) has fallen around -40% year-on-year, suggesting volumes next year will be significantly lower. Bellway's outlook statement acknowledges this, with completions expected to decrease materially.

'This sounds bleak, but is in-line with the experiences of other large housebuilders. As with the other builders, sales pricing has remained relatively robust (-1%), which has provided support to company revenues. The margin has fallen c. 250bps, largely due to inflation of build and other costs, but we do expect these inflationary effects to moderate in the coming year.'","dateModified":"2023-08-09T06:57:28Z","datePublished":"2023-08-09T06:57:28Z","headline":"'Bleak' Bellway update 'in-line with the experiences of other housebuilders' website Sheen"}},{"@type":"BlogPosting","articleBody":"Emma-Lou Montgomery, associate director for personal investing at Fidelity International:

'The sun doesn't always shine on Tui, but the Anglo-German tour operator has just seen its first profitable third quarter since the pandemic and says it's on track for a strong summer season.
'Some 5.5m holidaymakers travelled with Tui in the three months to the end of June, helping push group revenue up 19% to €5.3bn, compared to €4.4bn over the same period last year. That's 11% above pre-pandemic levels.

'The 2023 holiday season hasn't been without its challenges though, with 8,000 holidaymakers recently evacuated as the wildfires raged across Europe. But sun-seekers are a determined bunch and the drop-off in demand proved to be only a blip, with Tui saying bookings for the last week were up 5% against summer 2022.
'The financial impact of the wildfires on Tui will inevitably last far longer, adding around €25m to Tui's full year 2023 costs - but the group says business is ‘close to normal' and earnings are set to be ‘substantially higher overall this year.'","dateModified":"2023-08-09T06:54:11Z","datePublished":"2023-08-09T06:54:11Z","headline":"Sun shines on TUI for first time since 2019 website Sheen"}},{"@type":"BlogPosting","articleBody":"The pound slipped to its lowest level in five months as traders bet the Bank of England will start cutting rates in 2024.

Traders are pricing in two more rate hikes for 2023 as the Old Lady looks to tame inflation.
But this could be followed by 50 basis points of cuts for next year, according to traders, despite the Bank last week signalling it would keep policy ‘sufficiently restrictive for sufficiently long'.","dateModified":"2023-08-09T06:52:38Z","datePublished":"2023-08-09T06:52:38Z","headline":"Pound hits five-month low against the dollar as traders bet Bank of England will cut rates in website Sheen"}},{"@type":"BlogPosting","articleBody":"Gamblign giant Flutter saw a 76 per cent jump in first half core earnings jumped 76% as its fast growing US Fanduel brand turned a profit for the first time in a transformation point' for the group's prospects.

The group, which owns Paddy Power and Betfair, saw customer growth of 28 per cent year-on-year in the six months to 30 June to 12,285,000.
Flutter's US revenue overtook that of its most profitable UK and Ireland market in 2022, recording adjusted earnings before nasties of £49million for the period versus a £132million loss last year.
That contributed to reported EBITDA of £765million across the group, versus the £731million forecast by analysts.

Flutter expects full-year adjusted US earnings of £90million to £190million as it invests further in the second half and earnings in the rest of the group of up to £1.6billion.","dateModified":"2023-08-09T06:52:00Z","datePublished":"2023-08-09T06:52:00Z","headline":"Flutter profits soar as user numbers jump by a quarter website Sheen"}},{"@type":"BlogPosting","articleBody":"Bellway has warned it will build fewer homes in the current fiscal year as the housebuilder faces further margin pressures amid a slowing housing market.

The group built 10,945 homes in the fiscal year ended 31 July, slightly down from the guidance of 11,000 units.
Bellway said it expected its underlying operating margin for its last financial year to be around 16 per cent, down from 18.5 per cent in the year-ago period, hurt by high build costs and overhead inflation.
'The backdrop of macroeconomic uncertainty and cost of living pressures affected consumer demand during the year and, given affordability remains constrained by higher mortgage interest rates, underlying trading conditions are likely to remain challenging in the near term,' Bellway chief executive Jason Honeyman said.","dateModified":"2023-08-09T06:46:30Z","datePublished":"2023-08-09T06:46:30Z","headline":"Bellway to build fewer homes website Sheen"}},{"@type":"BlogPosting","articleBody":"Shares in Italy's largest banks slumped after the country's government slapped a surprise windfall tax on the industry.

US banks, meanwhile, were also knocked by a series of downgrades from Moody's.
The credit rating agency warned the sector could find its profits under pressure from an economic slowdown and the effects of higher interest rates.","dateModified":"2023-08-09T06:43:40Z","datePublished":"2023-08-09T06:43:40Z","headline":"Italian lenders hit with windfall tax: Shock move sends bank shares website Sheen"}},{"@type":"BlogPosting","articleBody":"TUI has posted its first post-pandemic quarterly profit after the tour group cashed in on a rebound in travel demand, with its boss pledging to grow profitability ‘significantly' going forward.

The tour group posted underlying earnings before interest and tax of €169million (£145.2million) for the quarter, as well as €5.3billion in revenue.
'We are investing today to continue to significantly grow profitably in the future,' said TUI chief executive Sebastian Ebel.","dateModified":"2023-08-09T06:42:22Z","datePublished":"2023-08-09T06:42:22Z","headline":"TUI returns to website Sheen"}}]}15:25The Footsie closes soonJust before close, the FTSE 100 was 0.83% up at 7,590.19.
Meanwhile, the FTSE 250 was 0.46% higher at 18,928.22.
15:05Recognize Bank launches two new savings accounts offering up to 6.1%Recognise Bank has boosted the rate on two fixed-rate savings accounts shooting them to the top of the best buy tables, after a slight lull in top fixed deals being launched.
- now the highest overallIts two-year fix is offering 6.1% - now the highest overall rate a saver can get, beating Cynergy Bank which offers 6.06% over the same timeframe.
14:52CVC plans IPO of German cosmetics retailer Douglas - sources(Reuters) - CVC Capital Partners is exploring a potential stock market listing of German perfume and cosmetics retailer Douglas, people familiar with the matter told Reuters on Wednesday.
The private equity house is working with advisers at Rothschild & Co to prepare the initial public offering (IPO), which could happen as early as next year, said the people, asking not to be identified because the discussions are private.
The potential IPO could value Douglas at up to €7billion ($7.68billion), one of them said.
The news comes as IPO markets in Europe and the United States are starting to warm up after a long drought caused by the impact of rocketing interest rates and Russia's invasion of Ukraine.
German companies are gearing up for a revival in stock offerings, with medical glassmaker Schott Pharma, road payments group DKV Mobility, midsize lender OLB Bank and defence contractor Renk all eyeing market debuts in the latter part of the year.
Some have set their sights overseas, such as sandal maker Birkenstock, which is planning to list in New York.
CVC acquired Douglas in 2015 from rival buyout firm Advent International in a deal worth almost €3billion at the time.
Reuters reported in early 2020 that the private equity house was exploring a sale or IPO of the beauty group, but the plans never materialised as COVID-19 spread across the world.
14:25TP Icap shares soar as broker's profits climb on commodity spike rose sharply after the group unveiled better than expected first-half figures, as a spike in commodity prices helped offset dwindling equities income.
The broking group's underlying profit came in TP Icap's underlying profit came in at £163million, up 15 per cent year-on-year and the group's interim dividend was upped by 7 per cent.
14:03Fears of summer holiday chaos as Gatwick Airport workers announce fresh raft of August strikesWorkers at Gatwick Airport have announced a fresh raft of strikes, including August Bank Holiday weekend, prompting fresh fears for more summer holiday chaos.
Unite Union announced that 230 groundThe industrial action will involve more than 230 members of Unite at the West Sussex airport.
13:27E.On reaffirms plan to pass on lower power and gas costs to customersE.On has reiterated plans to pass on lower power and gas costs to millions of its customers, weighomg on profits this year.
It comes in response wholesale pE.On said the market environment for its business was improving following last year's energy crisis, sounding a more optimistic tone about the months ahead.
13:07CLS Holdings falls to loss amid falling property valuationsOffice space specialist CLS Holdings has swung to a significant loss as interest rate hikes take their toll on the commercial property market.
The FTSE 250 company reported a £106.4million pre-tax loss for the six montThe FTSE 250 company reported a £106.4million pre-tax loss for the six months ending June, compared to a £21.4million profit in the equivalent period last year.
12:55'Boiling hot temperatures are likely to have dampened productivity'Victoria Scholar, head of investment at Interactive Investor, comments on the second-quater GDP figures, which are set to be released on Friday:
Second quarter GDP is expected to grow by 0.2% year-on-year, in line with the first quarter also at 0.2%, which was the weakest rate in two years as rising inflation and higher interest rates take their toll.

Quarter-on-quarter, Q2 GDP is seen coming in flat dropping from a reading of 0.1% in Q1.
A trio of bank holidays in May hurt activity in the manufacturing and construction sectors as workers enjoyed the extra days off.
In June, the celebrations ended, providing a back-to-work boost for the economy.
According to June's retail sales figures, the record-breaking heatwave supported sales in supermarkets and department stores, partly driven by high inflation which flattered food sales, lifted by higher prices rather than stronger volumes.

Lower fuel prices versus last year during the energy crisis are also likely to provide a tailwind to fuel sales and in turn June's growth figure.
However, the boiling hot temperatures are likely to have dampened productivity, particularly in agriculture and construction. They also caused problems in the transport sector with passengers on trains and11:27Hiscox shares top FTSE 350 fallers

11:26IWG shares top FTSE 350 charts at lunchtime

10:35WeWork warns of 'substantial doubt' it can stay in businessWeWork is warning US regulators there is 'substantial doubt' about its ability to stay in business over the next year, citing financial losses, cash needs and a drop in memberships.
The New York-based workspace-sharing company, once valued at $47 billion, said its ability to stay inWeWork said said its ability to stay in operation is contingent upon improving its liquidity and profitability over the next 12 months.
10:00Coca-Cola HBC ups profit guidance as price hikes offset costsCoca-Cola Hellenic Bottling Company has boosted its annual guidance following a bumper performance during the first half of the year.
The anchor bottler revealed operating profits more than doubled to €557.3million (£480million) for the siThe anchor bottler revealed operating profits more than doubled to €557.3million for the six months ending June despite widespread cost-of-living pressures.
09:45Flutter's US gamble bears fruit as Betfair owner's profits soar

Flutter Entertainment earnings soared in the first half after the gambling giant's fast growing US operations turned a profit for the first time,
FTSE 100 Flutter, which posted first half core earnings growth of 76 per cent, told investors on Wednesday the first period of profitability for its Fanduel brand marked a 'transformation point' for the group's prospects.
The Dublin-based group said this made it the first online betFlutter Entertainment's first half core earnings rose 76 per cent as its fast growing US Fanduel brand turned a profit for the first time, marking a 'transformation point' for the group's prospects, it said.
09:20The UK economy will not recover from Covid-19 until end of next yearThe UK's economy will not recover from the pandemic until the end of next year, a report warns today.
Britain is instead on course for 'stuttering growth' oveThe UK is on course for 'stuttering growth' over the next two years after the Bank of England hiked interest rates for the 14th time in a row since 2021, raising its base rate to 5.25 per cent
08:30Bellway sees average home selling prices fall as mortgage rates biteBellway will build fewer homes this year and expects sales completions to drop 'materially' amid a sharp housing sector slowdown driven by higher mortgage rates.
Interest rate rises  have driven up mortgage rates and triggered affordability concerns, putting off prospective buyers, while a decline in house prices has hurt margins for housebuilders.
In the year to 31 JulBellway will build fewer homes this year and expects sales completions to drop 'materially' amid a sharp housing sector slowdown driven by higher mortgage rates.
08:11Six water companies face paying out £800 million in compensationSix English water companies are facing legal action over allegations of underreporting pollution incidents and overcharging customers.
If the cases are successful the companies - Severn Trent Water, Thames Water, United Utilities, Anglian Water, YorProfessor Carolyn Roberts, an environmental and water consultant, claims water companies have broken competition laws by misleading the Environment Agency and the regulator Ofwat.
07:52Tui expects £21m hit from Rhodes wildfires but airline returns to profitTui has unveiled its first quarterly post-pandemic profit on the back of robust bookings and travel demand.
The group reported underlying earnings before interest and tax of around £145million for the three months to the end of June, as well as approximately £4.6billion in revenue.
Tui said the financial impact of recent wildfires, encompassing cancellations, lost margin, compensation, repatTui said the financial impact of recent wildfires, encompassing cancellations, lost margin, compensation, repatriation flights and welfare costs had added over £21m to its full-year 2023 results.
07:51Blow for Arm's high hopes at US listing as it posts £52m lossArm has posted a loss a month before its proposedThe Cambridge-based semiconductor business is as seeking to raise as much as £8bn in a £55bn market debut in September.
07:32Market Open: FTSE 100 up 0.7%; FTSE 250 adds 0.9%London-listed stocks are trading higher this morning, with the FTSE 100 led by Coca-Cola HBC after the bottler's upbeat annual revenue outlook.
Beverage stocks have gained 0.8 per cent, with Coca-Cola HBC rising 3.3 per cent after the company lifted its annual revenue target.
Leading the FTSE 250, TP ICAP has jumped 11.6 per cent after the world's biggest inter-dealer broker reported a higher half-year profit.
Bank stocks have rebounded after a sell-off in the previous session, as global sentiment improved after Italy's government eased its stance on new banking levy.
07:12Amazon firms face collapse as tech giant warns it will hold back cashAmazon has been accused of pushing small businesses to the edge of collapse after warning it would hold onto thousands of sellers' cash temporarily.
The US tech giant told small firms using its platform in the UK and continental Europe that it will withhold their The US tech giant told small firms using its platform in the UK and continental Europe that it will withhold their sale proceeds for over a week.
06:58Music investment fund Round Hill swoops on hits from country music star Carrie UnderwoodSongs performed by country music star Carrie Underwood have been sold to London-listed music royalty firm Round Hill Music.
The music investment fund bought the rights from New York based Big Loud Shirt Industries.
As a result, Round Hill owns popularRound Hill bought the rights to songs performed by country star Carrie Underwood (pictured) from New York based Big Loud Shirt Industries.
06:57'Bleak' Bellway update 'in-line with the experiences of other housebuilders' Oli Creasey, equity research analyst at Quilter Cheviot:
'The financial year just finished looks like a relatively good one for Bellway.

Housing completions and company revenue both fell marginally (c. -2% to -4%), despite the last 12 months being a challenging environment.
'However, this is partly a timing issue - many of the full year 22/23 sales will have been agreed before mortgage rates rose sharply, and the indications are that full year 23/24 will be considerably more challenging for the company.
'The company's private reservation rate has fallen by -36% during the year, and management stated that mortgage rates in June and July 2023 returned to the levels reached during the Liz Truss government, significantly impacting the volume of sales.


'We note that the order book (sales agreed but likely to complete in FY 23/24) has fallen around -40% year-on-year, suggesting volumes next year will be significantly lower.
Bellway's outlook statement acknowledges this, with completions expected to decrease materially.
'This sounds bleak, but is in-line with the experiences of other large housebuilders.

As with the other builders, sales pricing has remained relatively robust (-1%), which has provided support to company revenues. The margin has fallen c. 250bps, largely due to inflation of build and other costs, but we do expect these inflationary effects to moderate in the coming year.'
06:54Sun shines on TUI for first time since 2019 Emma-Lou Montgomery, associate director for personal investing at Fidelity International:
'The sun doesn't always shine on Tui, but the Anglo-German tour operator has just seen its first profitable third quarter since the pandemic and says it's on track for a strong summer season.
'Some 5.5m holidaymakers travelled with Tui in the three months to the end of June, helping push group revenue up 19% to €5.3bn, compared to €4.4bn over the same period last year.

That's 11% above pre-pandemic levels.
'The 2023 holiday season hasn't been without its challenges though, with 8,000 holidaymakers recently evacuated as the wildfires raged across Europe.
But sun-seekers are a determined bunch and the drop-off in demand proved to be only a blip, with Tui saying bookings for the last week were up 5% against summer 2022.
'The financial impact of the wildfires on Tui will inevitably last far longer, adding around €25m to Tui's full year 2023 costs - but the group says business is ‘close to normal' and earnings are set to be ‘substantially higher overall this year.'
06:52Pound hits five-month low against the dollar as traders bet Bank of England will cut rates in 2024The pound slipped to its lowest level in five months as traders bet the Bank of England will start cutting rates in 2024.
Traders are pricing in two more rate hikes for 2023 as the Old Lady looks to tame inflation.
But this could be followed by 50 basis points of cuts for next year, according to traders, despite the Bank last week signalling iTraders are pricing in two more rate hikes for 2023 as the Old Lady looks to tame inflation. But this could be followed by cuts for next year.
06:52Flutter profits soar as user numbers jump by a quarter Gamblign giant Flutter saw a 76 per cent jump in first half core earnings jumped 76% as its fast growing US Fanduel brand turned a profit for the first time in a transformation point' for the group's prospects.
The group, which owns Paddy Power and Betfair, saw customer growth of 28 per cent year-on-year in the six months to 30 June to 12,285,000.


Flutter's US revenue overtook that of its most profitable UK and Ireland market in 2022, recording adjusted earnings before nasties of £49million for the period versus a £132million loss last year.
That contributed to reported EBITDA of £765million across the group, versus the £731million forecast by analysts.
Flutter expects full-year adjusted US earnings of £90million to £190million as it invests further in the second half and earnings in the rest of the group of up to £1.6billion.
06:46Bellway to build fewer homes Bellway has warned it will build fewer homes in the current fiscal year as the housebuilder faces further margin pressures amid a slowing housing market.
The group built 10,945 homes in the fiscal year ended 31 July, slightly down from the guidance of 11,000 units.
Bellway said it expected its underlying operating margin for its last financial year to be around 16 per cent, down from 18.5 per cent in the year-ago period, hurt by high build costs and overhead inflation.
'The backdrop of macroeconomic uncertainty and cost of living pressures affected consumer demand during the year and, given affordability remains constrained by higher mortgage interest rates, underlying trading conditions are likely to remain challenging in the near term,' Bellway chief executive Jason Honeyman said.
06:43Italian lenders hit with windfall tax: Shock move sends bank shares tumblingShares in Italy's largest banks slumped after the country's government slapped a surprise windfall tax on the industry.
US banks, meanwhile, were also knocked by a series of downgrades from Moody's.
The credit rating agency warned the sector could find iItalian prime minister Giorgia Meloni (pictured) had warned banks against reaping the rewards of higher rates while failing to pass on the benefits.
06:42TUI returns to profitTUI has posted its first post-pandemic quarterly profit after the tour group cashed in on a rebound in travel demand, with its boss pledging to grow profitability ‘significantly' going forward.
The tour group posted underlying earnings before interest and tax of €169million (£145.2million) for the quarter, as well as €5.3billion in revenue.
'We are investing today to continue to significantly grow profitably in the future,' said TUI chief executive Sebastian Ebel.