BUSINESS LIVE: Nadhim Zahawi to chair The Very Group; Diploma lifts guidance; Phoenix CFO to depart

Just before close, the FTSE 100 was 0.23% down at 8,414.23.

Meanwhile, the FTSE 250 was 0.31% lower at 20,581.52.

Cazoo is urgently searching for buyers as it seeks to stave off potential collapse after two deeply challenging years.

The used car marketplace filed a notice of intention last week with the High Court to appoint administrators for some of its subsidiaries.

NatWest has taken another step towards full-private ownership after the Government sold another chunk of shares in the lender.

The Government’s stake in the bank has now dropped by one percentage point to 26.95 per cent, as it continues with its plans to sell all of its shares by 2026.

It’s hard to imagine that after a cost of living crisis that saw double-digit inflation erode everyone’s spending power, that people may be in a better position to cope with higher mortgage rates now than they were in the past.

The pandemic ignited something of a savings boom, as the constraints of lockdown and impetus of economic uncertainty resulted in many people spending less and saving more.

(PA) – Pizza Pilgrims has announced plans to expand into Scotland and Wales.

The chain, which already has 22 pizzerias in England, has largely focused on London, where its first pizza slice was sold out of a van in Soho.

It now plans to open four more sites – Cardiff in August and Edinburgh by December, Euston in London in June and King’s Cross, London, in August.

Pizza Pilgrims was founded in 2012 by brothers Thom and James Elliott after they quit their jobs to embark on a six-week pizza “pilgrimage” through Italy.

They scoured the country for the best pizzas, with the results filmed for an Apple TV series called James And Thom’s Pizza Pilgrimage.

Since then they have turned their business from a single pizza van to a multimillion pound business, with a workforce of 480 people serving up to 50,000 pizzas a week.

A huge rise in the number of scam text messages being sent pretending to be from parcel companies has led to one giant in the industry to send out an urgent warning to customers.

Evri has issued the warning about the growing sophistication of fraudsters and the continued rise in reported scams from customers.

Diploma shares were the biggest FTSE 100 riser by Monday afternoon after the technical products supplier hiked its annual guidance.

The company, which sells gaskets, cables, and industrial hoses, now anticipates its turnover climbing by 16 per cent at constant currency levels for the financial year, compared to 11 per cent as previously forecast.

Diploma also expects an operating margin of 20.5 per cent thanks to recent takeovers and a ‘strong underlying performance’.

A new bill has been introduced in Parliament designed to tighten rules for new drivers in the form of Graduated Driving Licences.

The bill, introduced by Labour MP Kim Leadbeater, would impose restrictions on young drivers during the initial six months as a licence-holder.

Former Chancellor Nadhim Zahawi has been appointed chairman of the Very Group, which owns the Very and Littlewoods brands.

Long-term sickness is now the main reason women are out of the labour market with poor mental health up by more than a quarter in five years.

The number of women who are economically inactive due to long-term sickness soared to 1.54million in 2023 – the highest on record.

Dan Coatsworth, investment analyst at AJ Bell, comments:

Speculation is rife that Chinese fashion group Shein is on the verge of confirming its intention to list in London, as well as electronics group Raspberry Pi in the coming days.

Both names would bring some sparkle to the market and potentially encourage other companies to take advantage of the new-found oomph in UK equities.

Shein is such a big name in the world of retail that its mere presence on the London market could encourage others to look hard at the UK as a listing venue.

It is now a household name in many parts of the world and that’s what many investors love to see when picking stocks.

They want to find companies that everyone is talking about – just ask any teenager or young adult where they buy clothes and Shein is likely to be near the top of the list due to its attractive prices.

Phoenix Group has kickstarted the search to permanently replace its chief financial officer Rakesh Thakrar, who will step down in 2024 after four years in the role.

The FTSE 100 insurance group did not offer a reason for Thakrar’s departure but told shareholders he will step down ‘at a date to be agreed in 2024’.

Cerillion shares rose on Monday after the software firm won a large contract and revealed record half-year results.

The London-listed group said the deal with the unnamed ‘leading provider of connectivity solutions’ will initially run for five years and be worth $11.1million.

(PA) – Digital marketing firm Mission Group has rejected a takeover approach from rival Brave Bison, which owns the Social Chain agency founded by Dragons’ Den star Steven Bartlett.

Brave Bison – which last year bought Social Chain – tabled a possible all-stock offer worth around 29p a share, valuing fellow Aim-listed rival Mission Group at about £27million.

But Mission said its board unanimously rebuffed the approach, which it said was “opportunistic and significantly undervalues the group and its prospects”.

Brave Bison, which is backed by billionaire Lord Michael Ashcroft, said it was in talks with Mission’s board and major shareholders to garner support for a deal.

Brave Bison said a tie-up between the pair would create one of the UK’s largest independent digital marketing agencies on Aim, a combined group with sales of around £120million and underlying earnings of about £14million.

Brave Bison said the enlarged group would be headed up by brothers Oliver and Theo Green, executive chairman and chief growth officer of the firm, who took over the company in 2020.

The American market for pharma and health products is expansive, the mark-ups generous and any multi-national which sought to ignore it might as well give up the ghost.

Yet the United States also exposes corporations to regulatory and litigation banana skins.

Business leaders have called for a flagship scheme to get young people into work to be overhauled as the system is a ‘complete waste of money’.

Household names including John Lewis, Tesco and Marks & Spencer say rules around the apprenticeship levy limit them from using the funding pot, even though they pay in millions of pounds.

Starling Bank is selling a slice of its success to banks around the world as the next phase of its growth.

Last month, it launched Salt Bank in Romania. This is the first time a bank has launched using its Engine software outside of the UK.

Recruitment in the private sector has fallen for the tenth month in a row, which is the longest decline since records began.

Accountancy firm BDO said its employment index, which tracks the UK job market, slumped to the lowest level in more than a decade in April.

Chief financial officer of British insurer Phoenix Group Rakesh Thakrar will step down this year, after about four years in the role.

Stephanie Bruce, former CFO at British asset manager Abrdn , will join the group in June and will thereafter take over as interim group CFO.

‘Rakesh has been a great colleague and his counsel, knowledge and experience have been invaluable to Phoenix over the course of his tenure. 

‘We thank him for his significant contribution to the Group’s journey to become the UK’s largest long-term savings and retirement business, which has included his oversight of a number of transformational projects.

‘I am grateful to be working with him and Stephanie during the handover period and wish him every success for the future.’

Diploma has lifted full-year profit expectations after the FTSE 100 distributor of industrial components’ sales beat forecasts in the first half, boosted by six acquisitions.

Revenues came in at £638million for the six months to the end of March, up 10 per cent year-on-year.

Diploma now expects constant currency revenue growth of 16 per cent for the year, up from its previous forecast of 11 per cent, and an operating margin of 20.5 per cent, up from 19.7 per cent.

Chief executive Johnny Thomson said: ‘We’ve delivered another strong first half with good volume-led organic growth in a more challenging market environment.

‘Our momentum is encouraging going into the second half, underpinning our upgrade to full year guidance.’

London’s stock market has been given a shot in the arm as tech firm Raspberry Pi and fast fashion giant Shein accelerate listing plans.

Cambridge-based Raspberry Pi has chosen London for its initial public offering, which could launch within the next ten days.

An IPO would value the business – which helps children learn code – at up to £500m, the Sunday Times reported.

Former chancellor Nadhim Zahawi will become non-executive chair of Littlewoods-owner The Very Group when the Tory MP stands down at the next General Election.

Zahawi said: ‘As one of the UK’s largest digital retailers and flexible payments providers, the Company has an important role to play in helping families get more out of life.

‘With a heritage of over 100 years, Very has an unrivalled knowledge and understanding of its customer, demonstrating resilience even in the face of challenging conditions.

‘I am excited about the strategic opportunities for the Group and look forward to working alongside the management team as they further develop and grow the business for the future.’