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Boss of South West Water owner has 'regret' for pollution incidents

2025-10-24 03:28:29 By

Susan Davy, Chief Executive Pennon Group

The boss of Pennon says she has “regret” for the pollution incidents caused by the utilities firm.

Chief executive Susan Davy, whose company owns South West Water, Bristol Water, Bournemouth Water and SES Water, admitted to a group of MPs that "from time to time things do go wrong".

There were 194 individual pollution incidents across the Pennon group between 2023 and 2024, and the company was fined £2.2m in 2023 for illegal sewage spills spanning four years across Devon and Cornwall.

Ms Davy said: “I absolutely regret and do not condone those incidents and pollutions that we had. We do not want to harm the environment, that is not the activities that we undertake everyday.

“We have hundreds of treatment works and thousands of pumping stations and from time to time things do go wrong.”

The comments follow a major incident in Brixham, in Devon, last year, which saw a parasite outbreak in the water supply. The diarrhoea-inducing cryptosporidium was discovered in a reservoir in May, prompting 17,000 households to boil their drinking water for eight weeks. The company was compelled to clean and flush its water network 27 times, in addition to replacing sections of its grid.

As a result, in November, Pennon revealed that its underlying pre-tax profit had plummeted from a £19.1m profit in the first half of last year to an £18.6m loss.

Ms Davy told MPs on Tuesday: “I absolutely understand how devastating that incident was for that community and for the customers who were poorly… it was a really horrible time for them. I am always sorry when something happens whether to our customers or to the environment,” she added.

Despite the company coming under fire for pollution incidents, Ms Davy saw her pay package jump 58% last year after picking up a £298,000 share award. Her total pay increased to £860,000 in 2023-24 from £543,000 the previous year.

Last month, Pennon announced plans to raise £490m by issuing new equity shares through a rights issue. The company said at the time that investors would be able to acquire 13 new shares, at a cost of 264p each, for every 20 they already own.

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Subway expands menu in major revamp as it faces fierce competition from Greggs

Subway has overhauled its menu as part of a new marketing strategy aimed at boosting UK sales. The fast-food giant will be testing a customisable jacket potato in 170 UK stores, attributing the decision to the potato's recent social media "renaissance" and "fame on social media," as reported by City AM. Deniz Safa, Director of Innovation & Culinary at Subway EMEA, stated that the move was due to the "surging popularity" of jacket potatoes and "growing consumer demand." Subway has been facing stiff competition from brands such as Greggs and Pret in recent years, with Greggs recently surpassing Subway in terms of total UK restaurants. Edurne Uranga, VP of Foodservice Europe at Circana, noted that quick-service restaurants like Subway are in "fierce competition... not just against each other, but also with major European supermarkets like Tesco, Mercadona, and Edeka." She added that "these grocery giants are becoming formidable rivals, offering convenient meal options that challenge traditional quick service food." "It's a battle for the consumer's palate, where both sectors are vying to capture the attention of hungry customers looking for convenience, variety, and value." In an effort to attract more UK customers, Subway rolled out its new store layout, Fresh Forward 2.0, last November. The chain described the plan as "the next iteration of its global restaurant image, designed to further enhance the guest experience, improve convenience and help drive franchisee profitability." Subway unveiled a significant menu refresh in 2023, which represented the brand's most substantial menu evolution in nearly six decades. Criticism arose concerning Subway's aggressive expansion strategy during the 1990s and 2000s, as it was argued that an oversaturation of outlets impeded the profitability of franchise partners. Operating under a franchise model, Subway enables independent business owners to manage individual stores under its brand umbrella. Despite closing approximately 7,000 global locations from 2015 to 2024, including over 400 in 2023 alone, Subway experienced a change in fortune after its acquisition by private-equity firm Roark Capital in May 2024 for $9bn (£7.12bn).

Newcastle shopping destination Eldon Square appoints new director

A new boss has been appointed to lead Newcastle city centre’s premier shopping and leisure destination Eldon Square. Helen Cowie has been named as the new centre director for Eldon Square, one of the UK’s most visited city centre shopping malls with more than 26.5m people stepping into its shops every year. Ms Cowie, was born and raised in the region and has lived in the North East all her life, has more than 30 years of experience within retail, joining the centre after holding senior positions at high street retailer Marks and Spencer across a number of regions, including Scotland, North East and North West England. She has visited Eldon Square from a young age and, stepping into the leadership role, says she is excited to be part of its future and passionate about boosting its reputation across the region. She said: “I’m extremely excited to be joining Eldon Square during this transformational period for the centre. Eldon Square is more than just a shopping centre, it’s an integral part of Newcastle City Centre with a mission to elevate itself to becoming the go to retail and leisure destination in the North East. Along with my team, I look forward to continuing to enhance the shopping experience and making a positive impact on the future of this iconic Newcastle destination.” Matthew Beddow, senior director of asset management at Eldon Square, said Ms Cowie’s experience in establishing new business streams will help drive innovation across all aspects of Eldon Square’s continuing development. He added: “We are thrilled to welcome Helen Cowie to the Eldon Square team. Helen’s wealth of experience and passion for delivering an excellent customer experience will be instrumental in shaping the future of the centre. With her strong background in the sector and her deep understanding of the evolving retail, leisure and entertainment landscape, Helen is well positioned to lead Eldon Square through this exciting chapter.” Ms Cowie’s arrival coincides with a major investment programme at Eldon Square, which provides more than 4,000 jobs across more than 140 retailers. New investments this year will include a huge new Next store, which will include a Bath and Body store, River Island’s relocation, and darts bar Flight Club. Elsewhere in the complex Freight Island – a huge entertainment and dining destination inspired by Coney Island in New York – is set to land in the former Debenhams unit later this year.

Hair salons tell Chancellor to cut VAT to save industry from 'existential crisis'

The North’s hair and beauty industry could face a long-term crisis unless the Government cuts VAT – that’s the message from the owners of salons across Merseyside. The British Hair Consortium (BHC) says the tax system is “crushing” high street salons and that the whole industry so vital to the region’s economy is facing an "existential crisis". Collinge & Co has been in Liverpool city centre for decades and every year trains dozens of apprentices who will be the future of the industry. But its boss Charlie Collinge says his company has already had to close one salon as rising costs bite – and warns that without more Government support the flow of apprentices to the industry could stop altogether. Like other high street companies, hair and beauty firms are also coping with the upcoming rise in National Insurance costs. Collinge & Co said that rise in costs was a factor in the closure of its Ormskirk salon. Meanwhile the owner of three Sefton salons says VAT is her biggest challenge and says she fears for the future of the industry. The BHC is today issuing a report by consultancy CBI Economics saying the Government must “urgently halve the VAT salons pay on labour costs to 10%” to help salons stay competitive. It says that because hair and beauty work is labour-intensive, taxes on labour hit salons harder than other high street businesses. More hairdressers are choosing to work on their own rather than being employed at salons – such as by renting chairs at a shared salon – to save money. But the BHC says sole traders are generally not taking on apprentices, unlike traditional salons. It says that if the trend goes on then "by 2027 there may be no new apprenticeships offered". Charlie Collinge, managing director of Liverpool’s Collinge & Co, said last year the business had 300 applications for 64 apprenticeship places. It managed to fill 60 of those places. This year’s apprenticeship scheme has been open for two months and has already had more than 120 applications. But so far it has only had 17 businesses express an interest in taking an apprentice. Charlie told BusinessLive: “If you've got over 300 people applying for an apprenticeship. You should be able to fill 64 places, you really should. But I really don't think we will. “Realistically, we could be looking at not being able to afford to run as a training provider if we can't fill or get close to filling 64 places. And then there's no apprenticeships. Then you're talking about there being no apprenticeships offered in all of Liverpool City Region.” Charlie said the industry offered a great career and good pay – but that he was worried the pipeline of trainees could slow dramatically unless training providers like his were offered support. He said: “We've offered amazing opportunities to people. It really does give people a good career. There's good progression, good career security. There's always going to be demand for hairdressing. The current hairdressers are okay. But if we don't have apprentices coming through, there's going to be a really big issue.” Charlie says he wants Chancellor Rachel Reeves to use her spring statement next month to cut VAT for hair salons. He said: “We believe we're unique. We believe we've got the highest wage bill on the high streets. For some businesses, over 60% of their turnover is going on wages. So when there is something like an NI increase, that's hitting us twice as hard as the hospitality business, it's hitting us three times as hard as a retail business. So these increases aren't equal. “ The Collinge family has worked in hairdressing since the 1940s. Peter Collinge opened his city centre salon in 1954 and became one of Britain’s most famous hairdressers. His son Andrew followed in his footsteps, becoming a regular on ITV’s This Morning alongside wife Liz. Andrew was also passionate about training in the industry – as his son Charlie, who now leads the business. As well as its flagship Castle Street salon, Collinge & Co also has a salon and training academy at Bold Street in Liverpool city centre, a salon in Heswall in Wirral, and a concession in Selfridges at the Trafford Centre. Its Ormskirk salon will close next month. Mr Collinge estimates 70% of the industry is now self-employed rather than working in or running salons. He said: “An owner of a wholesaler told me that there's no less hairdressers out there, because they know that from the amount of product they're selling to people, but they don't know where the hairdressers are operating.” And he added: “Therefore, there's less and less salons that even operate a PAYE system so that therefore are offering apprenticeships. So that's the challenge. “So let's say 70% of the industry is self-employed. Because that's dominant and it's cheaper, it makes it very difficult for you (as a salon owner) to then grow your business. “I could put a job out for this salon… and we probably won't get many applications because people want to be self-employed, so it's very difficult for you to grow your business. So our succession plan is apprentices. Without apprentices, we cannot bring hairdressers into our business.” The NI increase means Collinge & Co’s NI bill will rise 37%. But for its Ormskirk salon alone, the NI bill will rise 70% because it has several staff who work part-time and enjoy working flexible hours. Mr Collinge said: “That NI threshold change hits that side of the business so much harder than a large business with full-time employees or people on high salaries. The hairdressing industry has always offered flexi working and it feels like we're getting hammered for it with this NI bill.” And he added: “It's a labour intensive industry. Someone comes in, they've got someone's undivided attention for the entire time they're in. There's not many other businesses where you go in and you have that one-on-one relationship… there isn't, basically, is there?” Denise Thomas has hair salons in Litherland, Crosby and Netherton. She said: “I’ve been a hairdresser for almost 47 years and a salon owner for 25 years and one of the biggest challenges I’ve faced over the years has been VAT. “A growing number of salons now operate with chair renters who don’t have to pay VAT, which allows them to keep their prices low and creates an uneven playing field. “I also worry about the future for the next generation of stylists. Who will train them? Recently I had to make the difficult decision to let my two newest apprentices go because I simply can’t afford them. “My training provider has no salons on their books looking for apprentices this year, as chair rental salons don’t typically train apprentices. If salons like mine continue to be squeezed, they’ll become less and less viable, making it even harder for employers like me to secure a stable future.” The British Hair Consortium represents 50,000 UK hairdressing professionals. Its co-founder Toby Dicker said: “Our industry has been ignored for years and we’re calling on the Government to correct decades of mismanagement. Most owners haven’t had a pay rise in many years and simply can’t consider expanding their business, let alone take on an apprentice. “A ‘one size fits all’ tax system doesn’t work and has created an unlevel playing field. Increasing numbers of owners are either closing their salons or changing their employment practices and are renting chairs to contractors just to survive. This report shows how cutting VAT to 10% won’t cost the Government a penny. It would save salons across the country and ensure the future of our industry which sits at the heart of the high street. “Ireland has recognised this and dropped its VAT on labour intensive businesses in hairdressing and hospitality to nine percent. The change is working – new salons are popping up and paying tax while workers are also benefiting from improved employment rights.”

Historic cider maker Thatchers posts record sales after Aldi legal battle win

Family-owned cider maker Thatchers has reported record-breaking sales, surpassing the £200m mark for the first time in its 120-year history. The Somerset-based business, established in 1904, recorded sales of £203.9m for the year ending 31 August, 2024, as reported by City AM. This is a significant increase from the previous financial year's turnover of £175.2m. Since 2018, when it posted a turnover of £99.2m, Thatchers has more than doubled its sales. Recent filings with Companies House reveal that the firm's pre-tax profit marginally increased from £15.6m to £15.8m over the year. Despite absorbing input costs and investing in new production facilities, brands, and personnel, the company's operating profit only rose by 3.4 per cent to £15.6m. The business, currently managed by the fourth generation of the Thatchers family and chaired by Martin Thatcher, continues to face rising costs. A statement approved by the board read: "The cost-of-living crisis has continued to impact consumers and an ongoing trend towards premiumisation has seen budget brands decline, while quality, trusted brands like Thatchers are growing in value and volume, with Thatchers outperforming the category every quarter." However, the company acknowledged that its success has not fully shielded it from recent economic challenges. "Like many companies, Thatchers has been affected by inflationary cost pressures such as rising raw material costs, increasing wage bills and additional taxes. "This has led to significantly reduced margins, however, mindful of the cost-of-living crisis, Thatchers has worked hard to limit the impact on customers, and where possible absorbed a significant proportion of those costs. "Additionally, the predicted increase in cider sales due with the 'summer of sort' was offset by poor weather conditions, with both on and off trade markets feeling the impact. "The cider market saw a lot of change this year, with some producers moving products into the lower ABV [alcohol by volume] tier to maximise on the change in duty, and others running aggressive promotional pricing campaigns. "Thatchers took the decision to simply remain focussed on producing great quality cider." During the year, the company grew its market share by 1.7 per cent, taking its total to 17.2 per cent. It also invested £14m in the 12 months in its cider production facilities and the completion of its automated warehouse system, up from £7m. The company has also committed to spend £24m during its current financial year on products such as a new canning line. During the year dividends of £7m were paid out, the same as in 2023 and 2022, while the average number of people employed by Thatchers increased from 253 to 261. The verdict arrives a month after the Court of Appeal ruled that Aldi had violated Thatchers' trademark with its cloudy lemon cider product. Thatchers initiated a legal dispute against the German supermarket chain in 2022, alleging that Aldi had breached its trademark by producing and selling a cloudy lemon cider similar to Thatchers' own product. Aldi's Taurus cloudy lemon cider hit the market in May 2022. Thatchers contended that Aldi's product was strikingly similar to its own lemon cider, pointing out that the colour scheme of yellows and greens and the creamy yellow backdrop could mislead consumers. However, in January 2024, High Court judge Melissa Clarke ruled in favour of Aldi, determining that it had not infringed on Thatchers' trademark. In her judgement, she observed that there was no likelihood of confusion between the brands, it bore a low degree of similarity to the trademark, and Aldi's usage did not unjustly exploit the trademark.

Andy Burnham wants 'proper levy' on tourist hotel stays in Greater Manchester

Andy Burnham is advocating for the implementation of a 'tourist levy' to be paid by visitors staying in Greater Manchester from outside the region. The metro mayor has expressed his desire to replace the current voluntary 'city visitor charge', which is an optional £1-per-night fee, with a mandatory tax. The current scheme funds the local Accommodation Business Improvement District (ABID), supporting tourism promotion and additional cleaning services near hotels. Burnham called for "a proper levy" and clarified that it would not affect residents of Greater Manchester already staying within the city-region's hotels when questioned on BBC Radio Manchester. He said: "We would like it to be a proper levy. I would like a scheme that's mainly about visitors to Greater Manchester,. "People pay their council tax and they do not generally stay in hotels. I know it happens but largely it's about people coming into the city-region. "I am putting the case to the government for a tourist levy. Edinburgh has brought one in. I think Glasgow have voted to bring one in. Wales are looking at it as well." The mayor made the point that British tourists are subjected to a tourist tax when holidaying in certain European countries and therefore believes it appropriate that visitors to the UK should be levied similarly. He added: "In an era where we are struggling to raise funds from the public here it feels right to me [when there's] the levy British tourists pay in France, Germany, and Italy... why should people from there not pay one? " The city visitor charge brought in roughly £2.8m in its first year, and according to the ABID, no grievances have been flagged by guests at hotels participating in the program. Last year, Kumar Mishra, in his capacity as general manager of The Edwardian hotel, said the fee was instrumental in attracting major conferences and events. It funded counter-terrorism and security training for those providing accommodation and contributed financially to the enhancement of street cleaning services in the city centre.

Luxury stocks bounce back as high street brands Asos and Primark struggle

Luxury stocks are once again outpacing high street brands as investors anticipate a luxury resurgence. Brands that faced difficulties last year, such as Burberry and Kering, are making a comeback, while firms heavily reliant on physical stores like Primark are finding it tough, as reported by City AM. The top ten luxury retailers by market cap have seen their stock price increase by an average of 19 per cent so far this year. In contrast, high street stocks have only risen by 11 per cent, with the share prices of JD Sports, Asos and Primark-owner ABF declining in the past two months. The average performance of high street stocks has been buoyed by German retailer Zalando, which has seen a 23 per cent rise in its share price this year. The e-commerce giant's share price has rocketed by 101 per cent over the past year, significantly outperforming its competitors. "Over the past year, lower-cost high-street brands fared better in general as value-conscious consumers prioritised affordability amidst sticky inflation," said Lale Akoner, global market analyst at eToro. "Yet some of the most recognisable names to British shoppers within our basket – Asos, JD and Primark – were not part of this growth. Instead, they were burdened by persistent inventory and profitability issues, highlighting the pressures facing fast fashion in a competitive, discount-driven environment." Seven out of the ten largest listed high street firms have seen their share prices fall over the past five years. Despite a significant downturn in the post-pandemic period due to weak demand from China and overstretched European consumers, luxury is making a comeback. Burberry is poised to rejoin the FTSE 100 after being dropped from the index last September, and even Kering, which has been struggling, has seen its share price increase by 19 per cent since the start of the year. The luxury sector received a boost following impressive results from Richemont in January, which lifted luxury stocks globally. RBC analysts Piral Dadhania and Richard Chamberlain predicted late last year that the luxury market would see an upturn in 2025, with promising opportunities in North America and a stabilisation of the Chinese market. "Whilst luxury has generally been a tough sector [in the second half of 2023 and in 2024]... the setup is improving," the analysts stated. However, Akoner cautioned that "it will take some time for [troubled stocks] to claw back their share price, especially as the Chinese economy is still facing challenges." Hermes continues to outperform, with its stock price increasing by 296 per cent over the past five years and 21 per cent since the start of the year.

UK retail sales beat expectations in January amid discounting

British shoppers made a comeback in January, as bargain hunting drove the first monthly increase in retail sales volumes since August of the previous year. According to the Office for National Statistics (ONS), retail sales volumes rose by 1.7% in January, following a 0.6% decline in December, surpassing analysts' expectations of a modest 0.3% growth, as reported by City AM. This surge was largely attributed to a 5.6% increase in food sales, which experts believe was fueled by spending on discounted items. However, sales volumes at non-food stores, including department, clothing, and household shops, dropped by 1.3% over the month, with retailers and household goods stores citing reduced consumer confidence as the primary cause. Alice Cowley, Retail Strategy Managing Director at Accenture, noted that the results were "not the splash retailers will have wished for," as consumers continued to be frugal with their spending post-Christmas. Cowley added, "This past three-month period has fallen short of expectations for many, as shoppers increasingly prioritised essentials only in non-food categories and turned to own label food products, weakening margins." Analysts have cautioned that relying heavily on discount spending will further erode already-thin profit margins, a situation that will be exacerbated by significant tax increases set to hit the retail sector in April. The British Retail Consortium (BRC) has warned that the sector will face an additional £7 billion in costs due to the combined effects of a higher minimum wage, packaging tax, and changes to employer's national insurance contributions. Kris Hamer, Director of Insight at the British Retail Consortium, has expressed concern over the unpredictable nature of the retail sector in the coming months: "With consumer expectations for the economy falling almost 40pts since July 2024 and an unsteady job market, the next few months are hard to predict." He also highlighted the financial strain on the industry, stating, "This boost to sales barely touches the sides of the £7bn in new costs from the Budget and packaging levy facing the industry this year." Earlier in February, a group of influential retailers warned that hundreds of thousands of jobs could be jeopardised in the retail sector due to unsustainable cost increases this year. Peel Hunt has projected that retail firms within their coverage will experience an average pretax profit drop of 7.5 per cent due to the Budget's tax hike, with some companies being more severely impacted than others. Matt Dalton, Consumer Sector Leader at Forvis Mazars, urged caution when interpreting recent figures: "A closer look at the numbers suggests that there may not be as much to celebrate as one may think."

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.”

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.

Drayton Manor's profits slide for fourth year as theme park hit by wet weather

Drayton Manor has reported a drop in profit for the fourth consecutive year since being saved from administration, with inclement weather continuing to dampen sales. The Staffordshire-based theme park recorded a pre-tax profit of £1.2m for the year ending 30 September 2024, a decrease from the previous year's £2m, as reported by City AM. This follows pre-tax profits of £3.5m and £5.6m in the two years post-rescue. Prior to its collapse into administration in 2020, Drayton Manor had been operated by three generations of the Bryan family since its opening in 1950. The theme park was subsequently acquired by Looping Group, which operates several UK attractions including West Midland Safari Park and Pleasurewood Hills, as well as other European sites. In the three years leading up to its administration, Drayton Manor accumulated a pre-tax loss exceeding £7m. According to recently filed accounts at Companies House, the park's turnover also fell from £29.3m to £28.1m during its latest financial year, having stood at £30.7m in the year ending 30 September 2022. With Merlin Entertainments planning to open a Minecraft-themed park in the UK, and Universal detailing plans for a new UK theme park expected to provide a £50bn boost to the economy, Drayton Manor is set to face increased competition in the coming years. The board of Drayton Manor released a statement acknowledging the difficulties faced by the business: "Challenges such as very high energy prices from the prior year lessened but our customers were still feeling the effect of the high cost of living." "The weather continued to be another challenge to the business with summer 2024 being the coolest since 2015 and any heatwaves were short lived. The summer was largely overcast, wet and cool." Despite a dip in profits, Drayton Manor distributed dividends totalling £1.2 million to its owner. The theme park's turnover decreased slightly from £23 million to £22.3 million over the year, while revenue from its hotel and events also saw a downturn from £6.2 million to £5.8 million.