profit

House builder’s profit slumps, losses deepen at Galliford Try and Zara sales slide

Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:

House builder’s profit slumps

House builder Redrow (RDW.L) saw its profits slump by two thirds last year as COVID-19 disrupted construction and sales.

Pre-tax profit at the business fell 66% to £140m ($180.5m) in the 12 months to 28 June 2020, the company said. Revenue dropped 37% to £1.3bn.

Chief executive John Tutte said the pandemic had “a profound impact upon the Group’s performance in the 2020 financial year but we entered the new financial year in a position of strength.”

“We have a record order book and brought forward very high levels of work in progress,” he said. “This was due in part, to increased investment earlier in the year in anticipation of strong demand for the Help to Buy scheme ahead of changes to the scheme next year.”

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House builder’s profit slumps, losses deepen at Galliford Try and Zara returns to profit

New-build homes at a Redrow housing development in Arborfield near Reading, England. Photo: Adrian Dennis/AFP via Getty Images
New-build homes at a Redrow housing development in Arborfield near Reading, England. Photo: Adrian Dennis/AFP via Getty Images

Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:

House builder’s profit slumps

House builder Redrow (RDW.L) saw its profits slump by two thirds last year as COVID-19 disrupted construction and sales.

Pre-tax profit at the business fell 66% to £140m ($180.5m) in the 12 months to 28 June 2020, the company said. Revenue dropped 37% to £1.3bn.

Chief executive John Tutte said the pandemic had “a profound impact upon the Group’s performance in the 2020 financial year but we entered the new financial year in a position of strength.”

“We have a record order book and brought forward very high levels of work in progress,” he said. “This was due in part, to increased investment earlier in the year in

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Is this the best time to start a business? ‘The Profit’ star offers some insight

Is this a good time or a bad time to start a business? What if I told you it is a great time?

I have long thought that recessions are excellent times to start businesses. The smart and passionate Marcus Lemonis, star of the “The Profit” on CNBC, agrees.

Recessions could work well for startups for a few reasons:

•Startups require passion and commitment, and those facing financial uncertainty have those traits in spades.

•Essential startup costs are cheaper in recessions, i.e. rent, advertising, labor, etc.

Lemonis added another very important reason: There is a lot of money available for startups. “With the (Small Business Administration) being more generous than ever with their guidelines and with more cash on the sidelines than there has been in years,” the time could be opportune to launch a startup.

Perhaps it’s time to launch a startup.

Lemonis suggested that we all should

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Is this the best time ever to start a business? ‘The Profit’ star offers some insight.

Is this a good time or a bad time to start a business? What if I told you it is a great time?

“The Profit” on CNBC, he agreed.” data-reactid=”7″I have long thought that recessions are, in fact, excellent times to start businesses. While speaking recently with the smart and passionate Marcus Lemonis, star of the “The Profit” on CNBC, he agreed.

Recessions could work well for startups for a few reasons:

► Startups require passion and commitment, and those facing financial uncertainty have those traits in spades.

► Essential startup costs are cheaper in recessions. I.e. rent, advertising, labor, etc.

Lemonis added another very important reason: There is a lot of money available for startups right now. “With the (Small Business Administration) being more generous than ever with their guidelines, and with more cash on the sidelines than there has been in years,” the time could be opportune

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Next predicts surprise profit as shop price decline eases

A Next shop on London's Oxford Street. Photo: Dave Rushen/SOPA Images/Sipa USA
A Next shop on London’s Oxford Street. Photo: Dave Rushen/SOPA Images/Sipa USA

Shares in Next (NXT.L) jumped over 9% on Wednesday after the retailer said it expected to make a small profit this year, confounding expectations of investors and analysts.

It came as new data suggested downward pressure on high street prices was beginning to ease as shoppers returned, although it remained acute in some quarters.

Next said in a trading update on Wednesday that full price sales were down 28% in the second quarter, which was “much better than we expected and an improvement on the best-case scenario given in April.”

Online sales rose 9% in the quarter while in-store sales were down 32% compared with last year. Next said it now expects to make a profit of £195m for the year.

“The company is in a much better position than we anticipated three months ago,” Next said. “Consumer

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Tesla posts surprise Q2 profit, ramping up cash despite coronavirus

Tesla (TSLA) posted a profit in the second quarter, defying Wall Street estimates after the electric car-maker delivered more vehicles than expected despite virus-related disruptions.

Here were the main results from Tesla’s Q2 report, compared to consensus estimates compiled by Bloomberg:

  • Revenue: $6.04 billion vs. $5.4 billion expected vs. $6.35 billion Y/Y

  • GAAP earnings per share: 50 cents, vs. GAAP loss per share of $1.06 expected and GAAP loss per share of $2.31 Y/Y

  • Free cash flow: $418 million, vs. outflow $617.9 million expected

Tesla’s second-quarter results came on the heels of an incredible 280% stock rally for the year to date, as investors bet on the company’s long-term prospects with the coronavirus pandemic weighing more heavily on established auto competitors. The near-fourfold increase in Tesla’s stock made it the second-best performer in the Nasdaq 100 after Moderna (MRNA), and rocketed Tesla’s market capitalization to nearly $300 billion to make

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