BK MAKES A STACK
Burger King returns to profit after being boosted by new restaurant openings
In the first six months of 2024, the 561-strong chain — with about 6,000 staff — saw 'strong' trading
FAST food chain Burger King UK returned to profit last year, boosted by new restaurant openings.
The firm posted a £20.7million loss in 2022, but swung to an operating profit of £13.4million in 2023.
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Revenue climbed 30 per cent to £381.8million, with like-for-like sales growth of three per cent.
And in the first six months of 2024, the 561-strong chain — with about 6,000 staff — saw “strong” trading.
Boss Alasdair Murdoch said: “We have seen a resilient trading performance in the first half of 2024, with total sales growth of five per cent split equally between the existing estate and new site openings.”
The chain was boosted by the opening of 18 restaurants and the integration of 74 sites bought from franchise operator the Karali Group in September 2022.
Indian giant grabs quarter of BT
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BT is set to become a quarter Indian-owned — after Bharti Global snapped up a big chunk yesterday.
The Delhi-based telecoms conglomerate agreed to buy another 9.99 per cent in the British giant from the French media firm Altice.
Bharti already has a 14.51 per cent stake, so yesterday’s swoop will take its overall holding to 24.5 per cent.
But the deal could yet face a national security probe.
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Despite its investment, the Indian firm said it had no intention of making an offer to acquire the firm. Instead, it called it a vote of confidence in Britain as a global destination for investment.
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Bharti Global was founded by Sunil Bharti Mittal in 1976 and has grown into one of India’s biggest businesses.
Billionaire Mr Mittal, still chairman at 66, said: “BT has a strong portfolio of market-leading brands, high-quality assets and an experienced management team with a compelling strategy.”
The firms have shares history. BT owned a 21 per cent stake in Bharti’s telecoms arm Bharti Airtel from 1997 and 2001 and had two seats on the board.
BT CEO Allison Kirkby said yesterday: “I’m pleased that they share our ambition and vision for the future of our business.” Bharti is the latest overseas investor with eyes on the UK.
Czech tycoon Daniel Kretinsky has bid £5billion for Royal Mail. And foreign buyers have swooped for investment firm Hargreaves Lansdown and oil and gas company Neptune Energy.
Analyst Paolo Pescatore, of PP Foresight, said it was a surprising move by Bharti but it “reinforces BT’s current strategy for long term growth”.
He added: “It underlines the challenges many telecoms are currently facing with huge debt piles.”
BT shares soared 7 per cent.
Sales in building hit wall
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BUILDING materials firm Marshalls has blamed a slump in sales on “challenging” trading.
Demand for its landscaping products have fallen this year because of low levels of new housebuilding and reduced home improvement spending.
It said revenues fell by 13 per cent to £306.7million in the six months to the end of June.
Meanwhile, roofing revenues fell five per cent.
But the company still turned a profit in the half-year through cost-cutting by reducing staff numbers and slashing shareholder returns.
That helped it make £21.5million in the six months, up 29 per cent compared to the same period in 2023.
Boss Matt Pullen said the group “delivered a resilient performance in weakened markets”.
He hopes to see more work for the firm amid the new Government’s commitment to significantly increase housebuilding.
Carpet KO hits 196 jobs
THE collapse of flooring chain Carpetright last month has hit another business, leading to the loss of almost 200 jobs.
The Floor Room, which operated inside 34 John Lewis stores and a flagship store in central London, has appointed administrators from PwC. All of the stores closed yesterday.
The insolvency hit its 196 staff based across the shops, the head office in Purfleet, Essex, as well as some providing in-home services.
Administrator Adam Seres said it was “ impossible for the business to continue trading”.
It was owned by Nestware Holdings, also the parent company of Carpetright.
Airport flee plea
HEATHROW says it has suffered a 90,000 decline in passenger numbers on routes included in a new £10-per-person electronic travel authorisation scheme.
It wants the Government to scrap the ETA system, introduced last November for nationals of several Middle East countries including Qatar.
The airport said: “Every little bit of extra competitiveness will help deliver vital growth for the whole of the UK economy.”
'Insain' burden
THE boss of supermarket chain Sainsbury's has called on the Government to slash business rates or face the closure of 17,300 shops over the next decade.
Simon Roberts said: “The business rates system has become an enormous burden on our industry. It is no longer fit for purpose.”
Business rates rose by around 6.7 per cent in April and are set to rise in line with inflation again next year.
Along with union Usdaw, he said a 20 per cent cut to retail business rates would generate an extra £70million a year for taxpayers.
Riots' high cost
FEARS of more riots and public disorder last week caused sales in the hospitality industry to fall by a tenth.
As businesses closed and consumers stayed at home, sales fell by up to 40 per cent in some areas and footfall was down by as much as 75 per cent, trade body UK Hospitality said. Coastal towns were particularly affected by the cancellation of coach and day trips.
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City centres also saw significant disruption.
UK Hospitality chief Kate Nicholls called for insurers to react swiftly to help businesses hit by rioters.
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