FTSE 100 Live 24 January: Burberry hails progress, steep rise in firms in distress
FTSE 100 Live 24 January: Burberry hails progress, steep rise in firms in distress
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Burberry shares have surged 15% or 156p to 1226.5p after the luxury goods group reported forecast-beating sales figures for the festive quarter. The early progress in its turnaround means that Burberry is hopeful of delivering a break-even performance in the March financial year.
The shares are up more than 65% since November’s reset of strategy by new boss Joshua Schulman focused Burberry on outerwear and its British roots. Read more here. Rolls-Royce has signed the biggest Ministry of Defence contract in its history. The new eight-year Unity agreement is worth about £9 billion and will bring together all elements of R&D, design, manufacture and in-service support of the nuclear reactors that power the Royal Navy’s fleet of submarines.
It includes continued support of the build and commission of Dreadnought Class submarines. The contract will create an additional 1000 new roles within Rolls-Royce Submarines by the end of the contract, predominantly in Derby. It also brings opportunities to the supply chain, most of which is in the UK.
The number of businesses entering 'critical' financial distress surged in the final quarter of 2024, Begbie Traynor’s Red Flag Alert report showed today. The figure jumped by 50.2% to 46,853 companies, with 21 out of 22 sectors showing a noticeable increase quarter-on-quarter.
Consumer facing sectors increased significantly, led by a 84% jump in Hotels & Accommodation, 76% in Leisure & Cultural Activities and 48% for General Retailers. The number of UK businesses in 'significant' financial distress rose 3.5% on the prior quarter to 654,765, the business recovery and advisory firm said..
