LIVE BUSINESS: MPC Rate Decision; Thames fined over divi payment; Henry Boot buys Stonebridge

Housebuilder Henry Boot will take full ownership of Stonebridge Homes after buying the remaining 50 per cent of the premium regional specialist.

The transaction is structured to be completed in three tranches over the next five years and the total purchase price is linked to Stonebridge’s performance, the group said.

Boss Tim Roberts said: “This transaction represents a significant strategic milestone for Henry Boot, allowing us to acquire full ownership of a high-growth premium residential homebuilder that we already know well through our current 50% stake in the business”.

‘The acquisition of Stonebridge also further consolidates our position in the UK housebuilding sector, a market currently benefiting from a number of favorable structural and political tailwinds, while simplifying Henry’s structure Boot.

‘Consideration is linked to performance, and the phased structure is designed to generate strong returns while keeping leverage within our optimal range of 10-20%. All of this gives us confidence that this transaction will help drive greater value for shareholders in the medium term and will be an important part of our growth plans.”

The head of one of Britain’s biggest investment platforms has claimed the Government is “taxing the stock market out of existence” and called for stamp duty on share trading to be scrapped.

Richard Wilson, chief executive of Interactive Investor, said action was needed after figures showed the London market has suffered the biggest exodus of companies since 2009 this year.

German sandal maker Birkenstock reported higher sales and profits as the “ugly” clogs proved a hit with shoppers.

Sales rose 21 per cent to £1.5bn in the year to September 30 and profits more than doubled to £159m.

Household water bills will rise by an average of £94, or 21 per cent, over the next five years after regulator Ofwat approved steep price rises.

The increased bills will cover pipeline and reservoir upgrades that water companies say are badly needed, but will also go toward paying investors.

Environment Secretary Steve Reed said this week that consumers would be “angry” about rising water costs.

Thames Water will be fined £18m for breaching dividend payout rules, as regulator Ofwat cracks down on water companies that fail to link payouts to performance for the first time.

Debt-ridden Thames Water, which has 16 million customers, has become a poster child for Britain’s broken water sector following accusations that investors have for decades looted the companies for dividends while neglecting infrastructure and the environment. .

Ofwat had tightened rules on water companies’ dividend policy in May last year, ordering companies to suspend dividend payments if they were in poor financial health.

The regulator said Thames Water made interim dividend payments totaling £37.5 million to its holding company, Thames Water Utilities Holdings Limited, in October last year and further payments of around £158.3 million to pounds sterling in March 2024.

The regulator, which oversees the privatized water and sewage industry in England and Wales, said it would recover value from £131.3 million in dividend payments using price controls so customers do not lose tax benefits.

“(This) is a clear warning to the entire sector: we will take action against companies that take money out of these businesses, when the performance does not warrant it,” Ofwat chief David Black said in a statement.

Nissan shares posted their biggest gain in nearly 40 years after it entered talks to merge with Japanese rival Honda.

A deal that could also include Mitsubishi Motors, in which Nissan is the main shareholder with a 24 percent stake, and would create the world’s third largest automaker with 8 million sales a year, behind Toyota (11, 2 million) and the German giant Volkswagen (9.2 million). metro).

Nissan shares are up 24 percent, but are still down 25 percent this year. Honda fell 3 percent.

The Bank of England will today reveal the decision of its Monetary Policy Committee on the direction of interest rates.

The base rate is expected to remain at its current level of 4.75 percent, amid fears of a resurgence of inflation.