LIVE BUSINESS: Thames Water braces for Ofwat monitor; WPP cuts forecasts; Quilter profits soar

The UK is in a “golden age” of live music, thanks in part to international tourists flocking to see artists such as Taylor Swift.

That’s according to Stephen Freeman, the man behind the food and drink at major UK venues including Wembley and Murrayfield stadiums.

Klarna, the buy now, pay later giant, is considering selling shares ahead of a possible blockbuster New York listing.

The Swedish lender has asked investment bank Goldman Sachs to advise on a secondary share sale, in which investors sell their shares to another party.

FTSE 250 wealth manager Quilter beat first-half profit and inflow forecasts as more wealthy clients flocked to the firm’s funds.

Quilter reported net inflows of £1.5bn for the first six months of the year (up from £200m a year earlier) and total assets of £113.8bn, all of which exceeded analyst forecasts compiled by the firm.

The company also reported a 28 per cent rise in adjusted pre-tax profit to 97 million pounds and announced an interim dividend of 1.7 pence per share.

‘With inflation in the UK falling, consumers’ disposable income has improved, leading to early signs of an increase in discretionary savings.

‘We expect new business levels across the industry in 2024 to be higher than in 2023.

‘Interest rates also remained favourable in the first half, supporting investment returns generated by shareholder funds which, together with solid cost management, led to a 28% increase in first-half adjusted profit.

‘While the expected lower interest rates in the second half will reduce investment income, we also expect lower rates to support market levels and increase customer focus on long-term savings, both of which are favorable for new business flows and revenue growth.’

High Street lenders must improve their crisis plans to prepare for a possible collapse, the Bank of England said yesterday.

The findings were part of the central bank’s investigation into whether banks could be closed “safely” without disrupting the financial system or forcing a bailout by taxpayers.

Barclays, HSBC, Lloyds and Standard Chartered were among those told they needed to be more prepared for possible bankruptcy.

WPP has agreed to sell its majority stake in FGS Global to minority shareholder KKR for $775 million, with the money going towards paying down the British advertising group’s accumulated debt.

The move, which implies an enterprise value for the financial PR agency of $1.7 billion, comes as the group lowered its 2024 guidance after organic growth suffered again in the first half.

Mark Read, WPP chief executive, said:

‘The sale of FGS represents an excellent outcome for WPP. Together with FGS management we have created a world-leading strategic communications and advisory group, creating significant value for all stakeholders.

‘We have achieved an attractive price, which will allow WPP to accelerate the crystallization of the significant value created.

‘This also provides WPP with greater financial and management flexibility as we continue to grow our core businesses, including Burson and Ogilvy Public Relations, which provide our clients with access to world-class public relations services.’

Ofwat has appointed an independent monitor to oversee Thames Water and report its findings to the regulator, after two downgrades of its bond rating led to the debt-ridden utility breaching its operating licence.

This follows separate moves by credit rating agencies S&P and Moody’s, which stripped Thames Water’s bonds of their investment grade rating.

Ofwat said the independent monitor would help ensure Thames Water improves its performance, and the country’s largest supplier would be subject to a series of commitments.

Ofwat chief David Black added:

‘We are clear that Thames Water needs to remedy its breach of licence, improve its operational performance and secure investor support in order to regain its investment grade credit rating.

‘These enforceable commitments will include bringing an independent monitor into the business, who will report to us on what is happening to drive meaningful change in performance and ensure that the right expertise is brought into its board of directors.

“We will continue to monitor developments and will not hesitate to take further action if necessary.”