LIVE BUSINESS: Wage growth slows; De La Rue to sell authentication unit; Bellway intensifies housing construction

Applied Nutrition expects to raise between £340 million and £400 million with its highly anticipated initial public offering in London, the British sports supplement maker said on Tuesday.

The price range for the IPO has been set between 136 pence and 160 pence per share.

Rob Morgan, chief investment analyst at Charles Stanley:

‘The Bank of England has been closely monitoring pay data and its effect on services inflation, and this latest reading will not have extinguished concerns that price increases are more structural in nature. Therefore, it may choose to be less aggressive in cutting rates.

‘However, the Chancellor could be about to add a wild card to the mix. Tax policies could have a major influence on both wages and overall inflation, so all eyes are on the Budget later this month.

‘If rumors of an increase in employers’ national insurance are to be believed, pay rises could be reduced in the future as employers try to limit the impact of paying higher staff costs. Since inflation has not yet been completely extinguished, this could increase cost of living pressures on working families.

‘However, the effects are not clear. Employers consider the total cost of an employee, which includes employer NICs and pension contributions. If these were to increase, companies could restrict new hires, limit salary increases or reduce pension payments.

“However, some may try to pass these costs on in terms of higher prices. This would be more inflationary than disinflationary, but may be difficult in a competitive market.

“Overall, a fiscally tight budget is likely to moderate inflationary pressures by curbing household spending.”

The UK wine industry is “besieged” due to upcoming alcohol tax changes, according to a leading trader.

Steve Finlan, head of the Wine Society, which dates back to 1874 and has 180,000 members, said the tax rules will drive up prices for customers.

And he accused the Government of ignoring industry requests over fears that some bottles would disappear from UK shelves entirely.

Antony Codling, CEO of RBC Capital Markets:

‘Bellway’s full-year results were in line with expectations, but its outlook for next year exceeded them.

‘Bellway believes it is well positioned to deliver strong multi-year growth against a backdrop of planning reform and improving property market conditions.

‘Bellway is ready to step up to the plate to help Labor deliver 1.5 million homes over the next five years and is keen to grow its housebuilding business. Forecasts for next year are higher than current consensus forecasts and therefore we expect the stock to perform well today.’

Bellway expects to build more homes in 2025 as interest rates fall after a sharp drop in completions this year.

The housebuilder posted a 58 per cent drop in underlying pre-tax profits to £226.1m for the year ending July 31, compared with forecasts of £218.8m sterling.

Profitability was also affected, as the group built more than 30 percent fewer homes during the period, with 7,654 constructions.

Boss Jason Honeyman said: ‘Bellway has delivered another resilient performance despite difficult operating conditions during the year.

‘While a lower order book at the start of the financial year drove the reduction in the number of homes completed, customer demand during the second half benefited from a moderation in mortgage interest rates which eased affordability pressures and supported an increase in reserves.

‘The combination of these improved trading conditions and our strong outlet opening program has generated a healthy increase in the year-end order book. As a result, we are well positioned to achieve a material increase in production volume in fiscal 2025.”

Banknote printer De La Rue is to sell its authentication business for £300m, including debt, to industrial technology company Crane NXT.

Chairman Clive Whiley said the sale “represents a significant step forward in our journey to realize the underlying intrinsic value of the De La Rue business for the benefit of all stakeholders”.

He added: “Completion of the sale will allow us to repay our existing revolving credit facility in full prior to its maturity on July 1, 2025 and will provide a springboard to unlock further intrinsic value as we move forward to find a financing solution.” long-term for the Group’s inherited defined benefit pension plan.

“In addition, we will be able to fully focus on building and growing our world-leading foreign exchange business.”

Wages grew at their slowest pace in more than two years in the three months to August as vacancies fell, new data from the Office for National Statistics shows.

Average weekly earnings before bonuses rose 4.9 percent over the period, in line with forecasts and giving a boost to hopes of Bank of England base rate cuts as inflation pressures dissipate.