Today’s news in brief
Next has defended its chair, Michael Roney, after more than 20% of shareholders voted against his re-election at the annual general meeting. The votes against Roney were primarily due to concerns that he was “considered as overboarded,” with a secondary issue related to the gender makeup of the board. Under the 2018 UK Corporate Governance Code, Next engaged in a consultation process with dissenting shareholders to understand their reasons. The company defended Roney, stating that he dedicates sufficient time to his role, provides clear leadership, and brings significant experience. Next also pledged to take appropriate action if concerns about any director’s commitment arise.
Avon is set to open physical stores in the UK for the first time in its 137-year history. This decision follows a successful partnership with Superdrug, where Avon launched over 150 products in 100 stores. The company plans to expand its physical presence in the UK and launch stores in Brazil and South Africa. While the number and locations of the stores remain undisclosed, Avon confirmed its intention to continue the UK-wide rollout and launch Representative-run franchise stores in the coming months.
Giles Wilson has been appointed chief financial officer (CFO) at Dr. Martens, effective in 2024. Wilson, a qualified chartered accountant, previously held senior roles at William Grant and Sons Limited and John Menzies plc. Dr. Martens expressed enthusiasm for Wilson’s extensive experience and knowledge of global brands and wholesale distribution management. Wilson’s appointment aligns with the company’s growth strategy as it aims to become a £2bn revenue footwear brand. The current CFO, Jon Mortimore, will stay with the business until the end of the financial year before retiring.
Revolution Beauty reported a pre-tax profit of £400k, and a significant improvement from a loss of £13.7m, for the six months ending August 31. Operating losses also narrowed to £500k from £12.5m, attributed to lower exceptional costs. Sales of beauty products increased by 20% to £90.4m, prompting Revolution Beauty to raise its profit guidance for the financial year. The retailer now expects adjusted EBITDA to be “no less than double-digit millions,” a substantial increase from the previously guided high single-digit millions. Revolution Beauty highlighted improved internal controls and successful partnerships as key factors contributing to its positive performance.
Hammerson is reportedly in talks to sell its 40% stake in Bicester Village-owner, Value Retail, for around £1bn. The deal with multiple investors could be finalised before the year-end. Value Retail owns several sites, including those in China, Barcelona, Frankfurt, Madrid, and Milan. The potential sale is part of Hammerson’s reshaping strategy under CEO Rita Rose-Gagne. While Hammerson values its stake at £1.2bn, it may ultimately accept a lower figure, emphasising that Value Retail is not part of its core proposition.
Major retailers including Sainsbury’s, M&S, and Currys have urged the UK chancellor to freeze business rates for all retail businesses in the upcoming Autumn Statement. The British Retail Consortium reports that without a freeze, business rates for retailers in England alone will increase by 6.7% in April, adding £480m to bills. CEOs express concern that rate increases could affect food prices and hinder ongoing investments, job creation, and the competitiveness of British retailers compared to online giants like Amazon. This call follows a letter from 44 prominent UK retailers in September, urging a freeze in business rates.
