The Business Matrix: Friday 24 February 2012

Capita rises to the challenge

New contracts worth £2bn, including running the Teachers' Pension Scheme, organising car tax for the DVLA and TV licensing for the BBC, helped the outsourcer Capita to enjoy a 6 per cent rise in profit to £385.2m last year. Paul Pindar, the chief executive, said 2011 had been a "challenging year" but added its £2bn of new business was a record.

Go-Ahead to lose its subsidies

The rail arm of Go-Ahead will start contributing cash to the Treasury from April after revenues jumped on its commuter routes. The London Midland route into Euston has been eligible for government subsidies since November, but a 12 per cent rise in passenger journeys in the second half of 2011 means it will be a net contributor again.

BAT revenues rise by 3 per cent

British American Tobacco managed to offset sales declines in Europe and North America with higher prices and by making gains from growth in developing markets such as Brazil, Mexico, Romania and Russia. The cigarettes giant behind brands such as Dunhill, Kent and Lucky Strike said revenues rose 3 per cent to £14.4bn.

Mall giant reports rise in rent income

Capital Shopping Centres, which owns 14 retail sites including Manchester's Trafford Centre and the Mall at Cribbs Causeway in Bristol, has reported a 3.6 per cent rise in rental income on a like-for-like basis in 2011, while occupancy remained strong at 97 per cent. However, the net value of assets was little changed at 391p a share.

Redrow sees confidence rising

Redrow's recovery looks set to continue after a strong start to 2012, as the builder revealed profits had jumped to £15m in the second half of 2011, driven by a focus on family homes. Redrow founder Steve Morgan, who is also owner of Wolverhampton Wanderers FC, said confidence was "increasing".

Lending reaches two-year high

High street banks turned on the lending taps in January with the most mortgage approvals for more than two years, the British Bankers' Association said yesterday. The rise to 38,092 – the biggest since December 2009 – came as first-time buyers rushed to beat the stamp duty holiday, which ends next month.

Weir raises stakes with Ludowici bid

Weir, the FTSE 100 pump manufacturer, has raised its offer for the Australian mining equipment-maker Ludowici to A$357m (£243m) to match a rival bid. Its approach earlier this month was beaten by FLSmidth, which first put in a bid last month.

Yorkshire reports profit rise of 27%

The UK's second-largest building society Yorkshire improved core profits by 27 per cent to £163m in 2011 after it increased its lending by 46 per cent. Its membership rose 27 per cent to 3.3 million as it merged with Norwich & Peterborough and acquired part of Egg.

STV hits the road with new deal

STV, the ITV franchise holder for much of Scotland, unveiled a new deal to film the BBC's Antiques Road Trip yesterday but also admitted its production unit saw a 14 per cent fall in revenues in 2011 after its detective drama series Taggart was axed.

No EU decision on Canada's tar sands

EU states, under pressure from Canada, have failed to agree on a proposal to label fuel from tar sands as particularly polluting. This gives Ottawa four months to press its case that the move would discriminate against one of its most lucrative exports.