Business news in brief: Tuesday April 26

BP makes $485; Austin Reed enters administration, Costa Coffee boost Whitebread profits

Whitbread said that it is targeting £2.5bn in coffee sales by 2020 (Rex Features)

BP makes $485m loss

BP made a $485m (£334m) replacement cost loss in the first quarter of 2016, compared with $2.1bn profit last year as the sharp decline in oil prices took its toll on the industry, the company said on Tuesday. It was, however, a marked improvement on the $2.2bn loss in the final quarter of 2015. Excluding expenses related to the Gulf of Mexico spill, BP reported $3bn in net cash provided by first-quarter activities, up from $2.5bn a year ago.

Austin Reed enters administration, putting 1,200 jobs at risk

Menswear retailer Austin Reed has entered administration on Tuesday, putting almost 1,200 jobs at risk. The company, which has 100 standalone stores, began in 1900 as a tailor and counted Winston Churchill as a customer. The news comes 24 hours after the collapse of 88-year-old BHS, which could affect 11,000 jobs.

Costa Coffee and Premier Inn boost Whitbread profits to £546m

Whitbread, the owner of the Costa Coffee chain and Premier Inn hotels, has seen pre-tax profits rise to £546.3m in the year to early March up about 12 per cent compared to the same period last year. Sales at the Costa Coffee chain grew by 2.9 per cent on a like-for like-basis, rising by 16.3 per cent overall to reach £1.1m. Whitbread said that it is targeting £2.5bn in coffee sales by 2020.

Scottish Power fined £18m for poor customer service

Scottish Power has agreed to pay £18 million for failing to treat its customers fairly. The fine – of which up to £15 million will be paid to vulnerable Scottish Power customers and £3 million to charity - is the third biggest penalty given to one of the major six energy providers. It follows an investigation by the industry regulator Ofgem into the firm’s customer service. Scottish Power blamed errors on the implementation of a new IT system.