The Business Matrix: Friday 27 February 2015

National Express to expand in US

National Express is looking to expand its North American buses business after the division helped it to post a 3 per cent rise in pre-tax profits to £66.5m. The transport giant, which in the UK runs buses, coaches and the c2c rail franchise, has more than doubled profitability in five years on its US commuter and yellow school buses in 36 states.

RSA warns it will cut more jobs

The chief executive of RSA Insurance has warned that it is likely to cut more jobs after raising its cost-savings targets. RSA wants to strip out over £250m by 2017, which Stephen Hester said would include redundancies. It is also seeking a new finance director to replace Richard Houghton, who will stand down in May.

Financial deal tax ready for April

Proposals for implementing a financial transactions tax in some European countries should be ready in time for decisions to be taken at an informal meeting of Europe’s Economic and Financial Affairs Council (Ecofin) scheduled for late April, the Austrian Finance Minister, Hans Jörg Schelling, has said.

Borrowing costs fall to new lows

Italy sold debt at a record-low cost and borrowing costs across the eurozone fell to new lows as investors stocked up ahead of the European Central Bank’s bond-buying scheme. Ten-year yields in Germany, Italy, Ireland, Portugal, Austria, France, the Netherlands, and Finland all hit new lows. Seven-year yields in Germany fell below zero.

BAT sales down in Western Europe

British American Tobacco reported a 1.4 per cent fall in cigarette sales last year, to 667 billion, with volumes down 5.9 per cent in Western Europe. The maker of brands including Dunhill and Lucky Strike said unfavourable exchange rates also hit revenues, which fell by 8.4 per cent to £14bn.

Glaxo board change advanced

Sir Philip Hampton is to take up his role as chairman of Britain’s biggest drugs company, GlaxoSmithKline, from 7 May – an earlier transition than initially anticipated. Sir Philip, who currently chairs Royal Bank of Scotland, is taking over from Sir Christopher Gent.

Amusement park profits leap 34%

Merlin Entertainments, the owner of Legoland and Alton Towers, said its full-year profits jumped by almost 34 per cent to £249m, boosted by The Lego Movie and warmer autumn weather, which saw a 5 per cent rise in visitors at its attractions. Merlin had 62.8 million visitors.

STV switched on as revenues rise 7%

STV reported a 14 per cent rise in pre-tax profits to £17.3m and raised its dividend by 300 per cent to 8p per share. The Glasgow-based broadcaster’s revenues rose by 7 per cent to £120.4m. It said its reach grew with 92 per cent of Scots interacting with STV every month.

30-day payment urged as standard

Big companies are being urged to pay their bills within 30 days. The business minister, Matthew Hancock, said a so-called prompt payment code would promote 30-day payment as standard, with a maximum period of 60 days.

Petrol prices to increase again

Petrol prices are starting to rise again as oil firms prove much faster at raising rates than they were at cutting them as crude prices fell. The AA said that petrol costs, which looked set to drop below £1 a litre this year, are now about 109p to 110p.