Business London Press

Wood Group says cashflow will “return to black” as it refreshes targets

Finance
News

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29/11/2022

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Wood Group is refreshing its strategy including new targets, as its shares plummeted by 13.5% this morning.

The engineering and consultancy London-listed group told investors it would not return to positive free flow next year.

Today at 2pm, the group is holding a capital markets day to outline its plans: ttps://cmd.woodplc.com/

Wood Group said it would now focus on “attractive end markets where we are differentiated”, such oil, gas and chemicals, which are large markets with solid growth; hydrogen and carbon capture, which are small markets with substantial growth potential; and minerals and life sciences, which are large markets where the company aims to grow its share significantly.

Bosses said cashflow would be profitable from 2024 and that they expected adjusted earnings before interest, depreciation and amortisation (EBITDA) to be “flat in the nearer term” as the company reinvests to secure growth.

Refreshed strategy

Ken Gilmartin, CEO, said: “Today is an important moment for Wood as we set out our refreshed strategy. There is huge potential in Wood – we have over 35,000 highly skilled colleagues, long-term client relationships and leading engineering and consulting capabilities.

“We are now taking a more focused approach to growth, targeting specific priority markets across energy and materials that best match our competitive strengths. This tighter focus will help ensure we can grow both profitably and sustainably.

“Our turnaround is progressing well… we have addressed legacy issues and our strong balance sheet will allow us to deal with the defined schedule of resulting cash outflows.

“Our strategy will deliver returns for our shareholders and today we have set out new financial targets, including to grow EBITDA by mid to high single digit CAGR over the medium term, with momentum building over time as our strategy delivers. Most importantly, based on the highly cash generative nature of our underlying businesses, we expect positive free cash flow (after the impact of legacy cash outflows) from 2024 onwards.”

Damning review recommends London firefighters wear body cameras

News

Helen Greaney

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28/11/2022

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Firefighters in the city will wear body cameras following a toxic report which found horrendous revelations regarding racism, sexism and homophobia in the London Fire Brigade.

Former chief crown prosecutor Nazir Afzal OBE created the report which includes testimonies from 2000 staff and found major evidence of bullying.

Commissioning the review was a recommendation of the internal investigation into the death of a firefighter on development, Jaden Matthew Francois-Esprit, who took his own life in August 2020.

The outcome of the review was that firefighters should wear body cams during home visits.

In one reported case of horrendous racial abuse, a black firefighter had a noose put above his locker and a Muslim man said he had been constantly bullied about his religion, and had bacon and sausages put in his
coat pockets and a terrorist hotline sign posted on his locker.

Meanwhile women reported being groped in training exercises and having to run a daily gauntlet of sexist
abuse, again frequently euphemised as ‘banter’. Many were routinely referred to as “woman” or “front bottom”
by colleagues and, more seriously, some were punched and attacked.

Some endured the indignity of having photos of them taken without their consent, which were then passed on to colleagues with misogynistic comments written on them. Many were sexually taunted and one woman, after making complaints about this, received video calls from a man exposing his private parts.

“Absurdity”

One account from a gay firefighters said he felt shunned by colleagues who told him, “I’m not going into a
fire with you in case you try it on.” and said that was the kind of absurdity he had to deal with on a daily basis.

The report also said that the senior leadership team is predominantly white males. There is evidence of poor progression of people of colour and women to senior positions within the service and there are no openly gay male officers above the rank of group commander.

London Fire commissioner Andy Roe confirmed that work would “start immediately” to implement the report’s recommendations.

He added: “We have begun the procurement of body-worn cameras. We will be the first service in the country to issue body-worn cameras to our crews, both to protect them but also to ensure public safety and reassurance. Those are immediate changes, and that change has started now.”

Government to launch £25m public energy-saving campaign

Helen Greaney

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24/11/2022

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The government is planning a £25m public information campaign in a bid to conserve Britain’s energy supplies.

As families around the country continue to grapple with extortionate food and energy bills, the government is planning to roll out a public information scheme to assist people through the cost of living crisis.

People will be encouraged to turn down boilers, switch off radiators in empty rooms and shower instead of having a bath.

The scheme is to be led by ministers and celebrities via adverts, social media messaging and online tips.

Former prime minister Liz Truss blocked plans for a public information campaign as she was opposed to it, according to The Times, despite being advised it was a good idea by colleagues.

“Planned outages”

In an update on the UK’s state of readiness for the cold months ahead, the National Grid warned of a worst-case scenario in which families and businesses could face planned outages to ensure that the grid does not collapse.

If there were insufficient energy supplies, the system operator said, emergency measures would be “necessary to ensure the overall security and integrity of the electricity system across Great Britain”.

National Grid also warned that gas imports from Europe may be at risk because of Russia’s invasion of Ukraine, potentially jeopardising Britain’s energy security.

Barclays signs mega Wimbledon sponsorship deal

Helen Greaney

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23/11/2022

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Barclays is to become the official banking partner of tennis’ favourite championship, Wimbledon.

The banking giant has signed the dotted line for the deal with The All England Lawn Tennis Club and will also make an annual contribution to its charity, the Wimbledon Foundation – the biggest donation ever made by an official partner.

This partnership once again unites two iconic British institutions. The first Barclays bank opened 330 years ago and, as the world’s oldest tennis tournament, Wimbledon was first staged in 1877.

The pair teamed up previously in the 1960s when a sub-branch was built under Centre Court.

Frances Tiafoe

And to help the process along, Barclays has enlisted the help of a tennis player who is no stranger to the SW19 courts.

Tom Corbett, Group Head of Sponsorship and Media at Barclays, says ‘We’re incredibly honoured and excited to be working in partnership with one the world’s most prestigious sporting events and to announce that we’ve signed Frances Tiafoe as our tennis ambassador.

“Our joint commitment to create legacy, through Barclays community programmes and the Wimbledon Foundation, means through this partnership we can deliver lasting impact and continue to create opportunities through Sport.”

Changing lives

Frances said: “I’m thrilled to be working with Barclays to help change the lives of young people who typically wouldn’t have the opportunity to experience the game of tennis.”

“Growing up, playing at Wimbledon was my dream, so to be an Ambassador for Barclays, the new banking partner for Wimbledon, is very special.”

Sally Bolton, chief executive of The All England Lawn Tennis Club, welcomed the “commitment to creating access to sport for all”.

OFGEM finds five energy suppliers with “severe weaknesses”

News
Energy

Helen Greaney

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22/11/2022

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Industry regulator Ofgem has identified five suppliers who have shown failings in supporting vulnerable customers.

Good Energy, Outfox, SO Energy, TruEnergy and Utilita were judged as having “severe weaknesses” and told to do more to help customers in the colder months.

Although some good practice was identified, failings included not giving free gas safety checks to customers, no support offered to vulnerable people and not ensuring those using prepaid meters were identified.

Weaknesses identified

Severe weaknesses mean it “either found that a significant proportion of the supplier’s processes and policies were missing or inadequate, or their data indicated that they are not achieving good consumer outcomes”.

Moderate weaknesses – which means expected processes were not in place or there was not adequate training for staff – were found in Ecotricity, Green Energy UK, Octopus and Shell.

Minor weaknesses were identified in British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse. This means Ofgem did not find any evidence of significant concern.

“Suppliers need to do more”

Director of retail at Ofgem, Neil Lawrence, said: “From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support on the Priority Services Register, this robust review has highlighted that suppliers need to do more to support consumers.

“We welcome the cooperation from suppliers and action taken so far, and, although we are seeing some very good practice in parts of the industry, we can see there is still much more to be done.

“Most suppliers take the protection of vulnerable customers seriously, and several good initiatives to support customers have been launched recently.”

“While it’s encouraging to see the engagement on this Market Compliance Review, with some improvement actions already taking place, we’ve seen a number of failings across the board which need to be urgently addressed,” Mr Lawrence added.

“It’s going to be a very challenging winter for everyone, and customers must be confident they are getting the help and support they need.”

London ranked top European city for technology and innovation

Helen Greaney

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22/11/2022

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London ranked top European city for technology and innovation

London is up there with some of the most technologically advanced cities in the world, according to new data from Z/Yen.

The Smart Centres Index (SCI) – a continental rankings system created by London’s commercial think-tank – explores the ability of global commercial centres to create, develop, and deploy technology.

London beat every city in Europe including Paris and Madrid, taking the continent’s crown for the most technologically advanced place.

And it was only pipped to top spot in the global rankings by New York.

Leading centres

Leading centres in the SCI are based in places which combine an innovative, cultural centre with a high-performing university sector across STEM subjects, supported by a well-developed regulatory, commercial, and financial services.

Z/Yen praised London’s infrastructure for enabling smooth trade. The index noted its welcoming legal and tax regime, making it seamless for firms to interact with each other.

And London wasn’t the only UK city in the top 10 – Cambridge and Oxford were placed in 9th and 10th position.

The organisation recently ranked the capital as the top finance hub and the greenest place for banks, brokers and insurers to do business.

Improving in the index

Leading US centres showed a strong performance and Asia/Pacific centres are generally improving in the index, having lagged behind in previous editions of the SCI.

Five Western European centres feature in the top 10, with three from the United States.

Singapore joins Hong Kong in the top 10 among Asia/Pacific centres.

Following an average increase of 2.3% in ratings in SCI 5, the average rating in SCI 6 fell by 4.17% and only four centres rose in the SCI 6 ratings.

Seven centres rose 10 or more places in the rankings in SCI 6, while just two centres fell 10 or more places.

Professor Michael Mainelli, Executive Chairman of Z/Yen, said: “If ever the world needed technology and innovation to solve the global problems, this is it. Our SCI community sees a half-full glass. For example, our SCI community believes that quantum computing is developing quickly enough to soon be applied to manufacturing, scientific research, and the provision of services, though equally challenging current encryption on which all financial services rely. Moving fast and breaking things.”

The SCI is a factor assessment index, combining a number of instrumental factors – data measures drawn from a range of data providers across the world – and assessments given by business and finance professionals of three dimensions related to innovation and technology in major commercial and financial centres.

Calls to close gender pay gap on Equal Pay Day

Helen Greaney

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21/11/2022

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Calls to close gender pay gap on Equal Pay Day

New calls have been made to close the gender pay gap, after shocking new stats were revealed.

To mark Equal Pay Day 2022, the Fawcett Society has released new data which reveals that during 2022 women will, on average, take home £564 less than men each month – up from £536 in 2021.

The report says that women face more trouble due to the combined impact of the cost-of-living crisis and the difference in their pay compared with men.

Lack of options

A third of women surveyed said they’d like to work more paid hours but are unable to because of a local of flexible working options, caring responsibilities or affordable childcare.

One parent said: “The additional money would make a HUGE difference. It would mean I could stop my second job resulting in more time spent with my young family and husband. It would alleviate a huge pressure and stop me being so exhausted from working two jobs alongside being the primary care giver for my children aged 3 and 5.”

More than half (53%) of women would use the additional money to turn on heating and lights more often, and 48% report that their mental health would improve.

“Impossible choices”

Jemima Olchawski, Fawcett Society chief executive, said: “It is unacceptable that the gender pay gap has barely shifted in the past few years, especially given the cost-of-living crisis is hitting women the hardest and forcing them to make impossible choices.

“Our poll shows many women are struggling to pay their household bills – with women of colour even worse hit.

“Closing the gender pay gap would make an immediate difference to women, alleviating the financial and mental health burdens they face.

“We need urgent action to put women’s equality at the heart of our economic recovery. This government should make flexible work the default with a requirement for jobs to be advertised as flexible upfront, to enable more women to work.

“We need mandatory ethnicity pay gap reporting and action plans, and we need employers to stop asking discriminatory salary history questions. Women can’t afford to wait any longer for the gap to close.”

Effectively working for free

The Fawcett Society said that from yesterday (Sunday 20th) women effectively work for free for the rest of the year because of the pay gap, which it said was 11.3%.

The government had said it would offer target support worth £26 billion to protect from the worst of cost-of-living pressures and pursue other initiatives to support women in the workplace.

Elizabeth line hailed as having “transformative” impact

Helen Greaney

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21/11/2022

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Transport for London has announced that almost 70 million trips have been made on the Elizabeth line since it opened six months ago.

The £20 billion project was unveiled by the late Queen in one of her final engagements.

The three branches of the Elizabeth line – east, west and central – mean customers can travel into and through central London without changing at Paddington and Liverpool Street National Rail stations.

The Elizabeth line is dramatically improving transport links in London and the South East – journey times are being cut, capacity increased and accessibility transformed with spacious new stations and walk-through trains.

Tottenham Court Road has seen its passengers increase by 80 per cent, whilst Bond Street,which only opened in October due to construction and fit-out delays, has seen a 25 per cent uplift.

However, disruption is expected today due to RMT industrial action, which will affect services to and from Heathrow, Paddington and Reading.

Law firm returns to the city to “support long-term environmental targets”

News
Legal

Helen Greaney

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16/11/2022

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Law firm returns to the city to “support long-term environmental targets”

One of the longest-standing tenants in Canary Wharf is ditching its home for a return to city in 2028.

Clifford Chance, which has its headquarters at Upper Bank Street in Canary Wharf, has agreed with Great Portland Estates to rent a smaller amount of office space – 321,000sq ft – at its 2 Aldermanbury Square project.

The law firm had moved to its current building after leaving city headquarters in 2003.

A review commissioned by the London firm suggested it should cut two-thirds of its office space due to hybrid working.

Its new home will be ready in 2025 but the firm won’t leave until its existing lease expires in 2028.

Target-setting

Clifford Chance’s managing partner Michael Bates said the move will “support the firm’s longer term environmental targets.”

He added: “With our clients, our people and our values at the heart of our decision making, this represents a truly exciting step for the firm as we plan our move to a newly built location that meets the exceptionally high standards that we set ourselves.”

The law firm will rent 12 floors of the property developer’s new building at an initial price of £77 per square foot.

The 20-year lease gives the option of an exit after 15 years.

Commitment to sustainability standards

Toby Courtauld, chief executive at GPE, developer of the new building, said: “We are excited to be building a new home back in the City of London for one of the world’s pre-eminent law firms and we have enjoyed working with the City of London, as well as Clifford Chance to create a best in class office building.

“In Clifford Chance we have found a partner who shares our values and, in particular, our commitment to the highest sustainability standards, with 2 Aldermanbury Square set to hit our 2030 sustainability commitments almost five years early.”

Business is booming for BAE Systems

Helen Greaney

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15/11/2022

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One of the UK’s best known defence companies BAE Systems, has already taken £28 billion of orders this year.

The London firm, which protects people and national security – as well as builds ships, vehicles and aircraft – secured £18 billion of orders in the first half of this year.

Russia’s invasion of Ukraine has certainly boosted custom with ‘elevated threat’ looking likely according to its chief executive, Charles Woodburn.

BAE Systems is spending its cash on research and development, people and facilities to support future growth.

Secured contracts

It recently secured £4.2bn from the British government for five war ships, Type 26 frigates for the Royal Navy.

The company also gained four large contracts with the US military earlier this year, including a contract worth more than $380 million for multiple launch rocket system support services.

Woodburn said: “Our operational performance year to date underlines our confidence in the full year group guidance for top line growth and margin expansion as well as our cashflow targets.

“Order flow remains strong and our focus on programme execution, cash generation and efficiencies is helping us to navigate the challenging operating environment.

“Looking forward, our large order backlog, diverse portfolio position and focus on programme performance position us well for another year of top line growth and margin expansion in 2023.”

Refreshed strategy

“Absurdity”

“Planned outages”

Frances Tiafoe

Changing lives

Weaknesses identified

“Suppliers need to do more”

Leading centres

Improving in the index

Lack of options

“Impossible choices”

Effectively working for free

Read more

Target-setting

Commitment to sustainability standards

Secured contracts

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