Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
No mates al mensajero, as they appear not to say in Madrid, where the stock market regulator has begun parallel disciplinary proceedings against drugmaker Grifols and the activist short seller that had sounded the alarm over alleged financial misstatements by the group.
Grifols’ shares collapsed in January after Gotham City Research accused the blood-plasma medicines specialist of artificially manipulating its debt and earnings through related-party transactions. In July, shortly after Spanish regulator CNMV temporarily suspended the stock, Grifols’ founding family announced a move to take the company private with backing from Brookfield Asset Management.
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CNMV said in a press release on Wednesday that it suspects Grifols of committing a “very serious continuous infringement” of securities law. The company stands accused of giving inaccurate, misleading and incomplete data in its 2021, 2022, 2023 annual statements, as well as in an update for the half-year 2023.
The regulator said that Grifols’ misstatements had “hindered, in the case of certain financial years, investors’ ability to properly understand the issuer’s financial position, results and cash flows”. However, it added that basic accounting figures were “not incorrect” (excluding when they were; the company restated two transactions in this year’s first-half results).
There was no evidence to suggest that annual reports had given a false picture of financial indebtedness, said the CNMV. The bulk of the misstatements “[relate] to incomplete explanations, lack of disclosures, unsuitable calculation or presentation of [alternative performance measures] or failure to include related-party transactions”, it added.
Grifols said moments after CNMV’s press release dropped that any penalty levied by the regulator would not exceed €1mn. Such a sum “is not material and, therefore, it will have no impact on its financial statements,” it added by regulatory update.
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In a concurrent action, the CNMV accused Gotham and General Industrial Partners, its hedge fund joint venture, of “the concerted use of fictitious mechanisms or any other form of deception or contrivance to affect Grifols’ share prices”.
Gotham’s report on Grifols of January 9 had introduced “several biased, false or misleading elements” of information, CNMV alleges. Its charge sheet also includes a potential breach of EU market abuse law around the objective presentation of investment recommendations.
To allow for the possibility that Gotham’s alleged price manipulation is a criminal matter, CNMV has shared its dossier with Spain’s public prosecutor’s office. The relevant article of Spain’s criminal code, 284, carries a two-year maximum prison sentence.
CNMV’s English-language press release is here. Gotham declined to comment.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Benjamin Netanyahu said on Friday that Israel “must defeat Hizbollah in Lebanon”, as he vowed to continue fighting the militant group until Israeli citizens displaced by the conflict could return to their homes.
In a defiant address to the UN General Assembly, during which he also pledged to keep fighting in Gaza and accused the UN of anti-Israel bias, the Israeli prime minister insisted Israel would no longer tolerate Hizbollah’s presence on its border with Lebanon.
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“We won’t rest until our citizens can return safely to their homes. We will not accept a terror army perched on our northern border, able to perpetrate another October 7-style massacre,” he said.
“As long as Hizbollah chooses the path of war, Israel has no choice, and Israel has every right to remove this threat and return our citizens to our homes safely — and that is exactly what we’re doing.”
The speech came after US President Joe Biden and his French counterpart Emmanuel Macron earlier this week put forward a proposal for a 21-day truce in a last-ditch bid to prevent the hostilities between Israel and Hizbollah from spiralling into all-out war.
US officials hope the truce would allow time to negotiate a more durable ceasefire between Israel and Hizbollah, and would also put pressure on Israel and the Palestinian militant group Hamas to accept the terms of a ceasefire-for-hostages deal in Gaza.
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But during his half-hour speech, Netanyahu did not address the US-French proposal. Instead, he pledged to keep up the pressure on Hizbollah, and insisted Israel would also continue its offensive in Gaza until Hamas had been destroyed and the Israeli hostages held there had been freed.
“Israel must . . . defeat Hizbollah in Lebanon. Hizbollah is the quintessential terror organisation in the world today,” he said. “We’ll continue degrading Hizbollah until all our objectives are met.”
Israel and Hizbollah have been exchanging fire since the Lebanese militant group began launching rockets at Israel on October 8 in support of Hamas’s attack on the country the day before.
But over the past two weeks, Israel has sharply escalated the fighting — killing a string of senior Hizbollah officials and launching intense air strikes on the south and east of Lebanon that have so far killed more than 600 people and displaced more than 90,000.
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The hostilities continued on Friday morning, with Israeli strikes reported across Lebanon, killing and injuring scores of people.
A MAJOR energy supplier with 6.8million customers will start issuing a £160 payment to thousands of customers from next month.
Octopus Energy is giving eligible customers extra cash through the Warm Home Discount to help reduce their bills this winter.
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Octopus Energy will begin issuing the Warm Home Discount to thousands of customers next month
The supplier has now said that it will begin issuing the payment from October.
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It added that all eligible customers will have the discount applied to their electricity bills by March 31, 2025 at the very latest.
Between now and December, the government will issue letters to households that are eligible for the scheme.
The eligibility requirements for the Warm Home Discount are the same as last year.
To qualify for the Warm Home Discount, you need to claim either the guaranteed credit element of pension credit or a different qualifying benefit form the list below:
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If you weren’t claiming any of the above benefits on August 11, 2024, you won’t be eligible for the payment.
Where someone claims a qualifying benefit, the government will assess their energy costs based on the type, age and size of property.
So you’ll need to launch your claim by Friday, October 11 and then successfully get it backdated to cover the August 11 Warm Home Discount qualifying date.
But if you fail to apply before this date you’ll miss out.
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What is pension credit and how do I apply?
PENSION credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
This is known as “guarantee credit”.
If your income is lower than this, you’re very likely to be eligible for the benefit.
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However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
Attendance allowance
The middle or highest rate from the care component of disability living allowance (DLA)
The daily living component of personal independence payment (PIP)
Armed forces independence payment
The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
ou could get the “savings credit” part of pension credit if both of the following apply:
You reached State Pension age before April 6, 2016
You saved some money for retirement, for example, a personal or workplace pension
This part of pension credit is worth £17.01 for single people or £19.04 for couples.
Pension credit opens the door to other support, including housing benefits, cost of living payments, council tax reductions, the winter fuel payment and the Warm Home Discount.
You can start your application up to four months before you reach state pension age.
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Find out how to claim, by visiting gov.uk/attendance-allowance/how-to-claim.
We’ve explained everything you need to know about Octopus Energy’s scheme below.
Do I need to apply for the discount?
Households in England and Wales don’t have to apply to get the cash and receive it automatically.
You should look out for a letter between October 2024 and early January 2025 telling you:
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You’re eligible and you’ll get the discount automatically; or
You might be eligible, and you need to give more information.
The letter will tell you to call the helpline by 29 February 2024 to confirm your details.
If you don’t get the letter by early January 2024 and you think you’re eligible, you need to call the helpline on 0800 030 9322.
If you’re eligible, your electricity supplier will apply the discount to your bill by 31 March 2025.
Some Scottish households do have to apply for the discount.
In Scotland there’s a “core group” that’ll receive an automatic payment and a “broader group” which has to apply for the scheme with their energy provider.
You’ll need to check with your energy supplier directly to see the eligibility requirements and details on how to apply.
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The scheme will have more applicants than places, so make sure you apply as soon as possible.
Octopus Energy customers can apply by visiting octopus.energy/login/?next=/dashboard/new/accounts/warm-home-discount/.
How will I receive the discount from Octopus Energy?
If you pay by direct debit or on receipt of your bill the £150 Warm Home Discount will be added to your electricity account as a credit.
If you have a traditional prepayment meter, Octopus Energy will send you a voucher you can use to top up your meter at your nearest Paypoint kiosk.
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You can find your closest one by visiting consumer.paypoint.com/cashout.
If you’ve got a smart prepayment meter, Octopus Energy will send the discount directly to your meter as a credit.
It will then send you an email to let you know it’s on there.
What energy bill help is available?
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THERE’S a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
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You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
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Get in touch with your energy firm to see if you can apply.
As the 2024 fiscal year draws to a close, small businesses face the critical task of examining their financial strategies to maximize tax benefits. Effective end-of-year financial planning is essential not just for tax savings but also for setting the stage for future financial health and business growth. This guide provides detailed insights into how businesses can harness various tax planning strategies to enhance their financial outcomes as they transition into the new year.
The Significance of End-of-Year Financial Planning
End-of-year financial planning is pivotal for businesses looking to optimize their financial performance and tax liabilities. This process involves a thorough review of the company’s financial activities, to maximize tax deductions, take advantage of available credits, and plan for upcoming tax obligations. Proper planning ensures that businesses do not miss out on opportunities to reduce their tax burden and improve their overall financial standing.
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Key Strategies for Maximizing Tax Benefits
Accelerate Deductions:
– Consider prepaying expenses that can be deducted in the current tax year. This might include office supplies, business insurance premiums, or professional fees. Additionally, using a pay stub generator can help businesses efficiently manage payroll expenses and ensure accurate records, further aiding in year-end deductions.
Defer Income:
– If possible, defer income to the next fiscal year, especially if you anticipate being in a lower tax bracket. This strategy can be particularly effective for businesses that have control over when they bill clients or receive payments.
Capitalize on Retirement Plans:
– Maximize contributions to retirement plans such as 401(k)s or SEP IRAs. These contributions not only secure future financial stability for employees and business owners but also reduce current taxable income.
Utilize Loss Harvesting:
– Review your investment portfolio for any unrealized losses and consider selling off underperforming assets to offset gains. This strategy, known as loss harvesting, can significantly reduce capital gains taxes.
Review Asset Depreciation:
– Take advantage of depreciation deductions by purchasing business equipment or vehicles that qualify for Section 179 or bonus depreciation. This can lead to substantial tax savings, especially if large purchases were planned for early the next year.
Manage Inventory Effectively:
– Conduct a year-end inventory review and write down any obsolete or unsellable inventory. Reducing inventory through proper valuation can decrease taxable income.
Additional Considerations
Charitable Contributions:
– If your business plans to make charitable donations, consider making them before the year ends to claim deductions. Ensure that contributions are made to qualified organizations to be eligible for tax benefits.
Energy-Efficient Improvements:
– Invest in energy-efficient upgrades for your business facilities. Many governments offer tax credits for businesses that implement green technologies, which can lead to direct tax savings.
Tax Credit Eligibility:
– Stay informed about any new tax credits for which your business may be eligible. Tax credits can directly reduce the amount of tax owed, unlike deductions, which reduce the amount of income subject to tax.
Conclusion
End-of-year financial planning is a crucial exercise that requires careful consideration and strategic action. By employing these strategies, businesses can not only minimize their tax liabilities but also position themselves for improved profitability and growth in the coming year. Always consult with a tax professional to tailor these strategies to your specific business needs and ensure compliance with the latest tax laws. As 2024 ends, proactive financial planning and execution will be key to leveraging tax benefits and setting a positive tone for 2025.
The company’s executive chairman is optimistic that a new owner or owners will be found for the yards
Harland and Wolff, the Belfast-based shipbuilder which built the Titanic, has formally entered administration for the second time in five years.
Last week the company’s board had warned that the move was inevitable.
The administration process is confined to the holding company, Harland & Wolff Group Holdings plc, with the operational companies which run the yards continuing to trade.
Its main yard is in Belfast with other operation at Appledore in England and Methil and Arnish in Scotland.
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‘Reduce the headcount’
The company’s executive chairman, Russell Downs, is optimistic that a new owner or owners will be found for the yards.
Gavin Park and Matt Cowlishaw of Teneo Financial Advisory have been appointed as joint administrators.
The holding company currently has 66 employees.
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In a statement Harland and Wolff said: “The Administrators will unfortunately be required to reduce the headcount upon appointment.
“A number of employees will be retained to provide certain required services to the operational companies under a transitional services agreement with the Administrators.”
The company has also restated that the administration process means that shareholders in Harland and Wolff will see the value of their investment wiped out.
Titanic builders
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Vernon Lewis Gallery/Stocktrek Images/Getty
The RMS Titanic departing Southampton on 10 April 1912
Famous for building the Titanic, the Belfast shipyard was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff.
By the early 20th century, Harland and Wolff dominated global shipbuilding and had become the most prolific builder of ocean liners in the world.
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