The convenience retailer has lowered its expectations amid ‘inflation headwinds’

WH Smith has trimmed its profit forecast for the second time, cautioning that aggressive discounting and “inflation headwinds” are weighing heavily on its finances.

The Swindon-headquartered convenience retailer had initially guided investors towards pre-tax profits of up to £105m for the year, before cutting that target to between £75m and £90m. On Wednesday, the group lowered its expectations further, to no more than £75m.

“This reflects lower trading profit margins driven by increased promotional activity, a reduction in brand marketing and inflation headwinds, offset by central cost reductions and lower interest costs,” the firm said.

WH Smith has struggled to build momentum in the wake of selling its 480 high street outlets to private equity firm Modella Capital.

The group has been left heavily dependent on its train station and airport stores, which it has flagged as particularly exposed to the downturn in tourism brought about by the Iran war, as reported by City AM.

The retailer’s anticipated £75m profit would represent a steep decline from last year’s £108m figure. Just months ago, the group raised £103m through an equity issue intended to strengthen its balance sheet and underpin its investment strategy.

WH Smith reported a modest uptick in sales during its fourth quarter, with summer trading nudging revenue growth from one to two per cent across the business.

In the UK, like-for-like revenue growth accelerated from two to four per cent in the fourth quarter, with the group’s hospital stores leading the charge, posting a like-for-like revenue increase of eight per cent.

WH Smith revealed it has refurbished its outlets at Heathrow, Liverpool, Belfast International and East Midlands airports in an effort to increase average basket sizes at these busy retail locations.

The group’s performance across North America has weighed on its overall growth in recent years. Like-for-like revenue in the region fell by three per cent in the fourth quarter.

The retailer’s like-for-like revenue at its North American airport stores declined by two per cent, hampered by reduced passenger numbers and “softer consumer demand”.

In June, WH Smith’s share price tumbled 16 per cent in a single day after the company cautioned that the downturn in consumer confidence and airport footfall caused by the Iran war was taking a toll on its sales.

The firm announced on Wednesday that it is making “good progress” towards its recovery plan. The group informed investors it is working to reduce costs, strengthen its cash management and drive sales in its more lucrative “travel essentials” range.

Analysts at RBC Capital Markets noted that WH Smith has delivered better-than-anticipated UK results, but is underperforming expectations in the North American market.

“We think WH Smith needs to rebuild credibility with the market, with scope for the rating to recover over time if WH Smith can reassure the market that its recent missteps won’t be repeated,” they said.

Shares in WH Smith opened largely unchanged in early trading, at 359p.

The Cardiff Capital Region is providing funding to assess the viability of what is planned as the first in series of lagoons

Plans for the first in a new generation of tidal lagoons in the Severn Estuary have been revealed by the Cardiff Capital Region.

The region, a statutory body made up of the ten local authorities of south-east Wales, will commit up to £6.4m over the next three years to undertake an extensive exploratory study, with a preferred location off the coast of Aberthaw in the Vale of Glamorgan.

The initial work will include environmental considerations, engineering design, modelling and commercial assessments.

Initial estimates suggest that the project could provide around 600 megawatts of predictable renewable electricity, which would be enough for around half a million homes.

It is being seen as the first in a series of lagoons in the estuary which could generate enough electricity to meet the needs of four million homes.

A lagoon at Aberthaw could generate around £3.5bn in economic value, supporting thousands of jobs and creating significant opportunities for businesses in its supply chain.

A first proof-of-concept tidal lagoon in the Severn Estuary, utilising one of the world’s highest tidal ranges, was recommended by an independent panel commissioned by the now-defunct cross-border Western Gateway Partnership.

Previous plans for lagoons in the Severn Estuary failed to materialise when the first proposed project, the Swansea Bay Tidal Lagoon scheme, failed to get subsidy backing from the then Conservative UK Government in 2018.

A more ambitious Severn barrage, which would generate more than 5% of the UK’s electricity needs, is not being proposed by the city region and was ruled out by the commission when it published its report last year.

Taking any lagoon project through the planning process would have a price tag of tens of millions of pounds, with a construction cost well north of £1bn. This would be beyond the reach of the city region. To be realised, it will require significant investment, potentially from other public and private sources, with a business model showing a return on investment over the long term.

If the project proceeds to the next phase, the UK Government’s £28bn National Wealth Fund could be a potential investor alongside institutional pension funds. The regulated asset base model could also be deployed, with upfront construction costs being partly funded through a contribution made via consumer energy bills.

The city region recently entered into a new partnership that has given it access to the National Wealth Fund’s investment knowledge, expertise and capital, to help develop and grow project pipelines, attract public and private finance, and deliver key infrastructure to support growth and create high-value jobs.

If progressed, initial estimates suggest the lagoon could provide around 600 megawatts of predictable renewable electricity – enough for around half a million homes – and operate for more than 120 years.

Chair of the Cardiff Capital Region and leader of Monmouthshire Council, Ann Brocklesby, said: “This represents a potentially game-changing moment for renewable energy generation in the UK. The Severn Estuary has one of the highest tidal ranges in the world, with the potential to generate predictable, homegrown renewable energy that complements existing wind and solar power.

“In a time when energy security has become increasingly essential, the ability to access reliable and cost-effective renewable energy to power a significant number of homes, while placing Wales at the forefront of innovation in such an important sector, makes this a generational opportunity. I am proud that the Cardiff Capital Region, along with our partners, is taking this exciting project forward.”

The next phase will use environmental and engineering co-design to determine the scale and configuration for a project, ensuring environmental, marine and ecological evidence helps shape its future development while maintaining commercial viability.

Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, said: “Our vision is for Wales to become a world leader in marine renewables. With the second-largest tidal range in the world, the Severn Estuary presents immense potential to deliver significant renewable energy generation and economic benefits for Wales.

“We will continue to work closely with partners to ensure we maximise the opportunities offered by this unique project as it progresses.

“This project will help us understand how tidal technology can contribute to the transition to clean power, tackle climate change and create good clean jobs in the future.”

Secretary of State for Wales, Stephen Kinnock, said:“Wales has a great track record of innovation and partnership, and Cardiff Capital Region is continuing to harness those strengths with projects that support economic growth, investment and clean energy. I look forward to following the development with great interest.”

The Cardiff Capital Region already owns a 500-acre site at Aberthaw, having acquired the former Aberthaw Power Station from energy giant RWE. It is planning to develop a green energy park at the site, which could also be utilised to support the building of any lagoon.

It is financing the early-stage lagoon work from its £1.2bn City Deal. The city region has adopted an evergreen strategy for most of its funding, with capital and interest payments to proejcts used to make further investments. Its financing contribution could see it taking an equity stake in the lagoon.

The commission set up by the Western Gateway Partnership, which recommended tidal energy in the Severn Estuary, was chaired by Dr Andrew Garrad.

He said: “The Severn Estuary has immense energy potential and the Commission concluded that there is a compelling case to use that potential. Equally, it must be done in the right way – with the unique and internationally important environment of the Estuary remaining at the heart of how the project is designed and developed.

“I am delighted to see Cardiff Capital Region taking forward the Commission’s recommendation for a commercial demonstration project. This investment is an important next step in building the evidence, working closely with environmental organisations, and demonstrating how tidal range can deliver large-scale, clean, economic energy while respecting the Severn’s exceptional natural environment.”

Helen Godwin, Mayor of the West of England Combined Authority (WECA), said: “The Severn Estuary is an extraordinary natural asset and now is the time to let our tides power new jobs and growth in both England and Wales. Building on the Commission’s recommendations, we have worked closely with Cardiff Capital Region to identify a key Welsh location as the right project to lead with, while ensuring the unique environment of our coast remains at the heart of plans.

“Today’s investment from our Welsh neighbours is exciting news for everyone and underlines again how the immense potential of tidal energy can unlock billions for our economy, create new jobs, skills opportunities, and supply chains across the West of England, Wales, and the UK. We will continue working with our partners to help realise this major national clean energy opportunity, here in the natural home of new green jobs.”

Jobs will be created and safeguarded after news of significant investment from the two carmakers

A double boost for the UK economy has arrived courtesy of two major announcements from the automotive industry.

Nissan has confirmed this morning that it will manufacture a new model at its Sunderland plant, with the decision to produce the Nissan Kicks on Wearside representing a £170m investment into the facility.

The news comes after a prolonged period of considerable uncertainty at the plant, which has seen job cuts and the closure of one of its production lines. Nissan has shuttered several factories across the globe as part of its cost-cutting drive following a difficult period, yet the North East facility is regarded as one of its strongest performers.

The Kicks will become the 10th model to roll off the production line at Nissan’s Sunderland plant, which is celebrating its 40th anniversary this year. The factory has now produced in excess of 12m vehicles since the first Nissan Bluebird was built there in 1986.

Adam Pennick, vice president of manufacturing at Nissan’s Sunderland plant, said: “I’m proud to welcome this new model allocation for Sunderland. It’s the perfect way to celebrate our 40th year as a world-class manufacturing site. We look forward to seeing Kicks e-POWER hybrid going down the production line with our electrified line up of Qashqai, Juke and LEAF.”

The announcement has been warmly received by Business Secretary Jonathan Reynolds, who was born and raised in Sunderland. He said: “The decision to build this new model in Sunderland is a huge vote of confidence in the UK’s manufacturing expertise and automotive future. I’m excited in what our partnership with industry can achieve so this Government delivers good growth, investment and skilled jobs in every postcode.”

Meanwhile, luxury carmaker McLaren has unveiled plans to pour £500m into the UK and generate 1,000 new roles. The company intends to expand its research and development facility in South Yorkshire, as well as opening a new factory in the UK as part of the investment. It estimates that around 1,000 positions could be created across South Yorkshire and Surrey by 2032.

Nick Collins, chief executive officer of McLaren Group Holdings and McLaren Automotive said: “This investment gives us the platform to grow, develop and build on what makes us distinctive, while investing in the people, technologies and products that will keep us competitive for decades to come.”

Prime Minister Andy Burnham gave the announcement a warm reception, saying: “Their investment will create high-quality apprenticeships, jobs and drive growth far beyond their factory gates. It is how you get skilled work, decent wages and pride back into a place. It’s this kind of partnership between Government and business that will help us reindustrialise communities and make every part of Britain better off.”

The Government is eager to present the investment as a triumph for Britain, which is navigating a precarious economic landscape, partly as a result of the global instability stemming from the ongoing conflicts in the Middle East and Ukraine.

MIAMI — Amazon founder Jeff Bezos remains Florida’s wealthiest resident, according to Forbes’ newly updated ranking of the 400 richest people in America, with his fortune climbing to $378 billion this year even as he continues to sit behind Tesla and SpaceX chief executive Elon Musk atop the overall national list.

Forbes placed Bezos at No. 2 nationally on its annual list, unveiled this week, while Musk held the top spot for the fifth consecutive year. Bezos briefly reclaimed the title of the world’s wealthiest person on Monday, according to real-time wealth tracking, even as Forbes’ own annual snapshot, based on stock prices and exchange rates as of early September, kept him in second place behind Musk on the formal published ranking. Musk’s net worth on this year’s list reached $908 billion, the highest figure ever recorded in the Forbes 400’s history, giving him a lead over Bezos of more than $500 billion.

Bezos’ net worth has grown substantially over the past year. Last year, Forbes valued his fortune at $241 billion; this year’s updated figure of $378 billion represents an increase of well over $100 billion, reflecting continued strength in Amazon’s stock alongside gains tied to his other business interests.

Nearly three years have now passed since Bezos first announced plans to leave Seattle, the city long associated with Amazon’s headquarters, in favor of a new home in Florida. He announced the move in November 2023 on Instagram, saying at the time that he wanted to live closer to his parents, who had relocated back to Florida. Bezos has continued to maintain ties to the state’s business and civic landscape since making the move, including through his space exploration venture Blue Origin, which operates out of Cape Canaveral on Florida’s Space Coast.

Bezos was not the only notable Florida billionaire to appear prominently on this year’s Forbes list. Jacksonville Jaguars owner Shad Khan ranked as Florida’s No. 8 wealthiest resident, with a net worth of $16.5 billion, placing him at No. 70 on the overall national ranking of America’s richest individuals.

President Donald Trump also appeared among the billionaires included on this year’s Forbes 400, with a net worth of $7 billion, placing him among a group of 48 individuals on the list who share that same valuation, according to Forbes’ rankings.

This year’s Forbes 400 list overall reflected record levels of wealth concentration among America’s richest individuals. The 400 people included on the list are collectively worth $8 trillion, an increase of $1.4 trillion from the prior year’s total, according to Forbes. The minimum net worth required to qualify for inclusion also reached a new high this year, climbing to $4.4 billion, up $600 million from the previous year’s cutoff.

Forbes has compiled and published the list annually since it was first launched by Malcolm Forbes in 1982, using it as what the publication describes as the definitive ranking of the wealthiest individuals in the United States. This year marked the list’s 45th annual edition.

Bezos’ continued position as Florida’s richest resident underscores how significantly his relocation has reshaped the state’s own internal wealth rankings since his 2023 move. Florida has increasingly become a preferred destination for high-net-worth individuals relocating from other states in recent years, drawn in part by the state’s lack of a personal income tax, and Bezos’ continued residency in the state, combined with his rising net worth, has kept him firmly established at the top of Florida’s own list of resident billionaires for a second consecutive year.

Beyond his position on the Forbes list, Bezos has continued to expand his business interests since relocating to Florida. Blue Origin has remained active in the commercial space sector, competing alongside Musk’s SpaceX and other private space companies for both government and commercial launch contracts. Amazon, the company Bezos founded in 1994 and led as chief executive until stepping down from that role in 2021, has also continued to post strong financial results, a factor that has directly supported the growth in Bezos’ overall net worth reflected in this year’s Forbes ranking, given that a substantial portion of his fortune remains tied to his continued ownership stake in the company.

The gap between Bezos and Musk atop the national rankings has widened considerably over the past year, even as Bezos’ own fortune has grown substantially in absolute terms. That dynamic reflects the outsized scale of gains Musk has recorded across his various business ventures, including Tesla, SpaceX and his newer AI venture xAI, over the same period, a pace of wealth accumulation that has left even the world’s second-richest individual trailing by an increasingly large margin.

With Forbes’ list now published for the year, attention is likely to turn toward how the fortunes of both Bezos and Musk, along with the rest of the country’s wealthiest individuals, continue to evolve over the coming months, particularly given the substantial role that publicly traded stock holdings play in determining the rankings from one year to the next, leaving even the list’s most dominant figures subject to significant swings in net worth tied to broader market conditions.

Shares of CMS Info Systems gained as much as 7% to their day’s high of Rs 239 on the BSE on Wednesday after becoming a potential direct beneficiary of the government’s decision to announce the first-ever Merchant Discount Rate (MDR) on select UPI transactions above Rs 2,000.

The government will introduce MDR on some Person-to-Merchant (P2M) UPI transactions from October 15 onwards, with merchants paying 0.4% on transactions above Rs 2,000, the National Payments Corporation of India (NPCI) announced on Tuesday. A maximum fee of Rs 300 can be levied on such transactions of Rs 75,000 or more.

CMS Info Systems is one of India’s largest cash management and business services companies, offering physical logistics, banking automation and AI-driven technology solutions.

How is CMS Infosystems a beneficiary?

The positive read-through for CMS Info Systems is mainly through a potential shift back towards cash for higher-value merchant transactions.
With a 0.4% MDR on UPI P2M transactions above Rs 2,000 from October 15, higher-value digital payments will no longer be completely free for merchants. This could make cash payments relatively more attractive for some merchants, particularly where transaction values are high and margins are thin.

That could benefit CMS because its core business includes cash logistics, ATM cash management, retail cash management and cash-in-transit services.

CMS Infosystems Q1 results

Cash logistics major CMS Info Systems reported a 10.6% year-on-year decline in consolidated profit after tax (PAT) to Rs 83.7 crore in the first quarter of FY27, compared with Rs 93.6 crore in the same quarter a year ago.Consolidated revenue, however, rose 1.2% year-on-year to Rs 634.7 crore in Q1 FY27 from Rs 627.4 crore in Q1 FY26. EBITDA increased 6.9% year-on-year to Rs 168.8 crore from Rs 157.9 crore, while the EBITDA margin improved to 26.6% in Q1 FY27 from 25.2% in the year-ago quarter.

CMS Info shares have had a rough 2026, down 19% in the last six months and a massive 35% since the beginning of the year. In the last one year, the stock is down 45%.

RBI supports MDR charges

The Reserve Bank of India (RBI) backed the introduction of Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move will help strengthen the long-term sustainability of India’s digital payments ecosystem. In a post on X, the central bank said the move would enable UPI to continue scaling, innovating and serving consumers and businesses across the country.

For nearly seven years, UPI became more and more popular as a transaction could be made so quickly without paying any additional charges. The government has however repeatedly clarified that UPI will remain free for citizens and person-to-person transactions will continue without charges.

While discussing the costs of digital-payment infrastructure, RBI Governor Sanjay Malhotra in August said, “Someone has to pay the cost”. He stressed that the RBI wants digital payments to remain accessible, affordable and safe, but also sustainable.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Rises in petrol, diesel and airfares pushed UK inflation up to its highest level in six months in the year to August.

Inflation accelerated to 3.1% from 2.9% , according to the Office for National Statistics (ONS).

The cost of filling up a vehicle soared in August as the conflict in the Middle East continued to disrupt global oil supplies. Petrol prices jumped to their highest for nearly four years, the ONS said, while diesel also rocketed.

Meanwhile, the cost of flying jumped during the key month for summer getaways.

Overall, motor fuel prices rose by 23% compared to August last year.

Oil hit more than $91 a barrel as the US-Israel war with Iran went on. That compares to around $73 just before hostilities began earlier this year.

As a result, average petrol prices have continued to climb and between July and August, they rose by 9.1p to 161.3p per litre.

“This is the highest price recorded since November 2022,” said the ONS. At that point, Russia’s full-scale invasion of Ukraine had pushed up global energy costs.

Capital Economics said, at this point, the effect of higher oil prices has not spilled over into other areas such as food and drink, where the pace of inflation remained at 1.3% in the year to August.

But its chief UK economist, Paul Dales, said: “Everyone knows that bigger rises in inflation are on their way.”

Grant Fitzner, chief economist at the ONS, said: “Rising crude oil and petrol prices increased both the annual cost of raw materials and the price of goods leaving factories respectively.”

Dales estimates that a combination of higher oil and gas prices and “the eventual ‘first-round’ effect of businesses passing on some of their higher energy costs” will lead to inflation peaking at 4.2% in January.