Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Could Burberry be a takeover target? It is not hard to see why deal rumours — this week’s featuring Italy’s Moncler — have started to do the rounds. The UK luxury group’s botched turnaround has halved its share price over the past 12 months. With a bijou market capitalisation of £3bn, Burberry has become a bite-sized morsel in a world that is increasingly dominated by giants. Yet even now, potential predators will struggle to make the numbers stack up.
The problem is not that the Burberry brand lacks potential. But in its attempt to “elevate” it — for which read hike prices — the group has managed to sink sales. Analysts expect revenues to be down almost 20 per cent this year, virtually wiping out operating profits.
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The way out of this slump probably requires lowering prices and ditching zanier aesthetics in favour of classic British outerwear, like the trenchcoat for which the company is famed. New boss Josh Schulman will unveil his strategy next week. But the company’s newer products have already reduced the average selling price by 27 per cent from mid-2024, according to Luca Solca at Bernstein.
Focusing on affordable, quality products is a sensible path for Burberry. Higher-end luxury groups have increased their prices so much that they must be leaving unsatisfied demand in the echelon below. The problem is that mid-market luxury companies such as Tapestry and Capri trade at a discount of 15-20 per cent compared to high-end groups. Burberry’s valuation had already diverged from that of LVMH. But giving up on brand elevation removes hope of a valuation uplift, leaving any buyer reliant on a huge improvement in profits to create value.
For an idea of the optimism required here: say a buyer would have to shell out some £5bn for Burberry, including a 30 per cent takeover premium and £1.1bn of debt. Even assuming that cheaper products drove average annual sales growth of 10 per cent from 2025 to 2030 and ebitda margins settled in the high teens, Burberry would be worth perhaps £7bn by the end of the decade on an affordable luxury multiple. That is a 40 per cent uplift over five years, but under assumptions that would be challenging in the current, depressed luxury environment.
A strategic buyer might be able to cut some costs, by merging supply chains and optimising stores, but it is hard to see how this could tip the scales. Potential private equity predators, meanwhile, would need to load debt on to the group to juice up returns — another tall order given its current circumstances. Any Burberry shareholders hoping for a giant cheque may be disappointed.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Goldman Sachs has appointed 95 new partners in its biennial process to refill the Wall Street bank’s senior ranks, according to people familiar with the matter, the bank’s biggest class of partners since 2010.
While Goldman stopped being a formal partnership when it went public in 1999, the investment bank still confers the partner title on a select group of employees to convey seniority and importance. It remains one of the most sought-after titles on Wall Street.
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The appointments come against a backdrop of renewed optimism on Wall Street for mergers and acquisitions and regulation under a second Trump administration. Shares in Goldman rose 13 per cent on Wednesday following the election results.
The bank is set to make an official announcement on the new partner class later on Thursday. Goldman declined to comment on the promotions.
The 95 new partners is up from 80 the last time the bank conducted its round of promotions in 2022. At the time, that was the largest class since David Solomon took over as chief executive in 2018.
Solomon has talked about reducing the number of new partners to preserve the group’s “aspirational nature”, as well as promoting a more diverse slate of candidates.
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Goldman has about 400 partners against a total workforce of just over 46,000, meaning the partners represent fewer than 1 per cent of the bank’s employees.
The fact that partners are selected only once every two years, when most companies promote new senior employees annually, makes it all the more precious for those selected and even more painful for candidates who miss out.
Being a partner at Goldman typically guarantees a salary of at least $1mn, plus a bonus, access to an annual private gathering with splashy speakers which have included former presidents and prime ministers, and funds to donate to charity through the bank’s philanthropic arm.
New partners are selected in what is known inside Goldman as “cross ruffing” — a nod to a play in the card game bridge — where current partners are tasked with vetting candidates through interviews with their senior colleagues.
“If there’s any negative feedback you don’t make it,” said one former Goldman partner. “It’s like a beauty pageant. And if there are any blemishes it’s bad.”
Before the most recent partner class, only 19 per cent of Goldman’s partners were women.
Many former Goldman partners have gone on to public service, including Securities and Exchange Commission chair Gary Gensler, Steven Mnuchin, US Treasury secretary in the first Trump administration, and Malcolm Turnbull, Australia’s former prime minister.
THOUSANDS of retirees can get a free TV licence, saving them up to £169.50 per year.
Anyone who wants live television including Sky, ITV, and BBC must obtain one.
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Elderly people could get their TV licence completely freeCredit: PA
The Government is responsible for setting the level of the licence fee.
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Last December it was announced that the government would raise the licence fee by 6.7%, in line with inflation, taking effect from April 2024.
This has brought the cost of a colour licence fee to £169.50 per year and a black and white licence fee to £57 per year.
It is illegal to watch live TV without a licence, and you could be fined up to £1,000 if you’re caught.
But if you are claiming the state pension and are aged 75 or over, you could get the licence for free.
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That is because anyone in this age bracket can use the service for free if they are claiming pension credit.
If you’re over 75 and not in receipt of pension credit you have to pay for a TV licence, which could be up to £169.50 a year.
You can also get a free licence if your partner claims pension credit but you do not.
To apply for a free TV licence you can visit the following website, https://www.tvlicensing.co.uk/cs/pay-for-your-tv-licence/index.app.
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Alternatively, you can call the following number and apply over the phone 0300 790 6071.
But remember, you must be claiming pension credit to get the freebie.
Could you be eligible for Pension Credit?
If you are confused about whether or not you claim the payment check one of your bank statements.
You should see an entry with your National Insurance Number followed by the letters “PC”.
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What is pension credit?
Pension Credit gives you extra money if you claim the State Pension and are on a low income.
If you live with a partner and you are both of State Pension age, your weekly income must fall below around £350.
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:
The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
You 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 and the Winter Fuel Payment.
How do you apply?
You can start your application for Pension Credit up to four months before you reach State Pension age.
To apply you’ll need to provide your National Insurance number, information about any income, savings and investments you have, and your bank account details.
If you live with a partner you’ll also need to provide their details.
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You can apply online here or by calling 0800 99 1234.
Other ways to get a discounted TV licence
You could be eligible for a discounted TV licence if you live in residential care or sheltered accommodation, or if you’re registered blind.
If you live in sheltered accommodation or residential care and are over 60 or disabled you can get a licence for just £7.50.
If you’re registered blind, or live with someone who is, you’re in line for a 50% discount.
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The licence must be in the name of the person registered blind, but if your existing licence is not in their name, you can apply to transfer it.
You can apply for the discount on the TV Licensing website.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
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Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The MP Mike Amesbury has been charged with assault after CCTV footage showed a late-night altercation on a street in north-west England.
Police said on Thursday that the 55-year-old, who was suspended from the Labour party after the incident in Frodsham, Cheshire, last month, had been summoned to court.
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Video footage appeared to show the MP for Runcorn and Helsby punching a man to the ground.
Prosecutors said they had brought a charge of common assault against the politician following a review of evidence presented by police.
Amesbury confirmed in a statement that he had been told to appear in court. He said the incident was “deeply regrettable” and added: “I am continuing to co-operate with police and given this is an ongoing case I cannot comment further.”
Amesbury was first elected to parliament in 2017 and held his constituency with a majority of 14,696 at the general election in July. He was previously a shadow minister.
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He now sits as an independent MP after Prime Minister Sir Keir Starmer approved the suspension of the party whip from him.
Cheshire Police said an alleged attack on a 45-year-old man had been reported to officers at 2.48am on October 26.
The force said Amesbury would appear before magistrates to face a charge of section 39 assault. The venue and date of his first appearance have yet to be confirmed.
Rosemary Ainslie, head of the Crown Prosecution Service’s special crime division, warned the public to avoid “reporting, commentary or sharing of information online which could in any way prejudice these proceedings”.
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She said in a statement that the criminal proceedings were “active” and that Amesbury “has the right to a fair trial”.
SOMETIMES you just need a holiday with serious luxury.
Breakfast in bed, daily sauna, a fabulous massage? Pure heaven.
Happily, easyJet holidays offers package holidays at unbeatable prices with thousands of four and five-star hotels, so you’ll be spoilt for choice with hundreds of destinations across Europe and beyond.
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Discover the perfect luxury getaway, whatever the size of your group
These luxurious properties are ideal for couples but they’re also great for families who simply want to treat themselves.
There’s nothing ordinary about this selection of hotels. They all come with the wow factor and a 100 per cent commitment to indulgence, bookable now at easyJet holidays with a £60pp deposit* and the option to spread the cost for free.
Better still, you can relax in the knowledge that easyJet holidays will match the price if you find the same getaway cheaper elsewhere.
After all, you deserve it.
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Will you be tempted away from the pool at the Stella Island Luxury Resort and Spa?
Grown-up indulgence
Stella Island Luxury Resort and Spa on Crete’s north coast is a sophisticated, five-star, adults-only haven of tranquillity.
It would be easy to spend your entire day at the serene lagoon-style pool, although come the evening you’ll want to enjoy dining at one of the five à la carte gourmet restaurants.
Their menus offer dishes from around the world, including Mediterranean and authentic Cretan cuisine, sushi, and grilled meat and fish.
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But leave some room for a leisurely cocktail tour around the hotel’s bars, where you’ll be entertained each night with live music and – once a week – traditional Cretan dancing.
Accommodation is a cut above too, with swim-up rooms and overwater bungalows lending your stay a tropical vibe.
You can even go one step further and opt for a villa with its own private pool – the last word in luxury.
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The expansive pool at Grand Palladium White Island is the best place to relax
Grand Palladium White Island Resort and Spa, on Ibiza’s famous Playa d’en Bossa, is that rare thing: a luxury five-star hotel that caters to the whole family. Everyone gets A-list treatment here.
Four shimmering pools and a spa will keep all ages happy. There’s a cinema and video games room for teens, as well as a fully equipped crèche with soft-play and sleeping areas (now that’s a real luxury).
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Luxury is laid on for the whole family at upscale Mitsis Selection Blue Domes
Mitsis Selection Blue Domes on the Greek island of Kos is another family-friendly luxury five-star offering, with nine pools winding their way through the complex as well as a Blue Flag private beach.
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Straight out of the pages of a glossy travel magazine, this is a swanky, stylish option that offers something for all ages.
The rooms are spacious and stylish, with the architecture and interiors blending traditional touches with ultra-modern features.
From a kids’ club and outdoor playgrounds to a cinema and the indulgent Sapphire Spa for adults – as well as eight restaurants – there’s a treat in store for every member of the family.
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The inspired waterways of Hilton Dalaman Sarigerme Resort & Spa
Stunning spas
Hilton Dalaman Sarigerme Resort & Spa in Turkey is home to a staggering ten pools. It’s a dream for water and wellness fans, located in an enviable spot where the Dalaman River meets the Mediterranean.
This five-star resort is all about spoiling yourself, with an expansive choice of restaurants that cover everything from Turkish street food and Italian cuisine to Japanese and Indian specialities.
Of course, if you can’t decide then the main buffet restaurant is always a safe bet.
Set in beautiful natural surroundings, the resort’s rooms are swish with elegant furnishings and private balconies offering mountain, river or sea views.
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There’s also the luxurious Elysion Spa, with VIP Turkish bath, saunas, a steam room and a relaxation pool.
Drawing inspiration from Turkish traditions and Greek mythology, it offers a peaceful sanctuary where you can truly switch off from the world and focus on your wellbeing.
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Take in the panorama from Hotel Domes Aulus Elounda’s pool
Hotel Domes Aulus Elounda in Crete is a five-star adults-only gem with serious luxe factor.
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The grand views over the bay, fine dining and ultra-chic decor are only topped by the magnificent infinity pool looking out to sea and the Soma Spa.
Food-wise, there’s plenty to suit all manner of tastes from an international buffet at the Island to a choice of à la carte restaurants that serve Greek, Mediterranean and Asian fare.
This mood-lit retreat specialises in pampering treatments, with a heated indoor pool, sauna, hot tub and Turkish bath.
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Modern style meets luxurious detail in Majorca at the Fergus Style Tobago Hotel
Royal treatment
Fergus Style Tobago Hotel is an adults-only five-star hotel in Majorca that attracts a seriously stylish crowd.
If you like a sleek, contemporary vibe with deluxe details, this hotel will definitely float your boat.
The rooftop has a breathtaking infinity pool fringed with luxurious loungers, while guest rooms are bright and spacious with elegantly furnished balconies offering views across the bay.
The hotel’s luxury-level status extends to thoughtful extras, including fluffy robes, espresso machines and premium toiletries for round-the-clock pampering.
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And thanks to easyJet holidays taking care of airport transfers for you, the relaxation starts before you even check in.
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The serene saltwater pool at palatial Grecotel Amirandes Boutique Resort
Grecotel Amirandes Boutique Resort in Crete offers the royal treatment at a five-star hotel designed in the style of a modern-day palace.
You’ll be in thrall to the fabulous atmosphere, with Greek marble, lagoons, palm trees and landscaped gardens around an Olympic-sized seawater pool.
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The epitome of Cretan luxury and serenity, this is a hotel where you’ll want to dress to impress.
Fortunately your easyJet holidays package includes a 23kg baggage allowance per person on all beach breaks, so you can pack a different outfit for every night.
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Kick back at the eco-conscious Olivar Suites in Corfu
TheOlivar Suites, on the Greek island of Corfu, is so named because it’s on the site of an ancient olive grove.
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Blending high-end five-star luxury with elegant, minimalist interiors that reflect the muted tones of the surrounding landscape, this eco-conscious hotel offers yoga, Pilates, personal trainers and spa facilities.
The suites are built with privacy in mind, and you can even book an intimate dinner on the beach beside the crystal clear waters of the Ionian Sea.
Book your beach escape with easyJet holidays today with just a £60pp deposit. Plus there are thousands of free child places available, so there has never been a better time to book
Terms and conditions *£60pp deposit: £60pp deposit available on all easyJet holidays booked at least 28 days before departure. Final balance due at 28 days. Spread the cost by making payments via your easyJet holidays online account.
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Transfers and 23kg bag: transfers and 23kg bag on beach holidays included. Transfers and 23kg hold bag on city breaks can be added for a fee.
Free child places: one free child place for every two full paying adults sharing accommodation is available on selected holidays, where you see the ‘Free child place’ label, subject to availability. Maximum one free child per room. When free child places sell out, the current child price will apply. Sometimes restrictions apply to some rooms. Supplements still apply for optional extras added to the holiday. A deposit is payable for the free child place at the time of booking – this will be deducted from the final holiday balance. The child age limit can vary by hotel. Offer can be changed/withdrawn without notice.
Unbeatable package holiday prices: easyJet holidays guarantees to beat the price if you find the same ABTA/ATOL protected holiday (inc. same flights and hotel) cheaper elsewhere online within 24 hours of booking with easyJet holidays. T&Cs apply.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
John Wood Group shares fell more than 50 per cent on Thursday as the UK energy engineering company announced an independent review of one of its core divisions following multimillion dollar write-offs this year.
Shares in the London-listed group, a subject of two failed takeover bids in the past 18 months, fell after it said had agreed to a review of its projects division “in response to dialogue with its auditor”. The division designs and procures for large engineering projects in sectors such as energy and mineral processing
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Aberdeen-based Wood said the evaluation, to be undertaken by Deloitte, would include looking at governance and determining if there was a need for previously reported information to be restated.
It is a blow for Wood and chief executive Ken Gilmartin, who is under pressure to prove the company can implement a turnaround plan and succeed as an independent entity after a turbulent period.
Wood announced write-offs of almost $1bn in August after deciding to exit certain types of work and recognise costs related to legacy acquisitions, pushing the company into an operating loss of $899mn in the six months to June.
“This review will focus on reported positions on contracts in projects, accounting, governance and controls, including whether any prior year restatement may be required,” Wood said. “An update will be provided as appropriate following its conclusion.”
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Wood, which employs about 35,000 on engineering and consulting projects across the world, has been struggling to turn its fortunes around after a £2.2bn takeover of Amec Foster Wheeler in 2017 saddled it with high debts and legal liabilities.
Earlier this year, the company was repeatedly pursued by Sidara, known as Dar Al-Handasah, in a bid that valued it at about £1.6bn. Dubai-based Sidara walked away in August, citing “geopolitical risks and financial uncertainty”.
It was the second potential deal for Wood to collapse in just over a year. Private equity company Apollo Global decided in May 2023 against concluding a 240p-a-share bid that valued Wood at about £2.2bn at the time, including debt. Wood is now worth about £431mn after Thursday’s decline.
The company has also come under pressure from some investors to move its listing from London, but Gilmartin rejected that and told the Financial Times in August that such a move would not solve the company’s problems.
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In Thursday’s trading update, Gilmartin said Wood had a “mixed quarter” in the three months to September despite strong growth in its operations division, which maintains and manages projects.
The projects division had a disappointing quarter after it was “impacted by delayed awards in our chemicals business and our continued weakness in minerals and life sciences”, he said.
Group revenue for the first nine months of the year fell about 3 per cent to $4.3bn, and the company reiterated a full-year guidance of “high single-digit growth”.
Analysts at Citi said the trading update was “below market expectations” and they “would like to see improved operational delivery”.
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