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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Rolls-Royce has stuck to its guidance for profit growth this year as a surge in international travel continues to drive demand for its aircraft engines despite persistent supply chain challenges.

Shares in the FTSE 100 group fell nearly 4 per cent in early trading in London on Thursday after hitting a new 52-week high of 572.8p on Wednesday.

The stock has nearly doubled since the start of the year as investors have bought into a sweeping turnaround plan under chief executive Tufan Erginbilgiç to improve profitability and cut costs. The company in August said it would resume dividend payments for the full year.

Rolls-Royce on Thursday reiterated its goal of delivering underlying operating profit of £2.1bn to £2.3bn and free cash flow of as much as £2.2bn for the full year.

The company said large engine flying hours — a key metric as Rolls-Royce makes most of its money from servicing and maintaining its engines when they are in operation — grew 18 per cent year on year to 102 per cent of 2019 levels for the 10 months to the end of October. It expects engine hours to reach 100 to 110 per cent of 2019 levels for the full year.

Erginbilgiç, however, cautioned that the supply chain environment “remains challenging”. A range of issues including labour shortages and a lack of parts have hampered the industry’s attempt to increase production. The company said it was focusing on 15 suppliers to improve performance.

The aerospace industry was among the hardest hit by the Covid-19 pandemic, but bounced back sharply amid resurgent demand from airlines for new aircraft amid a post-pandemic travel boom.

Rolls-Royce has said it will invest more than £1bn over the coming years to improve the durability and performance of its Trent family of engines which power long-haul passenger planes such as Boeing’s 787 and the Airbus A350. It said on Thursday it was also continuing to invest to increase its maintenance and overhaul capacity by 2030.

The group said demand across its other two main divisions, defence and power systems, had also remained strong.

Rolls-Royce has a medium-term goal of achieving up to £2.8bn in annual operating profit and up to £3.1bn free cash flow by 2027.

Good morning and welcome to your Morning Briefing for Thursday 7 November 2024. To get this in your inbox every morning click here.

Finding the perfect-fit tech for your firm

As important as tech is, advisers often tell me how they don’t know where to start when it comes to picking a solution, writes Richard Harrison, chief executive of Sesame Bankhall Group.

The sheer number of options out there can be overwhelming and tech providers sometimes speak what can sound like a different language to the uninitiated.

While every firm has its own unique needs, there are basic principles that can help you navigate the noise and choose the right tools. Here’s how to simplify the process.

Intelliflo and Estgro team up to transform wealth planning

Fintech provider Intelliflo has teamed up with estate planning firm Estgro to transform how advisers handle generational wealth planning.

The partnership will bridge the gap between financial and legal services, making estate planning and inheritance processes easier for both advisers and their clients.

This combination allows financial advisers to provide tailored recommendations for wealth transfer and inheritance tax strategies.

Close Brothers and SEI sign platform tech deal

Close Brothers Asset Management (CBAM) and SEI have agreed a platform technology partnership.

The deal includes the adoption of SEI Wealth Platform and SEI Data Cloud, a fully integrated technology, data and operational outsourcing solution.

CBAM said the partnership marks a move to deliver its strategic objectives and to be the best place in the UK for wealth management professionals and their clients.

Quote Of The Day

Ironically, Trump’s supporters, who have blamed inflation for making them poorer under the Biden administration, might face further economic challenges.

–Lindsay James, investment strategist at Quilter Investors, comments on the results of the US election.

In Other News

Advanta Solutions Ltd has acquired City Financial Planning Limited, adding a further £800m of AUM under its stewardship.

The purchase of City Financial Planning, which has offices in both Bath and Exeter, is Advanta’s second acquisition in 2024 and its ninth in total.

City Financial Planning director Tim Quirke said: “Becoming part of the Advanta family enables us to continue to grow the business that has its origins almost 25 years ago when the current directors joined forces to create City Financial Planning.

“We have built up a base of fantastic clients, many of whom have become personal friends, making it essential for us to find the right company to partner with. We believe that Advanta is the right company for our clients and our staff.

“Knowing that Advanta shares the same values, professionalism and client service standards that we believe in, was a fundamental key to our decision.”

Craig Webster, CEO of Advanta, added: “We are delighted that City Financial Planning have decided to become part of the Advanta team and that the directors, advisers, their clients, and staff are joining us.

“City Financial Planning have built a fantastic reputation with their clients, and we look forward to working with them on the next phase of their journey.”

Advanta was assisted by Dow Schofield Watts and DLA Piper.

City analysts overwhelmingly predict Bank of England interest rate cut (Guardian)

Risk assets rally but bond market views Trump’s victory with caution (Financial Times)

Asia FX traders brace for risk of disappointment by Fed, China (Bloomberg)

Did You See?

Adviser Services Holdings (ASHL) has sold its national advice business – LYNC Wealth Management – to an affiliate of Seven Investment Management (7IM).

ASHL operates both an independent and restricted advice network, Sense and Lyncombe, with a combined £9bn of assets under advice and over 450 advisers.

In 2023, ASHL began acquiring financial advice firms under the LYNC Wealth Management umbrella, with the aim of offering an exit for advisers wishing to sell their business.

LYNC has bought seven nationwide firms that collectively manage £500m of assets under advice, with plans to acquire several more firms in the coming months.

LYNC will become an appointed representative of the ASHL-owned Lyncombe network.

German car giant Volkswagen Group has had a limited presence in the Indian market despite its huge India 2.0 push as its products are largely only covering the sedan and mid-SUV segments. That is set to change with the group entering the hot and rapidly growing sub-four metre compact sports utility vehicle space.

Czech car maker Skoda on Wednesday took the wraps off its compact SUV Kylaq. This should help the company widen its customer base ad well as tap new markets.

The Skoda Kylaq has been priced aggressively at a starting price of Rs 7.89 lakh ex-showroom.

The full price announcement across variants and trims will be made on December 2, which is when formal bookings will also commence. Customer deliveries are planned from January 27, 2025.

“The Skoda Kylaq is our first sub-4 metre SUV, designed in India and for India as a new entry point to our brand. India is key to our internationalization plans, the world’s third largest car market, and SUVs make up 50 per cent of new vehicle sales,” said Klaus Zellmer, CEO of Skoda Auto.

The Kylaq will be the third Made in India model by Skoda, which includes the Kushaq mid SUV and the Slavia sedan. It also sells the Kodiaq SUV in the country, which is imported.

The Kylaq joins a crowded compact SUV segment where it will rival the likes of Hyundai Venue, Kia Sonet, Mahindra XUV 3XO, Tata Nexon and Maruti Suzuki Brezza.

Over a two year period of 2022 and 2023, Skoda sold over 1 lakh units. With the Kylaq being launched, Skoda Auto has set a target to annually sell 1 lakh units by 2026.

The Kylaq is powered by a 1 litre TSI engine producing 85 kW of power and 178 Nm of torque. It is mated to a six speed manual or a six speed torque converter automatic transmission. Certain variants will also get paddle shifters.

It is based on the same MQB-AO-IN platform as the Kushaq and Slavia.

The Kylaq will come standard with over 25 active and passive safety features, including six airbags, traction and stability control, anti-lock brakes among other things. 

EX-CONSTRUCTION worker Richard Holden had been chasing the Department for Work and Pensions (DWP) to approve his pension credit claim for almost a year when The Sun stepped in to help him.

The 75-year-old from Blackpool rang our Winter Fuel SOS hotline last month as he was concerned that he would miss out on this year’s winter fuel payment.

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Our expert team has been working tirelessly to assist readers following the government’s decision to axe the winter fuel benefit worth up to £300 for 10million pensioners.

Cuts made by Chancellor Rachel Reeves mean the payment is now limited to retirees on pension credit or those receiving certain other means-tested benefits.

More than 760,000 risk missing out if they don’t apply for pension credit before December 21.

Like millions of other state pensioners, Richard would’ve lost his payment this year.

The 75-year-old retired last year and now lives on his state pension, which amounts to £222.70 per week – just £2 above the threshold to qualify for pension credit.

However, because he also receives extra cash help through attendance allowance, benefit checks revealed that he’s could apply for pension credit.

His attendance allowance, worth £108.55 per week, has been a crucial aid in covering his increased living costs due to arthritis and type two diabetes.

Citizens Advice helped him initiate his pension credit claim back in November 2023, but by the end of October 2024, he was still yet to receive any payments.

He told The Sun: “I’ve only just retired last August and I’m having to cut costs everywhere I look.

“I’ve phoned the DWP ten times since December last year, and every single time, the agent has just fobbed me off and told me that they’d be in touch in 10 working days.

“The last call I made was back in September. It’s a total disgrace.”

The Sun contacted the DWP on Richard’s behalf and requested that his case be investigated.

Upon discovering that Richard was eligible for £75 per week in pension credit, the DWP processed his claim.

Since Richard had formally applied for pension credit in November 2023, the DWP also agreed to issue backdated payments totalling £3,787.33, covering the period from August 2023 to October 2024.

He received payments from August 2023 because new pension credit claims can be backdated by three months.

The remaining amount was issued to account for the fact that he had been eligible for the benefit but faced unnecessary delays in being informed of his eligibility.

Additionally, because Richard was found to be eligible for the benefit during the period when the Conservative government was issuing a £300 cost of living payment, he also received this amount.

A government spokesperson said: “We are sorry for the delay in confirming Mr Holden’s eligibility for pension credit.

“We have now issued payment for the pension credit owed backdated to August 2023, as well as a cost-of-living payment of £300.

“We have apologised to Mr Holden, and we will learn lessons from the service delays in this case.”

The Sun’s Winter Fuel S.O.S Campaign

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THE Sun’s Winter Fuel SOS Campaign is here to support households during these challenging times.

Due to government cutbacks, ten million pensioners are set to lose the £300 Winter Fuel Payment.

Since opening our phone lines to thousands of pensioners in October, we remain dedicated to providing tips and advice on how to stretch your finances further.

That’s why we have partnered with the poverty charity Turn2Us to launch a free benefits checker, helping you ensure that you are claiming all the benefits to which you are entitled.

Don’t miss our latest Sun Money coverage, which includes essential information on key deadlines, applying for support, and everything you need to know about Pension Credit.

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If you have a story to share or wish to get in touch with our team, please email us at money-sm@news.co.uk.

CHECK IF YOU QUALIFY

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.

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.

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.

Claims for pension credit also open doors to a number of freebies and discounts.

For example, pension credit claimants over 75 qualify for a free TV licence worth up to £169.50 a year.

Claims for the benefit also provide eligibility to £25 a week cold weather payments and the £150 warm home discount.

The deadline to apply for pension credit and qualify for this year’s winter fuel payment is December 21.

We have a guide on all the state pension freebies and discounts you can get.

How much is the winter fuel payment and how is it paid?

Payments last year were worth between £300 and £600, depending on your specific circumstances.

This is because the amount included a “Pensioner Cost of Living Payment” – between £150 and £300. 

This year, it will be worth £200 for eligible households or £300 for eligible households with someone aged over 80.

That means you could receive up to £300 in free cash depending on your circumstances.

Most payments are made automatically in November or December.

You’ll get a letter telling you:

• How much you’ll get
• Which bank account it will be paid into

If you do not get a letter or the money has not been paid into your account by January 29, 2025, you must contact the Winter Fuel Payment Centre on 0800 731 0160.

The average UK house price reached a record high last month, according to Halifax.

The UK’s largest mortgage lender said the average price hit £293,999 in October, surpassing a peak of £293,507 that was reached in June 2022.

Halifax said it expected prices to continue to rise at a “modest pace” for the next few months.

However, it warned that mortgage costs could remain “higher for longer” following last week’s Budget.

Following the Budget, which included plans to borrow and spend billions of pounds, financial markets expect the Bank of England to cut rates more slowly than previously anticipated.

However, the Bank is still expected to cut its key rate to 4.75% from 5% later on Thursday.

Halifax said house prices edged up by 0.2% in October, meaning property values have now increased for four months in a row.

House prices are up 3.9% from a year earlier, Halifax said, which is a slight decrease from the 4.6% annual increase seen in September.

Commenting on the new record high, Amanda Bryden, head of mortgages at Halifax, said: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.

“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a +0.2% increase overall.”