Show Hide image

Morning Wrap: need to know business stories

Top stories from around the web.

Lloyds will sell Spanish retail division to Sabadell (BBC):

Lloyds Banking Group has agreed to sell its Spanish retail banking business to Banco Sabadell in exchange for a 1.8% stake in the Spanish bank. Lloyds said that the stake - which it will hold for at least two years - was worth about 84m euros ($110m; £72m). The Spanish business made a £43m loss last year. Lloyds said it would make a £250m loss as a result of the sale.

Greggs Bakery in profit warning (BBC):

High Street bakery Greggs has warned of lower than expected profits this year after reporting falling sales. The chain said like-for-like sales, which exclude newly-opened outlets, were down 4.4% so far this year. It blamed bad weather and "under pressure" consumers, and said it did not expect market conditions to improve in the short term.

Rentokil Initial sells City Link for £1 (Telegraph):

The multifarious company, best known as the rat-catcher to the Queen, will book a £40m loss on the parcels business, which has been plagued by losses and management departures after Rentokil acquired it in 2006 as part of a £210m takeover of Target Express.

Rentokil had hoped City Link would return to the black this year after failing to turn a profit since 2007 but the group was forced to admit last month that its goal was no longer realistic, despite a reduction in operating losses. Adjusted operating losses at City Link narrowed from £31m in 2011 to £26m in 2012.

UK manufacturing jobs to come home in next decade (Telegraph):

As many as 200,000 manufacturing jobs will return to the UK over the next decade, cutting the trade deficit by a third, as outsourcing becomes increasingly “unattractive”, according to new research.

Advances in production technologies, as well as rising costs and regulations abroad, will “fundamentally change” the economics of manufacturing, a study by the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) found.

Aberdeen Asset Management sees profits rise 37 per cent as appetite for assets returns (City AM):

Investment group Aberdeen Asset Management has released interim results for the six months to 31 March. The firm saw pre-tax profits rise by 37 per cent to £222.8m.