Apple has reported another jump in profits as demand for iPhones soared.
Profits rose 38% to Â£6.87 billion, while revenue was up 33% to Â£32 billion.
The third quarter is typically the slowest for iPhone sales because many customers put off buying new phones, on the expectation of a new model. The iPhone 6 and 6 Plus, which smashed iPhone sales records when they were launched last year, are now 10 months old.
Despite the strong results the shares fell 6.7%, or $8.85, to $121.89 in after-market trading in New York.
Analysts blamed the fall on disappointment about the company’s revenue forecasts for the fourth quarter, which were slightly lower than expected, as well as the firm’s profits being too heavily dependent on the iPhone.
Apple is forecasting revenue to be between Â£32 billion and Â£33 billion in the fourth quarter.
Demand for its iPad tablets remained weak, with Apple selling 10.9 million, down 18% from a year earlier.
But Mr Cook also said the Apple Watch had had a “great start”, in the first indication of how well the company’s first piece of wearable technology was selling.
The Apple boss said last autumn that he did not want to reveal detailed figures for the watch, which went on sale on 24 April, to avoid giving competitors inside information.
But Apple said that revenue from “other products”, which includes the watch as well as products such as the iPod and its Beats headphones, came to Â£1.67 billion – about Â£615 million higher than the previous quarter.
Chief financial officer Luca Maestri said that revenue from the watch amounted to “well over'” that Â£416 million increase.
Sales of the watch in the first nine weeks had exceeded those of both the iPhone and iPad after they were first launched, he added.
And Apple said its gross margin – the difference between the amount it spends on making the products versus how much consumers pay – was 39.7%, up slightly on a year ago.
Apple also continued to do well in the China market – defined by Apple as China, Hong Kong and Taiwan.
Sales doubled year-on-year and accounted for more than a quarter of the company’s total third-quarter sales.
The jump should help to reassure investors that demand in China remains robust despite fears the market is close to saturation point.
July 28, 2015 Tags: Business Win, Global Business, growing business, Growing Profits, Growing Sales, Technological businesses, winning business Posted in: Business Profits, Business Sales, Business Win, Global Business, Technological Businesses, Uncategorized, Winning Business No Comments
The UK’s Consumer Prices Index rate inflation fell to 0% in June.
The ONS said the rate was also affected by a smaller rise in air fares in June than a year ago.
Bank of England governor Mark Carney has said he expects inflation to remain low in the immediate short term. But the Bank expects it to start picking up around the turn of the year.
The rate of Retail Price Index (RPI) inflation – which includes housing costs such as mortgage interest payments and council tax – was 1% in June, unchanged from May.
“Inflation has continued its pattern of recent months, when prices have been very little changed on the previous year,” said Philip Gooding from the ONS.
“The headline rate for June has dropped very slightly on May, back to zero, thanks to small downwards effects from movements in clothing and food prices and air fares.”
The CPI rate has been hovering around zero since February, and moved into negative territory in April for the first time on record, dropping to -0.1%.
While flat or low inflation can be good news for consumers, a prolonged period of negative inflation is generally perceived as harmful to an economy. The fear is that people will defer spending in the hope that goods or services will become cheaper later.
The current inflation figure is well below the Bank of England’s target of around 2%.
Core inflation, which excludes energy, food, alcohol and tobacco prices, fell last month to 0.8%. That was down from 0.9% and the joint-lowest rate since 2001.
UK manufacturers intend to invest more money over the next two years.
It said the move came as businesses sought to improve productivity.
The survey of 750 firms, said a third believed the UK was a more competitive place to invest than two years ago.
But the organisation warned the economic health of European partners was one of the biggest external risks to future investment.
The EEF survey said the industrial policies of the previous coalition government had helped to improve conditions in manufacturing.
It called on the recently elected Conservative government to remain supportive.
Lee Hopley, the EEF’s chief economist, said: “UK manufacturers’ ongoing commitments to invest in technology, skills and innovation provide positive signals about the sector’s future growth and productivity prospects.”
Figures released by the Office for National Statistics (ONS) earlier this year showed UK labour productivity fell 0.2% in the last three months of 2014. That meant productivity last year remained “little changed” on 2013.
The ONS figures also found the productivity of the UK workforce remains slightly lower than in 2007, marking an “unprecedented” absence of growth since World War Two.
June 30, 2015 Tags: Business Growth, Business Win, Global Businesses, Growing Sales, Professional Services, Technological businesses, winning businesses Posted in: Building Businesses, Business Sales, Business Win, Growing Businesses, Growing Economy, Uncategorized, Winning Businesses No Comments
Sportswear maker Nike reported a 24% increase in profit from selling more high end shoes and clothes.
The results were better than many analyst expectations’.
Nike saw growing demand from its basketball shoes- particularly in the US, as well as running shoes, including brands such as Lunar and Free.
Its Converse brand also saw rising sales.
The company’s largest market, North America, saw sales rise by 13% in the quarter.
This helped offset the effect of the stronger dollar which dampened earnings elsewhere.
President and chief executive Mark Parker described the past year overall as “outstanding”.
The company’s shares were up 2.3% at $107.63 in after hours trading on Wall Street.
On the conference call to discuss the earnings, Mr Parker pointed to its women and youth ranges as areas for growth.
Women were keener to buy their sportswear online, with female products outstripping men’s at Nike.com.
Nike, Inc. is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. In 2014 the brand alone was valued at over Â£12 billion, making it the most valuable brand among sports businesses.
June 25, 2015 Tags: Business Win, Global Business, Growing Profits, Growing Sales, Sporting Success, winning business Posted in: Business Profits, Business Sales, Business Win, Global Business, Sporting Success, Uncategorized, Winning Business No Comments
Manchester United is the world’s most valuable football brand.
Despite winning no trophies again last season the Old Trafford club’s brand is estimated to be worth Â£789 millon.
Six of the top 10 most valuable club brands in the reserach were English.
Barcelona, who won the Champions League final on Saturday, slipped two places from last year to sixth most valuable club, worth Â£515 million.
A recent report in Spanish newspaper Sport had suggested that Man Utd’s global fan base had fallen because of its couple of barren seasons.
But the Brand Finance report said: “Even if recent reports of fan losses are to be believed, United retains legions of followers in India, South East Asia and China, contributing to a total of over half a billion individuals and the news certainly does not appear to have deterred sponsors.”
They point to the club’s lucrative shirt sponsorship deal with Chevrolet and “record breaking” kit supply deal with Adidas, which was signed in 2014 and is worth Â£750 million to United over 10 years.
They added that “the huge windfalls that Man Utd can expect, will see both revenues and brand value continue to increase in the coming years”.
They also say that the club’s brand value has increased by 63% since 2014.
“The most critical success factor in the Manchester United brand’s renewed financial potency has been this year’s record-breaking, Â£5.1 billion deal for the UK broadcast rights of the Premier League.”
Bayern slipped to second in the football brand table, with Real Madrid third, and Paris St-Germain in ninth. There were no Italian clubs in the top 10.
The Nationwide building society has reported a 54% rise in annual pre tax profit to Â£1.04 billion.
Nationwide also announced its chief executive, Graham Beale, would retire next year after nine years at the helm.
It added it expected growth to moderate in the years ahead as the pace of house price growth eased.
Nationwide said the search for Mr Beale’s successor would now begin.
He has served on the board of the building society for 13 years, becoming chief executive of Nationwide shortly before the financial crisis in 2007.
Net interest income – the income Nationwide receives from savings deposits and its own investments – rose Â£458 million to Â£2.8 billion, as a result of what the building society called “lower retail funding costs and the growth in retail assets”.
Nationwide said saving deposits grew by Â£1.9 billion, despite what it called the “low interest rate environment”.
It blamed lower interest rates on its savings account on the general drift downwards across the wider market.
The building society said it took its responsibility to its savers “very seriously”, but added it was “not immune from trading conditions in the savings and mortgage markets and the impact on prevailing rates”.
Net mortgage lending – new mortgages advanced minus those repaid in full – amounted to Â£7.1 billion in the year to 4 April, down from Â£9.9 billion a year earlier, giving Nationwide a 31.2% share of the UK mortgage market.
Mr Beale said: “Nationwide is in great shape and is demonstrating how a mutual building society can make a real and refreshing difference in the financial services sector.
“Succession of leadership is best dealt with from a position of strength and hence the time has come for the society to identify and appoint its next chief executive. In the meantime, there is lots to do and there are exciting opportunities ahead, so it is very much business as usual.”
June 2, 2015 Tags: Business Finance, Business Growth, Business Sales, Business Win, Finance Business, Growing Profits, Growing Sales, Professional Services Posted in: Business Finance, Business Sales, Business Win, Ecommerce Business, Finance Business, Uncategorized, Winning Business No Comments
Mobile phone company Vodafone has reported a rise in quarterly sales for the first time in almost three years on increased demand for 4G services.
Vodafone said group sales rose 10.1% in the year to Â£42.2 billion, while service revenue rose 9.4% to Â£38.5 billion.
The mobile operator has spent the last 12 months investing in speeding up its network and boosting coverage.
Although small, the 0.1% rise in fourth-quarter organic service revenue followed 10 quarters of declines and means its overall earnings could also stabilise in 2016.
Vodafone said 4G service speeds were now available across 70% of its European network.
But it remained cautious in its outlook, warning that it would continue to invest in its network this year.
It added it would also continue to make improvements to customer service, in order to reduce the number of customers leaving it in its most mature market.
Vodafone forecast core earnings would be in the same region as this financial year, of between Â£11.5 billion and Â£12 billion.
Vittorio Colao, Vodafone group chief executive, said the group had seen increasing signs of stabilisation across many of its European markets, supported by very strong demand for data. He added revenue trends were improving as a result of a growing number of customers.
The group’s acquisition of German and Spanish cable TV and broadband firms Kabel Deutschland and ONO – designed to ensure Vodafone did not get outflanked by rivals offering Television, fixed-line broadband and telephone service, alongside mobile phone packages – had also provided a strong platform for further growth in Europe, Vodafone said.
Mr Colao added: “We have significant opportunities ahead of us, with only 13% of our European mobile customers using 4G, and our market share in fixed services only a fraction of our share in mobile.
“In addition, businesses around the world are increasingly looking to put mobility at the centre of their own strategies. With the assets and skills we have today, further enhanced by the completion of Project Spring, we will be strongly positioned to provide ever-improving services to customers and seize these opportunities.”
May 25, 2015 Tags: Business Growth, Business Win, Exporting Businesses, Global Business, Growing Profits, Growing Sales, Technological businesses, winning business Posted in: Business Growth, Business Profits, Business Sales, Business Win, Digital Business, Exporting Businesses, Global Business, Technological Businesses, Uncategorized, Winning Business No Comments
Jim O’Neill the former Goldman Sachs economistÂ is to join the UK Treasury.
Chancellor George Osborne tweeted that the retiring Goldman Sachs Asset Management chairman is to become the Commercial Secretary at the Treasury.
Mr Osborne chose Mr O’Neill to “make devolution and the Northern Powerhouse happen”.
English cities will get powers on housing, transport, planning and policing under Mr Osborne’s plans.
Greater Manchester – which will take on the powers when electing a mayor in two years – should become a blueprint for other large cities, he said.
A Cities Devolution Bill will be in the Queen’s Speech later this month.
Mr O’Neill is chairman of the RSA City Growth Commission, which claimed the economy has seen 5% less growth per year between 2000 and 2010 as a result of “chronic” underinvestment outside London.
It urged an overhaul of transport, housing and broadband provision and more house building.
Mr O’Neill also recently headed a UK government appointed review team calling for global antibiotic research and was one of the “Red Knights” hoping to restore Manchetser United Football Club to financial independence when the Glazers took the club over with borrowed money.
May 20, 2015 Tags: business development, Business Growth, Business Win, Growing Businesses, winning business Posted in: Business Growth, Business Win, Growing Economy, New Business Development, Uncategorized, Winning Business No Comments
Three firms have been shortlisted for the MacRobert Award 2015- the UK’s longest running engineering prize.
Chair of the judging panel Dame Sue Ion said the variety and quality of the list was testament to the strength of engineering in the UK. The winner will be announced on 16 July.
“Each of this year’s finalists has demonstrated remarkable drive and determination, to achieve technical advances that can make a considerable difference to many aspects of our lives,” said Dame Sue.
“Innovative engineering is the key to our future growth in the UK and we will have to make increasing use of our knowledge and creative talent if we are to take advantage of this opportunity. These three companies are great examples of engineering for growth in action.”
The three firms are competing for a gold medal and a Â£50,000 prize. The MacRobert Award has been presented by the Royal Academy of Engineering annually since 1969 and has recognised many technologies that are now widespread – such as the first CT scanner in 1972.
Based in Edinburgh, Artemis Intelligent Power has developed a digital hydraulic power system that can replace the mechanical gearbox in conventional wind turbines.
The “Digital Displacement” system is set to power the next generation of offshore turbines, making them more efficient and reliable. One system has already been installed in a 7MW turbine – double the current average turbine power of 3.5MW – off the Scottish coast.
The same technology is used in motor vehicles and industrial applications such as injection moulding.
Cambridge company Endomag specialises in tools for diagnosing and treating cancer. It has recognised for its system that replaces the radioactive tracers used in lymph node biopsies with magnetic nanoparticles.
To establish whether a breast cancer has spread, the best method is to examine “sentinel” lymph nodes – but identifying these nodes previously relied on injecting radioisotopes, which then collect in the sentinel nodes. That makes these biopsies complex, expensive procedures and many patients instead have up to 30 lymph nodes removed, which brings other health risks.
It has already been used to treat more than 6,000 breast cancer patients in Europe and is now being trialled for approval in the US.
Victrex is a polymer technology company headquartered near Blackpool, which produces the world’s top performing ultra-thin plastics – up to 20 times thinner than a human hair.
One of its products, a film called APTIV, is found in more than one billion electronic devices. It is strong and durable, tolerates high temperatures and has tunable electrical properties which make it very valuable in tough, small scale applications like earphones, or the speakers and microphones of smartphones.
The polymer responsible is polyetheretherketone or PEEK, originally invented by chemicals giant ICI, from which Victrex split in 1993. It is much lighter than metal, which also makes it an attractive option for aircraft components.
Victrex is now worth around Â£2 billion and is investigating other uses for PEEK, including as a high-grade 3D printing material.
As mobile technology continues to improve, it demands increasingly tough and versatile materials and plastics made by Victrex are also found inside anti-lock braking systems and even spinal disc implants.
May 15, 2015 Tags: business development, Business Growth, Business Sales, Business Win, Growing Businesses, Growing Sales, Technological businesses, winning businesses Posted in: Business Exports, Business Sales, Business Win, Global Businesses, Growing Businesses, New Business Development, Technological Businesses, Uncategorized No Comments
The number of people becoming insolvent in England and Wales has fallen to its lowest level in nearly a decade.
That is the lowest figure since the autumn of 2005, and a fall of 18.6% on the number a year ago – one of the steepest declines on record.
Individual Voluntary Arrangements (IVAs), the most used form of insolvency arrangement, fell by 23.5%.
One reason for the fall in insolvencies now is the big decline in borrowing in 2008, during the financial crisis. As a result, fewer people are in financial difficulty seven years later.
The number of companies becoming insolvent also fell.
In the first three months of 2015, 4,052 companies went bust, a drop of 11.3% on the same quarter last year and the lowest figure since the autumn of 2007.
Debt charity StepChange welcomed the news that personal insolvencies had fallen, but warned that dangers still remained.
“With levels of personal borrowing growing rapidly once again, the next government and lenders must ensure that the mistakes of the pre-crisis credit boom are not repeated,” said Peter Tutton, head of policy at StepChange.
“Our concern is that growing levels of consumer credit will be followed by growing numbers of people falling into problem debt.”
Bankruptcy methods and their alternatives
Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets, including your house, to pay something to the creditors
Individual Voluntary Arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go
Debt Relief Orders: Introduced in April 2009, these allow people with debts of less than Â£15,000 (Â£20,000 from October 2015) and minimal assets to write off debts without a full blown bankruptcy.