Business

Ineos has reported a sharp widening in losses to $593 million, as rising energy costs, supply chain disruption and geopolitical tensions weigh heavily on Sir Jim Ratcliffe’s petrochemicals empire.

The group, controlled by Jim Ratcliffe alongside co-owners Andy Currie and John Reece, has also suspended its dividend for a second consecutive year, underscoring the financial pressure facing the business.

Losses before tax increased significantly from $71.1 million the previous year, while revenues declined to €14.3 billion from €16.2 billion. The downturn reflects a challenging operating environment for the European chemicals sector, where demand has weakened and costs have risen sharply.

Ineos pointed directly to the escalation of tensions in the Middle East as a key risk factor, warning that disruption to global energy markets is already impacting operations.

The group highlighted Iran’s strategic position near the Strait of Hormuz,  a critical shipping route for oil and liquefied natural gas, noting that any prolonged conflict could further destabilise supply chains and drive up commodity prices.

“Any escalation or expansion of hostilities could adversely affect global supply chains, commodity prices and macroeconomic conditions,” the company said in its annual report.

The surge in oil and gas prices has increased input costs across the petrochemicals industry, while also raising shipping expenses as companies adjust logistics routes to avoid high-risk areas.

The impact has been particularly acute in Europe, where Ineos has long warned of structural challenges including high energy prices, carbon taxes and competitive pressures from overseas producers.

Earnings before exceptional items in the region almost halved to €252.3 million in 2025, down from €470.2 million the previous year. Revenues in the European business fell by 9.2 per cent, reflecting weaker demand and margin compression.

Ratcliffe has previously described the European chemicals industry as facing “challenging market conditions”, with rising regulatory costs and energy prices eroding competitiveness.

The group has also been hit by logistical challenges linked to global shipping disruptions. In previous years, Ineos was forced to reroute shipments for its major Project One chemicals plant in Belgium around the Cape of Good Hope, adding more than €30 million in costs.

The company warned that similar disruptions could occur again if tensions escalate, potentially delaying the completion of key projects and further increasing expenses.

It also flagged risks to the delivery timeline of a new plant in the Netherlands, citing ongoing volatility in energy markets.

Ineos ended the year with net debt of €11.7 billion, highlighting the scale of its financial commitments at a time of declining profitability.

The decision to halt dividend payments reflects a focus on preserving cash and maintaining financial flexibility as the company navigates an uncertain outlook.

The results underline the pressures facing energy-intensive industries in Europe, where companies are grappling with a combination of high input costs, regulatory burdens and geopolitical instability.

For petrochemical producers, the reliance on oil and gas as both feedstock and energy source makes them particularly sensitive to price fluctuations.

Looking ahead, Ineos warned that continued volatility in energy markets could have a “significant” impact on its operations and financial performance.

The trajectory of the Middle East conflict will be a key factor, with prolonged disruption likely to exacerbate cost pressures and delay investment projects.

For Ratcliffe’s group, the challenge will be balancing investment in long-term growth with the need to manage short-term financial strain — a task made more complex by the increasingly uncertain global economic environment.

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Ineos losses widen to $593m as Ratcliffe halts dividend amid energy turmoil

Ford’s UK finance arm has significantly increased its provisions for the car finance mis-selling scandal, as lenders brace for a multibillion-pound compensation programme expected to reshape the industry.

Accounts filed by FCE Bank show the company has raised its provision for potential redress costs to £155 million, up from £61 million a year earlier. The increase reflects expectations around the forthcoming compensation framework being finalised by the Financial Conduct Authority, which is due to publish its final rules imminently.

The car finance controversy centres on commission structures used by lenders and dealers, where incentives were paid to brokers arranging loans without always being clearly disclosed to customers. Regulators have argued that these practices may have led to consumers paying more than they should have.

The FCA has estimated that its proposed redress scheme could require lenders to pay out around £8.2 billion in compensation, alongside an additional £2.8 billion in administrative costs. If implemented at that scale, the programme would rank among the largest financial compensation exercises since the payment protection insurance (PPI) scandal.

The regulator first began examining the motor finance market in 2017 and banned certain commission arrangements in 2021. However, a surge in complaints led to a broader investigation launched in 2024, culminating in the proposed industry-wide scheme announced last October.

Ford is one of several major players increasing provisions in anticipation of the final ruling. Lloyds Banking Group has set aside nearly £2 billion, the largest provision so far, while Close Brothers and other financial institutions have also warned of substantial exposure.

The financing arms of global carmakers, including Mercedes-Benz and BMW, are also expected to be affected, underlining the widespread reach of the issue across both banking and automotive sectors.

FCE Bank, which provides loans to around 410,000 retail customers across the UK and Europe, said its revised £155 million provision represents its “best estimate” of the likely financial outflow under the FCA’s proposals.

The FCA’s plans have sparked strong debate within the industry. Lenders have argued that the proposed compensation levels are excessive and do not fully reflect a recent Supreme Court ruling that was broadly favourable to finance providers in cases involving commission disclosure.

At the same time, consumer groups have called for tougher measures, arguing that affected borrowers should receive full redress for any unfair costs incurred.

The regulator has attempted to balance these competing pressures through a consultation process, but the final rules, expected after markets close, could still face legal challenges, potentially delaying the rollout of compensation payments.

The outcome of the FCA’s decision is likely to have far-reaching implications for the structure of the UK car finance market.

For lenders, the immediate focus will be managing the financial hit and processing claims efficiently. For regulators, the challenge will be restoring trust while ensuring that compensation is proportionate and enforceable.

For consumers, the scheme represents a potential opportunity for redress on a large scale, although the timing and scope of payments remain uncertain.

As the sector awaits the final ruling, Ford’s increased provision highlights the scale of the issue, and signals that lenders are preparing for a significant financial and operational impact in the months ahead.

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Ford’s FCE Bank sets aside £155m ahead of car finance compensation ruling

UK retail sales slipped for the first time in three months in February, underlining the fragility of consumer spending even before the latest global energy shock began to take hold.

Data from the Office for National Statistics (ONS) showed sales volumes fell by 0.4 per cent during the month, reversing a 2 per cent increase in January. Although the decline was less severe than analysts had forecast, it signals a loss of momentum in the retail sector at a time when economic conditions were already tightening.

The slowdown came against a backdrop of subdued consumer demand, with supermarkets reporting weaker volumes and poor weather dampening sales of household goods and seasonal items.

Crucially, the figures were compiled before the escalation of the Middle East conflict involving Iran, a development that is expected to push inflation higher and place additional strain on household finances in the months ahead.

Economists warn that rising energy costs, already feeding through into fuel prices and utility bills, are likely to squeeze disposable incomes further, forcing consumers to cut back on discretionary spending.

Retailers are also bracing for increased costs across supply chains, with some, including major high street names, signalling that price rises may become unavoidable if disruption persists.

Despite the monthly fall, the broader trend over the past quarter remains slightly more positive. Sales volumes rose by 0.7 per cent in the three months to February compared with the previous period, supported by stronger online activity and niche categories such as art and collectibles.

However, annual growth slowed to 2.5 per cent, down from 4.5 per cent recorded in January, indicating that the pace of recovery is weakening.

Performance across sectors has been uneven. While categories such as video games, wine and sports supplements have performed relatively well, clothing retailers have struggled, reflecting both seasonal factors and changing consumer priorities.

Analysts say the data highlights a shift in consumer behaviour, with households becoming more selective about their spending.

Rajeev Shaunak of MHA said the figures were “not as bad as feared” but pointed to the sector’s vulnerability to external shocks.

“Households are likely to remain cautious, prioritising essential spending and limiting discretionary purchases,” he said.

Melissa Minkow of CI&T added that shoppers are increasingly taking time to assess value before making purchases, weighing factors such as price, timing and necessity more carefully than in previous years.

Separate data suggests that consumer sentiment has already begun to deteriorate. The GfK consumer confidence index fell to -21 in March, its lowest level in nearly a year, with households expressing growing concern about the wider economic outlook.

Neil Bellamy of GfK said a “ripple of fear” is spreading among consumers as they assess the potential impact of the Middle East conflict on prices and living standards.

The decline in confidence is seen as a leading indicator of future spending patterns, raising concerns that retail demand could weaken further in the coming months.

Economists expect the retail sector to face increasing pressure as the year progresses. Matt Swannell of the EY Item Club said the conflict has already worsened the outlook, while Ashley Webb of Capital Economics suggested the drop in confidence could mark the start of a more pronounced slowdown in household spending.

With inflation expected to rise again and interest rate cuts now less certain, the risk of a “stagflationary” environment, where growth is weak but prices continue to rise, is becoming a central concern.

For retailers, the challenge is balancing rising costs with fragile demand. Passing on higher costs risks further suppressing sales, while absorbing them erodes already tight margins.

The February figures suggest that even before the latest global shocks, the UK retail sector was on shaky ground. With additional pressures now building, the months ahead are likely to test both consumer resilience and the adaptability of businesses across the high street.

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UK retail sales fall as shoppers tighten spending ahead of energy shock

UK businesses are entering the latest global energy shock in a significantly weaker financial position than during the 2022 Ukraine crisis, raising concerns that the current conflict in the Middle East could trigger a faster and more severe wave of corporate distress.

New data from the Weil European Distress Index shows that financial pressures on European companies had already moved into “distress territory” before the escalation of tensions involving Iran, leaving firms with far less capacity to absorb another energy-driven shock.

The index, compiled by law firm Weil, Gotshal & Manges, tracks the performance of more than 3,750 listed companies across Europe using indicators such as cashflow pressure, debt levels and returns on investment. It recorded a reading of 2.5 ahead of the current crisis, compared with -7 in February 2022, just before Russia’s invasion of Ukraine, indicating a marked deterioration in corporate resilience.

The latest crisis has been driven by disruption to global oil and gas supplies, particularly through the Strait of Hormuz, a key shipping route that carries around a fifth of the world’s energy exports. Escalating tensions, including attacks linked to Iranian-backed groups, have raised concerns about alternative routes such as the Red Sea also becoming unstable.

As a result, energy prices have surged sharply, with Brent crude climbing from around $60 at the start of the year to close to $115 a barrel. The spike is already feeding through into higher costs for businesses, from manufacturing and logistics to food production.

Andrew Wilkinson, a restructuring partner at Weil, warned that the pace of change is a key risk factor.

“If energy prices remain elevated and confidence continues to weaken, we could see stress build more quickly than in previous cycles,” he said.

Among major European economies, the UK is seen as especially vulnerable. The index ranks Britain as one of the most distressed markets in Europe, behind only Germany and France, but identifies it as the most exposed to rising borrowing costs.

The resurgence in inflation, driven largely by higher energy prices, is expected to limit the ability of the Bank of England to cut interest rates, with markets increasingly pricing in the possibility of further tightening.

Higher rates would increase the cost of servicing debt for businesses, many of which are already operating with reduced financial headroom after several years of economic disruption.

The UK’s economic backdrop adds to the concern. Recent data from the Office for National Statistics showed that growth stalled in January, highlighting the fragility of the recovery even before the latest energy shock.

At the same time, unemployment has risen to 5.2 per cent, its highest level since early 2021, further weighing on economic momentum and consumer demand.

The combination of weak growth, rising costs and tighter financial conditions creates a challenging environment for businesses, particularly those with high energy exposure or significant debt burdens.

The outlook is further clouded by global factors. The OECD has already warned that the UK is likely to suffer the largest growth hit among G20 economies as a result of the conflict, underlining the scale of the challenge.

Rising energy costs are also expected to squeeze household incomes, reducing consumer spending and adding another layer of pressure on businesses.

Unlike in 2022, when many companies entered the energy crisis with relatively strong balance sheets and access to cheap financing, today’s environment is characterised by higher debt levels and tighter credit conditions.

This leaves firms with fewer options to absorb shocks, increasing the risk of insolvencies and restructuring activity if conditions deteriorate further.

The latest data suggests that the current energy crisis could unfold more rapidly than previous episodes, with financial stress building at a quicker pace across the corporate sector.

For the UK, the combination of high energy dependence, rising interest rates and weak growth creates a particularly challenging mix.

As the conflict in the Middle East continues to evolve, businesses face a period of heightened uncertainty, one in which resilience will be tested and the margin for error is significantly reduced.

Read more:
UK firms enter new energy crisis weaker than in 2022, distress index warns

Formula 1 is constantly evolving, and this year’s engine developments are a perfect example of how innovation never slows down.

While most fans focus on lap times and driver rivalries, the real story often lies beneath the car’s bodywork. The latest changes to F1 power units are not just about speed—they’re about efficiency, sustainability, and technology that could eventually influence the cars you drive every day.

And if you’re someone who follows motorsport while entering win a car contests or browsing dream car giveaways, these advancements are especially exciting. Today’s race technology often becomes tomorrow’s road-going performance.

A Shift Toward Efficiency Over Raw Power

In previous eras, F1 engines were all about maximizing horsepower. This year, however, the focus has shifted even more toward energy efficiency and hybrid performance. Modern F1 power units already combine a turbocharged internal combustion engine with sophisticated electric systems, but teams are now extracting more usable energy from every drop of fuel.

The result? Cars that are just as fast—if not faster—while consuming less fuel. This mirrors what’s happening in consumer vehicles, where hybrid and electric technology is becoming the norm. For fans entering dream car giveaways, this means the supercars and luxury vehicles up for grabs are increasingly influenced by the same efficiency breakthroughs seen on the track.

Improved Energy Recovery Systems

One of the biggest differences this season is how effectively cars recover and deploy energy. The Energy Recovery System (ERS) has been refined to capture more energy under braking and reuse it more strategically during acceleration.

Drivers now have smoother power delivery and better control, especially when exiting corners. This not only improves lap times but also reduces mechanical stress on the engine components.

For everyday drivers, this technology is already trickling down into regenerative braking systems in hybrid and electric vehicles. So if you’re hoping to win a car through a competition, chances are it may feature similar tech designed for efficiency and performance.

More Sustainable Fuels

Sustainability is a major theme in F1 this year. Teams are using advanced fuel blends that significantly reduce carbon emissions without sacrificing performance. These fuels are engineered to be compatible with future road cars, making F1 a testing ground for greener mobility.

This has a direct impact on the types of vehicles featured in dream car giveaways. Many promotions now include hybrid hypercars or fully electric luxury models, reflecting the same eco-conscious shift happening in motorsport.

Enhanced Reliability and Cost Control

Another key change is the emphasis on engine durability. Regulations now limit how many components teams can use over a season, pushing engineers to build more reliable systems.

This focus on longevity benefits consumers too. High-performance engines that last longer and require less maintenance are becoming more common in road cars. So when you enter a win a car contest, you’re not just dreaming about speed—you’re also looking at vehicles built with endurance in mind.

Smarter Engine Management Software

Beyond hardware, software is playing a bigger role than ever. Teams are using advanced algorithms to manage energy deployment, fuel usage, and engine temperatures in real time.

This level of intelligence is quickly making its way into production vehicles. Features like adaptive driving modes, predictive energy management, and AI-assisted performance tuning are becoming standard in premium cars often featured in dream car giveaways.

Why It Matters for Fans

F1 isn’t just about racing—it’s a glimpse into the future of automotive technology. The innovations introduced this year will shape the cars people drive in the coming years.

For fans who love the idea of winning their dream vehicle, this connection is especially exciting. The same breakthroughs that power F1 cars today could soon be sitting in your driveway if you win a car through one of the many competitions available.

Read more:
How F1 Car Engines Are Different This Year — And Why It Matters for Fans Dreaming to Win a Car

Where do you start when choosing new flooring?

When shopping for new flooring a good place to start is to decide which type of flooring you want in each room. Carpet for the bedrooms? Carpet, LVT, Laminate or wood in the hallways? LVT or stone in the kitchen and bathrooms? It’s your home so you can choose whichever flooring you want for each room!

With that being said, you do need to make sure the flooring is suitable for each room. This largely comes down to making sure the flooring for bathrooms and toilets are not going to be easily damaged by moisture. Plus most people prefer soft carpet in their bedrooms.

You then need to decide how much you want to spend and then start shopping for products within your budget.

Which flooring is popular right now?

The most popular interior flooring right now is LVT flooring. There are numerous features of LVT that make it attractive to so many. It’s waterproof, it’s easy to install, it’s not hugely reactive to temperature and it’s available in wide varieties.

Keeping in mind all of the above advantages, all of these benefits are available at a lower cost than natural floor types such as real wood or stone. The click LVT versions are designed to be suitable for DIY home projects by people with little to no experience in flooring installs.

The glue down LVT versions are also simple to install but they do require adhesive, which makes the installation more involved. This version is better suited to professional installers and also commercial environments such as schools and offices.

Is LVT really better than Laminate?

LVT and Laminate flooring are very similar, the main difference between them is LVT flooring is fully waterproof and laminate is not. Laminate is a little cheaper and can be less brittle during the installation process. Laminate is also extremely hard wearing, but can easily become ruined if it gets wet.

This provides peace of mind knowing that you could submerge LVT in water and it be totally fine. For a little extra money the majority of people would rather have the peace of mind.

There are those however that choose to save money by only having LVT in bathrooms and toilets, and have laminate for the larger living room, hallways and kitchen areas. It does make sense if you want to keep costs down to use the less expensive option for the large areas and the more expensive option for the smaller areas. Online flooring supplies shops usually have lower prices than high street shops so it’s worth shopping around.

Which is better, stone or LVT flooring?

LVT and stone flooring serve a similar purpose, they are both hard wearing and waterproof. However considering more people in recent years have purchased LVT flooring than stone, the numbers indicate that LVT must be better.

LVT is easier to install, it’s warmer to the touch, it’s slightly softer and it’s quieter to walk on. A large percentage of DIY installers are capable of installing click LVT flooring, whereas a much smaller percentage are capable of installing stone flooring.

Like most things in life it ultimately comes down to personal preference. Good quality stone floors do look fantastic and it’s easy to understand why stone floors are still popular.

Is real wood flooring still a good idea?

Real wood flooring is still highly popular so lots of people clearly think it’s still a good idea. The natural warm luxury that real wood flooring provides is unique and cannot be matched by any other flooring material.

Solid wood flooring has been known to last over 100 years, which is an incredibly long period of time. Stone flooring can last this long too, however stone is noticeably harder and colder than wood.

Engineered wood flooring with a thick wear layer can easily last more than 30 years. It doesn’t tend to last as long as solid wood because it has a thinner wear layer which can’t be sanded down as many times as solid wood.

Is carpet suitable for bathrooms?

Carpet if often used in bathrooms because it’s soft for bare feet and also non slippery. Whilst carpet is fine to get a bit wet in bathrooms and showers, the main reason to not use carpet in these areas is hygiene.

Especially rooms where there are toilets, the most hygienic flooring option is something that can be easily cleaned with disinfectant. The nature of carpet with its soft fibers can make it difficult to get as clean as a material such as LVT.

If you do really want carpet in bathrooms and toilets it’s best to change the carpet more regularly to be as hygienic as possible.

Read more:
Which Interior Flooring is Best?

Dyson has reported a £440 million drop in annual sales after being hit by US trade tariffs, although the group managed to increase profits through cost-cutting measures and operational efficiencies.

The company said revenues fell from £6.57 billion to £6.13 billion in 2025, marking a second consecutive year of decline following more than two decades of uninterrupted growth. The downturn was attributed to a combination of weaker consumer confidence in key markets, currency fluctuations and the impact of tariffs introduced under Donald Trump.

The US levies targeted imports from countries including Malaysia and the Philippines, where Dyson manufactures a significant proportion of its products. Tariffs initially reached as high as 24 per cent before being reduced, but still had a material impact on the company’s ability to compete on price in one of its most important markets.

Dyson responded by increasing prices in the US, citing broader global economic pressures, which in turn contributed to softer demand.

Chief executive Hanno Kirner described the tariffs as “particularly damaging”, noting that they had disrupted sales momentum at a time when consumer sentiment was already fragile across major economies including the US, Germany and China.

Despite the drop in sales, Dyson’s profitability improved significantly. Operating profits rose from £520 million to £600 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased from £940 million to £1.1 billion.

The improvement was largely driven by a programme of cost reductions, including job cuts implemented in 2024, when the company reduced its UK workforce by around 1,000 roles.

The results underline Dyson’s ability to protect margins even in challenging trading conditions, reflecting a disciplined approach to cost management and pricing.

The company maintained a strong focus on product development, investing £400 million in research and development and launching a record number of new products during the year.

James Dyson said the business remains committed to innovation as a key differentiator in increasingly competitive markets.

Dyson has expanded beyond its core vacuum cleaner business into categories such as haircare, air purification and robotics, where it is competing with both established brands and lower-cost entrants.

The company is also integrating artificial intelligence into its product range, including new robotic cleaning systems capable of identifying and removing stains, as it seeks to maintain a technological edge.

Now headquartered in Singapore, Dyson continues to operate in more than 80 markets worldwide, with growth in the UK partially offsetting declines elsewhere.

Kirner said the company plans to broaden its product offering further, introducing devices at a wider range of price points to reach more consumers.

The results highlight the challenges facing global manufacturers in an increasingly fragmented trade environment, where tariffs and geopolitical tensions can have a direct impact on supply chains and pricing.

For Dyson, the combination of strong profitability and continued investment suggests resilience, but the decline in sales underscores the pressure on consumer demand and the risks associated with global trade disputes.

As the company navigates these headwinds, its ability to balance innovation, cost control and market expansion will be critical in determining whether it can return to sustained revenue growth.

Read more:
Dyson hit by £440m sales drop as Trump tariffs bite

Octopus Investments is set to cut around a fifth of its workforce as it accelerates the adoption of artificial intelligence, in a move that reflects the rapid transformation underway across the asset management industry.

The City-based firm, which manages close to £15 billion in assets, is understood to be placing around 130 roles at risk of redundancy, primarily in back-office functions. With just over 600 employees, the restructuring represents a significant shift in how the business operates, as it seeks to streamline processes and modernise its infrastructure.

The cuts form part of a broader strategy to invest more heavily in technology, particularly AI, which is increasingly being used to automate routine tasks, improve efficiency and reduce operational costs across financial services.

The move underscores how quickly AI is reshaping the financial sector, particularly in areas such as administration, compliance and reporting, where repetitive processes are well suited to automation.

Asset managers have been among the fastest adopters of the technology, using AI tools to handle data processing, client onboarding and portfolio analytics. As a result, roles that were once labour-intensive are being reduced or redefined.

Octopus Investments said the decision was necessary to ensure the business remains competitive in a rapidly changing environment.

“We’ve made the difficult but necessary decision to ensure we are a simpler business that can respond to the pace of change,” a spokesperson said, adding that affected employees would be supported in finding new roles both within the wider group and externally.

The restructuring is not an isolated case. Across the City and globally, financial institutions are reassessing their workforce structures as AI capabilities expand.

HSBC, for example, is reportedly considering up to 20,000 job cuts over the coming years, partly driven by the efficiency gains offered by AI.

The shift reflects a broader recalibration of the industry, where firms are balancing cost pressures with the need to invest in new technologies that can enhance performance and client service.

Despite the job cuts, Octopus Investments remains financially robust. The firm reported a 10.3 per cent increase in net profit to £76.7 million in 2024, with revenues rising to £225.7 million.

It is one of the most profitable divisions within the wider Octopus Group, which also includes businesses such as Octopus Energy and Octopus Money.

The decision to reduce headcount is therefore not driven by financial distress, but by a strategic effort to adapt to technological change and maintain long-term competitiveness.

The firm has faced some criticism in recent years over the fees charged on certain investment products.

Its flagship venture capital trust, Octopus Titan VCT, agreed to reduce management fees by 17 per cent last year, while the company has also earned substantial fees from managing private investment vehicles, even in periods where those funds reported losses.

These issues have added to the pressure on the business to demonstrate efficiency and value for investors, a factor that may also be influencing its push towards automation.

For employees, the restructuring highlights the growing impact of AI on white-collar roles, particularly in financial services.

While front-office and client-facing positions are less immediately affected, back-office functions are increasingly being automated, reducing the need for large operational teams.

At the same time, new roles are emerging in areas such as data science, AI development and digital strategy, suggesting a shift in the types of skills required across the industry.

As AI continues to evolve, asset managers are likely to face further pressure to adapt their business models, balancing efficiency gains with the need to retain expertise and maintain client trust.

For Octopus Investments, the current restructuring represents a significant step in that transition, one that reflects both the opportunities and challenges posed by technological change.

Across the City, similar moves are expected to follow, as firms seek to position themselves for a future where automation plays an increasingly central role in financial decision-making and operations.

Read more:
Octopus Investments to cut 20% of staff as AI reshapes asset management

Next has unveiled a major expansion of its UK logistics network, committing more than £300 million to new warehouse infrastructure in a move it says could deliver a £2.5 billion boost to the wider economy.

The FTSE 100 group has secured planning permission for a new 1.2 million square foot distribution centre at its Elmsall complex in West Yorkshire, with construction expected to begin in 2028 and the facility set to become fully operational early in the next decade.

The investment marks a significant step in Next’s strategy to scale its domestic operations and support continued growth in online sales, which have outpaced expectations in recent years.

The retailer plans to spend £307 million on logistics over the next three years, as it responds to a sustained surge in digital demand. Web sales have grown by 28 per cent over the past two years, far exceeding the company’s earlier forecast of 10 per cent.

The expansion is designed to increase capacity, improve efficiency and support faster delivery times, positioning Next to compete more effectively in an increasingly digital retail environment.

While UK sales grew by a comparatively modest 7 per cent last year, international sales surged by 35 per cent, highlighting the importance of strengthening domestic infrastructure to support long-term growth.

The announcement comes alongside robust financial results, with pre-tax profits rising 15 per cent to £1.2 billion for the year to January 2026.

Investors responded positively, with Next’s share price rising by as much as 6 per cent following the update, reflecting confidence in both the company’s performance and its forward investment strategy.

Alongside physical infrastructure, Next is also increasing its use of artificial intelligence across key areas of the business, including customer service, product development and software engineering.

Chief executive Simon Wolfson said the company sees AI as a tool to enhance productivity rather than replace workers.

“AI will change people’s jobs rather than replace them, making them much more effective and removing tasks they enjoy least,” he said.

The retailer is not yet deploying AI within its warehouse operations, but Wolfson indicated that the technology could play a significant role in future logistics planning, particularly in demand forecasting and inventory optimisation.

“AI is perfectly placed to help support those decisions,” he said, noting its ability to analyse large datasets and model different scenarios.

The investment comes at a time when retailers are facing rising cost pressures, including higher energy prices linked to global geopolitical tensions.

However, Wolfson dismissed the idea that businesses should seek government bailouts, arguing that public finances are already under strain.

“We’ve got to recognise the government hasn’t got a lot of money spare,” he said. “Asking for support at a time like this is problematic.”

Next estimates that its logistics expansion will contribute £2.5 billion to the UK economy, through a combination of direct investment, job creation and improved supply chain efficiency.

The development is also expected to strengthen the UK’s retail infrastructure at a time when e-commerce continues to reshape consumer behaviour and industry dynamics.

The company’s strategy reflects a broader trend among major retailers, who are investing heavily in logistics and technology to adapt to a rapidly evolving market.

For Next, the combination of strong financial performance, expanding digital demand and targeted investment in infrastructure provides a foundation for continued growth.

As the retail sector navigates cost pressures and shifting consumer habits, the success of such investments will be critical in determining which players can maintain their competitive edge in the years ahead.

Read more:
Next to invest £300m in UK logistics as new warehouse set to deliver £2.5bn boost

UK drivers are bracing for a sharp rise in fuel costs, with petrol prices expected to exceed £1.50 per litre for the first time in nearly two years as the fallout from the Middle East conflict continues to ripple through energy markets.

According to RAC, the average price of petrol has already climbed to 149.82p per litre and is likely to break through the 150p threshold imminently. Diesel prices have risen even more steeply, reaching an average of 176.66p per litre, an increase of more than 34p since strikes on Iran began.

The surge marks the highest diesel prices since the energy crisis triggered by Russia’s invasion of Ukraine in late 2022, underscoring the sensitivity of fuel markets to geopolitical shocks.

The primary driver of the increase is the sharp rise in global oil prices. Brent crude is currently trading at around $107 per barrel, having surged from roughly $70 a month ago and briefly approaching $120 earlier in June.

Simon Williams of the RAC said wholesale fuel data suggests further increases are likely in the short term, with petrol potentially reaching 152p per litre and diesel climbing towards 185p.

“While soaring costs at the pumps are putting a strain on drivers, as long as oil remains around $100, prices should begin to stabilise,” he said, though he cautioned that further volatility remains possible depending on developments in the conflict.

Fuel prices continue to vary significantly across the UK, with drivers in rural areas and at motorway service stations often paying the highest rates.

Petrol prices at motorway forecourts have already exceeded 171p per litre, while some locations are charging more than 190p for diesel, with a handful exceeding 200p. By contrast, drivers in certain parts of Lancashire are paying closer to 143p for petrol, highlighting a growing regional disparity.

The rise in fuel costs is expected to feed through into broader inflation, affecting transport costs, supply chains and the price of goods and services.

For households, higher petrol and diesel prices are an immediate hit to disposable income, particularly for those reliant on cars for commuting or living in areas with limited public transport.

Businesses, especially those in logistics and transport, are also facing increased operating costs, which may ultimately be passed on to consumers.

While drivers face rising costs, the government is set to benefit from increased tax receipts. Fuel prices in the UK are subject to 20% VAT, which is applied on top of fuel duty, effectively creating a “tax on a tax”.

The RAC Foundation estimates that UK motorists consumed nearly 47 billion litres of fuel last year. Based on pre-conflict prices, this would have generated around £13 billion in VAT revenue.

With petrol and diesel prices rising sharply, that figure is now expected to increase to approximately £15.5 billion, delivering an estimated £2.5 billion windfall to the Treasury.

The government has accused fuel retailers of profiteering from the price surge, although forecourt operators have rejected the claims, arguing that higher wholesale costs are being passed through to consumers.

The debate highlights ongoing tensions over fuel pricing transparency and the distribution of costs across the supply chain.

Much will depend on the trajectory of oil prices in the coming weeks. If geopolitical tensions ease and supply stabilises, prices could plateau or begin to fall. However, a prolonged disruption to global energy markets could push costs higher still.

For now, drivers face a renewed period of volatility at the pumps, a reminder of how quickly global events can translate into everyday economic pressures.

Read more:
Petrol set to top £1.50 a litre as Iran war drives fuel price surge