Retail and Energy Sectors Face Challenges Amidst Competing Sales and Soaring Gas Costs

Strategic Insights -

UK-based companies are dealing with the consequences of a challenging retail and energy landscape, as evidenced by the performance of Asda, owned by Wal-Mart, and energy supplier Powergen, owned by E.ON. While Asda struggles to regain sales momentum, Powergen's profits took a significant hit due to rising wholesale gas costs. Meanwhile, BT's new TV-via-broadband service is drawing attention with its new lineup of partners, including Basil Brush and Postman Pat. In the pharmaceutical sector, Shire's shares rose following a patent victory, while Countrywide's estate agency division reported a turnaround after a year of housing market volatility.

Key Takeaways:

  • Asda's total sales declined by the "mid-single digits" from May to July, while like-for-like sales fell by the "low-single digits".
  • Powergen's UK profits plummeted 26%, from £413m to £304m, in the first six months of the year due to rising wholesale gas costs.
  • Shire's shares rose sharply after winning a patent case against Barr Pharmaceuticals, preventing the launch of a copycat version of its Adderall drug until 2009.
  • Countrywide steered its estate agency division back into profit after the housing market stabilized, reversing last year's £6.4m operating loss.
  • BT's new TV-via-broadband service, BT Vision, has secured deals with four independent producers and distributors, widening the choice of video-on-demand for viewers.
  • Basil Brush and Postman Pat are set to star in BT Vision, along with rock band Oasis.
  • Betfair, the owner of The Sportsman, is on the verge of securing new funding, saving the majority of the paper's 100-strong team and securing the future of the publication.

Statistics:

  • Powergen's profits decline constituted a 26% reduction from £413m to £304m over the first six months of the year.
  • Countrywide's estate agency division reported a profit of £19m in the six months to June 30, reversing last year's £6.4m operating loss.
  • Asda's total sales figure for the period from May to July fell by the "mid-single digits", while like-for-like sales declined by the "low-single digits".
  • BT Vision has secured deals with four independent producers and distributors.
  • Shire's shares rose substantially following the patent victory.

Sources:

  • "Asda owner Wal-Mart said footballer Wayne Rooney's fiancee Coleen McLoughlin will star in a new television advert"
  • "The US firm said total sales at Asda were in the "mid-single digits" from May to July while like-for-like sales were in the "low-single digits"."
  • "Powergen profits plummet 26% THE German owner of energy supplier Powergen said profits at its UK arm fell 26% despite increasing gas bills by a quarter in March."
  • "EON said UK profits plunged from pounds 413m to pounds 304m in the first six months of the year as it struggled to overcome the soaring cost of wholesale gas."
  • "Basil joins BT's broadband stars CHILDREN'S TV favourites Basil Brush and Postman Pat, as well as rock band Oasis, have been unveiled as some of the new signings to BT's planned TV-via-broadband service"
  • "Shares in pharmaceuticals group Shire rose sharply after it won a patent case preventing the launch of a copycat version of a key drug in its portfolio."
  • "Barr Pharmaceuticals will not market an extended-release version of Shire's hyperactivity drug Adderall until 2009."