BUSINESS LIVE: Lloyds ups dividend; ITV lifted by Love Island; Unilever sales disappoint

The end of electric vehicle car tax exemptions from next year could kill off demand for greener cars in Britain, a new report is warning.

From April 2025, EV owners will be forced to pay Vehicle Excise Duty (VED) – or car tax – for the first time under new rules introduced by the former Tory Government.

(PA) – Revolut has secured a UK banking licence, marking the end of the fintech giant’s three-year wait for approval to operate as a bank in its home market.

A licence means the company will be able to hold customer deposits, and offer lending products like credit cards, personal loans, or mortgages.

The licence comes with restrictions, however, meaning it could be another year before it is able to launch new products in the market.

London-based Revolut has more than nine million UK customers and 45 million around the world, but it was still classified as an electronic money institution in the UK.

It first filed an application for a licence in the UK to the Prudential Regulation Authority in 2021.

The same year, it became the country’s most valuable start-up worth a record $33billion (£26billion).

A third of a million of homeowners have been pushed into poverty because of soaring interest rates, according to new research.

The Institute for Fiscal Studies (IFS) has said the number is likely to have risen by 320,000 between December 2021 – when the Bank of England started putting rates up – and December 2023.

The Royal Mint plans to stop producing coins from scratch at its facility in Wales from December with staff diverted to mining gold from laptop circuit boards, This is Money can reveal.

As the oldest company in the UK, the Royal Mint has been producing coins for more than 1,100 years – but an insider has told us that is set to come to an end.

Barclays and TSB have cut mortgage rates once again as home loan prices continue to edge lower.

The two high street banks have made the announcements following Nationwide’s mortgage cuts yesterday that saw the lowest five-year fix deal dip below 4 per cent for the first time since February.

British American Tobacco has warned it is unlikely to achieve key ‘new categories’ revenue targets.

The Dunhill and Lucky Strike owner has invested billions in recent years developing e-cigarettes, heated tobacco brands and modern oral products amid growing demand for healthier alternatives to smoking.

AstraZeneca raised its annual sales and profit forecast on Thursday after beating analyst forecasts for second-quarter revenue amid strong demand for its cancer, rare disease and heart disease drugs.

Sales in AstraZeneca’s top business, oncology, grew 19 per cent at constant currency rates to $5.3billion (£4.1billion) and accounted for 41 per cent of the total, while its rare disease and heart and kidney disease arms also each raked in double-digit growth.

The end of electric vehicle car tax exemptions from next year could kill off demand for greener cars in Britain, a new report is warning.

From April 2025, EV owners will be forced to pay Vehicle Excise Duty (VED) – or car tax – for the first time under new rules introduced by the former Tory Government.

British Gas owner Centrica’s profits have fallen sharply from record highs during the energy crisis, as Britain transitions to a ‘more normalised’ gas and electricity market.

Centrica told investors on Thursday that underlying earnings in its British Gas household supply arm slumped to £159million in the six months to 30 June, down from £969million a year ago.

BT has reiterated its full-year targets after a ‘solid start’ to the year, thanks to progress on Openreach fibre broadband expansion and tight cost controls.

Customer growth helped also helped offset revenue weakness across the BT’s consumer and business divisions.

Cineworld is reportedly set to close around 25 UK cinemas and axe hundreds of jobs under a new plan to save the ailing screen chain.

The cinema operator will publish details of a restructuring plan tomorrow that will result in the site closures across the UK.

Lloyds Banking Group has upped its dividend despite reporting a significant fall in first-half profits, amid greater mortgage market competition.

The lender intends to pay investors a 1.06 pence per share interim dividend, which is equivalent to £662million and a 15 per cent jump on the previous year.

Britons have been falling out of love with cash over the last few years in favour of digital wallets and contactless payments.

Almost four in 10 UK adults were living largely cashless lives during 2023, a new report from UK Finance suggests.

Unilever has reported worse than expected underlying quarterly sales, but improving profit margins drove the consumer giant’s shares to the top of the FTSE 100 on Thursday morning.

The maker of Dove soap and Hellmann’s condiments reported a 3.9 per cent rise in second-quarter underlying sales, lower than the 4.2 per cent increase predicted.

ITV earnings soared 40 per cent to £213million in the first half, as revenues ticked 3 per cent higher to £1.9billion thanks to an advertising boost from Euro 2024.

The broadcaster enjoyed a 10 per cent jump in total advertising revenue in the six months ending June, ahead of expectations, driven by a 17 per cent increase in digital advertising revenue.

Funds and investment trusts allow savers to invest all around the world easily and at low cost but the wealth of choice can be baffling.

To help sort the wheat from the chaff, This is Money asks the professionals to come up with their best ideas for our 50 top funds round-up.

Shoppers have returned to Waitrose as troubled Asda continues to haemorrhage customers.

In a closely watched update on the state of supermarket sector, research firm NIQ said Waitrose sales were up 3.6pc in the 12 weeks to July 13 compared to the same period a year earlier.

Whisper it quietly, but the outlook for the UK economy is looking rosy.

Business confidence is up, with companies reporting the fastest manufacturing growth in two years and the strongest inflow of new orders since April last year.

Zoe Gillespie, senior investment manager at RBC Brewin Dolphin:

‘Although profits have fallen, Lloyds’ results are broadly in line with expectations. The bank’s net interest margin was always going to come under pressure from peaking interest rates and competition, so today’s reduction comes as little surprise.

‘The indications from European banks’ results were that the sector, as a whole, should be in relatively rude health and Lloyds is very much a continuation of that story.

‘All things being equal, the bank is on track to deliver its guidance for the year and longer term strategic aims – but the question remains what the next big move will be, following the sale of its Scottish Widows in-force bulk annuity portfolio.’

Unilever has reported worse than expected underlying quarterly sales after the consumer giant was unable to win back shoppers it had alienated in recent years with higher prices.

The maker of Dove soap and Hellmann’s condiments reported a 3.9 per cent rise in second-quarter underlying sales, missing an average analyst forecast of a 4.2 per cent increase in a company-compiled consensus.

Underlying price growth for the quarter was 1 per cent, behind market expectations, but underlying volume sales growth ran ahead of estimates at 2.9 per cent.

‘There is much to do, but we remain focused on transforming Unilever into a consistently higher performing business,’ CEO Hein Schumacher said in a statement.

Research analyst at Shore Cap Gary Greenwood:

‘Lloyds’ Q2 results show a 7 per cnet PBT beat on lower-than-expected impairment where guidance has also been upgraded.

‘That said, we think the market may be disappointed by the lack of a net interest margin beat and upgrade given higher for longer interest rates, while noting that TNAV per share disappointed due to an upward shift in long-term interest rates impacting negatively on the cash flow hedge reserve.

‘Following a strong run, the shares are now trading close to our 62p fair value.

‘Consensus earnings may nudge up a touch, but the market may be disappointed that there isn’t a bigger upgrade given the recent strong run in the shares.’

ITV enjoyed a 10 per cent jump in total advertising revenue in the first half, ahead of expectations, with Euro 2024 and Love Island proving particularly lucrative for the broadcaster.

Chief Executive Carolyn McCall said the performance of ITV’s digital advertising business continued to improve in the six months to 30 June and the group saw a 17 per cent increase in digital advertising revenue which contributed to the double digit increase in total advertising revenue.

‘This was driven by strong viewing across our broadcast channels and (streaming platform) ITVX, with a very successful Euros, a year-on year-increase in viewing of Love Island and a slate of great dramas,’ she said.

McCall said ITV was confident of delivering increased adjusted earnings before interest, tax and amortisation (EBITA) in the full year, following a year of peak net investment in 2023, and was on track to deliver its 2026 key performance targets.

Lloyds Banking Group has upped its interim dividend by 15 per cent after a 14 per cent slump in pre-tax profit to £3.3billion beat forecasts, as its lending margins held firm in the face of mounting competition.

Analysts had expected the lender to report statutory pre-tax profit of £3.2billion pounds for the six months to end-June.

Britain’s biggest lender of home loans reported a 2.94 per cent net interest margin for the first half of its financial year, a key profit metric that measures the gap between what the bank pays savers and charges borrowers, matching forecasts.

It pledged to pay an interim ordinary dividend of 1.06p per share, up 15 per cent on the prior year and equivalent to £662million.

Lloyds made no further provision against the regulatory probe into overcharging by motor finance lenders, for which the bank has already set aside £450million to cover possible redress.