Frasers, Hays, Whitbread + Fed holds interest rates – Daily Business

Frasers, the retail group whose brands include Sports Direct, Evans Cycles and Flannels, said it does not intend to make an offer to buy the cosmetics chain Revolution Beauty which put itself up for sale last month after being approached by an unnamed suitor.

Responding to Frasers’ decision to withdraw, Revolution Beauty said it continues to have constructive engagement with a number of other interested parties.

The company is also continuing its positive engagement with its shareholders, which includes a possible equity raise.

Hays

Recruitment firm Hays has projected a 57% drop in annual operating profit to around £45m, well short of market expecations of £56.4m.

Political and economic uncertainty have pulled down confidence and sentiment of employers and job seekers, it said.

Whitbread

Hotels and restaurants operator Whitbread said it has continued to make “good progress” on each of its key strategic priorities.

Total accommodation sales at Premier Inn for the first quarter were down 2% year-on-year and food and drink sales 16% lower.

Chief executive Dominic Paul said the company remains on course to deliver £60m of cost efficiencies and meet its target of £250m to £300m of property disposal proceeds this year.

“Our Five-Year Plan is on track and will deliver a step change in profits, margins and returns over the next few years,” he said.

Co-op

The Co-op has agreed a lending deal with six banks. Full story here.

Fed holds rates

US Federal Reserve chairman Jerome stood firm last night as the central bank resisted pressure from Donald Trump to slash interest rates.

Despite the president’s demands, the Fed refused to budge and warned of growing stagflation risks as it left rates at a range of 4.25-4.5%. It also cut its forecasts for economic growth and raised the inflation outlook.

However, it has reiterated expectations of two interest rate cuts in 2025.

The decision came ahead of the Bank of England’s decision today.