Month: August 2024

Revolut employees are poised to share in a £390 million windfall as the financial technology company conducts a share sale that values the business at £35 billion.
This significant transaction underscores Revolut’s status as a leading player in the UK’s fintech sector, increasing its valuation from £26 billion during its last fundraising round three years ago.
The sale offers employees, who have been with the London-based company for at least a year, the chance to realise gains from the company’s swift growth. With more than 10,000 employees globally, including 1,300 in the UK, it remains unclear how many are participating in the sale, or if co-founders Nik Storonsky, CEO, and Vlad Yatsenko, CTO, are among those selling shares. Notably, new backers Coatue and D1 Capital Partners, alongside existing investor Tiger Global, are involved in this latest funding round.
Nik Storonsky expressed his enthusiasm, stating, “We’re delighted to provide our employees the opportunity to benefit from the company’s collective success.”
Revolut’s increased valuation is particularly noteworthy given the challenging environment in the broader fintech sector, where rising interest rates have pressured valuations. The company’s success contrasts sharply with competitors like Klarna, whose valuation plummeted from $45.6 billion in 2021 to $6.7 billion just a year later.
Founded in 2015 as a foreign exchange and money transfer service, Revolut has rapidly expanded into a comprehensive financial services provider, offering products ranging from share trading to savings accounts. With over 45 million customers worldwide, Revolut reported pre-tax profits of £437.8 million last year on revenues of £1.8 billion.
Revolut is set for further growth, having secured a UK banking licence last month after a three-year wait. This new licence will enable the company to lend in its home market and challenge established high street banks, while also supporting its international expansion plans.
Although Revolut is expected to pursue a stock market flotation, it is reportedly considering New York over London for its listing. This potential decision could be a setback for the City, with government officials reportedly planning to persuade Revolut to list in London.
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Revolut employees to benefit from £390m windfall as fintech giant’s valuation hits £35bn

ASDA is on the brink of losing its position as the UK’s third-largest grocer, with Aldi set to overtake it by 2028, according to analysis by GlobalData, a leading data and analytics company.
The forecast comes as ASDA grapples with a range of challenges, including leadership turmoil, labour disputes, and a shrinking market share in an increasingly competitive retail environment.
The issues at ASDA stem in part from its past ownership by Walmart, which sold the grocer in 2009. Since then, ASDA has struggled to disentangle itself from Walmart’s legacy, including a costly £800 million IT system separation that has been ongoing since 2021.
Eleanor Simpson-Gould, Senior Retail Analyst at GlobalData, highlighted the critical need for ASDA to redefine its value proposition to distinguish itself from discount competitors like Aldi. “ASDA must redefine itself with a clear differentiation from discounters to secure its position in the UK food & grocery market,” Simpson-Gould said. “The grocer must focus on its online capabilities this year to reestablish itself as a dominant player in the market and set itself apart from Aldi. Without immediate action, it risks dropping out of the coveted ‘big three’ position even sooner.”
Internal tensions within ASDA have been exacerbated by disappointing sales performance, leading to public criticism of chairman Lord Rose and calls for majority shareholder Mohsin Issa to step back from managing the business. These leadership disputes, coupled with strained employee morale and recent strikes, have further complicated ASDA’s path forward.
In response to the mounting pressures, ASDA has implemented emergency measures, including a £30 million investment to ensure adequate staffing at checkouts during weekends, better replenishment of stores during the day, and improvements in in-store cleanliness. However, these efforts have been perceived by some as insufficient to truly compete with discount giants like Aldi and Lidl.
Simpson-Gould emphasised that ASDA needs to provide a more compelling reason for shoppers to choose its stores over competitors. “For ASDA to truly resonate with consumers, it must provide a compelling reason for shoppers to spend money,” she noted. “An intensified focus on price and expanding its core range of grocery products will be crucial.”
As Aldi continues to gain ground, ASDA’s ability to adapt and innovate will be key to maintaining its standing in the UK’s fiercely competitive grocery market.
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Aldi poised to overtake ASDA as UK’s third largest grocer within five years

Angela Rayner has hinted that some elements of her highly anticipated overhaul of workers’ rights may be delayed, in a setback for union leaders.
In a significant meeting held at the Cabinet Office on Whitehall, the Deputy Prime Minister informed union representatives and business lobbyists that “not everything” initially proposed will be included in the forthcoming Employment Bill.
The government remains on track to enhance workers’ rights by 12 October, fulfilling its promise to deliver within the first 100 days of taking office. However, uncertainty lingers over which aspects will be legislated in the coming months.
The ambitious set of proposals includes protections against unfair dismissal from day one, the abolition of zero-hour contracts, a ban on “fire and rehire” tactics, and an increase in the minimum wage.
A Labour insider remarked, “The Bill is just one piece of the puzzle, and the Deputy Prime Minister was clear that we need to get this right—some of the policies are quite complex.”
It has been suggested that the reforms could roll out in as many as four phases, as civil servants navigate through what has been described as the most extensive transformation of workers’ rights in a generation.
A source close to Ms Rayner confirmed that she is committed to ensuring the reforms are both effective and workable, acknowledging that “with only 100 days until the Employment Bill is introduced, not everything can be included.”
Paul Nowak, General Secretary of the Trades Union Congress (TUC), who was present at the meeting, confirmed that ministers reiterated their plan to consult businesses and introduce the Employment Bill within the 100-day timeframe. He dismissed concerns that the agenda is being watered down, stating, “Some would prefer this agenda just went away. It’s not going to go away—that was made very clear today.”
Another participant at the meeting suggested that “more knotty issues could be delayed” due to concerns about the economic impact, with much of the legislation still in “draft mode.” They highlighted the significant complexity involved in certain areas, such as employment status, which requires extensive work.
Labour has assured anxious business leaders that the more controversial changes will undergo consultation before becoming law. However, these commitments do not preclude their inclusion in the Bill.
Ms Rayner commented that “this first-of-its-kind meeting has kicked off a new era of partnership that will benefit everyone across the country striving to build a better life.”
Justin Madders, the Employment Rights Minister, added, “We are moving quickly on the Bill, it will be delivered in the first 100 days, and it’s fantastic to come together to share insights that will help us ensure it achieves what we intend.”
A government spokesperson declined to specify which measures will be included in the Bill but confirmed that it would deliver on policies requiring primary legislation.
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Rayner signals potential delays to key employment reforms

As many as 74,000 prosecutions for alleged rail fare evasion in England and Wales are set to be quashed following a landmark ruling that found the legal process used by UK train companies was improper.
The UK’s chief magistrate, Judge Paul Goldspring, ruled on Thursday that the single justice procedure (SJP), which allows magistrates’ hearings to be conducted behind closed doors, should never have been applied to these cases.
The ruling came after six test cases were declared void, prompting a review of all similar prosecutions. Authorities, including the Department for Transport (DfT) and various rail operators, must now compile a list of those affected by the end of September, with the intention of contacting them to resolve the cases.
The SJP, typically used for minor offences such as non-payment of TV licences, was inappropriately used by train companies to fast-track fare evasion cases. This procedure, introduced under the Criminal Justice and Courts Act 2015, bypasses public hearings and has been criticised for lacking transparency and fairness.
In response to the ruling, Northern Trains and Greater Anglia, both involved in the improper prosecutions, issued apologies. Northern Trains welcomed the judgment, emphasising their commitment to treating all passengers fairly.
Christian Waters, a passenger who faced a similar legal battle over a £3.50 fare, expressed satisfaction with the ruling, describing it as “complete vindication.” His case, like thousands of others, highlighted the flaws in the SJP process.
The process of refunding fines and quashing convictions is expected to take months, as courts and train companies work to identify and contact those affected. Despite the ruling, legal experts have stressed that this does not give people a free pass to evade train fares, as train companies can still prosecute fare evasion through other legal channels.
The ruling has prompted calls for reform of the SJP, with the Magistrates’ Association acknowledging the need for improvements to protect vulnerable individuals from potential harm caused by the current system.
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Thousands of rail fare prosecutions to be overturned following landmark ruling on legal process

Disney has come under fire for arguing that a widower whose wife tragically died after suffering a severe allergic reaction at a Walt Disney World restaurant cannot pursue legal action against the company because he had previously signed up for a free trial of Disney’s streaming service, Disney+.
Kanokporn Tangsuan, a 42-year-old medical doctor, died after consuming food at Raglan Road Irish Pub and Restaurant in Disney Springs, Florida, despite her family’s repeated assurances from their server that the meal would be allergen-free. Following her death in October last year, her husband, Jeffrey Piccolo, filed a wrongful death lawsuit against Walt Disney Parks and Resorts, accusing the company of negligence in failing to properly train staff on handling food allergies.
However, Disney has sought to dismiss the case, citing the arbitration clause within the Disney+ Subscriber Agreement, which Piccolo agreed to when he signed up for the service in November 2019. The company claims that this clause applies to “all disputes,” including those involving its affiliates, which include Walt Disney Parks and Resorts.
Piccolo’s legal team has slammed Disney’s defence as “preposterous” and “surreal,” arguing that agreeing to a streaming service’s terms should not waive his right to a jury trial in a wrongful death case. The case has sparked a debate over the enforceability of arbitration clauses in consumer contracts, especially when applied to unrelated matters such as personal injury or wrongful death.
While Disney maintains that it is simply defending itself against an attempt to involve the company in a lawsuit related to a restaurant it does not directly own, the case raises broader questions about the reach of arbitration agreements and the rights of consumers. Legal experts have suggested that a judge may find it unreasonable to extend the arbitration clause from a streaming service contract to a wrongful death claim, particularly in a case involving such serious allegations.
The case continues to unfold as Piccolo seeks over $50,000 in damages for mental pain and suffering, funeral and medical expenses, and loss of income. Disney’s position has sparked widespread criticism and raised concerns about the ethical implications of using such contractual clauses to shield against legal liability in severe cases.
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Disney claims widower cannot sue over wife’s death at theme park restaurant due to Disney+ subscription agreement

Pret A Manger has been revealed as the high street coffee chain with the steepest price increases over the past five years, with the cost of their most popular drinks rising by an average of 51%.
According to research conducted by Stocklytics, Pret’s americano has seen the most significant hike, jumping by £1.41 since January 2019.
The study compared the prices of seven popular drinks across five major UK coffee chains—Pret A Manger, Costa Coffee, Caffe Nero, Starbucks, and Greggs—looking at the cost of a regular cup of tea, americano, cappuccino, flat white, latte, single espresso, and hot chocolate.
While Pret has notably reduced the price of its filter coffee to 99p, most of its menu has seen substantial increases, with drinks now pushing the £4 mark. Caffe Nero follows closely behind Pret in terms of price hikes, with an average increase of £0.94 per drink, representing a 39% rise. Costa Coffee is not far off, with an average increase of £0.91, also around 38%.
Surprisingly, Starbucks comes out as the second most affordable option for basic drinks, with an average price increase of 25% (£0.57) over the same period. This positions Starbucks as a more cost-effective choice than expected in comparison to its rivals.
Greggs, meanwhile, stands out as the most budget-friendly coffee spot on the high street. Despite some minor price increases on food items, including a 5p to 10p rise on its iconic sausage rolls, Greggs has only raised its coffee prices by 7% in the last five years, making it the cheapest place to grab a coffee to go.
The research also highlighted that hot chocolate remains the most expensive drink across all chains, with an average price of £3.38 as of July 2024. As the cost of coffee continues to climb, consumers might increasingly turn to Greggs for a more affordable caffeine fix.
A Pret spokesperson said: “This research is misleading as it fails to take into account the significant savings available to customers through our Club Pret subscription since 2020. The cost of the subscription works out cheaper than buying two lattes every week with customers saving over £60 a month on average, so subscribers are often paying significantly less than the menu price. The data also doesn’t include our Filter Coffee price, which costs just 99p.”
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Pret A Manger leads high street coffee price hikes with 51% increase over five years, Greggs remains most affordable

The second-hand ticket market for Taylor Swift’s highly anticipated Wembley concert has witnessed dramatic price drops, with some tickets falling by over 90% from their initial resale prices.
Fans who have held their nerve and waited until the last minute have found themselves in a prime position to secure cheaper tickets.
According to data tracked by HotUKDeals.com, ticket prices on resale platforms have seen sharp declines as the concert date approaches. For example, a ticket that was initially listed at an exorbitant £10,000—a staggering 10,500% increase from the original face value of £95—dropped to just under £1,000 with a few days to go. The price then fell further to £856 just one day before the event, representing a 90% reduction from the initial resale price.
Other tickets followed a similar pattern. Tickets initially priced at £1,368 dropped by 32% to £929 two days before the concert, and then to £798, a further 14% reduction, just one day out. Out of the four tickets tracked, only two remained available at the time of reporting.
Some tickets were sold before prices could drop further. One such ticket, originally listed at £1,740, was sold or removed from the market at £1,304, still a 25% reduction from the original listing but an 88% markup from the face value. Another ticket, listed at £2,924, sold for £1,856—a 36% reduction—yet remained 1,200% higher than its original sale price.
Vix Leyton, Consumer Money Expert at HotUKDeals.com, noted that despite the high demand and initial price inflation, last-minute buyers who stick to their budget are finding much better deals. “These gigs have become a cultural event, and while touts have tried to cash in with sky-high prices, our investigation shows the actual sale prices are significantly lower. It’s crucial for fans to hold their nerve, stick to their budget, and avoid getting caught up in the frenzy.”
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Taylor Swift ticket prices plummet by 90% in last-minute resale market, patience proves key

The once clear-cut boundary between non-executive directors and senior management is becoming increasingly blurred, with a significant number of business leaders indicating a lack of full trust in their executive teams to effectively manage operations.
According to an annual report by Heidrick & Struggles, the global headhunting firm, more than a fifth of directors surveyed, including those from FTSE 350 companies, expressed concerns about their executive teams’ ability to “get things done.”
The report, which surveyed over 3,000 CEOs and directors worldwide, highlights a growing trend of non-executive board members becoming more operationally involved. This shift is particularly pronounced in the UK, where nearly three-quarters of respondents acknowledged increased board involvement in day-to-day operations, with 22% reporting frequent involvement and 49% noting occasional participation.
This increased engagement is attributed to several factors, including a desire for board members to have a deeper understanding of company operations (cited by 43% of UK respondents) and the need to support CEOs who are overwhelmed by the demands of their role (21%). However, the most concerning finding is that 22% of respondents believe this involvement stems from a lack of trust in the executive team’s ability to manage operations effectively.
Kit Bingham, partner and head of UK board practice at Heidrick & Struggles, noted that the pressures on boards have intensified, driven by investor expectations, regulatory demands, and the complexities of modern business challenges such as artificial intelligence, cybersecurity, and environmental, social, and governance (ESG) issues. “The challenges and expectations on boards are ultimately greater than ever,” Bingham said.
Alice Breeden, a regional practice managing partner at Heidrick & Struggles, pointed out the resulting tensions within the boardroom. “Boards are potentially spending more time in operations than they should, just to reassure themselves that they know what’s going on and that the executives have got it,” she explained.
The degree of operational involvement by boards varies across countries and sectors, with the financial services industry reporting the least involvement globally. However, the trend is reshaping the role of boards across the business landscape.
Mark Cutifani, former CEO of Anglo American and current chairman of Vale Base Metals, who contributed to the report, observed that the role of the board is “changing quite significantly, far more significantly than we probably appreciate.” He emphasised that boards must take a more active role in various aspects of the business, as the complexities of today’s corporate environment demand more than what a CEO alone can manage. “You’ll need some of it from the board,” Cutifani concluded.
This shift in board dynamics underscores the evolving challenges faced by businesses today and the critical need for a collaborative approach to leadership and governance.
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Directors increasingly involved in operations as trust in executive teams wanes

Asda has experienced a notable decline in its grocery market share, just days after its chairman, Lord Rose of Monewden, publicly expressed his dissatisfaction with the supermarket’s performance.
According to recent data from Kantar, Asda’s sales fell by 6% in the 12 weeks leading up to 4 August, reducing its market share from 13.7% to 12.6%.
This downturn comes at a challenging time for the private equity-backed supermarket group, which has been losing ground to its major competitors, including Tesco, Sainsbury’s, and Morrisons. Lord Rose did not hide his disappointment, telling The Telegraph, “I’ve been in this industry for a long time and I am slightly embarrassed. I won’t deny that. I don’t like being second, third or fourth.”
Asda is majority-owned by TDR Capital, holding 67.5% of the company, while Mohsin Issa retains a 22.5% stake. His brother, Zuber Issa, sold his share to TDR earlier this year. In light of the recent challenges, Lord Rose has urged Mohsin Issa to step back from the day-to-day management of the chain, suggesting that the business now requires a different type of leadership. “He is a disrupter, an entrepreneur, he is an agitator,” Lord Rose said, acknowledging the significant changes under Issa’s leadership but implying that a new approach is necessary for the current market conditions.
In contrast, Tesco has continued to strengthen its position, with its market share rising from 27% to 27.6% in the same period. The supermarket has implemented an Aldi price-match scheme to retain customers amid the ongoing cost of living crisis, contributing to its steady growth in market share since August last year. Lidl has also gained ground, increasing its market share from 7.7% to 8.1%, while Aldi’s share slightly dipped from 10.2% to 10%.
Morrisons, despite a 1.4% increase in sales, saw its market share drop marginally from 8.7% to 8.6%, whereas Sainsbury’s sales growth of 5.2% boosted its market share from 14.8% to 15.3%.
This period of flux in the grocery sector highlights the pressures facing Asda as it navigates a competitive and changing market landscape, with leadership decisions likely to play a crucial role in its future trajectory.
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Asda’s grocery market share slips as Chairman Lord Rose voices concerns over performance