Money

Pharmacy advice slammed by Which?

Adrian Holliday — 2013-05-21T08:45:00+00:00

Stick to Boots, Superdrug and supermarkets if you want to trust your pharmacy. That's the abbreviated conclusion of a 122 mystery shop Which? investigation into pharma high street quality across the UK.

Independent operators fell down the performance table - and advice from some pharmacy assistants comes in for some over-the-counter criticism.

Investigation

"Independent pharmacies were worse than the leading chains and supermarkets," says Which? "Over half were unsatisfactory - the same as when we last investigated pharmacies in 2008."

The Consumers' Association used two other scenarios - one for diarrhoea and one for migraine. For the first, unsatisfactory advice given could have led to pharmacies missing a serious infection. For the second, it could also have led to medication being given, without checking for suitability.

Which? says counter assistants were significantly more likely to give poor advice than pharmacists. "Two thirds of the visits handled solely by them were rated unsatisfactory, compared with a quarter where the pharmacist either managed or was involved in the interaction."

Naming and shaming

In terms of naming and shaming, Boots, Superdrug and the supermarkets generally came out reasonably well. But in terms of unsatisfactory advice, Rowlands Pharmacy came out bottom of the table, with a 73% score compared to 17% from the supermarkets.

Surely consumers though have the right to trust any advice they receive from a pharmacy? The Royal Pharmaceutical Society and the General Pharmaceutical Council claim they recognise Which's concerns and are taking steps to tackle the issues.

In the interests of fairness, note Boots' score, though generally good, still saw a disappointing 38% of visits take an Unsatisfactory score. The Co-op also looks unspectacular, with just 8% of visits receiving Good scores, and 38% Unsatisfactory.

Full Which? scores below

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Who really owns our water companies?

lovemoney.com — 2013-05-21T08:15:00+00:00

Filed under: Utilities

As Severn Trent looks set to fall into foreign ownership, we look at just how many water suppliers are no longer in British hands.

Severn Trent has been approached about a takeover bid by a group of foreign companies. The deal could be worth a whopping £5 billion.

Severn Trent is one of the biggest water companies in the country and supplies 7.7 million people with drinking water across the Midlands and Wales.

The Severn Trent bid
The group involved with the bid include the Canadian investment group Borealis, which already owns assets in the UK, the Kuwait Investment Office and the Universities Superannuation Scheme.

A statement was issued confirming the proposed takeover, although acceptance of the £5 billion bid has not been confirmed.

It said: "This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming."

After this announcement shares in the company jumped more than 18% to a record high before falling back again.

More details will be announced on the 11th June when the offer will either be confirmed or extended.

Customers are unlikely to see a difference if the takeover does go ahead because prices are under the control of water regulator Ofwat.

Water firms urged to reduce leaks

UK water companies in foreign hands
Severn Trent is just one of several utilities companies now under foreign control. This is because utility companies have proved to be a strong investment, as they're a good way to receive a steady income.

After the UK water industry was privatised in 1989 several new companies were formed and many of these have now been sold off.

In 2006 Thames Water was bought by a consortium which included the Australian investment group Macquarie and a Chinese wealth fund.

Yorkshire Water, which now supplies 4.7 million people, was snapped up in 2007 by another consortium, this time made up of Citigroup, HSBC, and the Singaporean sovereign wealth fund GIC.

Northumbria Water was also bought in 2011 by the Hong Kong-based company Cheung Kong Infrastructure Holdings.

How to cut your water bills

Where your water company is based
The table below shows which water companies are owned by overseas investors. There are now 12 water companies, out of the 23 in the UK, which have foreign owners not including the proposed Severn Trent deal.

Water company	British or overseas ownership	Who owns it?
Affinity Water (formerly Veolia Water Central, Veolia Water East, Veolia Water Southeast)	Overseas	US-based Morgan Stanley and UK-based Infracapital (investment fund managed by M&G).
Anglian Water (includes Hartlepool Water)	Overseas	Osprey Acquisitions Limited - a consortium of several companies based in the UK, US and Canada
Bristol Water	Overseas	Split between Canada-based Capstone Infrastructure, Spain-based Grupo Agbar and Japan-based Itochu Corporation
Cambridge Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Cholderton and District Water	British	Independent water company
Dee Valley Water	British	Independent water company
Dwr Cymru Welsh Water	British	UK-based Glas Cymru
Essex and Suffolk Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Northern Ireland Water	British	Government-owned company
Northumbrian Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Portsmouth Water	British	UK-based South Downs Capital Ltd
Scottish Water	British	Government-owned company
Sembcorp Bournemouth Water (formerly Bournemouth and West Hampshire Water)	Overseas	Singapore-based Sembcorp
Severn Trent Water	British	Severn Trent Plc
South East Water	Overseas	Canada-based CDPQ and Australia-based Utilities Trust of Australia
South Staffs Water	Overseas	US-based KKR
South West Water	British	UK-based Pennon Group
Southern Water	British	UK-based Southern Water Capital Limited
Sutton and East Surrey Water	British	UK-based East Surrey Holdings Limited
Thames Water	Overseas	Australia-based Kemble Water Holdings Ltd, part of the Macquarie group
United Utilities	British	Independent water company
Wessex Water	Overseas	Malaysia-based YTL Corporation
Yorkshire Water	Overseas	Citigroup, HSBC, and Singapore-based GIC

See if you could save big money on your gas and electricity bills by switching

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Warning over Microsoft support scam

Sarah Coles — 2013-05-21T08:06:00+00:00

Filed under: Scams & Fraud

The experts are warning computer users of a scam doing the rounds - where users receive a telephone call out of the blue from someone claiming to be from Microsoft. They then use a variety of techniques, from infecting your computer with malware, to charging you a fortune for help you didn't want or need, or even just asking for your credit card details.

So what should you watch for?

The scams

These scams are not all new, but they have been highlighted by Which, after a number of subscribers contacted them to share their experiences.

In around a fifth of instances, the scammer on the other end of the phone will talk the user through the process of allowing the criminals to gain remote access to their computer. Once they have access, they can infect it with malware designed to steal internet banking and shopping passwords and account numbers.

In about a third of cases victims will be sold worthless subscriptions to support services, and around a fifth are asked directly for their credit card information - either over the phone or being directed to a fake website where the victim enters the details themselves.

Microsoft says that another common approach is to talk you into installing malware yourself - and then charging you to remove it.

It has released a list of the organisations that the scammers are claiming to work for, including Windows Helpdesk, Windows Service Center, Microsoft Tech Support, Microsoft Support, Windows Technical Department Support Group and Microsoft Research and Development Team (Microsoft R & D Team).

Protect yourself

Microsoft stresses that if you are approached by a cold caller, it's best to assume they are up to no good. Do not allow them access to your computer, and do not give them any details or sign up to anything.

They highlight that Microsoft would never call and ask you to pay anything - so if you are asked for payment, hang up immediately.

If scammers call offering a service that you think you need, hang up, and do a separate search for a reputable company offering these sorts of services. Don't be conned by a smooth-talking salesperson.

If you are a victim

Which? says that the average victim is 55 or over, and has lost £75 as a result of the scam.

If you are worried that you may have been a victim yourself, Miscosoft recommends a number of steps to protect yourself, including changing your computer password, the password on your main email account, and the password for any financial accounts, especially your bank and credit card.

You should also scan your computer with the Microsoft Safety Scanner to find out if you have malware installed on your computer, and install Microsoft Security Essentials (this is a free program. If someone calls you to install this product and then charge you for it, this is also a scam.)

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New-build garage not wide enough for cars

Sarah Coles — 2013-05-21T07:17:00+00:00

Filed under: House Prices

A couple who have moved into a brand new £200,000 house were shocked to discover that the garage will not take an average family car - not if you want to be able to get out.

So what has happened, and is this sort of thing unusual?

Garage too narrow

The Huddersfield Daily Examiner reported that Claire Walker (37) and Andy Birkhead (33) bought the £209,950 property together in Oxley Park, Huddersfield. It looked like the ideal family home for them and their son - a three-bedroom detached property, complete with garage. All went well while they moved in and used the garage to store boxes.

It was only when they emptied the boxes and tried to park in the garage that they discovered the horrible flaw. Walker's Volvo S40 was too wide to go into it, and although Birkhead's Fiesta ST could squeeze in, it left him trapped in his car because it was too narrow to open the door.

The couple is furious, and told the Daily Mail that when they contacted developer Persimmon, they were told that they should have measured the garage themselves.

A spokesman for Persimmon Homes, said in a statement: "The size of our garages are comparable with other housebuilders across the UK. The dimensions of each garage are governed by both the size of the house and the relevant planning regulations and are clearly laid out in the marketing brochure. We deeply regret that Miss Walker and Mr Birkhead are unhappy with the size of their garage. We continue to work with Miss Walker and Mr Birkhead to try and resolve the situation."

Common

This isn't the only move into a new-build that hasn't gone entirely to plan. There have been hundreds of tales over the years, from any number of different property firms.

There was the couple who's staircase started coming away from the wall in their south Glasgow property, the family in Sussex who had sewage pouring down the walls after drains were not correctly installed, and the woman in the Peak District whose daughter narrowly escaped falling roof tiles that hadn't been properly attached.

Which surveyed 200 owners of new-builds in 2011 and discovered that more than half had faced some sort of problem in the first five years in the property. A quarter faced problems with the boiler, while 16% had issues with water, gas or electricity and 12% had structural problems.

Your rights

Most new homes are covered for two years for snags - so if anything goes wrong the developer will fix it. After that - until the fifth year - the developer will cover major issues that affect the structure of your property. However, they will not cover you for issues such as the size of the garage or rooms.

Size is definitely a consideration. Research at the end of last year from the Royal Institute of British Architects found that new properties in the UK are 15% smaller than in Ireland, 53% smaller than Denmark and 80% smaller than in Germany - and the properties are shrinking all the time.

People they interviewed for the study revealed all sorts of issues. Among the strangest were the family forced to store the vacuum cleaner at a relative's house because there was no room in the property, and another who had been reduced to storing food in the car boot. Overall, a third of people were disappointed with the amount of living space.

If you are considering a new-build, it's essential not to make any assumptions about size. Even if you are walking round a show home, consider whether the double bed is in fact a 4ft bed, and whether the spare room looks so spacious because they haven't chosen to put a wardrobe in. It's these sorts of things that can catch us out, with no comeback after purchase.

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Bank eases mortgage hikes policy

Press Association — 2013-05-21T07:00:00+00:00

Filed under: Mortgages

The Bank of Ireland (BOI) has partially backtracked on a steep rise in mortgage rates for customers who thought their repayments were fixed for life.

It has written to 1,200 of the 13,500 homeowners facing sharp increases - despite taking out tracker deals linked to the historically-low Bank of England base rate - to tell them they will no longer be applied in their cases. The bank said the Financial Conduct Authority (FCA) was "supportive of our approach in excluding these customers".
Customers were told of the decision to raise their rates - which in some case would double, lifting payments by hundreds of pounds a month - earlier this year. Many had taken out loans with BOI subsidiary Bristol & West. The changes came into effect this month.

But consumer group Which? said it believed they were being treated unfairly, pointing out that some were sold a "lifetime tracker". It urged customers to complain and called on the FCA to ensure better communication from banks about clauses in mortgages.
On Tuesday, the bank announced that it had identified and written to two groups of customers "where we will not be applying the increase to their base rate tracker mortgage". These included 1,000 homeowners who were using flexible facilities on their mortgage account and "received a specific administrative letter linked to their transactions that might have caused some customers to believe the differential was for the term of their mortgage".

The second group of around 200 customers were those who had switched their mortgage to a base rate tracker. The bank said they received documentation saying rates could change but their mortgage conditions did not detail the circumstances under which this would happen.

Des Crowley, chief executive of Bank of Ireland UK, said: "We have said from the outset that we will review all customer complaints individually and that we are committed to treating customers fairly throughout the process. It is on this basis that we have removed these customers."

But the move still leaves more than 12,000 customers with a steep rate hike - having believed they would stay low because they were linked to the Bank of England rate, currently 0.5%. BOI has told them it was changing the "differential" it applies to the tracker rate.

A typical change has seen a buy-to-let mortgage holder previously on a rate of 2.25% - made up of the base rate plus 1.75% - rise to 4.99%, representing the Bank rate plus 4.49%. For residential customers, changes will be introduced in two stages. From this month, they will pay the Bank rate plus 2.49%. On October 1, it goes up to Bank rate plus 3.99% - currently 4.49%.

BOI blamed the rise on increased funding costs and the need for banks to maintain greater levels of capital. It has set up a phone line for anyone worried about the impact of the changes. It said customers were free to move to other providers and that no early repayment charges would apply. Most of those affected had buy-to-let loans.

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Royal Mail posts £440m profits

Press Association — 2013-05-21T06:37:00+00:00

Filed under: Investing

Royal Mail unveiled a big jump in profits to £440 million as it took another step towards a possible stock market flotation later this year.

The result for the year to March 31 is more than double the £152 million in 2012 - when there was one less trading week - as the state-owned firm benefits from the boom in online shopping and recent efforts to modernise the business.
Chief executive Moya Greene, who last year returned the core postal business to profitability after four successive years of losses, said it was a strong performance and that the transformation of Royal Mail was under way.

The core postal business, which delivers the six-days-a-week universal service to 29 million addresses, reported operating profits of £331 million and improved its margin from 0.5% to 3.9%. Parcel deliveries now account for almost half of the group's revenues of £9.3 billion in the last year.
The performance is expected to encourage the Government to cash in on the turnaround by pressing ahead with a privatisation this year, despite opposition from unions representing postal workers and managers.

Business Secretary Vince Cable insisted there was ''no alternative'' to privatising the Royal Mail and said the organisation still faces a ''fundamental threat'' from email that meant it must be reformed in order to survive.

However, unions have warned that services will go into decline if the business is sold off.

The preferred option is believed to involve the public buying shares alongside City investors, in an echo of the "Tell Sid" campaign that pioneered the public sale of shares in British Gas in the 1980s.

At least 10% of the shares have been earmarked for the workforce, although it is not known whether staff will get them for free.

The Communication Workers Union (CWU) will this week start balloting Royal Mail workers on whether to boycott the post of rival companies in a move which could lead to millions of items being left undelivered. Around 120,000 members of the CWU will vote from Wednesday, with the result due on June 19.

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How to deal with stress at work

Hannah Ricci — 2013-05-21T06:00:00+00:00

Filed under: Career

We all get stressed out at work sometimes, but what happens when short-term worry turns into prolonged anxiety that affects our health and professional performance?

We explore work-related stress and what to do if you are suffering from it.

The problem
Stress is a major issue in the UK workforce, with 428 000 reported cases in 2011/12, according to the latest Labour Force Survey (LFS). However, the true picture is thought to be much worse as many cases go undiagnosed. In fact, figures from PruHealth report that at least one in four British workers is displaying symptoms of the most common mental health problems such as stress and anxiety.

Work-related stress caused the UK to lose 10.4 million working days in 2011/12, according to the LFS, with nursing, social work, education, public administration and defence among the industries reporting the highest number of cases.

The causes
Stress at work develops when we are unable to cope with the demands of our job, when the job requirements outweigh our capabilities. It can often go unnoticed as it tends to be the result of a gradual build of many work pressures - which can be dealt with individually - but feel overwhelming when combined with other issues going on in our lives.

According to the LFS, the most common cause of work-related stress is workload (186,000 cases) - including tight deadlines; too much work, pressure or responsibility, followed by lack of managerial support (61,000 cases) and bullying (54,000 cases).

The symptoms
Stress affects people in different ways and there are a whole host of different telltale signs, from behavioural and emotional changes, to physical and mental indicators. Common symptoms are outlined on the Health and Safety Executive website, but you should generally look out for any changes in your attitude or behaviour triggered by a situation at work. Are you drinking more heavily after work, for example, or suffering from headaches or heart palpitations?

Worryingly, workplace violence and 'desk rage' is also on the rise, according to Pru Health, with employees reporting a rise in incidents such as seeing a colleague break down and cry; being rude to or swearing at a colleague, and taking frustration out on office equipment such as hitting computers, throwing something or slamming fists on the desk.

The prevention
Careful monitoring of your mood and behavior is key to prevent the onset of stress, as well as recognising when a workload feels unmanageable and you need to ask for help. Self acceptance and maintaining self-esteem are also important, explains Cat Williams, relationship councilor and author of Stay Calm and Content.

"We are all challenged at certain times. Stress and being 'out of our comfort zone' are normal and necessary parts of learning and living. The people who cope the best are those who don't resort to criticism of themselves or others. They also accept that there will be things they cannot do and they will not be perfect, so they learn to do what they can and accept what they cannot."

Don't let work take over your life and prevent you from doing things you enjoy, such as working out at the gym or meeting friends for dinner after work. A balance between work and play is key to job satisfaction and mental well-being .

The cure
If you recognise the symptoms of stress and feel that it is impacting your health, it is important to act quickly. Identify why you are feeling overwhelmed, for example, unrealistic deadlines or unachievable sales targets, and who can help you deal with the issues, such as your manager or human resources department.

Explain how you are feeling, why your limits are being tested and what solution you would like to see. Learning to say no is a key tool to dealing with stress. It teaches that have you have a choice not to overwork and will empower you to only take on the jobs that you can manage. Employee health should be a priority in all companies and if your problem is not dealt with sensitively, it may be time to move onto a new job.

Remember your GP can help too - pay a visit if your mental or physical health is suffering as a result of your job.

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Yahoo wants Flickr to be 'awesome'

Press Association — 2013-05-21T05:30:00+00:00

Filed under: Investing

Fresh on the heels of its 1.1 billion dollar acquisition of Tumblr, Yahoo said it is rebooting its languishing photo-sharing site Flickr with plans to make it "awesome" again.

Yahoo said at an event in New York City's Times Square on Monday that it is now offering users one terabyte of online storage for free.
One terabyte is 1,024 gigabytes - enough to store more than 500,000 images at a resolution common to most smartphones.

Yahoo has redesigned the Flickr website to emphasize photos rather than text or white space, as was the case previously. Photos are bigger and shared in full resolution rather than compressed into a lower quality.
Flickr also launched a new Android app to follow the December unveiling of a new iPhone app.

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Work Programme is failing, say MPs

Press Association — 2013-05-21T05:00:00+00:00

Filed under: News

The Government's flagship scheme for helping the unemployed find work appears to be failing to tackle the most difficult cases, according to a Commons committee.

MPs found the Work Programme got off to a "poor" start but said there had since been improvements in support for the "mainstream" jobless. Despite financial incentives being offered, however, to stop organisations focusing their efforts on the most straightforward unemployment cases, there is "growing evidence" that disadvantaged jobseekers are being "parked", the Work and Pensions Committee said.

It criticised the techniques of providers, who are paid according to their success in securing long-term work for clients, claiming they are playing an "ineffective numbers game" that involves deluging employers with poorly matched CVs and under-prepared candidates. MPs also said they were "dismayed" to learn Work Programme advisers had to deal with up to 180 jobseekers, arguing the caseload was too heavy to allow an effective service. Last year the Government faced calls to scrap the scheme after revealing only 3.5% of those taking part had found sustainable jobs.

MPs said none of the 18 major providers met their targets in the first year of the programme. As they are paid on a payment-by-results system, the Government has spent about £248 million less on the Work Programme than anticipated in 2012/13, according to the report.
Work and Pensions Committee chair Dame Anne Begg said: "The performance of the Work Programme in its first 14 months was poor. There are signs that it is now improving significantly for mainstream jobseekers. We hope the next job outcome statistics to be published in June will bear this out - we will be very concerned if they don't. However, the Work Programme has proved much less successful to date in addressing the problems faced by jobseekers who face more serious obstacles to finding a job - people with disabilities, homeless people, and those with a history of drug or alcohol abuse. It is clear that the differential pricing structure is not a panacea for tackling creaming and parking."

The committee found the welfare-to-work sector lacks effective regulation. The MPs said there was a "suspicion" larger organisations used smaller, specialist groups with experience of supporting jobseekers with the severest barriers as "bid candy" to make their applications more appealing, then failed to use them.

TUC general secretary Frances O'Grady said: "This report raises a number of very serious concerns about the Work Programme that cannot be swept under the carpet. Providers of job support have failed to achieve their minimum performance targets and are not doing enough to help disadvantaged job seekers."

Richard Hawkes, chief executive of the disability charity Scope, said: "The Work and Pensions Select Committee is right, the Work Programme is currently not working for disabled people. It is absurd that disabled people who face the biggest barriers to employment are receiving the least amount of support. No wonder so few disabled people are actually finding jobs through the Work Programme. Disabled people want to work but they face multiple barriers such as a lack of skills and experience, confidence and even negative attitudes from some employers. If the Government is serious about disabled people moving off benefits and into work it needs to ensure disabled people get the specialist, tailored and flexible support they need."

Shadow work and pensions secretary Liam Byrne said: "This report is fresh evidence that Iain Duncan Smith and David Cameron are failing the test they set themselves in opposition. Unemployment is rising in three-quarters of Britain's poorest estates and now we know why - the Work Programme is simply not working for them. It is surely time for this Government to listen to Labour's call for a new approach to getting Britain back to work, drawing together the best of Britain's councils, government, voluntary sector and private sector, as they do in other parts of the world. And we need a compulsory jobs guarantee to get anyone out of work for more than two years back into a job; a job people must take or risk losing their benefits."

A Department for Work and Pensions spokesman said: "It is still early days but according to industry figures already more than 207,000 people have been helped into a job through the Work Programme by the end of September 2012 and performance is clearly improving. The payment-by-results model goes further than any previous scheme to encourage providers to help all claimants, including the hardest to help. The key point is they earn the majority of their payment for helping someone into work and keeping them there. Almost half the providers are voluntary or community sector organisations and a third from the private sector. What they all have in common is that they are experts in helping long-term unemployed people back to work."

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Retailer announces fall in profits

Press Association — 2013-05-21T04:30:00+00:00

Filed under: Shopping & Deals

Marks & Spencer's annual profits have fallen to their lowest level in four years after clothing sales slumped.

Underlying pre-tax profits for 2012/13 were £665.2 million, a fall of 6% on a year earlier and well below City forecasts for £710 million at the beginning of the financial year
It is also a far-cry from the retailer's heyday in 2008 when it made more than £1 billion.

The results mean chief executive Marc Bolland remains under pressure to turn around the high street stalwart, particularly in the wake of an executive reshuffle and the launch of a new clothing range last week.
Like-for-like UK sales fell by 1% with general merchandise down 4.1% though food did better, improving by 1.7%. Overall group sales were up 1.3%, buoyed by international takings.

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Inflation set for temporary dip

Press Association — 2013-05-21T04:00:00+00:00

Filed under: News

Stubbornly high inflation is likely to heap more pressure on households on Tuesday despite lower prices at the petrol pumps tempering further price rises.

Consumer Prices Index (CPI) inflation is expected to peak above 3% in the summer after sticking at 2.8% in March, as rising gas and electricity bills continue to squeeze struggling families.

Economists believe the Office for National Statistics will report a temporary slowdown in inflation to 2.7% or 2.6% in April - still above the Bank of England's 2% target. But inflation will remain well ahead of wage growth, which advanced at just 0.4% in the three months to March.

Forecasters at the Ernst & Young ITEM Club, which uses the Treasury's model of the UK economy for its forecasts, estimate that persistently high inflation has already knocked almost 3% off UK growth in the past three years.
It expects inflationary pressures to peak over the summer and said it is unlikely the CPI measure will dip below 2.5% over the next four years.

Rising food prices, higher utility bills and a near-trebling of university tuition fees continue to spur inflation, although the Bank of England recently lowered its forecasts for inflation on the back of weaker commodity and oil prices.

Shore Capital economist Gerard Lane said inflation looks set to have dropped to 2.6% in April in an "ease of the squeeze" on households.

IHS Global Insight economist Howard Archer, who expects 2.7% inflation in April, said: "Consumer price inflation is expected to have edged down in April helped by lower petrol prices and favourable base effects due to the fact that Easter occurred in March in 2013 but in April in 2012.

"This should have meant that the year-on-year increase in many holidays and flights were lower in April than in March."

In Sir Mervyn King's final inflation report before handing over to new governor Mark Carney in July, the Bank said inflation looks set to peak at about 3.1% in June - down from its previous forecast of a 3.2% summer high.

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Sainsbury's accused on salmon label

Press Association — 2013-05-21T03:30:00+00:00

Filed under: Shopping & Deals

Supermarket giant Sainsbury's has been accused of selling "responsibly sourced" Hebridean salmon from a loch hundreds of miles away.

Sainsbury's Taste The Difference salmon is packaged with the claim that it is "reared in sheltered, fast-flowing seawater locations around the Isles of Skye, Lewis and Uist".

But the Salmon and Trout Association (S&TA) claims that it is actually sourced from Loch Fyne, a sea loch around 200 miles by road from Skye, that they allege is polluted with unacceptable levels of sea-lice, chemicals, faeces and diseases.

Sainsbury's website also says that its supplier of salmon is Marine Harvest but the farms listed are owned and operated by a competitor, The Scottish Salmon Company, according to the association.
S&TA has reported Sainsbury's to the Advertising Standards Authority and Trading Standards. Sainsbury's has admitted that there has been "an error" in its packaging due to a recent change in supplier and apologised to customers.

The association's complaint states: "Sea-lice numbers on farmed fish in excess of industry thresholds, benthic pollution with sea-lice treatment chemicals in excess of environmental quality standards, escapes of farmed fish, unsatisfactory organic pollution of the seabed with uneaten food and faeces and farmed salmonid diseases have all been recorded in Loch Fyne."

Guy Linley-Adams, solicitor to the S&TA aquaculture campaign, said: "Quite apart from issues of identifying exactly where its farmed salmon comes from, the S&TA believes Sainsbury's must substantiate its 'responsible sourcing' assertions with hard facts about named farms, and not just general assurances. Without this, discerning consumers may not have confidence in what they are being asked to buy."

Hughie Campbell Adamson, chairman of S&TA Scotland, said: "Supermarkets have a duty to be honest and transparent about the food they sell. Farmed salmon, grown in open-net marine cages, can come at a heavy environmental cost, not least in its impact on wild salmon and sea trout. We believe that Sainsbury's should now require all the farms from which it sources its farmed salmon to publish weekly farm-specific sea-lice parasite counts against which claims made by the fish farmers can be properly assessed."

A Sainsbury's spokeswoman said its "responsibly sourced" salmon is reared on RSPCA Freedom Food approved farms on the West Coast and Islands which participate in approved schemes which monitor standards and good agricultural practice.

She said: "We are very proud of our record on responsible sourcing of fish; Sainsbury's is the country's largest retailer of RSPCA Freedom Food Salmon and all our Scottish Salmon is farmed to a number of independent standards. Unfortunately, there has been an error in the information on the packaging of some of our Taste the Difference salmon products in recent months. We are now resolving this and sincerely apologise to customers, who can be reassured that there has been no impact on our industry-leading sourcing standards."

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Embattled G4S boss to step down

Press Association — 2013-05-21T03:00:00+00:00

Filed under: Investing

The boss of security giant G4S is to stand down - just months after he came under fire for his company's botched handling of its Olympics Games contract.

Chief executive Nick Buckles, who was paid a total of £1.2 million in 2012, was instrumental in creating the G4S business through the merger of Securicor and the security businesses of Group 4 Falck in 2004.
He is to retire from the company and will be replaced on June 1 by Ashley Almanza, who has held senior roles at oil and gas group BG Group.

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Updates from M&S, Vodafone and Burberry

Adrian Holliday — 2013-05-21T02:48:00+00:00

Filed under: Investing

London shares hit a 12-year peak yesterday with the FTSE 100 rising to 6,755, up 33 points on Monday. RBS was the biggest climber, up +4.48% while Fresnillo sank -3.27%.

The global optimism is fairly evenly shared with the German Dax climbing to a new record - 8,455 points - and the Nikkei rising again, to 15,370, its highest level since the end of 2007. Plenty of retail focus this morning. We begin with a profits slump from M&S. Pre-tax profits slump to £564.3m compared to £658m last year. However group sales climb +1.3% to £10bn. Clothes remain M&S's biggest concern with sales of general merchandise - which includes clothes - slipping -4.1% in total.

"We are working hard," says boss Marc Bolland, "to get the General Merchandise performance back on track. We have already made progress in our operational execution, and our new Autumn/Winter ranges have received a positive reaction."

M&S food sales were up +3.9%, with like-for-like sales up +1.7%. Food gross margins climbed 35bps to 31.7% due to improved buying and better management of promotional spend, claims M&S. International business continued to perform with sales up +4.5% on a constant currency basis (+0.9% actual currency).

Next, full year numbers from Vodafone. Group revenue slips -4.2% to £44.4bn with a full year organic service revenue decline of -1.9% and a Q4 dip of -4.2%. The disappointing results were anticipated by investors, much of it blamed on the European downturn.

Vodafone is forecasting adjusted operating profit in the range of £12.0bn to £12.8bn for the 2014 financial year with free cash flow of around £7.0bn, including the £2.1bn VZW dividend to be received in June 2013.

For the full year, Vodafone's ordinary dividend climbs +7% - which means that the dividend per share has grown over +22% in the last three years. "The Board remains focused on balancing ongoing shareholder remuneration with the long-term investment needs of the business," says Group chief exec Vittorio Colao.

Finally full-year prelim numbers from Burberry. The luxury Brit brand says revenue climbs +8% to £2bn with adjusted profit before tax up +14% to £428m. The full year dividend climbs +16% to 29.0p while operating cashflow is up +8% to £523m; funding a near doubling of investment spend at £320m, Burberry claims.

Mens accessories grew by more than +30%; the store opening strategy unchanged in FY 2014 with about 25 openings planned. China revenues grew about +20%.

"With the integration of Beauty in April," says chief exec Angela Ahrendts, "we have added another exciting growth platform. Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry's future performance."

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New shared equity scheme announced

Press Association — 2013-05-21T02:30:00+00:00

Filed under: Mortgages

A new £120 million shared equity scheme designed to help home buyers shows that the Scottish Government steps in to help people in tough times, according to Deputy First Minister Nicola Sturgeon.

The Government will provide the cash over the next two years to help both first-time buyers and existing homeowners looking to buy new-build property.

Ms Sturgeon said the scheme will help buyers and the construction industry. Ministers are working with key figures in the house-building sector to develop the initiative.

"People in Scotland who should rightly be able to afford a mortgage are still facing real challenges buying a home," Ms Sturgeon said at the Homes for Scotland annual conference, where she made the announcement.

"We are well aware of the challenges that people face and want to continue to do all we can to help.The £120 million funding announced today will not only help people to buy their first home, it will also help second-steppers to be able to sell their home and to move to another property."

Those who successfully apply to the scheme will buy the majority share of a new-build property, with the Scottish Government buying the rest. When the property is sold on, the Government then receives a cash sum proportionate to its share.

Jim Preston, the new chairman of industry body Homes for Scotland, said a well-funded shared equity scheme can be a "game changer".

He said: "Home building is one of the most effective ways to stimulate the economy because of its strong employment and output multiplier effects. With strong evidence to demonstrate the significant positive impact shared equity schemes can make, a well-designed and funded initiative could be a game changer in Scotland.

"Timing, however, is crucial and we therefore look forward to working closely with the Scottish Government to ensure this option is made available to help home buyers here without delay."

Paul Smee, director general of the Council of Mortgage Lenders, said: "We welcome and support the Scottish Government's efforts to stimulate the house-building sector and we look forward to working constructively with the Government to help deliver this scheme."

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M&S profit set to increase pressure

Press Association — 2013-05-21T02:00:00+00:00

Filed under: Investing

Marks & Spencer is due to unveil its worst annual profits figure in four years on Tuesday after a disastrous performance in clothing.

The full-year results are expected to pile further pressure on chief executive Marc Bolland, who will be hoping last year's executive makeover at the ailing high street stalwart soon starts to pay dividends. They come a week after his new fashion team unveiled the latest attempt to turn around sales.
Analysts have pencilled in underlying pre-tax profit of £658 million for the 12 months to the end of March. Estimates at the start of the financial year had been for a figure of around £710 million. It is a far cry from the retailer's heyday in 2008 when it made more than £1 billion.

The figure dipped sharply with a 40% drop the following year as the recession bit but has been climbing steadily since then until now.

Some City observers are optimistic about Marks's future amid investment of more than £800 million and after last week's unveiling of its new fashion range - which will go on sale later this year and is seen as the first test of the new executives installed in 2012. But others fear more money will need to be spent before M&S can properly recover.

In the shake-up, the retailer moved John Dixon from its successful food division to head general merchandise while former Debenhams and Jaeger boss Belinda Earl was appointed style director.

The reshuffle hit a snag earlier this year when "Knicker Queen" Janie Schaffer, hired to reinvigorate the underwear section, walked out as director of lingerie and beauty after just three months. She was replaced by Next's Jo Jenkins.

Mr Bolland has said the impact of the changes would not be felt until after this year's spring and summer lines, put together by the previous regime - making the launch of the autumn range last week a key test.

In the latest announcement, sales are forecast to be up around 1%, with a strong result from food offsetting continuing poor performance from general merchandise. But the expected fall in profits and the stark contrast with the good times of the past will underline just how far the business has to go.

The results will also mean the chief executive, who has led the retailer since 2010, missing out on much of his bonus for the third year in a row, with 60% of the £2 million pot based on targets related to profits, according to the Financial Times.

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Tesco to unveil food waste strategy

Press Association — 2013-05-20T11:30:00+00:00

Filed under: Shopping & Deals

The UK's biggest supermarket is launching a campaign to tackle "breathtaking" amounts of food waste which it says costs households £700 a year.

Tesco will unveil its food waste strategy on Thursday when it is also expected to reveal chief executive Philip Clarke and 5,000 top managers missed out on bonuses last year after profits halved.
The retailer's new waste plan includes selling food in smaller sizes in its convenience stores, and tailoring promotions away from goods with shorter shelf lives.

Mr Clarke admitted it may mean customers buying less food from Tesco, but said the supermarket has a responsibility to tackle a "long-term risk to society".

He said in the Sunday Telegraph: "The volume of food wasted every year is simply breathtaking. In the UK, the average family wastes nearly £700 a year by throwing out food they don't eat. None of us can afford the current levels of waste to continue."

He said the rising global population - expected to hit 9 billion by 2020 - means the planet cannot continue wasting huge volumes of food while demand soars.

The supermarket's new Tesco and Society campaign will be published on Thursday alongside its annual report.

The retailer will make use-by codes on packaging clearer and give tips on how to use leftover food, as well as will tackling waste in-store, including at its bakeries, and encouraging suppliers to waste less through smarter forecasting of demand.

Mr Clarke said: "It may sound counter-intuitive for Tesco to help our customers reduce the amount of food they waste, because it is likely to involve reducing the volume of food they buy, and I understand some people might be sceptical hearing it from a supermarket chief executive.

"But the issue that we are trying to solve is a long-term risk to society. I want to use our scale and the reach that our customers have given us to serve our society in return."

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Yahoo deal 'nets Tumblr head £164m'

Press Association — 2013-05-20T10:30:00+00:00

Filed under: Investing

US tech giant Yahoo has snapped up Tumblr in a major US deal that will reportedly net the blogging site's 26-year-old founder a 250 million US dollar (£164 million) fortune six years after he started it.

The 1.1 billion US dollars (£720 million) deal makes New Yorker David Karp - who attended high school for only a year - the latest internet whiz-kid to scoop an astronomical windfall from a web start-up.

The move will give Yahoo its own social media platform as it seeks to attract younger and trendier internet users in a bid to match rivals Google and Facebook.

Yahoo, led by chief executive Marissa Mayer, said: "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO."

Best known for its clean, simplistic design, Tumblr claims to host more than 108 million blogs, with over 50 billion posts. Its roster of celebrity users features pop singer Beyonce and media mogul Rupert Murdoch.

In his blog on Tumblr, Mr Karp announced: "I'm elated to tell you that Tumblr will be joining Yahoo." The message went on to promise users of the site that it would not "compromise" on its vision of making the site the "ultimate creative canvas" before signing off "F*** yeah, David".

Described as "one of the fastest-growing media networks in the world", Tumblr boasts more than 300 million monthly unique visitors and 120,000 sign-ups every day. But it has struggled to convert a fast growing user base into revenues - a common feature among even the most popular social networks.

Yahoo has 700 million customers worldwide and employs 11,500 people in 26 countries, including the UK where it has an office in London. Its services include a search engine and an email client called Yahoo! Mail. But it has been under pressure to innovate to better compete with its internet rivals.

Executives believe the deal will grow Yahoo's audience by 50% to more than a billion monthly users, and grow traffic by around 20%. It will also result in "seamless" advertising opportunities, the company said.

Ms Mayer said: "On many levels, Tumblr and Yahoo couldn't be more different, but, at the same time, they couldn't be more complementary." Mr Karp said: "We're elated to have the support of Yahoo and their team who share our dream to make the internet the ultimate creative canvas."

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Should I Buy Barclays PLC or Banco Santander S.A.?

The Motley Fool — 2013-05-20T10:25:00+00:00

Filed under: Investing

Both Barclays (LSE: BARC) (NYSE: BCS.US) and Banco Santander (LSE: BNC) (NYSE: SAN.US) were casualties of the credit crunch, but unlike Lloyds and Royal Bank of Scotland, both have avoided the humiliation of large-scale state bailouts and cancelled dividends.

Indeed, Santander's 10.8% prospective dividend yield is one of the highest available from any company with a London listing, and is around five times greater than Barclays' 2.2% forward yield.

However, there is more to a share than its dividend yield, so which of these two banks looks the better buy today?

Barclays vs. Banco Santander

I'm going to start with a look at a few key statistics that can be used to provide a quick comparison of these two companies:

	Barclays	Banco Santander
Market cap	£42,036m	£50,520m
Dividend yield	2.0%	10.8%
Price to book ratio	0.81	0.71
12 month share price change	81%	29%

Although Barclays and Santander have similar market values, they are very different businesses.

Santander's profitable UK and Latin American businesses have helped it maintain strong free cash flow over the last five years, and fund its EUR0.60 annual dividend, which has been unchanged since 2009.

UK-focused Barclays was forced to cut its dividend in 2008 and 2009, and while the payout is starting to rise again, last year's 6.5p payout is only half of the 11.5p paid in 2008.

On the other hand, Barclays' share price has risen by 81% over the last 12 months, while Santander has only gained 29%, due to investors' concerns about Santander's exposure to the troubled Spanish economy.

What's next?

Although Barclays' recovery appears to be going well, it's worth noting that the British bank has net exposure to Spain of £23.8bn, including £13.6bn of residential mortgages. If the situation in Spain worsens, both Barclays and Santander may suffer further losses.

In the meantime, what can we expect?

Analysts' forecasts are notoriously unreliable, but FTSE 100 companies generally get the benefit of the most comprehensive analysis, and tend to deliver fewer surprises than smaller companies.

With that in mind, let's take a look at some forward-looking numbers for Barclays and Santander. These apply to the companies' current financial years:

	Barclays	Banco Santander
Forecast P/E ratio	9.5	9.3
Forecast dividend yield	2.2%	10.8%
Forecast dividend growth	11.5%	0%
Forecast earnings growth	n/a	120%

These figures suggest that Santander's profits will rebound this year, as the bank's management expect bad-loan provisions to fall after last year's EUR18.8bn write down.

Barclays also expects steady improvement in earnings this year, which is expected to translate into an 11.5% increase in the bank's full-year dividend.

Which share should I buy?

Neither bank looks outrageously cheap, and both trade on near-identical P/E ratios. Given Santander's 10%+ dividend yield, the Spanish bank may seem like an obvious choice.

However, Santander's high yield represents the real risk that Spain may yet be forced to leave the euro or partially default on its sovereign debt. If this happens, then Santander would suffer heavy and unpredictable losses -- and for this reason, I would probably choose to buy Barclays.

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Cameron calls for tax transparency

Press Association — 2013-05-20T10:00:00+00:00

Filed under: Tax

David Cameron has written to the leaders of Britain's offshore tax havens stressing the need to "get our own houses in order" as he pushes for international action to tackle avoidance schemes.

In a message to 10 crown dependencies and British overseas territories Mr Cameron said he backed their right to be low tax jurisdictions but insisted that rules needed to be set and enforced fairly.
The move comes ahead of next month's G8 summit in Northern Ireland, where Mr Cameron will push for an agreement aimed at clamping down on tax evasion and avoidance. He said he wanted the G8 to "knock down the walls of company secrecy" to reveal who really owns and controls firms.

Mr Cameron's initiative came as he prepared to raise the issue of corporate tax dodging with Google boss Eric Schmidt at a meeting in Downing Street.

The internet giant's executive chairman is a member of Mr Cameron's Business Advisory Group, which has its regular quarterly meeting, just days after Google was given a mauling by a House of Commons committee over its tax affairs.

The group holds its meetings behind closed doors and Downing Street does not reveal the content of its deliberations but a source inside Number 10 confirmed that tax will be up for discussion, insisting that ''nothing is off the table'' when Mr Cameron meets the group of 16 business leaders.

The Prime Minister's letter calling for more transparency about tax information and the ownership of companies was sent to leaders in Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Anguilla, Montserrat, the Turks and Caicos Islands Jersey, Guernsey and the Isle of Man.

Mr Cameron wrote: "As you know, I have made fighting the scourge of tax evasion and aggressive tax avoidance a priority for the G8 Summit which the UK is hosting next month.

"With one month to go, this is the critical moment to get our own houses in order. I am looking to all the overseas territories and crown dependencies to continue to work in partnership with the UK in taking the lead on two critical issues: tax information exchange and beneficial ownership."

Labour leader Ed Miliband has pledged to write new rules to tackle corporate tax dodgers if he wins the next election, even if there is no international consensus for action. In an interview with the Observer he said Mr Cameron's Government was "dragging its feet" on the issue.

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