Latest news with #ProjectFuture
Yahoo
a day ago
- Business
- Yahoo
Asda to complete botched IT transition six months late
Asda is on the brink of finishing its botched £1bn IT upgrade six months later than planned, with bosses hopeful that the delayed transition will bolster the supermarket's turnaround efforts. The troubled retail giant has told staff that it plans to finally disentangle its computer systems from former owner Walmart within weeks, as it moves the last-remaining stores to an entirely new digital network. It will bring an end to what has been a painful transition process for Asda, which has spent four years trying to complete the programme, dubbed Project Future. The supermarket had initially been aiming to finish the upgrade in February earlier this year. However, the project has been hit with a series of setbacks, including an IT update in March last year that led to thousands of workers receiving incorrect payslips. Delays had also put Asda at risk of a hefty fine after missing a cut-off date with Walmart, although the US retailer ultimately agreed to a revised timeframe. Hundreds of workers have been let go in the months leading up to the end of Project Future, which has been described by Asda as 'mission critical' to its revival plans. The upgrade was championed by Mohsin Issa, Asda's co-owner, who previously managed the supermarket between 2021 and 2024. He has since been replaced by Allan Leighton, who returned to the business as chairman in November. Mr Leighton has since argued that the retailer is not rushing efforts to improve its performance, saying earlier this year: 'There is absolutely no pressure on me or the business to come up with a quick fix. 'A quick fix would be completely the wrong thing to do.' He has, however, embarked on a major drive to win back shoppers – slashing prices and overhauling tired stores. Asda said profits would be materially lower this year as it seeks to reverse years of decline following the takeover by TDR Capital and the Issa brothers in 2021. The most recent figures from World Panel show that Asda's market share slipped from 12.8pc to 11.8pc in the year to the middle of July. That is compard to 15pc the time of its takeover in 2021. However, in May, Mr Leighton said sales data suggested performance was improving, saying: 'What we're looking at here is the business turning.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
a day ago
- Business
- Telegraph
Asda to complete botched IT transition six months late
Asda is on the brink of finishing its botched £1bn IT upgrade six months later than planned, with bosses hopeful that the delayed transition will bolster the supermarket's turnaround efforts. The troubled retail giant has told staff that it plans to finally disentangle its computer systems from former owner Walmart within weeks, as it moves the last-remaining stores to an entirely new digital network. It will bring an end to what has been a painful transition process for Asda, which has spent four years trying to complete the programme, dubbed Project Future. The supermarket had initially been aiming to finish the upgrade in February earlier this year. However, the project has been hit with a series of setbacks, including an IT update in March last year that led to thousands of workers receiving incorrect payslips. Delays had also put Asda at risk of a hefty fine after missing a cut-off date with Walmart, although the US retailer ultimately agreed to a revised timeframe. Hundreds of workers have been let go in the months leading up to the end of Project Future, which has been described by Asda as 'mission critical' to its revival plans. The upgrade was championed by Mohsin Issa, Asda's co-owner, who previously managed the supermarket between 2021 and 2024. He has since been replaced by Allan Leighton, who returned to the business as chairman in November. Mr Leighton has since argued that the retailer is not rushing efforts to improve its performance, saying earlier this year: 'There is absolutely no pressure on me or the business to come up with a quick fix. 'A quick fix would be completely the wrong thing to do.' He has, however, embarked on a major drive to win back shoppers – slashing prices and overhauling tired stores. Asda said profits would be materially lower this year as it seeks to reverse years of decline following the takeover by TDR Capital and the Issa brothers in 2021. The most recent figures from World Panel show that Asda's market share slipped from 12.8pc to 11.8pc in the year to the middle of July. That is compard to 15pc the time of its takeover in 2021. However, in May, Mr Leighton said sales data suggested performance was improving, saying: 'What we're looking at here is the business turning.'
Yahoo
25-06-2025
- Business
- Yahoo
Asda swings to £600m loss as debt pressures mount
Asda fell to a loss of almost £600m last year as its soaring debt burden and a costly IT overhaul weighed on the beleaguered supermarket. Sales at the Leeds-based grocer grew by more than £1bn to £26.8bn in 2024, latest accounts show, but it posted a £599m pre-tax loss, compared with a £180m profit the previous year. Like-for-like sales excluding fuel were down too, falling by £750m to £21bn. Writing in the accounts, Michael Gleeson, Asda's chief financial officer, admitted: 'Trading has been challenging and food sales have been behind expectations.' Bosses have been battling to reduce the burden of Asda's £3.6bn debt pile, which has put the company under increasing pressure as interest rates have risen in recent years. The cost of servicing the debt pile grew by £170m to £611m last year. The supermarket said it had been forced to pay higher interest rates after refinancing debts during the year. Asda's debts were built up during its takeover by the billionaire brothers Mohsin and Zuber Issa and the private equity firm TDR Capital in 2021, which lumbered the company with billions in borrowings. The supermarket was acquired from long-time owner Walmart and the deal has prompted Asda to undertake a costly project to divorce its computer systems from its former US parent. Dubbed 'Project Future', Asda has spent heavily on the transition, shelling out £867m on it to date and £310m in 2024 alone. Mr Gleeson said 2024 was an important year for the retailer, in which it oversaw a transition to the new IT systems, insisting it would be 'stronger and fit for the future as a result of the transformation progress made in FY24'. However, the transition has been beset with issues and delays, such as an incident in March 2024 that saw thousands of workers receive incorrect payslips. The plunge in profits comes as Allan Leighton, Asda's chairman, attempts to restore the supermarket to growth after a loss of market share to grocery rivals since its takeover. Asda commanded 13.6pc of the UK grocery market at the beginning of 2024, but that figure had fallen to a record low of 11.9pc this month, according to Kantar. Mr Leighton, a veteran retailer credited with turning around Asda's fortunes during a difficult period in the late 1990s, was drafted in to lead the company once more last November. Since then he has kicked off a price war with supermarket rivals and embarked on a major cost-cutting push. The businessman has called many of Asda's issues 'self-inflicted', saying he wants to 'turn it into what it was'. An Asda spokesman said: 'Asda's core business remains strong and profitable, delivering a pre-tax profit of £115m before exceptional items. 'The reported overall loss is the result of two significant one-off costs: a £378m non-cash impairment charge, which reflects updated asset valuations, and £310m in one-time costs related to Project Future – our strategic programme to separate Asda's IT systems from our former owner, Walmart. 'These are not recurring costs and do not reflect the underlying performance of the business. 'A more accurate indicator of our ongoing strength is our adjusted EBITDA after rent, which increased to £1.14bn from £1.078bn the previous year.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
25-06-2025
- Business
- Telegraph
Asda swings to £600m loss as debt pressures mount
The supermarket was acquired from long-time owner Walmart and the deal has prompted Asda to undertake a costly project to divorce its computer systems from its former US parent. Dubbed 'Project Future', Asda has spent heavily on the transition, shelling out £867m on it to date and £310m in 2024 alone. Mr Gleeson said 2024 was an important year for the retailer, in which it oversaw a transition to the new IT systems, insisting it would be 'stronger and fit for the future as a result of the transformation progress made in FY24'. However, the transition has been beset with issues and delays, such as an incident in March 2024 that saw thousands of workers receive incorrect payslips. The plunge in profits comes as Allan Leighton, Asda's chairman, attempts to restore the supermarket to growth after a loss of market share to grocery rivals since its takeover. Asda commanded 13.6pc of the UK grocery market at the beginning of 2024, but that figure had fallen to a record low of 11.9pc this month, according to Kantar. Price war Mr Leighton, a veteran retailer credited with turning around Asda's fortunes during a difficult period in the late 1990s, was drafted in to lead the company once more last November. Since then he has kicked off a price war with supermarket rivals and embarked on a major cost-cutting push. The businessman has called many of Asda's issues 'self-inflicted', saying he wants to 'turn it into what it was'. An Asda spokesman said: 'Asda's core business remains strong and profitable, delivering a pre-tax profit of £115m before exceptional items. 'The reported overall loss is the result of two significant one-off costs: a £378m non-cash impairment charge, which reflects updated asset valuations, and £310m in one-time costs related to Project Future – our strategic programme to separate Asda's IT systems from our former owner, Walmart. 'These are not recurring costs and do not reflect the underlying performance of the business. 'A more accurate indicator of our ongoing strength is our adjusted EBITDA after rent, which increased to £1.14bn from £1.078bn the previous year.'
Otago Daily Times
07-05-2025
- Business
- Otago Daily Times
NZ Rugby reports $19.5m loss
NZ Rugby (NZR) has recorded a $19.5 million loss for the 2024 financial year. The result was announced at Thursday's AGM in Wellington; however the loss was offset by a record level of income and continued growth in revenue. World Cup winning All Black captain and NZR Chair David Kirk said that while the book loss of $19.5m was noteworthy, it should be recognised it was not a cash loss and should not detract from NZR's solid operational performance and pointed to the organisation's $174.5m in reserves. Foreign exchange hedging on sponsorship revenue and investment into revenue growth initiatives through New Zealand Rugby Commercial (NZRC) have resulted in the net deficit. The hedging impact resulted from the turbulence on global foreign exchange markets and a need to reclassify foreign exchange hedging contracts at the December 31 balance date. "Achieving a new high watermark of $285m income, healthy commercial revenue streams in what is a difficult international operating environment, and reinvesting into the game at all levels, are grounds for optimism. NZR retains an incredibly strong balance sheet which is vital for rugby in New Zealand and its ability to weather any major shocks," said Kirk. NZR CEO Mark Robinson admitted that further work was needed to achieve a sustainable financial model for rugby, but the organisation had continued to grow revenue while preserving its strong cash position. "Pleasingly, we continued to grow our commercial revenue, with strong results in sponsorship and matchday revenue, we retained our cash position and reserves, and operationally, delivered a near break-even result," said Robinson. "However, we are committed to working on a sustainable financial model for our game as this year's result again demonstrates that the high fixed-cost structure we live within is not sustainable, even as we grow our overall revenue. That work will step up in earnest this year." Robinson said the 2024 financial year saw a further tranche of investment into commercial revenue growth opportunities through NZR as part of the Project Future deal with Silver Lake. "In total $38m was tagged to use for future commercial initiatives, and in 2024 we drew down $11.7m to invest in NZR+ to continue to grow its reach and tell our stories. While this is about the long-term, we also believe this is generating positive commercial outcomes in the short-term."
