Latest news with #staffcosts
Irish Times
07-07-2025
- Business
- Irish Times
Wage bill at Spar operator Henderson Group eats into profits
Henderson Group, the operators of the Spar and Eurospar brands in Northern Ireland, reported a decline in profits last year despite sales rising 4 per cent in 2024 to almost £1.4 billion as staff costs increased and the group pumped money into its store network. Accounts filed with Companies House in the UK reveal that after-tax profits at the group dipped by 12 per cent to just under £43.8 million in 2025 from £50.2 million in 2023. Sales at the group jumped by 3.8 per cent to £1.38 billion, however, which the directors said was 'modest' but in line with the industry trens against a backdrop of rising costs. The increase in turnover was attributed to 'positive like-for-life performance' in its 103 owned and seven independent stores along with the expansion of its footprint through acquisitions. READ MORE Like-for-like grocery sales at Henderson Group increased by 1 per cent during the year, while sales at its food service division climbed by more than 10 per cent. The group employed more than 5,320 people in the year, up 4 per cent on the same period in 2023, according to the filings. [ BWG Foods to invest €35m in Mace convenience store business Opens in new window ] Staff costs, meanwhile, rose by almost 11 per cent in 2024 to £146.6 million. In a report attached to the accounts, the directors said Henderson Group had invested in employee remuneration in the year, plus 'a wide range of initiatives designed to improve colleague engagement', which had helped with staff retention. 'Operating costs were well-controlled and within budget,' the directors said, but said the group's 'strategic investment' in its workforce had contributed to a fall in operating profits. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 Henderson Group's food service division continues to grapple with 'uncertainty around Brexit and the Northern Ireland Protocol', the directors added. 'Whilst the Windsor Framework has alleviated some of these challenges, uncertainty remains as elements of the trading relationship evolve', they said. Cost pressures, 'including the impact of inflationary driven wage growth and the current UK government's fiscal policy', continue to add to the challenges facing the retail sector in Northern Ireland, the directors also noted.
Irish Times
01-07-2025
- Business
- Irish Times
Total bonuses at Uisce Eireann top €13m
Bonus payments to staff at State-owned utility Uisce Éireann last year topped €13 million. That is according to Uisce Éireann's 2024 annual report which shows that the €13.08 million in performance related pay was a €2.5 million increase on the performance related payouts of €10.57 million for 2023. The report discloses that Uisce Éireann made performance related payments to 2,244 employees in 2025 in respect of 2024. About 1,631 staff received bonus payments for 2023. The average bonus was €5,830. That was down €650 on the the prior year. READ MORE The annual report states that 'performance is assessed against individual objectives and corporate objectives through a balanced scorecard process'. No bonus went to chief executive Niall Gleeson. The report also reveals that the numbers earning over €100,000 last year totalled 421. That was 18 per cent higher than the 344 in that earning bracket in 2023. The detailed figures show that four staff members earned between €250,000 and €275,000; five between €225,000 and €250,000 and nine between €200,000 and €225,000. A further 22 earned between €175,000 and €200,000 while 35 earned between €150,000 and €175,000. Just over 100 staff earned between €125,000 and €150,000 while 244 earned between €100,000 and €125,000. Overall staff costs increased by €44 million to €158 million as numbers employed increased by 630 to 2,108. The payment to Mr Gleeson remained at the same level at €275,000 made up of €225,000 in basic salary, €27,000 in pension contributions and €23,000 in 'other short term' employee costs. Last year, pre-tax profits at Uisce Eireann decreased by 15pc to €321 million as operating costs rose by 5pc from €983.62 million to €1.03 billion. Revenues last year increased by 3 per cent from €1.56 billion to €1.606 billion. The utility's revenues were made up of €1.13 billion in Government subvention payments for domestic water billing, non domestic revenues of €271.79 million while new connection revenues declined by 20 per cent to €195.24 million. Chief financial officer, Chris McCarthy, said that Uisce Éireann 'delivered a strong financial performance during 2024'. He said that the profit, together with necessary Government support in capital contributions of €572 million 'was invested to fund critical infrastructure projects and enabled the successful delivery of a €1.372 billion capital investment programme in 2024'. He said: 'This allowed us to improve the quality of our water supply, improve our compliance with standards and increase capacity for housing and development to support economic growth.
Daily Mail
11-06-2025
- Business
- Daily Mail
Major pub chain forced to hike the cost of a pint by 15p after Labour's tax grab landed it with extra £8million staff costs
A major pub chain has been forced to increase the price of a pint by 15p after Rachel Reeves ' tax raid left it with an added £8million in staff costs. Fuller's says the rise in national insurance contributions (NICs) from last October's budget as well as the higher minimum wage from April has left the firm badly hit. The Chiswick-based company - which has 5,500 staff members - warned back in November last year the financial measures would cause the price of its pints to rise. It comes as pub and hospitality companies have been among the worst affected amid soaring staff bills. Fuller, Smith & Turner chief executive Simon Emeny said the chain had tried to be 'sensitive' with price increases, to 'make sure that going to the pub remains an affordable treat'. He added the group would keep its pricing 'under review' over the rest of the year. Fuller's is the latest to raise the cost of a pint as pub chains attempt to offset soaring staff bills. The British Beer and Pub Association (BBPA) recently said the average price of a pint of beer would surge past £5 for the first time because of cost hikes hitting the sector. Pub and hospitality companies have been among the worst affected amid soaring staff bills A spokesman for the BBPA added the average cost of a pint in the UK is expected to rise by about 21p as a result. But Fuller's boss Mr Emeny said the firm could not offset the cost impact with price increases alone. The group, which has about 5,500 staff, is doubling down on investment in its bars and staff training, to drive sales higher, which it hopes will counter the extra costs. 'Six months down the line and I don't think price increases are the only answer. It has to come through higher sales,' he said. Reeves announced last year the employers' rate of NI would increase by 1.2 percentage points, to 15 per cent from April. In addition, the level at which employers become liable to pay NI on salaries would reduce from £9,100 to £5,000 per year. And the minimum wage for over 21s, known officially as the National Living Wage, has now risen from £11.44 to £12.21. Mr Fuller said his firm's consumer spending outlook would be sensitive to the interest rate outlook, and whether the Government moved to increase personal taxes. The comments came as Fuller's posted a 32 per cent jump in underlying pre-tax profits to £27 million for the year to March 29. Like-for-like sales rose 5.2 per cent, and the group said growth had continued into the first 10 weeks of the new financial year, albeit at a more muted rate of 4.2 per cent. It also announced its chairman of 18 years, Michael Turner, a member of one of the three founding families, would retire at the group's annual general meeting in July, after a 47-year career with the group. He will be replaced by Mr Emeny, who will become executive chairman, the first person to take the role who is not a member of the founding families. Fred Turner will be promoted from retail director to chief operating officer. A number of other founding family members remain on the board, including non-executive directors Sir James Fuller and Richard Fuller. On his final set of full-year figures for the group, the outgoing chairman said it had been an 'excellent' past year. Mr Turner added: 'This strong performance has been achieved despite the business operating in a challenging and, at times volatile, economic environment. 'The geopolitical situation has caused uncertainty in global markets and the decisions made by the Chancellor in her October budget hit the sector hard and reduced confidence in hospitality stocks.' Mr Turner, An outspoken critic of the move to raise national insurance contributions (NICs) from April, said: 'The changes to national insurance contributions took everyone by surprise and I fear it could be terminal for a number of smaller operators in our market.'
Daily Mail
01-06-2025
- Business
- Daily Mail
Tesco to close its Express stores an hour earlier after being hit by £235million in Rachel Reeves' tax raid
Tesco is set to close its Express stores an hour earlier after the supermarket giant was hit by a £235million rise in staff costs by Rachel Reeves ' tax raid. The chain is trialling shorter opening hours at the Express stores, it is understood, closing some at 10pm rather than the usual 11pm. Meanwhile, Tesco is also anticipated to have less staff running those stores during their opening hours, The Telegraph first reported. The changes were created to 'make things simpler for our colleagues and to ensure that we are running these shops in the most efficient way', a spokesman said - adding that the trial will take place in a number of stores. It comes after Tesco's chief executive Ken Murphy revealed the supermarket giant was doing its best to offset a burst of extra costs following Reeves' tax raid, which took effect from April this year. After the raid was announced, Tesco said it was facing a serious rise in its staffing bill, including a £235million increase in National Insurance contributions. Under the changes, employers fork out a tax equivalent to 15 per cent of their workers' pay packets, an increase from 13.8 per cent previously. Tesco is dealing with affected staff and considering individual circumstances and whether they need to transfer to another store, it is understood. A spokesman for the chain said: 'These changes aren't visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell.' In April, Tesco warned its profits would drop by as much as 14per cent this year as it gets ready to invest £400million in price cuts.
Yahoo
31-05-2025
- Business
- Yahoo
Tesco to close stores early after Reeves tax raid
Tesco is to close some stores an hour earlier after being struck by a £235m rise in staff costs from Rachel Reeves's tax raid. Britain's biggest supermarket is understood to be trialling shorter opening hours at Express stores, shutting some at 10pm rather than 11pm. Tesco is also expected to have fewer staff running those stores when they are open. Workers have been told the trial is taking place in some of Tesco's less profitable stores, which have been dubbed 'Express Lite' shops internally. A spokesman said the changes were designed to 'make things simpler for our colleagues and to ensure that we are running these shops in the most efficient way'. They said the trial was taking place in a small number of stores. The change comes after Ken Murphy, Tesco's chief executive, said that the supermarket was racing to offset a wave of extra costs following the Chancellor's tax raid, which took effect from April. That month, the grocer said it was facing a steep rise in its staffing bill, including a £235m increase in National Insurance contributions in the latest financial year. Under the changes, which came into force in the spring, employers pay a tax equivalent to 15pc of their workers' pay packets, up from 13.8pc previously. The threshold at which the tax kicks in has also fallen from earnings of £9,100 a year to £5,000. As well as the National Insurance changes, the minimum wage also rose by 6.7pc in April. Altogether, retailers are facing £7bn of extra costs following Ms Reeves's Budget, according to the British Retail Consortium. Mr Murphy in April said that Tesco would strip out about £500m of costs in the coming financial year to offset the Budget hit. He urged Ms Reeves to avoid increasing retailers' costs further, saying: 'All we're saying as an industry is, don't make it too hard for us to keep delivering great value.' This weekend, union leaders voiced concerns over the changes to 'Express Lite' stores, saying they risked creating problems for staff. Daniel Adams, Usdaw national officer, said the union 'has not agreed this change and we will be monitoring the trials closely to assess the impact on our members'. He added: 'The union has repeatedly raised issues with the business around the risks of low staffing and retain significant concerns around how this trial will work. 'While we have been assured by the company that they do not anticipate any redundancies from this process, we are aware it may involve staff transferring to other stores. That in itself can cause problems with travel, caring commitments and shift patterns.' Tesco is understood to be speaking to affected staff and is taking into account individual circumstances if they need to transfer to another store. A spokesman said: 'These changes aren't visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell.' Other businesses are also shutting earlier in a bid to counter the increase in staff costs. In April, The Telegraph revealed that pubs were calling last orders earlier, closing up at 9pm rather than 11pm. The attempts to make stores run more efficiently also come amid mounting pressure from rival Asda, which this year kicked off a price war to try to win back shoppers. Last week, Allan Leighton, the Asda chairman, said the supermarket had opened up a gap with Tesco on prices. He said the store would continue to cut prices on some items, while raising prices of other goods more slowly. Tesco warned in April that its profits would fall as much as 14pc this year as it prepares to invest £400m in price cuts. 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
