BUSINESS LIVE: Barratt Developments profits slump; M&G investors pull £1.5bn; Direct Line misses half-year forecasts

The FTSE 100 blue chip index is full of household names like BP, Barclays, Lloyds, Marks & Spencer, Tesco and Shell.

But this roll-out of multinational enterprises also contains some less well-known businesses which deserve greater fame – and far more attention from private investors. These are companies with tradition and staying power.

Homeowners encouraged to have a gas boiler service before ­winter are being warned not to sign up to a ‘rip-off’ service plan.

In an advertising blitz, British Gas last week slashed the price of a boiler service by 25 per cent to £69 if you book before September 10.

Two Mobeus venture capital trusts raised £9.6million through Wealth Club within just an hour of their latest share offer opening on 2 September.

This delivered funding 140 per cent higher than the trusts’ previous fastest raise. The VCTs have now raised £33.8million, with around 60 per cent of this via Wealth Club.

The latest auction of green energy licences, capable of delivering electricity to 11million homes, must be considered an advance in the race to deliver net zero by 2030.

But it comes at a heavy cost. After last year’s flop, the strike price agreed by the Government for power to be generated is nearly 60 per cent higher than in 2022.

Direct Line has missed expectations for its first half operating profit amid higher claims costs, particularly across its motor insurance arm.

The firm’s operating profit from ongoing operations reached £63.7million by the end of the period, against forecasts of around £85million.

Carlos Slim has raised his stake in BT to more than 4 per cent in another vote of confidence in the firm.

The Mexican tycoon bought another 1.1 per cent of the telecoms giant, worth around £150million.

If there is one tax that Labour will ramp up in next month’s Budget, my money is on capital gains tax (CGT).

So if you are the owner of a business, buy-to-let property or have assembled an investment portfolio to see you through to retirement and beyond, you need to be aware of what could be coming your way.

Oli Creasey, property analyst at Quilter Cheviot, comments on Segro’s planned takeover of Tritax Eurobox:

“Segro, the FTSE 100 listed REIT, which owns industrial and warehousing property throughout the UK and Europe, has this morning announced an all-share offer for Tritax Eurobox, a c.£500m market cap owner of European logistics assets.

“This is the latest chapter in the Eurobox story, which started earlier this year when the company received an approach from Brookfield, a large Canadian property asset manager. Brookfield has not at present made a firm offer, but the deadline for such an offer has been extended and now runs until the 23rd September.

However, Eurobox did also receive a number of other offers, and it appears that it is not waiting to hear back from Brookfield and has recommended its shareholders accept the all-share offer from Segro.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, comments on Barratt Developments’ latest results:

Barratt Developments has struggled to build momentum and full-year numbers were a painful read for investors. The group completed around 14,000 new homes last year, which was towards the top end of group guidance.

But that still marks a big drop off from the 17,206 seen in the prior year as mortgage and affordability pressures are still weighing on potential buyers. Momentum did improve slightly as the year progressed, but further easing of mortgage rates will be necessary for activity to pick up significantly.

With fewer homes being sold and at lower prices, less cash has come through the front door. Alongside elevated levels of incentives, used to convince buyers to sign on the dotted line, underlying pre-tax profits have taken a big hit and more than halved year-on-year.