{"id":103213,"date":"2020-11-02T19:14:00","date_gmt":"2020-11-02T16:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/businesses-warn-of-hit-to-profits-as-second-u-k-lockdown-deals-devastating-blow\/"},"modified":"2020-11-02T19:14:00","modified_gmt":"2020-11-02T16:14:00","slug":"businesses-warn-of-hit-to-profits-as-second-u-k-lockdown-deals-devastating-blow","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/businesses-warn-of-hit-to-profits-as-second-u-k-lockdown-deals-devastating-blow\/","title":{"rendered":"#\n  Businesses warn of hit to profits as second U.K. lockdown deals \u2018devastating blow\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2533a9591f8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2533a9591f8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/businesses-warn-of-hit-to-profits-as-second-u-k-lockdown-deals-devastating-blow\/#Companies_including_Ryanair_have_warned_of_millions_of_pounds_in_lost_business_under_new_lockdown_measures_in_England\" >Companies including Ryanair have warned of millions of pounds in lost business under new lockdown measures in England.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/businesses-warn-of-hit-to-profits-as-second-u-k-lockdown-deals-devastating-blow\/#Lina_Saigol\" >Lina Saigol<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Businesses warn of hit to profits as second U.K. lockdown deals \u2018devastating blow\u2019<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000052866\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:49.375%;\" data-mobile-ratio=\"49.375%\" data-layout-ratio=\"49.375%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-253188?width=140&amp;size=2.0253164556962027 140w,\nhttps:\/\/images.mktw.net\/im-253188?width=540&amp;size=2.0253164556962027 540w,\nhttps:\/\/images.mktw.net\/im-253188?width=620&amp;size=2.0253164556962027 620w,\nhttps:\/\/images.mktw.net\/im-253188?width=700&amp;size=2.0253164556962027 700w,\nhttps:\/\/images.mktw.net\/im-253188?width=860&amp;size=2.0253164556962027 860w,\nhttps:\/\/images.mktw.net\/im-253188?width=1260&amp;size=2.0253164556962027 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-253188?width=620&amp;size=2.0253164556962027\" data-enlarge=\"https:\/\/images.mktw.net\/im-253188?width=1260&amp;size=2.0253164556962027\" alt=\"\" title=\"Companies including Ryanair have warned of millions of pounds in lost business under new lockdown...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Companies_including_Ryanair_have_warned_of_millions_of_pounds_in_lost_business_under_new_lockdown_measures_in_England\"><\/span>Companies including Ryanair have warned of millions of pounds in lost business under new lockdown measures in England.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            adrian Dennis\/Agence France-Presse\/Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       A <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of U.K. companies across the airline, retail and hospitality sectors warned of a hit to profits on Monday, as they raced to count the cost of the nation\u2019s latest COVID-19 lockdown, which comes into force this Thursday.<\/p>\n<div class=\"paywall\">\n       Under the new restrictions, restaurants, pubs, entertainment venues and nonessential shops in England will have to close until Dec. 2, although cabinet office minister Michael Gove has said the restrictions could <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bbc.co.uk\/news\/uk-54767118\" class=\"icon none\">extend <\/a>beyond that date.<\/p>\n<p> <strong>Read:<\/strong> England faces new lockdown as U.K. virus cases pass 1 million <\/p>\n<p>Chancellor Rishi Sunak has <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.gov.uk\/government\/news\/furlough-scheme-extended-and-further-economic-support-announced\" class=\"icon none\">extended<\/a> the government furlough program for the length of the lockdown, making grants of up to \u00a33,000 a month for companies forced to close their doors.<\/p>\n<p>Adam Marshall, director <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> of the British Chambers of Commerce, said the new<strong> <\/strong>restrictions will be a <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.britishchambers.org.uk\/news\/2020\/10\/bcc-initial-response-to-the-announcement-of-a-second-lockdown-in-england\" class=\"icon none\">\u201cdevastating blow\u201d<\/a> to business communities who have done everything in their power to adapt and operate safely.<\/p>\n<p>\u201cBusiness and market confidence have been hit hard by the unclear, stop-start <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach taken by governments across the U.K. over the past eight months, with little end in sight,\u201d Marshall said.<\/p>\n<p><strong>Read:<\/strong> How the Great British pub is reeling under new COVID-19 rules <\/p>\n<p>\u201dMany firms are in a much weaker position now than at the start of the pandemic, making it far more challenging to survive extended closures or demand restrictions,\u201d he added.<\/p>\n<p>His comments came as Ryanair<br \/>\n        RYAAY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204098489\/composite\" class=\"positive\">+3.06%<\/bg-quote><br \/>\n       said on Monday that it faced a \u201chugely challenging\u201d winter as governments across Europe imposed <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> restrictions to curb the spread of the virus.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Associated British Foods<br \/>\n        ABF,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204493701\/delayed\" class=\"positive\">+0.61%<\/bg-quote><span>,<\/span><br \/>\n       the owner of clothing retailer Primark, said it estimated it would lose <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.abf.co.uk\/media\/news\/2020\/associated-british-foods-plc-covid-19-update\" class=\"icon none\">\u00a3375 million<\/a> ($484 million) of sales from temporary closures of its stores in major markets because of COVID-19 restrictions.<\/p>\n<p>Helen Dickinson, chief executive of the British Retail Consortium, said retail faces <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/brc.org.uk\/news\/corporate-affairs\/retail-faces-a-nightmare-before-christmas\/\" class=\"icon none\">\u201ca nightmare before Christmas\u201d<\/a> as the government proposes to close thousands of retail premises\u00a0under this new national lockdown, denying customers access to many of their favorite shops and brands. <\/p>\n<p>\u201cIt will cause untold damage to the high street in the run up to Christmas, cost countless jobs, and permanently set back the recovery of the wider economy, with only a minimal effect on the transmission of the virus,\u201d Dickinson said.<\/p>\n<p>Meanwhile, GVC Holdings<br \/>\n        GVC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207493593\/delayed\" class=\"negative\">-2.71%<\/bg-quote><span>,<\/span><br \/>\n       the owner of the Ladbrokes Coral betting group, warned on Monday of a \u00a343 million <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/gvc-plc.com\/newsrelease\/impact-of-further-enforced-store-closures-due-to-covid-19\" class=\"icon none\">hit<\/a> to the profit of its gambling stores. <\/p>\n<p>However, shares in Ocado<br \/>\n        OCDO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207225647\/delayed\" class=\"positive\">+8.69%<\/bg-quote><br \/>\n       leapt 6% on Monday, as it upgraded earnings forecasts and investors saw greater demand for its online groceries amid the new lockdown measures. Gear4Music<br \/>\n        G4M,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201690249\/delayed\" class=\"positive\">+8.06%<\/bg-quote><br \/>\n       was also in demand, surging more than 8%, as it saw strong sales as people stuck at home turned to musical instruments to keep them busy.<\/p>\n<p>\u201cDrilling down into the U.K. equities space, it is clear to see that investors are sifting through the market looking for lockdown winners and dumping lockdown losers,\u201d said Russ Mould, investment director at AJ Bell.<\/p>\n<p>\u201cSupermarkets are going to be in demand once again, with<br \/>\nchatter that big queues already started to form over the weekend. Sales could<br \/>\nimprove for this sector over the coming month, but costs are also likely to be<br \/>\nhigher as companies likely reintroduce measures to help keep customers safe and<br \/>\ncrowds under control,\u201d he added.<\/p>\n<p>Ryanair<br \/>\n        RYA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202851567\/delayed\" class=\"positive\">+2.29%<\/bg-quote><br \/>\n       reported a pretax loss of \u20ac197 million ($253 million) for the first six months to the end of September, compared with an \u20ac1.15 billion profit for the same period last year. Passenger numbers plunged by 80% to 17 million, compared with 85.7 million in 2019.<\/p>\n<p>Shares in Ryanair were trading 2.92% higher on Monday morning. Shares in International Airlines Group<br \/>\n        IAG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208070069\/delayed\" class=\"negative\">-1.18%<\/bg-quote><span>,<\/span><br \/>\n       owner of British Airways, fell 1%, while easyJet<br \/>\n        EZJ,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202825892\/delayed\" class=\"negative\">-0.79%<\/bg-quote><br \/>\n       were 0.59% lower.<\/p>\n<p>Michael Hewson chief market analyst at CMC Markets U.K., said that even without the weekend <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> of another U.K.-wide tightening of restrictions, the outlook for the travel sector was already looking increasingly bleak.<\/p>\n<p>\u201cWhile politicians have held out the hope of a relaxation of restrictions at the beginning of December, the reality is that we could well go beyond that, and it would appear the softening up for just such an outcome is already beginning,\u201d Hewson said.<\/p>\n<p><strong>Read:<\/strong> Heathrow boss hopeful of London-New York air bridge by Thanksgiving <\/p>\n<p>Ryanair had its entire fleet grounded from mid-March to the end of June as a result of coronavirus measures,  <\/p>\n<p>The carrier said the second half of the year will continue to be \u201chugely challenging\u201d as it kept its forecast to carry 38 million passengers this financial year, but said this guidance could be revised down if European governments continue to \u201c<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/otp.tools.investis.com\/clients\/uk\/ryanair\/rns\/regulatory-story.aspx?cid=901&amp;newsid=1425431&amp;culture=en-GB\" class=\"icon none\">mismanage air travel <\/a>and impose more uncoordinated travel restrictions or lockdowns this winter.\u201d<\/p>\n<p>Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said Ryanair\u2019s descent into loss showed just how dramatically the COVID crisis has reversed the fortunes of airlines.<\/p>\n<p>\u201cThe company does see a glint of hope through the stormy clouds for next summer, expecting a sharp lift in passenger numbers, but that could still be wishful thinking. Some combination of a vaccine and track-and-trace testing could prevent a third wave next year, but if this is just the start of a trend of rising infections and repeat restrictions, the company will struggle to climb out of the crisis,\u201d Streeter said.<\/p>\n<p> <strong>Read:<\/strong> Heathrow offers rapid one-hour COVID-19 tests \u2014 they aren\u2019t cheap <\/p>\n<p>Ryanair\u2019s revenues in the six months to September dropped to \u20ac1.1 billion from \u20ac5.3 billion last year. The airline said that its cost base was reduced by 67% in the first half to \u20ac1.35 billion, and that it expects to receive its first Boeing<br \/>\n        BA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208579720\/composite\" class=\"positive\">+1.80%<\/bg-quote><br \/>\n       737-Max-200 aircraft early in 2021, with 30 in operation before peak summer season in 2021.<\/p>\n<p>As of the end of September 2020, Ryanair said it had \u20ac4.5 billion cash on its balance sheet.<\/p>\n<p><strong>Read: <\/strong>Ryanair raises EUR400M in share placing <\/p>\n<p>\u201cAs we look beyond the COVID-19 crisis, and the emergence of effective vaccines in early 2021, the Ryanair Group expects to have a lower cost base, a stronger balance sheet, which will enable it to fund lower fares, and add new lower-cost aircraft to capitalize on the many growth opportunities that will be available in all markets across Europe,\u201d the airline said in a statement.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Lina Saigol\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Lina_Saigol\"><\/span>Lina Saigol<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-DCE829FDD4FF%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Businesses warn of hit to profits as second U.K. lockdown deals \u2018devastating blow\u2019 &#8221; Companies including Ryanair have warned of millions of pounds in lost business under new lockdown measures in England. adrian Dennis\/Agence France-Presse\/Getty Images A series of U.K. companies across the airline, retail and hospitality sectors warned of a hit to profits&#8230;<\/p>\n","protected":false},"author":1,"featured_media":103214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-103213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/103213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=103213"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/103213\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/103214"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=103213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=103213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=103213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}