Little Chef Bought By Kuwaiti Group 'For £15m'

The Little Chef chain of roadside restaurants has been sold to a Kuwaiti restaurant group.

The company went up for sale in April, six years after it was rescued from administration.

During that time there were several attempts to revive its position in the market as one of the main providers of snack foods for people on the move around Britain.

Celebrity chef Heston Blumenthal was among those recruited to inject new life into its traditional menu of mainly fried breakfasts and burgers.

But the chain had been struggling for some time to compete with the other fast food chains and supermarkets that were increasingly occupying motorway service stations.

Now Kuwait restaurant owner Kout Food Group Restaurants UK Limited (KFGR-UK) has bought the company for what is believed to be £15m.

It was rumoured to be on the market for 'tens of millions of pounds'.

KFGR-UK takes over a group, famous for its 'Fat Charlie' logo, that has been slimmed down from more than 400 at its peak to 83 sites beside A-roads all over Britain, all of which are believed to be profitable.

Heston Blumenthal was brought in to revive the fortunes of Little Chef

The seller, venture capital group RCapital, said it was confident that KFGR-UK  would continue to rejuvenate Little Chef's fortunes.

RCapital CEO Jamie Constable said: "Since we put Little Chef up for sale people have asked us, why sell the business?

"The answer is very simple. We are specialists in reversing the fortunes of businesses with significant financial and operational problems.

"We turn businesses around, we rebuild and fix them, that's our business.

"When we bought the chain, it needed huge changes to revive the business and bring it back to profitability.

"Having owned Little Chef for a long time it feels like we are selling part of ourselves.

"But we take comfort from the fact that the new owners will take the brand to the next stage."

KFGR-UK said it had ambitious plans for the company.

Chairperson Fadwa al Homaizi, said: "KFGR-UK has exciting plans to revitalise the Little Chef brand.

"Little Chef will benefit from a process of brand renewal in keeping with current trends, supported by traditional British values."

Kout Food Group runs several branches of Burger King, Pizza Hut and Taco Bell in its home country. 

It also operates a portfolio of Middle Eastern brands such as Ayyame, Kabab-ji, Burj Al Hamam and the ice cream parlour Scoop A Cone.

Little Chef employs 1,100 staff and has sites across Britain's A-roads.

After trialling Blumenthal's meals in 2009, his new menus were rolled out to several branches. It is not known if his menus will continue to be served.

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EasyJet's Stelios To Launch Budget Grocery

EasyJet founder Sir Stelios Haji-Ioannou is launching a low-cost food retail business to undercut low prices offered by budget supermarkets Aldi and Lidl.

The entrepreneur announced plans for a pilot site in Croydon as his easyGroup company aims to cash in on the very cheapest end of the grocery market.

EasyJet founder Sir Stelios Haji-Ioannou

The new business will focus on a limited range of tinned and packet foods.

It has set up a website, easyFoodstore.com, which promises to be "coming soon".

Sir Stelios said: "I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl.

"Concentrating on affordable, basic 'no-brand-name' packet and tinned foods at bargain prices, easyFoodstore underlines the need for additional reliable day-to-day provision of basic foodstuffs."

He added that no other details had been decided yet.

Sir Stelios said that the business could be expanded next year by taking advantage of weak property prices to buy up freehold retail sites.

The new grocery will aim to compete with supermarkets like Aldi

Recent retail figures suggest the UK grocery market is becoming increasingly polarised with the strongest sales gains coming at the top and bottom ends - with the likes of Waitrose doing well on one side and Aldi and Lidl on the other.

Sir Stelios said the venture was still at a very early stage, with a pilot store to open on the ground floor of a nine-storey building easyGroup has acquired in Croydon which is also expected to house its easyHotel, easyOffice and easyGym businesses.

The entrepreneur remains a major shareholder in easyJet but has recently objected to management plans to buy a fleet of new Airbus aircraft, threatening to take directors to court if the move destroys shareholder value.

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Payday Loan Victims Urged To Fight Back By CAB

Payday loan customers are being urged to "fight back" if they have been mistreated by a lender by making an official complaint to the ombudsman.

Citizens Advice said that in three-quarters of cases (76%) it has examined, borrowers would have grounds to take their complaint to the Financial Ombudsman Service (FOS).

The charity launched a month-long campaign today calling for payday customers "not to let predatory lenders get away with treating them unfairly".

Citizens Advice analysed 665 payday loan cases reported to its consumer service in the first half of this year.

People are reluctant to complain because they won't admit they use lenders

The charity found that one in five were possible cases of fraud, where someone was being chased for a loan they had never taken out.

More than one third of the cases involved lenders using a type of recurring payment called a continuous payment authority to drain people's bank accounts of cash without warning.

And in 12% of cases lenders pestered people with phone calls and texts rather than accept offers of payments that borrowers could afford.

The ombudsman service, which resolves disputes between consumers and financial bodies, can order firms to put the situation right if it finds in the customer's favour.

This means a borrower could get a refund and compensation.

There has been a large growth in internet lenders recently

Citizens Advice chief executive Gillian Guy said: "The level of debt and hardship caused by some payday loans is absolutely scandalous and people often feel completely powerless to do anything about it.

"But consumers can fight back. If you are struggling to pay back the loan Citizens Advice can help you sort out a reasonable repayment plan and if you make a successful complaint to the Financial Ombudsman Service you could find you get a refund for an unauthorised payment or compensation for unfair treatment.

"By making your voice heard you will expose the bad behaviour of lenders and put pressure on them to clean up their act which could help stop similar problems happening to other people."

The chances are also high that the ombudsman will uphold a payday loan complaint in the consumer's favour.

Of 160 complaints made to the ombudsman between April and June this year about payday loans, 72% were upheld.

A spokesman for the ombudsman service said its own research into why payday loan customers do not tend to come forward to it more often suggests that people appear reluctant to admit that they have used a payday lender.

He said: "The big message is: Nobody is here to judge you. We understand that times are hard, the important thing is to ask for help."

The spokesman said that the ombudsman service would expect a firm which has been told that a customer is struggling financially to help the consumer to come up with a solution, regardless of whether or not the firm has made a mistake.

Giving advice to struggling borrowers, Citizens Advice said lenders should accept a repayment plan which is reasonable.

They should not be contacting the borrower's employer for money or ringing during the night.

Consumers should initially make their complaint directly to the lender but if it cannot be resolved they can ask the ombudsman to step in.

Payday lenders have come under heavy scrutiny in recent months following an investigation by the Office of Fair Trading (OFT).

The OFT referred the industry to the Competition Commission after finding "deep-rooted" problems.

Issues it raised included lenders not carrying out proper affordability checks, meaning the borrower cannot afford to pay their loan back on time.

The lender is then forced to roll the loan over, meaning the cost of the debt balloons.

Fifteen out of 50 lenders which were given a deadline by the OFT to prove their business practices were up to scratch have since said they do not plan to continue operating.

Payday lenders have said they have been working to improve standards and make sure loans are only given to those that can afford them.

They have said that rogue lenders which have tarnished the whole industry should ship out.

Complaints can be made to the Financial Ombudsman Service consumer helpline on 0300 123 9 123 or 0800 023 4567 or emailed to complaint.info@financial-ombudsman.org.uk.

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Fracking: 'Fear Of Unknown' In Countryside

Fracking is causing a "fear of the unknown" in the British countryside and people need more information, a Conservative former minister has warned.

Nick Herbert, an ex-justice minister, claimed the controversial technique was considered the next biggest threat after unwanted housing developments.

Mr Herbert did not condemn fracking but made clear his constituents in the West Sussex seat of Arundel and South Downs have deep concerns about it.

The practice involves fracturing rock deposits deep below the ground with high-pressure blasts of water and chemicals.

Ministers believe it could lead to major cuts in energy bills by reducing the UK's reliance on other sources but campaigners are fighting drilling.

Former minister Nick Herbert

Protests were held at a site in Balcombe, West Sussex, last week as test drilling began despite energy company Cuadrilla insisting its current operations will not involve fracking there.

Mr Herbert told the Telegraph: "There is a lot of concern about the impact of new housing in West Sussex. This (fracking) is seen as a second threat to the countryside.

"People are worried about the implications and they don't have enough information to know how damaging it will be. It is the fear of the unknown that is exacerbating local concerns.

"People understand the national arguments about the need for secure and cheap energy, but they don't know how much this is going to damage the local environment.

"What you are talking about here is very beautiful and tranquil countryside that people are keen to preserve. At the moment it is unknown - we just don't know what the potential impact and scale of this is. There does need to be more information."

His comments come amid increasing signs of unease among MPs about the innovative method of extracting gas from shale deposits deep under the ground.

Another Tory MP, Eric Ollerenshaw, has suggested the development of shale gas facilities could create a new "North-South divide".

The Lancaster and Fleetwood MP warned that the North of England would not be prepared to absorb the potential environmental damage while the South reaped the financial rewards.

A young anti-fracking protester in Balcombe last week

He spoke out after Tory peer Lord Howell of Guildford sparked outrage by suggesting fracking should be confined to "desolate" parts of the North.

Lancashire has been identified as one of the areas with the most potential for hydraulic fracking, with a recent report suggesting there could be 1,300 trillion cubit feet of shale gas present.

Mr Ollerenshaw said: "We want [a] level playing field across the country. We do not want ... that the North gets the dirty end and the South sucks up all the energy."

Liberal Democrat party president, Tim Farron, has also said that a "short-sighted" rush to exploit deposits could cause long-lasting damage to the countryside.

"I am afraid the Government has seen flashing pound signs and has not considered the long-term threats fracking poses to the countryside," he said.

"I think this is a very short-sighted policy and we will all be left to live with the consequences."

Energy minister Michael Fallon was this weekend reported to have relished the prospect of fracking under the "chattering class" commentators in The Weald in the affluent South East.

The Mail on Sunday reported he told a private meeting that "the beauty" of drilling in Hampshire, Sussex and Surrey was that "of course it's underneath the commentariat - all these people writing leaders saying 'Why don't they  get on with shale?' We are going to see how thick their rectory walls are, whether they like the flaring at the end of the drive!"

A spokesman for the energy department did not dispute the paper's account of the comments, but said: "Fracking will only be allowed in the Weald if it is safe and poses no risk to the environment."

Friends of the Earth's policy and campaigns director Craig Bennett said: "Michael Fallon's unguarded comments will resonate across the UK and fuel more opposition to the Government's disastrous support for fracking.

"Ministers must pull the plug on shale gas and oil extraction, especially as there's plenty of evidence they won't lead to cheaper fuel bills.

"We need an energy policy based on cutting waste and developing the nation's huge renewable power potential - not one that wrecks our clean and pleasant land and pumps more pollution into our atmosphere."

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HSBC Half-Year Profits Rise 10% To £9.2bn

Europe's biggest bank, HSBC, has announced a 10% increase in half-year profits to £9.2bn.

The bank said the performance was partly down to a big fall in its costs as it continued to reshape itself, disposing or closing 11 of its businesses in the period.

It takes to 54 the total number of closures or disposals it has carried out since chief executive Stuart Gulliver ordered the restructuring in 2011.

More than 40,000 jobs have been lost as a result.

Stuart Gulliver says the pace of restructuring is now starting to slow

Underlying costs were down 8% on the same period last year, HSBC said, due mainly to the non-recurrence of provisions for fines and penalties recorded in the first half of 2012 and lower charges from UK customer redress programmes and restructuring costs.

However it did set aside another £239m to compensate customers mis-sold payment protection insurance, taking its total bill for the mis-selling scandal - where customers were sold loan insurance they did not need or could not claim on - to £1.8bn.

It said underlying profits of £8.54bn reflected higher revenues, lower loan impairment charges and falling operating expenses.

HSBC's London-listed shares fell by more than 2% on the FTSE 100 in the moments after the results were confirmed - the headline profit figure coming in just under analysts' expectations of £9.5bn.

Hours earlier, it also emerged that HSBC was closing bank accounts for dozens of foreign missions in London.

It was reported that more than 40 different embassies, consulates, and high commissions were affected by the move, which HSBC said was part of a "significantly diminished appetite for the embassy business".

Spokesman Will McSheehy explained the decision was taken amid the wider reassessment of the bank's operations.

Foreign missions traditionally deal in large amounts of cash, something which may have raised uncomfortable questions at a bank that has been buffeted by money laundering scandal.

In 2012, HSBC was slapped with a record £1.2bn fine by the US over claims its bankers had been handling assets belonging to Iran, Libya, and Mexico's murderous drug cartels.

Mr McSheehy said that compliance issues were just one of many factors - such as profitability or efficiency - which the bank had assessed in making its decision on foreign missions.

The move gives those customers 60 days to find new banking facilities.

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Zero-Hours Contracts 'For One Million Britons'

By Liz Lane, Sky News Reporter

Up to one million people, many more than previously thought, could be employed on zero-hours contracts across the UK, new research suggests.

The agreements mean that employees are expected to be on call, but are not guaranteed any work from one week to the next.

The Office for National Statistics recently suggested only 250,000 were on such contracts at the end of last year.

But the Chartered Institute of Personnel and Development (CIPD) surveyed 1,000 employers and found one in five use zero-hours contracts for at least one member of staff.

Firms in the voluntary and public sectors, as well as the hotel, leisure and catering industries, are more likely to use them.

CIPD chief executive Peter Cheese said: "Zero-hours contracts are a hot topic and our research suggests they are being used more commonly than the ONS figures would imply.

"However, the assumption that all zero-hours contracts are bad and the suggestion from some quarters that they should be banned should be questioned.

Business Secretary Vince Cable has ordered a review into the practice

"Zero-hours contracts, used appropriately, can provide flexibility for employers and employees and can play a positive role in creating more flexible working opportunities. This can, for example, allow parents of young children, carers, students and others to fit work around their home lives.

"However, for some this may be a significant disadvantage where they need more certainty in their working hours and earnings, and we need to ensure that proper support for employees and their rights are not being compromised through such arrangements."

The business secretary Vince Cable told Sky News that while the number of people on zero-hour contracts was "a bit fuzzy" he said he did not believe the CIPD figures reflected a true picture.

He said a Governemnt review, to report in September, would establish what action, if any, was needed though he had concerns about the exclusive nature of some contracts.

"I don't think there is any question of this Government trying to outlaw zero-hours contracts altogether because for many workers, as well as their companies, it's a perfectly sensible arrangement," he said.

But the Unite union said the Government must stop the growth of the zero-hours culture, as these contracts were "the latest attack on workers' rights and dignity".

Separate research among zero-hours contract workers revealed only 14% said their employer failed to give them enough hours to have a basic standard of living.

Sarah Wicks, from Liverpool, used to work as a security guard on a zero-hours contract, but sometimes worked 72 hours a week.

She told Sky News the large number of hours did not equate to job security.

"There wasn't much expectation that your job was ever going to get any better, or that you had any recourse to the employer for anything," Ms Wicks said.

Shadow business secretary Chuka Umunna said: "Whilst some employees welcome the flexibility of such contracts, for many zero-hours contracts leave them insecure, unsure of when work will come and undermining family life.

"The 'review' the Business Secretary has established into zero hours contracts is clearly inadequate given the seriousness of this issue and the mounting evidence of the abuse of zero hours contracts.

"Nothing less than a proper consultation with a formal call for evidence will do."

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Childcare Boost 'Unfair To Stay-At-Home Mums'

Plans to give tax breaks worth £1,200 per child to families with two working parents have been condemned as unfair to stay-at-home mothers.

Chancellor George Osborne launched a consultation on the proposals, heralded in his Budget in March, on Monday as he toured a London nursery.

Parents earning up to £150,000-a-year will be eligible for the tax-free childcare vouchers, allowing families with up to £300,000 in total income to claim them.

Critics have pointed out that this is in stark contrast to child benefit, which has been cut for families with one parent earning more than £50,000 and axed entirely if one is on £60,000 plus.

Working parents will be able to claim 20% of childcare costs, up to a maximum of £6,000 per child a year, working out at £1,200.

The average cost of a part-time nursery place for a child under two in the UK is now over £5,000 per year.

Ministers believe the scheme, set to be in place by 2015, will help 2.5million households but it will not help the more than a million stay-at-home mothers and house husbands.

The Pre-School Learning Alliance, which represents childcare providers, accused the Government of going back on its promise to support stay-at-home parents.

Chief executive Neil Leitch said: "To offer this money to a couple whose dual earnings could reach £300,000 but not to a couple earning a fraction of this amount who choose to have one parent staying at home seems perverse.

"We would prefer the Government to properly fund universal childcare provision for all families, regardless of income. Instead, this seems to be more about dangling a £1,200 carrot to tempt mums back to work rather than providing real childcare choices."

George Osborne insists the plans will give parents more choice

Parenting website Mumsnet welcomed the extra funding to help with the crippling cost of childcare but warned about a double standard.

Justine Roberts said: "There is concern that single-parent households might lose out whilst some very high earning two-parent households will benefit.

"A couple could earn £300,000 a year and still benefit. That doesn't seem sensible and is inconsistent with other cuts, such as those to child benefit and to childcare tax credit."

Meanwhile, the Resolution Foundation thinktank, which campaigns for low-income workers, warned that the extra money would mostly help higher earners.

It said 160,000 families on the bottom 40% of incomes would qualify, compared to 1.7m in the top 40%.

"It's crucial that, following this consultation, the Government adapts its scheme to help the poorest working families - the very people who find high childcare costs the biggest barrier to work," deputy chief executive Vidhya Alakeson said.

Mr Osborne insisted tax-free children would give working parents more choice and better access to the childcare they need.

The "vast majority - and I use the word vast to include virtually everyone who is going to benefit from this - are people on low and middle working incomes," he insisted.

He added: "I have huge regard for mothers who want to stay at home and look after their children, that's their lifestyle choice. I want to help those families, too, I'm not trying to be exclusive.

"We have a proposal on married couples' tax breaks which I'm going to introduce in the Autumn Statement later this year ... that will help stay-at-home mothers."

Downing Street said the measures had to be taken in the wider context of the Government's tax and benefits changes.

The Prime Minister's official spokesman said stay-at-home parents were valued and would be helped by plans for a marriage tax break and the introduction of a single-tier pension.

He defended the £300,000 threshold, saying it was easier to stick with established tax levels because it would reduce red tape.

"This is about trying making it a straightforward scheme which will give support to those families where you have got both parents out to work," the spokesman added.

Labour claimed the plans were proof that the Government is out-of-touch with parents struggling in the face of cuts and the rising cost-of-living.

"This Government has hit hard-working parents. Families with two children have already lost up to £1,500 in childcare tax credit," families spokesman Sharon Hodgson said.

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Weather Helps Economic Recovery 'Build Steam'

There is further evidence the UK's economic recovery is gathering pace following the release of a closely-watched survey for the dominant service sector.

It grew at its fastest pace in more than six years in July, according to the Markit/CIPS Purchasing Manager's Index (PMI), boosted by new orders and better weather.

The PMI has now shown growth for seven consecutive months and the latest service sector rise follows strong gains in equivalent manufacturing and construction surveys.

Taken together, the data gives the highest composite PMI since the series started in 1998, suggesting economic output from July to September is well-placed to beat the 0.6% GDP growth recorded for the previous three months.

Paul Smith, senior economist at Markit, said: "Although an early call on one month's data, the forward-looking elements from the survey point to a further strengthening of GDP in Q3 as the UK heads towards 'escape velocity' and self-sustaining economic expansion."

Construction and manufacturing are also seeing signs of better growth

Both new orders and business confidence in the services sector rose in July, with the new orders coming in at their fastest pace since November 2006.

While firms said that some of July's strength was due to unusually warm weather, overall the figures point to a very rapid turnaround for Britain's economy, which just a few months ago looked vulnerable to facing a third recession in five years.

Although Britain's economy is still 3% smaller than before the financial crisis, signs of expansion also pose a challenge for the Bank of England.

On Wednesday, new governor Mark Carney is due to say whether the bank will go ahead with a policy of 'forward guidance' aimed at keeping down bond yields while the economy remains fragile.

Some policymakers may be reluctant to make a lengthy commitment to low rates at a time when the economy may be on the cusp of a more rapid recovery.

Separate reports on Monday from the CBI business lobby group, manufacturers' organisation EEF and recruitment group Reed pointed to improvements in the economy, although "significant risks" remained.

The CBI said new orders among small to medium-sized manufacturers continued to fall in the three months to July, "disappointing" expectations for growth.

Its head of economic analysis, Anna Leach, said: "Despite another disappointing quarter for small and medium-sized manufacturers, with output continuing to fall, optimism about the general business situation has risen for the first time since spring last year.

"Firms expect demand to improve both at home and abroad and production to stabilise over the next three months but manufacturers remain concerned about the impact of political and economic conditions overseas on external demand, reflecting on-going uncertainty about the global economic outlook."

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BP Faces US Fine For 'Market Manipulation'

BP has been told it faces a fine of almost £19m for alleged manipulation of the natural gas market.

The US federal energy regulator confirmed it had ordered the company to respond to the allegations within 30 days.

The case, brought by the Federal Energy Regulatory Commission's (FERC) Office of Enforcement, claims BP manipulated the natural gas market at the Houston Ship Channel from mid-September 2008 through November of that year.  

FERC, which first raised the allegations in 2011, said the order marked the next stage in proceedings and indicated that it believed there was a case to answer.

The regulator said its Office of Enforcement alleged BP's Texas-based Southeast Gas Trading desk bought and sold physical gas at the Houston Ship Channel in a way designed to increase the value of BP's financial paper position.

The total proposed fines include a penalty of £18.2m and £520,000 in profits, plus interest, from the alleged trading scheme.

The move comes at a time when BP is fighting to improve its image in the US following the Gulf of Mexico oil disaster.

It has consistently denied any wrong-doing relating to the gas market case.

In a statement, the company's vice president and head of US communications, Geoff Morrell said the allegations were "without merit".

He added: "BP is disappointed that the FERC has brought this action and we will vigorously defend against these allegations.

"The FERC bases its allegations on a recorded two-minute phone conversation between a BP trainee and BP natural gas trader that the regulator has taken completely out of context.

"The recording does not support any allegation of wrongdoing.  In fact, the trainee involved in the conversation states that his characterisation was incorrect and the trader never agrees with nor condones the trainee's statements.

"The trader also reacts strongly to the trainee's comments and interrupts him because the trainee's comments - as the trainee admits on the call - are incorrect and inappropriate.

"The trader also promptly reported the conversation and BP's compliance personnel acted appropriately in examining the trading at issue."

FERC has been pursuing banks and other energy companies for entering loss-making trades in one market in a bid to make gains in another.

In July it settled a power market manipulation claim against JPMorgan Chase for $410m (£267m) and is seeking $470m (£306m) from Barclays over allegations of similar activities.

Barclays has said it will fight the proposed fine.

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Seaside Towns Face Poverty As Tourism Falls

By Becky Johnson, North of England Correspondent

The decline of tourism in some of Britain's once thriving seaside towns has led to poverty and social breakdown, according to a report.

The Centre for Social Justice examined problems in Rhyl, Margate, Clacton-on-Sea, Blackpool and Great Yarmouth, and discovered almost £2bn a year was spent on welfare payments to people of working age in these towns alone.

At the peak of Blackpool's popularity in the 1950s it was attracting 17 million visitors a year.

Today cafes and shops along the promenade are boarded up, despite it being the peak of the summer season.

The report found the problems began in the 1970s when the advent of cheap package holidays made foreign travel an option for millions more families.

But as holidaymakers deserted towns like Blackpool, no new industry has taken the place of tourism.

It means many in the town are unemployed or underemployed.

Neil Parkinson who runs Robert's Oyster Bar on the sea front remembers how it used to be.

"They used to come by the train load into Blackpool North station and it was a busy, busy place but nowadays with tourism and flights and everything people can go abroad as cheap as they can come to Blackpool," he said.

The report found a lack of work has led to generations of joblessness and high rates of teenage pregnancy.

It has forced houses prices down which attracts people who are looking for cheap accommodation.

Chris Hargreave has lived in Blackpool all his life and owns a gift store on the promenade.

He told Sky News: "Lots of the hotels and guest houses nowadays have been turned into houses of multiple occupancy and therefore the people that are living in them aren't spending the money because they don't have the money.

"They're on benefits and they have no money to spend in the town."

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