Chief Ken McMeikan blasted ministers for sticking by plans to slap 20 per cent
VAT on hot pies and pasties while the Eurozone teeters on the brink.
Shares have fallen 13 per cent since March when the Chancellor announced the
move, which will affect a third of Greggs’ sales.
Analysts accused George Osborne of living “in a different universe”, and said
uncertainty over whether the VAT rise will go ahead in October could hang
over the stock all summer.
Wayne Brown at CANACCORD said: “We think the shares are likely to
weaken further until the VAT issue is resolved.”
Clive Black at SHORE CAPITAL added: “We share the frustration at what
mandarins and ministers — who live and work in a different universe from
most Greggs customers — are proposing.”
Mr McMeikan is to meet Treasury officials today — as revealed by The Sun on
Tuesday.
He hopes they will accept his “Plan B” — taxing savouries put into hot
cabinets but leaving those that aren’t. But he blasted: “The country has to
try to get back to growth. There are other priorities the Government should
and needs to be looking at.”
Greggs revealed takings at stores open for more than a year fell 1.8 per cent
in the past 19 weeks.
Mr McMeikan blamed the wet weather and insisted it was a “comparatively”
strong performance.
He said: “If it’s raining and a customer doesn’t come to the high street for
lunch then a sale is lost.”
THE Government was urged yesterday to pull the plug on plans for nuclear power
plants — and join the gas “revolution”.
SCOTTISH SOUTHERN ENERGY chief Ian Marchant said he couldn’t see
why a firm would build a UK plant given the potential of shale gas drilling.
The process — in which gas is released when rock is fractured by pumped-in
water and chemicals — has seen the US go from gas shortage to glut, he said.
Mr Marchant added: “The UK can meet its energy needs already for the next ten
to 15 years.”
SSE pulled out of nuclear last September. Npower and E.ON have also shelved
plans.
SSE’s results yesterday saw annual profits, aided by a rise in hydro and wind
power output, rise 2 per cent to £1.3billion. Mr Marchant was “more
optimistic” about freezing household bills this year.
BRITISH sports car maker LOLA slammed the taxman last night as it
collapsed for the SECOND time.
Lola — famed for its T70 race cars — said a decision by HMRC to stop research
and development tax credits had hammered the business.
The firm said the economic downturn had also hit cashflow.
Lola — based in Huntingdon, Cambs — said: “It is with enormous regret a
decision has been taken to issue notices of intention to appoint an
administrator.
“This step allows the board to continue its disussions with possible investors
and purchasers.”
Lola first collapsed in 1997 after a disastrous return to Formula One with MASTERCARD.
The firm only contested one race. But last year it won two constructors’
titles in the American Le Mans Series.
BOOTS faces another backlash after it paid just £26million in
corporation tax last year.
The privately-owned chemist made £693 million for the period — up 10 per cent.
Finance chief George Fairweather insisted the tax charge was affected by the
relief Boots receives for pumping money into the staff pension fund.
He said: “Our numbers have not always been well understood.” Critics claim
Boots has used a complex ownership structure to avoid paying £500million of
tax since being taken private five years ago.
A DOT-COM entrepreneur has sold her website-making business to the company
behind YELLOW PAGES for £18million.
Wendy Tan-White — who founded MOONFRUIT in 1999 — will pocket an
estimated £7million from the YELL deal.
Her firm — the UK’s biggest website-building specialist — helps individuals
and small start-ups to go online.
Wendy — who was once forced to sack her mum and fiancé to cut costs — said:
“It feels quite extraordinary.”