BUSINESS LIVE: Metro Bank secures financing lifeline; GSK agrees £2.5bn Cina vaccine deal; Croda cuts profit outlook

Nearly half of UK businesses have said the nation’s tax regime is ‘unfavourable’ and puts Britain behind China and other rivals.

Manufacturers are seeking major business reform in next month’s autumn budget – bringing the economy ‘out of its current torpor’.

The call comes as a survey published by Make UK, a manufacturing group, and RSM, a consulting firm, revealed flailing confidence in the system.

British speciality chemicals group Croda International has cut its 2023 profit, due to destocking and weak demand, particularly in its beauty care business in North America.

The FTSE 100 company said it now expects 2023 group adjusted profit before tax of £300million to £320million. It had previously forecast £370million to £400million.

Retailers selling beauty products globally have been battling weak demand for much of this year, amid a slow recovery at duty-free and travel destinations and especially in the key China market.

China’s largest vaccines company Zhifei will pay GSK £2.5billion for the exclusive rights to distribute GSK’s shingles vaccine in the world’s No.2 pharmaceuticals market.

The vaccine, named Shingrix, is GSK’s top-selling medicine. The deal with Zhifei is part of its efforts to reach more £4billion in sales by 2026, GSK said.

Zhifei will purchase volumes of Shingrix with a value to GSK worth £2.5billion over an initial three-year period, it said in a filing to the Shenzen stock exchange.

Metro Bank has secured hundreds of millions of pounds in fresh financing, with the lender declaring a ‘new chapter’ in its history and promising shareholders ‘significant’ growth ahead.

The bank told shareholders on Monday it had secured a £325million capital raise and £600million of debt refinancing, ‘enhancing balance sheet strength and accelerating earnings potential’.

It also confirmed it is in discussions regarding the sale of up to £3billion of residential mortgages, providing further breathing space on its balance sheet.

Daniel Frumkin, CEO at Metro Bank, said:

‘Today’s announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years.

‘Metro Bank made a statutory profit after tax in Q3 2023, and continues to demonstrate ongoing momentum as we strive towards our ambition to be the UK’s number one community bank.

‘Our strong franchise is underpinned by our loyal customer base and engaged colleagues and we will continue to develop the Metro Bank offer to provide the digital and physical banking services our customers expect. We thank our shareholders and noteholders for their continuing support of Metro Bank and our customers.’