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Hundreds of partners at KPMG UK are braced for reduced payouts as the firm postpones the release of its annual results until it has a clearer view of the impact of COVID-19 on the UK economy in 2021.
Sky News has learnt that KPMG told partners this week that results for the year to September, which were due to be published in December, would not now appear until sometime in the new year.

The delay – which makes it the second of the big four auditors to announce such a move, after PricewaterhouseCoopers did the same in August – is intended to give KPMG executives clearer visibility about the level of cash the firm needs to retain in 2021.

Track the economy’s recovery from lockdown

A KPMG UK spokesperson said: “Our business remains resilient and we are focused on advising our clients as they respond to the demands of COVID-19 and adapt their business models for growth.
“However, significant uncertainty remains about the future performance of the UK economy and in line with other businesses we are taking the prudent step to assess our first quarter’s results before we decide year-end reward.”

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A source close to the firm said it had, unlike some of its peers, pressed ahead with staff promotions, including the elevation of 38 people to its partner ranks.

In total, more than 900 people are understood to have been promoted across the business.

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Sky News revealed in April that the firm had warned partners that they would shoulder the financial burden of the coronavirus pandemic.
It told roughly 600 partners that they could see their 2020 pay packages reduced by around 25%, saying that they “will and should feel a greater impact” – while also warning that the wider workforce should expect to receive “significantly reduced…or no bonuses this year and it would be wise for people to plan for that eventuality”.
During the summer, KPMG abandoned proposals to slash the sums it pays into thousands of employees’ pension pots following the threat of legal action.

Where jobs have been lost in the UK

The firm said it had launched the pensions consultation in July as “part of a broader range of measures to reduce overall costs in FY21 and to protect jobs in an unpredictable economic environment”.
Bill Michael, KPMG’s UK chairman, has described the pandemic as “an economic disaster”.
The firm has announced a small number of redundancies and the closure of some business units.
The efforts to reduce costs come as the big four face radical reforms to their businesses, with the UK’s audit watchdog introducing a model called operational separation to segregate their audit and consulting arms.
That drive has come in the wake of accounting scandals at companies such as BHS and Carillion, which collapsed with the loss of tens of thousands of jobs.
KPMG was Carillion’s auditor prior to its demise, and is likely to face a hefty regulatory fine in the coming months as the Financial Reporting Council concludes its investigation.

The Department of Transport will provide temporary roadside toilets for lorry drivers caught short in long queues caused by Brexit border delays, MPs have been told.
Transport minister Rachel Maclean told the transport select committee that the loos would be installed on the roadside in Kent and elsewhere as part of planning for the end of the Brexit transition period on 31 December.

Cabinet Office minister Michael Gove has warned that in a “reasonable worst-case scenario” up to 7,000 lorries could face two-day delays in Kent while waiting to cross the Channel.

Image: Members of the haulage industry say delays are inevitable
The lack of roadside facilities in Kent has long been a complaint of the haulage industry and local residents.
Select committee member Karl McCartney MP said that in lay-bys in Kent “there’s a proliferation of bottles that look like they’re filled with Irn-Bru, but aren’t”.

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“We have detailed plans that we’ve worked up for provision of not only ‘portaloos’ but other facilities for drivers, not only in Kent should there be stationary traffic, but also in a range of other areas around the country,” Ms Maclean told the Transport Select Committee.

The minister said temporary outdoor shower and washroom facilities would also be provided, and would be kept open even if coronavirus closes existing service stations.

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“Drivers have got access to the full suite of facilities at existing service stations and truck stops including toilets, showers and refreshments.
“But in addition we have taken into consideration the situations where those facilities would need to be closed because of COVID.

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Brexit: Truckers permit to enter Kent

“Even in that situation we will continue to provide washroom facilities in line with Public Health England guidelines.”
Asked if she was confident that the end of transition would not see chaos on the roads in Kent, Ms Maclean warned “there will be unknown unknowns”, but said previous planning undertaken for earlier missed Brexit deadlines would help alleviate pressure.
The portable toilet plan was revealed as representatives of the haulage industry said long delays were inevitable when the transition period ends.
The industry is still waiting for the launch of software designed to handle the multiple processes that will replace the current open customs arrangements for EU member states.
There is also concern that with just 11 weeks to go coronavirus has slowed down the training and recruitment of customs agents many hauliers and exporters will rely on to navigate the new red-tape required by Brexit.

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Brexit talks in deep water over fishing quota

Asked if delays were inevitable, Richard Burnett, chief executive of the Road Haulage Association, told MPs: “My view would be yes.
“We are trying to align thousands of businesses and people all at the same time to understand the processes, and then at the flick of a switch start to manage those processes.
“If we can’t fill out the customs declaration in the first place, what does UK business do in terms of exports, what do traders do if they can’t find an intermediary or get the paperwork complete or if there are mistakes with that paperwork?
“When those vehicles are checked to see if they have got the correct paperwork are they returned in France because it’s with the vehicle but not filled out correctly?”

One of Britain’s biggest nightclub operators is seeking an emergency buyer after seeing its finances hammered by the coronavirus pandemic.
Sky News has learnt that Deltic Group, which owns the Atik and Pryzm chains, has asked the accountancy firm BDO to identify new investors who could help avert its potential collapse.

Deltic employs 2,000 people and trades from 52 venues across the UK.

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Cobra chief demands 10pm curfew is scrapped

The company is privately owned by its management team, led by chief executive Peter Marks, and a number of other individual shareholders.
Sources said that BDO had begun contacting prospective investors in the last few days, but added that the search for new funding was being undertaken at the worst possible time for the company.

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The Night Time Industries Association recently warned that 60% of the UK’s nightclubs could face closure without further government support during the next two months.

Deltic itself has begun consulting on roughly 400 job losses, with Mr Marks telling the Financial Times last month that that figure could rise to 1000

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In a statement issued to Sky News, a Deltic spokeswoman said: “The unprecedented impact of the COVID-19 pandemic on the UK’s late-night sector has been well-publicised.
“Deltic’s board of directors is working with advisers BDO to assess all options available to the company, including the possibility of bringing in new equity partners.

Where jobs have been lost across the UK economy

“Deltic also continues to participate in discussions with the government regarding potential further support for the late-night sector during this difficult period.”
Revolution Bars Group, another operator of late-night venues, said last month that it was exploring options including a company voluntary arrangement to reduce the size of its estate.
Pub operators have also begun to initiate permanent closure programmes, resulting in substantial layoffs, with the 10pm curfew having decimated trade in recent weeks.

Online fashion retailer Asos has reported a 329% rise in annual profits after sales held up thanks to demand for casual clothing and sportswear during lockdown.
Revenues rose 19% for the year to the end of August – a slight slowdown compared to the 21% growth in the first half of the year, with smart and “going out” clothes becoming harder to shift.

The group faced higher costs to implement safety measures at warehouses but saved money as “more deliberate purchasing behaviour” from customers meant fewer items were returned.

Image: Asos grew its customer base to 23 million Pic: Asos
It added up to a £45m boost to the business’s bottom line, helping pre-tax profits grow to £142m compared to £33m a year earlier.
Asos said its customer base grew by 3.1 million to 23.4 million including 7.1 million in the UK.

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But the company said its “average basket value” of purchases, while up 1% for the year, declined in the second half as “customers mixed into lower ASP [average selling price] product categories such as loungewear”.

Chief executive Nick Beighton cautioned that “life for our 20-something customers is unlikely to return to normal for quite some time” amid the pandemic.

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Shares fell 7% in early trading.
Asos had revealed slowing growth over the summer and in its latest statement said trading since the end of June had been solid but with “continued reduced demand for occasion wear”.

Image: Asos said life had changed for its key 20-something customers Pic: Asos
The company said during the year the pandemic had hit supply chains as well as causing a “dramatic shift in consumer demand”.
“Whilst demand for certain types of product, particularly occasion and formal-wear, remained constrained, we saw strong growth in casualwear and other lockdown relevant products,” Asos said.
Asos said the market for “going out” clothes had been “severely impacted by lifestyle restrictions” but it has expanded its casual wear offering to adapt to the “shift in 20-something lifestyle”.
Its sales of sportswear, driven by lockdown demand, grew by 50%.

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Changing face of retail under coronavirus

Susannah Streeter, senior investment analyst at Hargreaves Lansdown, described the results as “impressive”.
But she added: “A depressed economic outlook may push down demand to refresh wardrobes.
“With venues forced to close at 10pm and the Christmas party season cancelled, profits from party wear will be thin.
“Job prospects are uncertain for its core group of customers in their 20s and so the company will have to be very choosy about the ranges and prices it offers to maintain demand and stop returns being a major headache once again.”
Asos said in July that it would repay £1.8m claimed from government furlough schemes.

PayPal is adding a new tool that will allow shoppers to pay for goods in interest-free instalments in a boost for struggling consumers and online retailers on its payments platform.
The company said “Pay in 3” would be available for purchases between £45 and £2,000 from the end of the month.

It explained that the feature allows people to pay for items in three monthly instalments at a time when incomes are squeezed by the COVID-19 crisis.

Image: Retailers have been discounting in a bid to lure shoppers back
Under the scheme, PayPal covers the full cost of the goods for the retailer or business at point of sale, and automatically takes the payment instalments on their due date.
It said there were no charges for either the retailer or customer, though a missed payment would result in a flat £12 fee.

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The company’s UK director of enterprise accounts, Rob Harper, said: “During the coronavirus pandemic, we have seen the number of people in the UK shopping online increase dramatically.

“At the same time, many more consumers are looking to spread the cost of those purchases.”

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PayPal said Crew Clothing, French Connection, Robert Dyas and Ryman were among the chains to have signed up to date.

Where jobs have been lost in the UK

It believes the tool would be particularly helpful in the run-up to Christmas – with people reluctant to visit physical stores amid continuing coronavirus restrictions that are widely expected to continue to shift into the New Year.
The crisis has hammered the high street in particular since the lockdown that began in March.

They should be taking £80,000 at the bar at The Sandon pub in Liverpool this Saturday. 
The Merseyside derby is normally one of their busiest fixtures where the staff are flat out. On average, they drain a 176-pint barrel of beer every four minutes.

The pub stands in the shadow of Anfield stadium and holds a special place in the club’s history – the paperwork that led to the formation of the club in 1892 was signed in the bar.

Image: The back garden of The Sandon on a normal match day. Pic: The Sandon
“When you get here on matchdays you will never have experienced anything like it, it’s electric,” landlady Kate Stewart told us.
“It’s fans coming together, it’s doctors, it’s binmen, it’s so special.”

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And now they are one of the thousand or so pubs across the Liverpool city region closing their doors as the city is placed under the new Tier 3 restrictions.

“To go to bed and have a business that turns over £5m and to wake up in the morning to something that turns over nothing and is draining my bank account is absolutely heartbreaking,” Ms Stewart added.

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“It’s like a death… and there’s not even any light at all at the end of the tunnel.”
Beneath the pub there’s a rabbit warren of cellars feeding over a hundred beer pumps in The Sandon’s various bars and function rooms.
Ms Stewart is again facing the prospect of losing thousands of pounds that she has tied up in the stock.

Image: Kate Stewart says she faces losing thousands of pounds in stock
“I won’t let it go to waste – I’ll give it away if I have to,” she said.
“I have just got no goal right now. I’m a businesswoman with no business to run… I’m just dictated to by the government and COVID.”
The decision to close the doors is one that hurts, particularly when they have no faith in what the government is trying to do.
“I feel embarrassed by what the government are doing because it’s not clear, there’s no logic,” Ms Stewart said.

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“They tell you that you can go to a pub and have a pie in front of you but you can’t go to a pub and have a pint in front of you.
“It’s all a big joke and that’s why people aren’t adhering to it because they don’t believe what the government are telling them because it makes no sense.”
She continued: “We’ve got track and trace, we’ve got all the policies and procedures in place for COVID but now people will just have house parties and unregulated raves… that’s where the trouble is gonna start.
“We’ve done everything and they close us down… good luck with that as a plan.”

A month after holding its first September event for years without announcing a new iPhone, Apple has released four models in its new iPhone 12 range, all of which are 5G-compatible.
They include a new line for Apple in the iPhone 12 Mini, which measures just 5.4in from corner to corner – making it the smallest 5G device available in the world – and will retail for £699 from 6 November.

At the higher-end, there are two iPhone 12 Pro phones, with a large 6.5in display and a mammoth 6.7in display, will be available for £999 and £1,099 respectively.

Image: The new iPhone 12 range
The launch event: Here are the announcements
The iPhone 12 Pro will be available for pre-order for £799 on 16 October, on the same schedule as the normal iPhone 12, while the Max will go out on the same schedule as the Mini.

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All four of the devices share a new design including a more squared edge, similar to the iPhone 4 and 5, but with edge-to-edge OLED displays and a notch at the top for Face ID.

Both of the the iPhone 12 Pro phones have some of the most advanced features which Apple has designed in a smartphone, with the iPhone Pro Max being able to record video in Dolby Vision HDR, 4K and 60 frames per second.

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Apple is also including a LIDAR system previously used in the iPad Pro to enhance the iPhone 12 Pro Max’s augmented reality features. The laser system measures depth, allowing the phone to calculate the relative size of an environment just by scanning it.
The rear cameras on the Max are a big selling point for Apple, which said they allowed the phone a 5x optical zoom and worked with the device’s A14 bionic chip and LIDAR sensor to make the device suitable for professional photography and cinematography.
The A14 was first released in the iPad Air 4 back in September, when Apple described it as “by far the most advanced we’ve ever made” including transistors so small they “challenge the laws of physics” with about 11.8 billion on a single chip.
“We’re talking about a scale so small, they’re measured in atoms,” Apple said.

Image: The iPhone 12 compared with the iPhone 12 Mini
The company confirmed that these new iPhones would be shipping without headphones or plug adapters as part of its mission to be 100% carbon neutral across its entire business, instead just including a USB-C to Lightning cable.
Apple claimed the change cuts over two million metric tons of carbon emissions annually, partially due to how much smaller the box is, thus taking up less space when being shipped.
Apple also announced a new HomePod Mini, a smart speaker competitively priced at £99 to compete with the Google Nest Audio device and the Amazon Echo (both £90), which is released alongside the iPhone 12 Mini and Max in November.

Audioboom, the London-listed podcasting group, will on Wednesday announce a multi-million pound fundraising after deciding to call off a long-running auction.
Sky News has learnt that Audioboom Group, which counts the wealthy property entrepreneur Nick Candy among its major shareholders, has agreed to sell a 10% stake to an Asian-based investor.

City sources said the stake was being placed with One Nine Two, a Singapore-based company focused on technology-oriented growth companies.

Image: Audioboom wants to invest in its stable of original content which currently includes contributions from Sue Perkins
They added that Peter Antonioni, the controlling investor in One Nine Two, was paying 225p-a-share for the Audioboom holding – a premium of more than 20% to Tuesday’s closing price of 177.5p.
The deal will raise roughly £3m for Audioboom, which plans to invest the proceeds in developing original content as it moves towards a breakeven position in early 2021.

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The placing comes eight months after Audioboom was effectively put up for sale as part of a strategic review aimed at identifying opportunities to accelerate its growth.

Audioboom has a market capitalisation of just £24m, making it a minnow by stock market standards, but board members believe it is substantially undervalued by the public markets as advertisers shift more of their spending to podcasting platforms during the coronavirus pandemic.

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Image: Nick Candy is among Audioboom’s investors
The company’s array of podcasts include content from The Spectator magazine, the former rugby player Lewis Moody and Sue Perkins, the broadcaster.
In total, it has more than 13,000 ‘content channels’, which are listened to more than 60m times every month.
The sale process is understood to have drawn interest from a number of multinational media companies, but did not yield a firm offer at a price that was attractive to directors or shareholders, according to insiders.
In February, Audioboom announced that it had secured a $4m loan from a vehicle owned jointly by Candy Ventures and Michael Tobin, the podcaster’s chairman.
Mr Tobin transformed Telecity, a data centre operator, into a multibillion pound company, before stepping down in 2014.
The company said in July that half-year revenues had increased by 20% to $11.8m, which it said represented an outperformance compared with the US podcasting industry.
The latest developments come more than two years after Audioboom came close to collapse following the abandonment of a £130m reverse takeover of Triton Digital, an American rival.
Many media analysts believe that the podcasting sector has begun a long-term phase of rapid growth amid shifting media consumption habits.
Earlier this year, Spotify bought The Ringer, a sports podcaster boasting more than 100 million monthly downloads.
Audioboom could not be reached for comment on Tuesday evening.

Ireland’s new coalition government unveiled its first Budget in Dublin today, spending heavily with borrowed money to combat the pandemic’s economic damage, and the threat of a no-deal Brexit.
The total package of €17.75 billion (£16.1bn), described by the country’s finance minister Paschal Donohoe as “unprecedented in its size and scale” and the largest in the country’s history, will include a €3.4bn national recovery fund to tackle the two main threats.

An extra €4bn will be given to the country’s health system to continue tackling the pandemic, including the provision of extra beds, PPE and testing.

Image: Hospitality will benefit from a VAT cut through 2021 but that will not help Dublin’s drink-only bars yet as they remain closed
Mr Donohoe told the Dail (Irish parliament), sitting in the Convention Centre Dublin for social distancing reasons, that Budget 2021 was framed on the assumption that there would be no trade deal between the UK and the EU, and that there would be no “broadly available” COVID-19 vaccine in the coming year.
The stark nature of his message was underlined by a forecast for a deficit of €20.5bn for 2020, along with the loss of 320,000 jobs by the end of the year, although the government expects a recovery of some 155,000 jobs in 2021.

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The staggering cost of the pandemic was underlined when the minister said the total value of COVID-19 support measures so far amounted to €24.5bn.

Among the main Budget 2021 measures:

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A €3.4bn recovery fund
An extra €4bn for the health service
An extension of Ireland’s COVID wage subsidy scheme for employees
A new support scheme for businesses closed by coronavirus restrictions
No changes to income tax
VAT for the hard-hit hospitality sector will be reduced from 13.5% to 9% from 1 November
Carbon tax to increase by €7.50 per tonne a year
Petrol and diesel duties will increase
A pack of cigarettes increased by 50 cents taking the cost to €14

Image: Ireland has enforced some of the toughest coronavirus restrictions in Europe to limit the pressure on its hospitals
There were no major surprises in the budget, much of which had been widely flagged in advance.
Mr Donohoe said that Ireland would prevail, and closed his speech with a quote from the poet Seamus Heaney: “If we winter this out, we can summer anywhere.”

PerfectHome, the online rent-to-own retailer which became Britain’s biggest following the collapse of BrightHouse earlier this year, is being put up for sale by its hedge fund owner.
Sky News has learnt that an affiliate of Elliott Advisors, which has owned Perfect Home since 2018, has kicked off an auction of the chain.

The auction comes seven months after BrightHouse became one of the first corporate casualties of the coronavirus pandemic.

Image: BrightHouse collapsed in March
Its demise cost 2,400 employees their jobs and triggered the closure of 240 shops around the country.
PerfectHome is an online-only business, with its entire store network now closed, and employs roughly 180 people.

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The company lends money to consumers to finance purchases of furniture and electrical goods, allowing them to repay in weekly instalments.

It is understood to have a customer base of roughly 30,000.

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Sources said that PerfectHome was close to launching a cash loan product to some of its customers, a move that they added could make the business more attractive to potential buyers.
Elliott had been a lender to the company before it ran into trouble in 2018, eventually taking outright control of it.

Where jobs have been lost in the UK

The hedge fund is one of the world’s most feared activist investors, and in recent times has acquired small stakes in companies such as Saga, the travel and insurance provider, and Hammerson, the shopping centre owner.
Through its private equity portfolio, it owns companies including Waterstones, the books retailer.
The rent-to-own sector forms part of a high-cost credit industry which has seen its wings clipped by City regulators in recent years.
Another retailer, Buy As You View, collapsed in 2017.
KBW, the investment bank, is handling the sale process.
A spokesman for Elliott declined to comment.