Cashing in: Paul McGowan

Wilko’s administrators have defended the controversial role of Hilco, the vulture fund that swooped on the stricken discount retailer shortly before its collapse.

Hilco Capital loaned £40 million to Wilko and also acts as the liquidator of its stock, which has led to accusations of conflicts of interest.

Specialising in retail, Hilco has been on hand to help administrators with some of the UK’s most high-profile company failures, including at Woolworths, BHS and Debenhams.

It also owns DIY chain Homebase and the Denby pottery business after buying them when they ran into trading problems.

The business model has proved highly lucrative for the firm’s Belfast-born founder, Paul McGowan.

Hilco paid out dividends totalling £13.5 million in the past two years, most of which will have gone to him as the largest shareholder.

Wilko took the £40 million loan in January. That gave Hilco a seat at the top table of creditors and means the restructuring firm is likely get all its money back, unlike some others who are also owed large sums.

It is also in line to net chunky fees for advising administrator PricewaterhouseCoopers in valuing and selling off Wilko’s wares.

The GMB union, which represents some of the 12,500 workers facing redundancy, has raised concerns about a potential conflict of interest.

‘It’s clearly not right if a company owed money is also advising the administrators,’ said national officer Nadine Houghton. ‘In fact, it stinks.’

Hilco has a long history of making money from the High Street’s terminally ill and walking wounded.

The firm was set up by McGowan and former Harrods boss Paul Taylor in 2000 as the London arm of the US restructuring firm of the same name.

Homebase repaid a £132 million loan to a parent company ultimately owned by Hilco after receiving millions in state aid in the form of furlough money and business rates relief during the pandemic.

The DIY chain also handed more than £3 million in consultancy fees to Hilco firms, according to recent accounts. Hilco’s latest target is Superdry, the struggling fashion retailer. It has borrowed £25 million from Hilco – at the eye-watering rate of 10.5 per cent above the Bank of England base rate, currently 5.25 per cent. That means Superdry will pay almost 16 per cent interest on any cash it draws down.

The bumper paydays enjoyed by Hilco’s bosses contrast starkly with the uncertain future facing Wilko’s 12,500 staff and members of its pension fund, who risk losing some of their retirement benefits because the scheme has a £56 million hole.

As The Mail on Sunday recently revealed, the founding Wilkinson family paid themselves £77 million in dividends over the past decade – including a £3 million payment out of reserves last year as the loss-making chain headed towards the rocks.

But as Hilco’s dual role as lender and stock liquidator comes under more scrutiny, calls are growing for more regulation of the insolvency industry.

Last night PwC defended its role in hiring Hilco, saying its job was to get ‘the best outcome for creditors as a whole’.

‘Crucially, stock agents report to the administrators… we are responsible for all decision-making in pursuit of our statutory duties,’ it said.

Hilco was contacted for comment.

Rolls-Royce is finally closing in on pre-lockdown levels as its stellar run this year continues.

The FTSE 100 jet engine maker’s stock has more than doubled so far in 2023 and rose another 0.7 per cent, or 1.6p, to 227.4p yesterday.

That put shares within a whisker of the 240p they were trading at in February 2020, shortly before the UK went into lockdown.

Its recent gains have been driven by hopes that it is finally turning the corner following several years of challenges. A large part of Rolls’ revenue stream is based on how many hours its engines fly.

Business has been boosted by the post-Covid surge in international air travel alongside increased defence spending amid heightened geopolitical tensions.

Revving up: Rolls-Royce’s stock has more than doubled so far in 2023

A mixture of price rises, cost-cutting measures and the disposal of non-core assets has also put the company in a healthier position. This year’s share price rally has been a victory for Rolls boss Tufan Erginbilgic, who described the firm as a ‘burning platform’ shortly after he took over in January. 

Attention should now turn to the group’s capital markets day on November 28 when the next steps in its transformation plan are laid out.

But before then, Erginbilgic will have to deal with his name being among those tipped to replace BP’s Bernard Looney, who resigned this week amid revelations over his personal relationships with colleagues. Erginbilgic was a high-flying executive at BP before joining Rolls.

Such chatter has set tongues wagging in the City.

One analyst said: ‘I think Tufan is better served delivering his turnaround ambitions at Rolls. The turnaround cannot be simply a one-year performance improvement. It needs to be sustainable for Tufan to truly leave his legacy as having turned around the company.

‘Jumping off now and declaring victory at Rolls seems premature.’

Russ Mould, investment director at AJ Bell, pointed out that the average FTSE 100 boss’ tenure is 5.7 years for the current crop of members.

‘I am sure that shareholders will be looking for at least that from Mr Erginbilgic, given the promising start,’ he said.

The FTSE 100 rose 0.5 per cent, or 38.3 points, to 7711.38 and the FTSE 250 lost 0.6 per cent or 109.93 points to 18789.77.

Fresh economic data out of China showing that its factory output and retail sales grew at a faster pace in August helped to lift Asia-focused stocks.

Burberry, which entered China in 2010 and now has more than 65 stores alongside over 1,000 employees in the country, added 2.2 per cent, or 46p, to 2158p. Spire Healthcare, the UK’s only listed private hospital group, made gains after Barclays raised its target price by 5p while JP Morgan added 31p. The mid-cap firm said on Thursday it is cashing in on strong demand from both the NHS and private clients. Shares rose 2.1 per cent, or 4.5p, to 221.5p.

Hipgnosis Songs Fund came under further pressure a day after the music investor announced it will sell some of its catalogues, including hits by pop star Shakira and rapper Nelly, for £370m.

Having lost 6.5 per cent on Thursday, shares sank another 7 per cent, or 6.1p, to 80.9p yesterday.

Safestore sank after HSBC trimmed its target price from 770p to 760p. That sent shares down 3.8 per cent, or 31.5p, to 794p – taking losses for the year so far to 15 per cent.

Malcolm Wall, chairman of Eagle Eye Solutions Group, whose platform runs promotion schemes for the likes of JD Sports (down 0.7 per cent, or 1p, to 139.65p) and Pret A Manger, is stepping down after seven years following the annual general meeting in November. Shares edged up 0.5 per cent, or 2.5p, to 545p.

Obesity and alcohol are fuelling a worrying rise in cancer among the under-50s, a study suggests.

The number of cases among younger cancer patients has soared by 79 per cent in the last three decades, research found.

The growth is particularly prominent among wealthy countries like the UK, suggesting lifestyle factors are largely to blame.

Researchers analysed data from the Global Burden of Disease 2019 Study for 29 cancers in 204 countries and regions.

They looked at new cases, deaths, health consequences and risk factors in people aged 14 to 49, estimating an annual percentage for each year.

Scientists say genetics play some part in the rise of cancer rates but point to lifestyle factors as a contributor. They say high salt diets, tobacco and alcohol are the main risk factors underlying the most common cancers among the under 50s

10-year cancer survival rates for many common cancers have now reached above the 50 per cent mark, and experts say further improvements could be made in the next decade

In 2019, there were 3.26 million new cancer diagnoses for under-50s, an increase of 79.1 per cent since 1990.

The biggest increases were among prostate and windpipe cancers, rising by 2.28 per cent and 2.23 cent per year respectively – or more than 66 per cent since 2019.

Breast cancer made up the largest proportion of cases – 13.7 per every 100,000 people, according to the findings published in the BMJ.

Scientists said that while genetics are likely to play a part, lifestyle factors were also contributing.

Diets high in red meat and salt, and low in fruit and milk alongside alcohol consumption, tobacco use, physical inactivity and high blood sugars are the main risk factors underlying the most common cancers among the under 50s.

Around two-thirds of adults and 1 in 3 children are overweight or obese by the time they leave primary school, some of the worst rates in the world.

While the level of progress for cancer survival for some forms of the disease has been rapid, such as for breast and prostate cancers, others, like those for lung and pancreas have only improved at a snail’s pace

But Dr Xue Li, of the University of Edinburgh’s Usher Institute who led the study, said while early-onset cancer in the UK showed an upward trend from 1990 to 2010, the overall incidence rate remained stable from 2010 to 2019.

She said: ‘Fortunately, the annual mortality rate from early-onset cancer in the UK has been steadily decreasing, a testament to the outstanding cancer screening and treatment efforts over the past three decades.’

It comes after the charity Cancer Research UK claimed advances in cancer care have helped save 1.2 million lives in the UK since the mid-1980s.

The figure includes an estimated 560,000 fewer lung cancer deaths, 236,000 deaths from stomach cancer, 224,000 bowel cancer deaths and 17,000 breast cancer deaths.

Dr Claire Knight, senior health information manager at Cancer Research UK, said: ‘It’s not fully clear what is driving the rise in early-onset cancers, but exposure to risk factors in earlier life, better detection of cancer and genetics might all play a part.’

She added: ‘We need more research to examine the causes of early-onset cancer for specific cancer types, like our BCAN-RAY study that is looking at new ways to identify younger women at higher risk of breast cancer.’

Scientists have devised a list of risk factors for dementia and developed a tool which can ‘strongly predict’ whether a person will develop the condition in the next 14 years.

Experts from the University of Oxford devised a list of 11 factors that were found to assess with good accuracy whether or not middle-aged people would go on the develop the condition.

They examined data on more than 200,000 people aged 50 to 73 taking part in two major long-term British studies.

Researchers compiled a list of 28 known factors linked to dementia risk and then whittled them down to the strongest 11 predictors.

The factors include age, education, a history of diabetes, a history of depression, a history of stroke, parental history of dementia, levels of deprivation, high blood pressure, high cholesterol, living alone and being male.

Scientists have devised a list of risk factors for developing  dementia later in life and one of them is living alone (stock photo)

The team also examined these risk factors alongside whether or not people carried a specific gene – the APOE gene – which is also linked to dementia.

Combined, these were used to develop the UK Biobank Dementia Risk Score (UKBDRS) – APOE tool.

They discovered the tool produced the highest predictive score for people who went on to develop dementia over the 14-year course of the study.

For example an older male with a history of diabetes, who lives alone, has high blood pressure and the APOE gene, would have a higher risk score compared to a younger woman with none of the other risk factors listed.

The authors said the assessment ‘significantly outperforms’ similar other risk assessment tools currently available.

As well as identifying those at risk, these tools can also highlight preventative measures people can take while it is still possible.

The academics point out previous work which suggests that up to 40 per cent of dementia cases could be prevented through modifying certain lifestyle factors including stopping smoking, reducing high blood pressure, losing weight and reducing alcohol intake.

They suggest that the new tool could, in the future, be used as an initial screening tool for dementia to put people in ‘risk groups’.

Those who come back with a high probability of developing dementia, according to the risk score, could be prioritised for further tests including cognitive assessments, brain scans and blood tests.

Associate professor Sana Suri, co-lead author from the University of Oxford, said: ‘It’s important to remember that this risk score only tells us about our chances of developing dementia; it doesn’t represent a definitive outcome.

‘The importance of each risk factor varies and given that some of the factors included in the score can be modified or treated, there are things we can all do to help reduce our risk of dementia.

‘While older age – 60 and above – and APOE confer the greatest risk, modifiable factors, such as diabetes, depression, and high blood pressure also have a key role.

‘For example, the estimated risk for a person with all of these will be approximately three times higher than that of a person of the same age who doesn’t have any.’

‘Jewel in Britain’s crown’: City minister Andrew Griffith

The number of jobs in the UK financial services industry has hit a record high – in a sign that much of the gloom about the sector has been misplaced.

City minister Andrew Griffith said it showed the industry was ‘a jewel in Britain’s crown that even the doomsters cannot deny’. 

Office for National Statistics (ONS) figures last week showed the number of jobs in financial and insurance activities hit 1.235m in the first quarter of the year – 34,000 more than at the end of 2022.

It was above a previous peak of 1.209m in 2008 and is the highest since comparable ONS figures began in 1978. Jobs in the sector have increased despite gnashing of teeth over the City’s future after Brexit.

And more recently there has been much soul searching over the UK losing companies such as chip designer Arm to New York – prompting reform efforts in Whitehall and the City. Yet the UK continues to more than hold its own against European rivals. Figures from the end of June show the total market value of firms listed in London at £4.7 trillion compared with £3 trillion for rival Paris.

And there has been an increase in jobs since the pandemic – up by 119,000 since the third quarter of 2020.

Britain demonstrated its attractiveness as a global financial centre in June when US venture capital giant Andreessen Horowitz said it would open its first international office in the UK.

Griffith told the Mail: ‘Our vision for Britain as the most open, innovative and competitive financial centre in the world is bearing fruit.’

He said the UK had ‘seized the opportunities of Brexit’ through laws which will help unlock billions in investment. He added: ‘Our financial services industry is a jewel in Britain’s crown that even the doomsters and armchair generals cannot deny.’

Efforts to reinvigorate the City’s status as a financial centre have been under way in recent months. Listing regulations are being tweaked while the Government changed rules to unlock more of the trillions of pounds held by UK pensions and insurance firms.

City of London figures show financial services produced £193billion in economic output in 2022.

Heavy rain battered the High Street last month and washed away demand for summer staples from bikinis to barbecues.

In a bleak update, the Office for National Statistics said retail sales fell 1.2 per cent in July, far worse than the 0.5 per cent slide expected by analysts.

The slump on the High Street came as the FTSE 100 index fell 0.7 per cent, or 47.48 points, to 7262.43, rounding off its third week of losses in a row.

Investors have been spooked by a cocktail of worries about the global economy, including rising interest rates and a slowdown in China where the debt-riddled property sector is creaking. Richard Hunter, head of markets at Interactive Investor, said the ‘list of concerns’ facing investors shows ‘little sign of abating’.

Despite a heatwave in Europe, the UK endured its wettest July since 2009, and the sixth wettest on record since 1836.

Washout: Despite a heatwave in Europe, the UK endured its wettest July since 2009, and the sixth wettest on record since 1836

The wet weather and online promotions meant the proportion of sales made via the internet grew from 26 per cent in June to 27.4 per cent in July, the highest level since February 2022. There was a 2.6 per cent fall in retail sales volumes at the big supermarkets. While part of this was because of a drop in food sales, much of it was due to a fall in sales of other merchandise, particularly clothes.

ONS deputy director for surveys and economic indicators Heather Bovill said: ‘Retail sales fell sharply in July as poor weather impacted most sectors. It was a particularly bad month for supermarkets as the summer washout combined with the increased cost of living meant sluggish sales for both clothing and food.

‘Department store and household goods sales also dropped significantly.

‘The wet weather did mean a good month for online retailing, as discounting plus consumers shopping from the comfort of their homes boosted sales.’

The update came on another grim day for investors as the Footsie clocked up its third week of losses in a row. The slump in London has been echoed across Europe and Asia as well as on Wall Street as concerns over higher interest rates, a slowdown in China and global recession wreak havoc on financial markets.

Bond yields in the UK hit a 15-year high this week while in the US they are at levels last seen 16 years ago amid warnings that stubbornly high inflation will require interest rates to stay elevated for longer than previously thought.

Rates in the UK – which have already been increased from 0.1 per cent to 5.25 per cent in just 21 months – are set to hit 6 per cent by the end of the year and remain there until the second half of 2024.

That could prove to be a further headache for Rishi Sunak and the Conservatives should there be an autumn 2024 election. There was some respite yesterday as UK bond yields eased slightly after the slide in retail sales.

But it was not enough to suggest the Bank of England will pause its interest rate hiking cycle any time soon despite fears rising borrowing costs could tip the economy into recession.

The moribund German economy – which has been dubbed ‘the sick man of Europe’ – has already been hit by recession.

By contrast, the US economy continues to defy expectations despite higher borrowing costs, and the US Federal Reserve this week warned of ‘significant upside risks’ to inflation.

It was seen as a sign further rate hikes may be required, with investors also scaling back bets on rate cuts next year.

Jason Da Silva, director of global investment strategy at Arbuthnot Latham, said stock markets were paying the price for bond yields soaring.

‘The bond yields are saying you are probably going to have to keep rates higher for longer, and if growth starts to really pick up again, we might need to tighten further and stock markets are not liking that,’ he said.

The ructions on financial markets have spilled over into cryptocurrencies with bitcoin tumbling 10 per cent this week towards $26,000.

Attention will turn to the annual meeting of top central bankers in Wyoming, next week with investors set to scrutinise a speech by Fed chairman Jerome Powell on Friday for clues on the outlook for interest rates.

Russ Mould, investment director at AJ Bell, said: ‘Whether it’s the brewing crisis in the Chinese property market, the surge in US bond yields on fears rates will stay higher for longer or the big drop in UK retail sales, things are starting to look a bit ugly out there.

‘The Footsie is demonstrating all the pep and get up and go of a teenager at 8am on a school day.’

Pandora said scrapping the tourist tax would be a salve for the High Street as it battles the cost-of-living crisis and train strikes.

Rasmus Brix, the jeweller’s general manager for the UK & Ireland, said the firm was ‘missing out’ due to the absence of VAT-free shopping for visitors to the UK.

Prime Minister Rishi Sunak faces mounting pressure to reintroduce the tax-break, which he scrapped in 2021.

Tax blow: Rasmus Brix, general manager for the UK & Ireland at Pandora, said the charm-bracelet maker was ‘missing out’ due to the absence of VAT-free shopping for visitors to the UK

More than 350 business leaders have backed the Mail’s Scrap the Tourist Tax campaign. 

Brix told The Mail that scrapping the tax ‘could offer a significant boost for the retail sector and the economy as a whole’. He added it would help to ‘offset some of the disruption we’re seeing as a result of the weather, cost-of-living and ongoing train strikes’.

If tourists could benefit from a 20 per cent refund on their purchases, they would spend more on their average purchase and opt for more expensive jewellery, he said.

Pandora said global sales between April and June were 5 per cent higher than a year earlier.