Thursday morning business bulletin

May 8 2008 By Andrew Mernin

Fashion chain Next today said the warmer weather had boosted trading as it looks to recover from a difficult start to the year.

Like-for-like sales at its retail stores fell 8.9% in the 13 weeks to April 26, although Next said the sales had ``picked up markedly" since then.

Despite the weather-related improvement, Next said it remained cautious about the outlook.

It told shareholders: ``Financial pressures on our customers resulting from cost increases in food, fuel, mortgage repayments and taxation look set to continue."

Unilever today said underlying sales rose 7.2% at the start of this year after the company acted to recover sharply higher costs.

The consumer products firm, which makes Hellmann’s mayonnaise and Dove soap, said more than half of the first quarter increase - 4.8% - came from price hikes. It is the fifth quarter in a row that Unilever has posted sales growth in excess of 5%.

As well as strong trading in emerging markets and Russia, Unilever said demand held up well across most of Western Europe, including the UK. It is now looking for group-wide underlying sales growth in 2008 to exceed its previous target range of 3% to 5%.

More Than insurer Royal & Sun Alliance today reported an 8% rise in first quarter personal insurance business as it drove through premium hikes for motor and household insurance cover.

The group, which is changing its name to RSA later this month, said it had seen personal insurance premiums increase to £265 million thanks largely to its More Than subsidiary.

RSA said premium rates had increased by 5% for personal motor insurance and by 4% for household cover, but said customers chose to stay with the group despite the higher renewal costs with a retention rate of more than 80%.

It added that partnerships with corporate clients to provide "white label" insurance products had also contributed to the premium growth, with total UK net premiums up 3% to £661 million in the first three months of the year.

The pound at 9am was US$1.9518 compared to US$1.9518 at the previous close while the euro at 9am was £0.7855  compared to £0.7876 at the previous close.