City news: L’Oréal, TSB, McLaren, and Redrow

The French group is understood to have asked bankers at Lazard to review options for the business, which has been promoted by supermodel Lily Cole.

It was founded by the late environmental campaigner Dame Anita Roddick in Brighton in 1976 before being sold to L’Oréal for £652million in 2006 as it looked to tap the growing market for natural beauty products. 

Private equity suitors are thought to have expressed an interest in the chain, which has more than 3,000 stores in over 60 countries but which has underperformed compared with L’Oréal’s other businesses amid fierce competition.

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TSB to close 29 branches

TSB is closing 29 branches as more customers switch to online banking. It said all 110 affected staff would be offered roles in other nearby branches. 

Most of the closures will take place in June, leaving it with 550 branches. 

Peter Navin, distribution director at the Spanish-owned bank, said some locations serve less than 200 customers a week. He added: “We love our branches, they are an important part of what TSB is here to do. People don’t go today where they went 20 years ago. We are reacting to that with changes to our network and a major investment programme.” 

The lender is investing £250million in refits and digital services. 

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McLaren set for Sheffield move

Luxury sports car maker McLaren Automotive is to invest £50million in a new factory in Sheffield, creating 200 jobs. 

The Woking, Surrey-based company is switching production of its carbon-fibre chassics from Austria to Yorkshire, a move it said had been planned before the Brexit vote. 

Full production is due to start by 2020. Chief executive Mike Flewitt said: “We evaluated several options but the opportunity created by the Advanced Manufacturing Research Centre at the University of Sheffield was compelling. We will have access to some of the world’s fi nest composites and materials research capabilities. 

“I look forward to building a world-class facility and talented team .”

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Redrow builds up profit

Redrow shares hit their highest for over 13 months after the builder posted record half-year results. 

The FTSE 250 company’s pre-tax profit jumped 35 per cent to £140million on 23 per cent higher revenue of £739million after a 13 per cent rise in completions to 2,459, while the average selling price increased by 12 per cent to £344,000.

The company’s land bank has grown by 18 per cent to 25,300 plots. 

Chairman Steve Morgan said demand for new homes was strong across the country due to competitive mortgage rates and forecast a year of “significant progress” for the company. Shares rose 18p to 470½p.