Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Pre-tax profits up at AO World, confident outlook
AO World [LON:AO.] issued full year results this morning with revenues up 11% and pre-tax profits some 16% higher. Shareholders are set to benefit from a £10m special dividend plus a £10m share buyback. Whilst management acknowledge the challenge posed by the underlying economic climate, there’s confidence that owing to the non-discretionary nature of many purchases from the company, FY27 pre-tax profits remain on track.
2. Speedy Hire sees market share gains but profits hit
Speedy Hire [LON:SDY] has issued full year results this morning noting market share gains and good momentum being maintained into the new year despite the uncertain economic backdrop. However, looking into the detail that still translates into a 0.1% drop in revenues and the £13m operating profit of a year ago has flipped to a £13m loss, with the increase in UK employment costs playing a not-insignificant role here. The dividend is being cut by 60% in line with previous guidance.
3. Rathbones share buyback launched following Monday’s sell-off
The Rathbones [LON:RAT] share price took a hammering on Monday after news that it was suspending some activities but management are clearly seeing value at these levels, announcing a planned £20m share buyback. Purchased shares will be cancelled.
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In case you missed it
We start with Halma which has seen its shares slide despite posting some decent numbers. We take a look at the reasons behind the sell-off and why it looks overdone.
Rathbones hit the headlines on news that it has set aside £60m to address shortcomings identified in a regulatory review of its wealth management operations.
And are investors reverting to a tried and tested strategy in the bond market, where they are paid primarily to wait, not to speculate on price appreciation?
