Mobile network giant Vodafone (VOD) posts a €6.1bn loss for the year to 31 March 2017 but management have moved to reassure investors about the future. And investors seem to like what they read, the share price up 2.5% in early trading to 216.25p to head the Foosie leader board. The group is expecting sales to grow and free cash flow to rise to around €5bn in the next 12 months. ‘Our confidence in the outlook is demonstrated by another 2% increase in our dividend,’ CEO Vittorio Colao says.
UK budget airline EasyJet (EZJ) reports a bigger-than-expected loss in the first half of the year of £212m, though it still expects to meet full-year targets due to strong cost control. The market is less certain, marking the stock 3.6% down to £12.63, among the biggest FTSE 100 faller early on Tuesday.
Banking group HSBC (HSBA) has settled claims by a group of US bondholders that it conspired with rivals to rig the Libor benchmark interest rate, according to reports. But that makes precious little difference to the share price, the stock barely moving at 686.9p.
Mining group BHP Billiton (BLT) calls the latest salvo from Elliott Management disappointing, according to reports. The activist investor claims that the company refuses to open up to new suggestions for value creation. Elliott is calling for increased shareholder pressure for strategic changes at BHP including implementing an independent review of the mining giant's petroleum business. BHP’s share price remains flat at £11.89.
Bread and bakery goods suppliers Premier Foods (PFD) posts lower sales and earnings on Tuesday citing tough trading conditions, but it returned to profit in the full financial year to 31 March 2017. Premier Foods has struggled for two years, posting pre-tax losses in both 2016 and 2015.
There’s also an important change in strategy unveiled which will see the group focus more on cost efficiencies and cash generation, but investors seem little moved, the shares nudging a little more than 1% to 43.5p. Overall, the London market starts Tuesday on up with the benchmark FTSE 100 index making rough 20 point, or 0.26%, gains to 7,454 levels.
The pound rose against the dollar in early trading on Tuesday, up 0.19% to $1.292.
Oil also remains in positive territory and Brent crude increased by 1.7% to $51.71. Crude prices gained on Monday as Saudi Arabia and Russia agreed to extend daily output cuts into 2018.
Exhibitions business ITE (ITE) slumps 5% to 167p despite showing its first full year of revenue growth in three years. But investors zone in on poor profitability, with headline pre-tax profits falling from £19m to £15.4m. The company has also unveiled a three-year strategic plan designed to build a scalable platform and drive organic growth.
IT systems and services reseller to retailers and manufacturers K3 Technology (KBT:AIM) collapses as it posts another profits alert. Delays to large contracts continue to trip up the business. Shares in the company crash nearly 40% to 152.5p, valuing the business at barely £55m.
