The merchant bank published interim results today and made only limited reference to the FCA’s ongoing investigation into car financing, something that could result in hefty penalties being levied against the organisation. However, a sharp recovery in profitability after write downs at this point year ago appear to have offered investors some reassurance, as has the falling default rate. It’s worth noting that profitability for H1 FY22 was even more impressive but regardless the update has enthused the market with the stock adding more than 11% in early trade.
Interims were also published by the UK’s leading furniture retailer DFS this morning but investors were ready to take a more critical view of the situation here. Sales were down by 6% and although margin and market share improvements had been seen, consumer uncertainty continues to weigh. The full year outlook has been trimmed as a result and that’s seen the share price slide by around 6% in the first hour of dealing.
The consumer goods giant Unilever issued a note this morning advising that it would be accelerating its growth action plan, splitting out its ice cream business and launching a what it termed a major productivity programme. A full demerger of the ice cream unit is seen as being the most likely outcome, with completion expected by the end of 2025. This in turn is set to free up management time and capital resource to focus on other key areas of the business. The note adds that post-separation, Unilever will aim to deliver mid-single digit underlying growth and modest margin improvements. Shares were topping the FTSE-100 in early trade, up by more than 4%.
Headlines we expect to see on Wednesday
Computacenter Final results
This time last year Gross invoiced income £9,052m, Pre-tax profits £249m, FY dividend 67.9p
Prudential Final results
This time last year Profit $1,007m, FY dividend 18.78c
