Insurers Phoenix published full year numbers this morning, with investors left cheering a number of key points. Cash generation was 10% higher than had been forecast, operating profits have grown by 13% and net fund inflows jumped sharply, too. Critically, the board also announced a transition to a progressive dividend policy, which will increase by 2.5% this year whilst new targets for mid-term performance were also laid out. Just over an hour in, the stock was leading the FTSE-100, almost 10% higher.
Another big mover on the day was pub operator JD Wetherspoon who issued interim results this morning. These notes are well known as being a platform for founder Tim Martin to share his wisdom but today’s call – suggesting that the company is worried about the risk of further lockdowns – was somewhat remarkable. Adding to the air of doom were comments that at least some inflationary pressures would persist and after booming sales last year, the pace of growth had started to moderate in early H2 trade. Early in the session the stock was trading down by around 6% at three month lows.
The specialist industrial supplier James Fisher this morning announced the planned disposal of RMSpumptools to ChampionX for £90m. Net proceeds are expected to be around £83m and funds will be used to reduce leverage and strengthen the balance sheet. With £168m of a £210m revolving credit facility drawn down as of the year end, the impact here will be meaningful. Management note this is a significant step in simplifying the portfolio and whilst this project has been running for some time, this is the largest asset disposal so far.
Headlines we expect to see on Monday
Kingfisher Final results
This time last year Sales £13.1bn, Operating profit £723m, Gross margin 36.7%
Virgin Wines Interim results
This time last year Revenue £40.6m, Inventory £10.2m, Active customers 185k, Profit £3.2m
