One of the worst performers on the FTSE-100 this morning was Lloyds Bank, down around 2% in early trade after updating the market on Q1 performance. The squeeze on interest margins was notable as savers’ demands for higher deposit rates caught up with the rest of the market, leading underlying net interest income to slide by 10%. This lays out a wider challenge that the sector will face in terms of maintaining profitability especially once headline rates begin their decline.
The FTSE-250 listed consumer goods group published a Q3 trading update this morning, with the numbers presenting something of a mixed bag as the depreciation of the Nigerian Naira took a toll. The company also announced that it would sell off its St Tropez self tanning division on the basis that this will deliver best value to shareholders, whilst strategic options to reduce portfolio risk in Africa are also being explored. Shares were up by more than 5% in the first hour of trade.
And AIM listed Filtronic saw its shares rocket higher this morning after publishing both a trading update and news of a strategic partnership with Elon Musk’s SpaceX. The deal saw SpaceX order some £16m worth of kit for delivery in FY25 but also came with warrants that would allow SpaceX to take up to 10% ownership of the business. Adding to the optimism, the trading update noted that the outlook for FY24 and FY25 now exceeds current market expectations. Shares were trading up by more than 50% at 9am.
Headlines we expect on Thursday
J Sainsbury Final Results
This time last year Group Revenue £31.5bn, Pre-tax profit £327m, FY dividend 13.1p
PPHE Trading Statement
This time last year Revenue £68.8m, RevPAR £96.2 – after post-COVID bounce, can growth be sustained?
