The insurer published a scheduled update on its bulk annuities business today, with the share price reacting favourably as a result. Annuity sales reached an all time high of £2bn and whilst the sector is performing well in general as payout rates improve off the back of higher interest rates, L&G’s numbers are running slightly hotter than the wider industry. The concept of blending an annuity and a draw down pension pot appears to be finding favour, too. Just before 9am, L&G’s share price was leading the FTSE-100, up by around 4%.
The company formerly best known for operating self-serve photo booths has now expanded into new lines including unattended laundry services. This morning they published a year-end trading update that highlighted how the company was on course for another year of record profitability, although on the basis this is in line with the expectations already set out by management, it seems as if investors had been hoping for more. On the basis that the company is highly cash generative and well capitalised, the sell off could be seen as harsh, but after a strong performance through 2024, clearly some have taken the opportunity to book profits. ME Group shares are down just over 5% in early trade.
Interim numbers were also filed from FTSE-250 listed fleet management company Zigup. Rising demand has seen fleet renewals growing the underlying asset value, but on a reported basis, revenues are down a fraction and profits have taken a notable hit. Investors appear to be focusing on this aspect, rather than the strong underlying demand, good capital position and a 6% increase in dividends. The Zigup share price was left languishing at the bottom of the FTSE-250shortly after the open, down by more than 7%.
Headlines we expect tomorrow
Balfour Beatty Trading Update
Smith (DS) Interim Results
This time last year Revenue £3,513m, Pre-tax profit £268m, Dividend 6p
