Prudential has raised its first interim dividend by 9.3% to 6.84 US cents per share from 6.26 cents despite weak first half results, with pretax profit seeing a 66% slump to US$394m, down from US$1.18bn a year earlier. The Asia-focused insurer and asset manager said its first half new business profit was down 1% to US$1.47bn from US$1.49bn, but the FTSE 100-listed firm reported a pick-up in sales momentum in June, which it added has continued into the second half of the year. The company expects overall new business profit in 2024 to be in line with its objective for 2022-27 of a 15% to 20% compound annual growth rate. Prudential shares rose 1.3% in early trading.
John Wood Group has signed separate agreements for the sale of two businesses which together are expected to generate net proceeds of around US$165m this year. The FTSE 250-listed firm, which recently saw a takeover bid from a Saudi Arabian firm withdrawn due to market conditions, said it is selling its stake in Ethos Energy and CEC Controls. Combined the two businesses contributed US$41m to Wood's adjusted EBITDA in 2023. Wood expects net cash proceeds of around US$125m from the disposals, with the balance in loan notes of up to US$42m. Wood Group shares added 2.3% by around 9am.
Frasers Group has taken a strategic stake in Accent Group, an Australasian retail and distribution business in the performance and lifestyle market. The owner of the House of Fraser, Sports Direct and Flannels retail chains said the acquisition of the 14.65% stake will allow the company to grow its presence in Australia and New Zealand, which it added were a key part of the group’s ambition to become a leading global sports retailer. To further underpin the new partnership, Accent intends to offer Frasers the opportunity to propose a director to join its board. Melbourne-based Accent Group most recently delivered AU$1.6bn of sales from nearly 900 stores and its website. Frasers' shares were flat in early trading.
Headlines we expect on Thursday
Hunting First half results
Last time out Revenue $477.8m, EBITDA $48.7m, Interim dividend 5.0 cents
Grafton Group First half results
Last time out Revenue £1,189m, adjusted pretax profit £104.3m, interim dividend 10.0p