Full year numbers are out from the consumer goods company PZ Cussons this morning. Revenues were down by almost 20%, operating profit was squeezed by a similar amount and margins slipped 20bps, too. Working on statutory measures the situation was even worse. The dividend is being close on halved, with the impact of the devaluation of the Nigerian currency again being singled out here. Notes that the current year has started well are however failing to impress, with Naira volatility set to remain an issue for some time yet. Less than an hour into the day and shares in PZ Cussons were trading 14% lower.
The insurer issued an update this morning announcing that it had agreed the sale of UK housebuilder CALA for £1.35 to a consortium of private equity backers. L&G took full ownership of CALA in 2018 when it was valued at £605m which gives a CAGR of around 14% so it’s difficult to see the deal as not having delivered value over time. Regardless investors have been less than welcoming of the news with L&G’s share price sliding around 2% in early trade to sit at the bottom of the FTSE-100.
The £500m market cap AIM listed Advanced Medical Solutions published interim results this morning. The company, which makes tissue healing technologies, reported both revenues and adjusted pre-tax profits as rising 8%. The dividend is up 10%, reflecting the upbeat assessment from management that the company is on track. Investors are happy to look beyond the modest drop in net cash and the AMS share price was up by as much as 10% in early trade, but had given back some of those gains by 9am.
Headlines we expect on Thursday
Next Interim Results
This time last year Sales £2638m, Pre-tax profit £420m, Full price sales +3.2%
Ocado Trading Update
This time last year Q3 Revenue £570m, Average basket £120.72, Average basket size 44
