Full year earnings from Marks & Spencer this morning gave the market something to cheer as the company reported a 58% jump in pre-tax profits, market leading volume growth in its food business and strong returns from store rotation and renewal. The return in capital employed advanced from 10.6% to 14.1% and shares are up by almost 9% in the first hour of trade.
Full year results from the industrial and electrical products distributor RS Group received a rather less impressive reaction from the market after margins were squeezed significantly. Management note that demand is stabilising but remains subdued and as a result they are focusing on improving operational efficiencies and leverage. However despite maintaining the dividend, it’s clearly rattled shareholders and although those early losses of more than 9% have abated a little, the stock remains at the foot of the FTSE-100.
The fashion retailer has been struggling of late but shares jumped 270% this morning following yesterday afternoon’s news of restructuring to avoid administration and also that the company was planning to delist from the London Stock Exchange, moving over to the JP Jenkins matched bargain facility. The news will also have resulted in the likely covering of outstanding short positions by those banking on the company’s demise.
Headlines we expect on Thursday
National Grid Final Results
This time last year Operating profit £4,879m, Dividend 55.44p
Wizz Air Final Results
This time last year Passengers carried 51m, Revenue €3896m, Reported loss €535m
