Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Full year results from Barclays [LON:BARC] have been released this morning in a weighty 72 page document, but the top line looks impressive, Full year profits are £6.2billion, up from the £5.7billion seen a year ago and ahead of analyst expectations. The Return on Tangible Equity (RoTE) advanced again to 9%, still short of the 10% target and the slowing macroeconomic picture does make that benchmark look like a big ask for 2020. Dividends are advancing from 6.5p to 9p per share.
Centrica [LON:CNA] has published full year results today, with the combination of falling gas prices and the UK’s default tariff cap serving to hamper progress, despite an increase in customer accounts. Revenues are down 2% and gross margin is down 9%, presenting a statutory operating loss of £849m against last year’s £987m profit. Dividends are being culled by over half and on the basis the company cautioned over the same fundamental drags on its business when the half year report was published back in July, investors may well have been hoping for something a little more inspiring this morning.
Dominos Pizza [LON:DPZ] has announced that it intends to dispose of its Norwegian operation. The company has struggled with a number of overseas ventures, unable to match the same sales profile which it has in the UK & Ireland. The deal will however come at a price – £7m, plus the funding of any losses for the division until completion which is anticipated as taking three months. In the event Dominos shareholders don’t support the proposal, a £1m break fee will be payable. Shareholders will likely be happy to be rid of the liability, but questions will be asked over the price tag, especially if this approach is to be repeated across other loss making divisions.
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