Three things you need to know in the financial markets this morning from investment writer, Tony Cross
IAG
Half-year results from IAG this morning, the holding company behind airlines like British Airways and Aer Lingus. Profitability is soaring, but there are a couple of interesting points to note. Capacity is increasing too, but passenger revenue per available seat kilometre fell by around 1.5% so margins are being squeezed. Industrial action by air traffic controllers across Europe has been damaging, but also looking at the company’s own staffing costs – up just 0.1% – may have some thinking it’s bottling up labour issues of its own.
Pets at Home
Pets at Home has a Q1 update out this morning and again it’s one of those increasingly rare stories of high street success. Group revenue is up 8% from a year earlier, with the vet business driving a disproportionate amount of growth. Full year guidance remains unchanged, but perhaps most critically, the company continues to find ways to undertake product innovation with customer-friendly solutions to the everyday responsibilities of pet ownership.
Royal Bank of Scotland
Half year results from the Royal Bank of Scotland this morning, too. The company has announced it will pay its first dividend since the financial crisis – subject to a $5 billion penalty with US regulators being agreed. Reports also suggest that taxpayers – who still own over 60% of the bank – stand to benefit from £150m of this dividend. Profits for the second quarter came in at almost £100m, well ahead of the loss that had been forecast.
