There’s a statement from regulator Ofgem this morning that is proposing a new pricing framework for gas and electricity pricing from 2021. It’s going to limit the returns that can be made by companies operating in this sector and it will result in £5 billion worth of savings for consumers over its first five years. The headline figure may be impressive but that equates to about £20 per customer per year. It’s hard to see this move alone having the political clout that may have been expected.
Legal & General [LSE: LGEN]
We have what looks like a solid set of full year numbers from pension and insurance giant Legal & General this morning, with earnings per share at 32p, some 6p ahead of consensus forecasts by analysts. Post-tax profits are up by 50% thanks in part to changes to US tax regulations and there’s sufficient free cash to hike the dividend by 7%, too.
Rolls Royce [LSE: RR]
Full year results out from Rolls Royce today. It’s worth clarifying that this is the maker of industrial products like aircraft and marine engines, not the luxury car company. The company has had a rough ride in recent years, with the share price suffering in the wake of a string of profit warnings, but has the aggressive cost cutting seen the company turn a corner? Pre-tax profits are up by a quarter and earnings per share hit 40.5p – that’s at the top end of estimates and well ahead of average forecasts.