Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Pearson’s profits climb, dividend upped
Full year numbers are out from educational publisher Pearson LON:PSON, with underlying sales growth up 8% and operating profits up by a third. The company notes it has made strong strategic progress and whilst there’s momentum in play, expectations for the current FY remain in line with forecasts. Positive operating cashflows are being used to pay down debt and shareholders will be rewarded with a modest uptick in dividend to 20.5p for the full year.
#2. Positive numbers overshadowed by sanctions risk for steel maker Evraz
A timely release of full year numbers from Evraz LON:EVR this morning. The Russian steel maker has seen its share price fall by more than 70% since the start of the year and whilst the headline numbers all look upbeat – revenues up by 50%, net profits have almost quadrupled and so on, there’s no shying away from the potential threat posed by sanctions. That’s referenced in the note, but given the ability for restrictions here to cut very deep indeed, it may be a stretch too far to find much to cheer in today’s release.
#3. IAG plots return to profitability this year
Full year results are also out from British Airways’ owner, International Consolidated Airlines LON:IAG. Passenger numbers and revenues are slowly recovering, which is helping trim losses to an extent, with the company noting that premium leisure travel is an exceptionally strong performer. Critically, management believe they can plot a return to profitability this year, which is likely to fuel interest amongst investors.
