Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. BT pension deficit on track to be covered by year end
Some welcome news for BT Group [LON:BT.A] shareholders today with the publication of the company’s latest pension deficit valuation. Over the last three years, that’s been more than halved from almost £8bn down to £3.7bn and annual contributions until the end of the decade of £600m will continue, along with a further £180m annual payment under an existing asset backed funding arrangement. The scheme remains on track to be fully funded by 2030.
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#2. Imperial Brands profitability jumps as five year plan delivers results, but NGP sales in US slump
Imperial Brands [LON:IMB] has issued full year results this morning showing a marked increase in profitability in line with the company’s five year plan. Shareholders are being rewarded with a 4% dividend increase and an acceleration of the buyback scheme.
Looking further ahead, management expect to see a further improvement in operating profits which will support CAGR growth around the mid-single digit levels over the next two years. Notably, next generation product revenues are up by 26% although this still only accounts for around 3% of group sales.
#3. Vodafone profits hit by business disposals
Half year numbers are out from Vodafone [LON:VOD] today, noting improved revenue growth in nearly all markets, including a return to expansion in Germany. Adverse foreign exchange movements have however taken a toll. Operating profits are also down by almost 50% reflecting the impact of business disposals although the interim dividend and guidance for the full year have both been maintained.
