Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Pearson cost-savings boost profit against lower revenues
Educational publisher Pearson LON:PSON has its full year numbers out today with sales 5% lower but adjusted operating profits up by more than 25% as the benefits of the cost efficiency plan are felt. Management note that the company is on course to deliver against expectations for 2024 with consensus forecast of an adjusted operating profit of £621m. The note does caution that for each one cent move in GBP/USD, this will translate into a £5m impact on profitability.
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#2. Steady performance from UK industrial play IMI
IMI Plc LON:IMI published full year results this morning with revenues up 7% and operating profits advancing by 13%. Shareholders will receive a 10% uplift in the final dividend and based on current projections, forecasts see the adjusted EPS for 2024 coming in between 120p and 126p up from the 116.8p realised for FY23.
#3. Up-selling by Rightmove boost profits in weak market
Online estate agents Rightmove LON:RMV have published full year results noting revenues up by 10% as customers upgrade listings and their use of digital products. Operating profits are up 7% and the final dividend is being increased by 10%.
There has understandably been a marked fall in business coming from the new home sector, but management are confident that the outlook is bright given the value add products. Even with a forecast decline in customer numbers, expectations are for revenue growth of 7%-9% in FY24.
