Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Balfour Beatty posts modest growth, more share buybacks promised
There’s a trading update out from Balfour Beatty LON:BBY this morning noting the company as being on course to deliver earnings growth for FY24 and further share buybacks are on the table for 2025 in what would be a fifth successive year of such returns. Revenue and profit growth are both anticipated with the decision to commit to specific target markets seen as having delivered here. The UK Government’s commitment to invest in infrastructure to support economic growth is also noted as being encouraging.
#2. Record numbers at AJBell, £30m share buyback announced
Full year numbers from investment platform AJBell LON:AJB are out this morning with revenues up 23%, pre-tax profits up 29% and margins improving, too. Total dividends for the year are up by 16%, a £30m share buyback has been announced and AUA reached a record of £86 billion, up 22% YoY. With the underlying market also noted as having improved post-budget with flows being seen back into UK assets, there’s no shortage of positives here, but the stock is up a notable 65% on a year to date basis.
#3. Profits downgraded and budget hit for Frasers
Half year numbers from the growing retail group Frasers LON:FRAS, noting an 8.3% decline in revenues but a 40 basis point uptick in margins. Adjusted pre-tax profits are down, but only by 1.5%, although management note that political change in the UK is feeding into consumer uncertainty, with the budget doing little to placate fears here.
Trading conditions as therefore tough and full year adjusted pre-tax profits are now expected to be in the £550-£600m range, some £25m lower than had been forecast. The recent budget will add at least a further £50m in incremental cost, too.
