Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Another $3bn share buyback announced at HSBC
Q3 earnings are out from HSBC LON:HSBA this morning, with pre-tax profits coming in at $8.5bn, up $0.8bn from a year ago. That’s ahead of expectations which had pitched the number as being broadly unchanged and will also see the bank initiate a further $3bn share buy back round. Net interest margin dropped by 1.46% and bad debt impairment charges are broadly unchanged.
#2. Pearson still on track to meet full year targets
Educational publisher Pearson LON:PSON has this morning issued a nine month trading update for the period to 30th September. Group wide sales have advanced marginally from the same time a year ago, with only the ‘virtual learning’ category showing signs of contraction. Management note that the company remains on track to meet full year expectations with adjusted profits set to come in just below £600m and the business continues to deliver on the three key priorities outlined at the start of FY24.
#3. Motor dealer Vertu grows footprint with another acquisition
Vertu Motors LON:VTU has this morning announced the acquisition of Burrows Motor Company, which operates a total of eight dealerships in Yorkshire and Nottinghamshire. This extends Vertu’s footprint in the area and the pricing of the deal is somewhat complex given goodwill, loans and mortgages. The consideration net of cash acquired is notes as £12.5m, whilst for FY23 Burrows delivered an operating profit of £1.4m.
