Three things you need to know as the UK financial markets open, from Tony Cross.
#1. FY results see £400m share buyback launched at Sage
The accounting software firm Sage LON:SGE published full year results this morning showing another year of solid growth. Underlying revenues added 9% whilst the operating profit margin improved by 220 basis points. Investor are set to see a 6% increase in dividends but this will also be augmented by a £400m share buyback. Looking ahead, organic revenue growth for FY25 is expected to be at least 9% again with operating margins continuing to improve, too.
#2. Hornby losses persist, turnaround plan reportedly on track
Interim numbers are out from Hornby LON:HRN this morning with the model railway company reporting a 10% increase in revenues and an 18% decrease in inventories but losses persist, up by £200k to £5.1m. The turn around plan continues and management are looking at the key seasonal trading period in the coming weeks as being critical but there’s confidence the company is now on the right to track to return to profitability.
#3. Retail Park investments prop up British Land’s valuations
There are half year numbers out from British Land LON:BLND as well, with modest improvements being seen at the headline level. Underlying profit and dividends are both 1% higher, whilst the portfolio value is 0.2% ahead, supported by significant growth in the valuation of retail parks. The note highlights that a strategic shift into this property class over the last few years in paying dividends with high occupancy levels as retailers compete for out of town space to augment their online proposition.
