Three things you need to know as the UK financial markets open, from Tony Cross.
#1. 24% profit hike at SSE
Scottish based energy company SSE LON:SSE have published interim results this morning. Operating profits are 24% higher, earnings per share have risen by 35% and expectations for the full year remain on track. Shareholders are being rewarded with a 6% hike in the half year dividend and management deem these a strong set of numbers, with further encouragement seen in the fact that the business is well aligned with UK government goals over decarbonisation.
#2. Share buy-back extended by £50m at Smiths
Smiths Group LON:SMIN has its Q1 trading update out this morning, noting organic revenue up 16% and this strong start has seen management upgrade full year guidance. They now expect revenue growth to come in between 5%-7%, up from the 4%-6% previously stated, whilst margin improvement of a further 40-60 bps is also forecast. The previously announced share buyback programme is also being extended by a further £50m.
#3. Significant profit growth at Babcock, full year on track
Half year results are out from Babcock LON:BAB today, with management deeming the numbers as a strong set, revenues have added just over 10%, whilst operating profits are up by 27%. The contract backlog is unchanged on the position from a year ago and an improved interim dividend of 2p per share has been proposed. With 90% of full year revenues under contract as of October 1st, full year forecasts remain unchanged.
