Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Primark spin-off eyed?
Full year numbers are out from Associated British Foods LON:ABF, the food ingredient supplier and owner of Primark. Group revenues fell 3%, with adjusted operating profits down 13%. That has resulted in a 30% cut in dividends for the full year.
Despite the subdued consumer environment, Primark is managing to post some growth with the company’s renewed focus on value and other headwinds are seen as largely one-offs but the note also floats the idea that Primark could be spun off in order to maximise shareholder returns. That may offer the market some solace against what looks to be an underwhelming print.
2. Profits above expectations at Smiths News
News wholesaler Smiths News LON:SNWS issued full year numbers this morning, noting adjusted operating profits had come in above expectations. Lower financing costs and stromg collectables performance (recurring subscriptions) have helped, with shareholders receiving a 3p per share special dividend, up from 2p a year ago. There’s optimism that the momentum can be maintained in FY26 with a good start to the year being seen and the Football World Cup expected to help, too.
3. Consumer belt tightening hit delivery orders, collections pick up the slack
Pizza chain Domino’s LON:DOM issued a Q3 trading statement this morning noting system sales up 2.1% despite orders down 1.5% with weak consumer confidence overtly hitting delivery orders. Full year guidance remains unchanged, with new product roll outs receiving a positive initial reception from customers. The note also flags the idea that a second brand may be considered by the business.
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