Three developing stories at the UK stock market open.
1. Domino’s slices through economic uncertainty, adds extra dividend
Full year numbers from Domino’s Pizza Group LON:DOM are out this morning. System sales are 2% higher, but group revenues are down 0.4%, whilst underlying pre-tax profits added 8.4%. Management say the numbers reflect the benefits of their long-term strategy and have enabled a further increase in the dividend to be declared. Momentum built in the latter part of FY24 has been sustained with sales still growing despite economic uncertainty and FY25 underlying EBITDA remains on track.
2. Full year numbers from Persimmon show recovery underway
Persimmon Homes LON:PSN published its full year numbers noting completions up 7%, average selling prices up by 5% and a 14% increase in the underlying operating profit. The cash position has been eroded, but given the state of the forward order book that’s unlikely to be cause for concern given underlying pre-tax profits were just above the top end of forecasts and the dividend is maintained at 60p per share.
3. Share buy-back and dividend hike from Rotork
A flurry of announcements out from Rotork LON:ROR this morning including acquisition news and the launch of a £50m share buy-back, as well as full year results. These numbers showed revenues up 5%, but margin erosion took a toll on profitability. Regardless, a 7.6% increase in the dividend is also being called, further augmenting shareholder returns. Management are optimistic about the outlook, noting that the threat of global trade tariffs will likely be largely offset by their “local for local” approach to manufacturing.
