Three developing stories at the UK stock market open.
1. Sales up at GSK but profits hit by Zantac settlement
Pharmaceuticals giant GSK LON:GSK has issued its final results for FY24 this morning. Sales are up fractionally but profits have been hit by the settlement of the Zantac litigation. In terms of the outlook, 2025 expects to see turnover growth of between 3% and 5%, core operating profits should be up by 6% to 8% and the 2031 sales outlook has been revised up to £40bn, against a previous target of £38bn.
2. Q3 operating profits up at DCC
The marketing support company DCC LON:DCC has issued a Q3 trading statement this morning, noting a robust performance for the period with good growth in operating profits, too – a theme that is expected to carry through to the full year despite currency headwinds. Plans to dispose of the healthcare division in order to improve shareholder value remain in play and there’s a good pipeline of acquisition opportunity in the energy sector where it now intends to focus efforts.
3. Shield eyes positive cashflow by year end amidst surge in sales
Pharma company Shield Therapeutics LON:STX has a full year trading update out today. The company expects to report revenues of $32.2m, close on double the $17.5m from FY23, with management also noting that this has been done at a time when costs have been streamlined significantly, too. That strong revenue momentum reported is seen as being sustainable and the expectation is to be cashflow positive by the end of this year.
