Three developing stories at the UK stock market open.
1. Employment market continues to cause headache for Hays
Interim numbers are out from recruiter Hays LON:HAS this morning, with the market clearly still under pressure from the broader macroeconomic backdrop. Net fees are down 15% whilst operating profits are off 58%. That’s understandably pressured EPS but management have elected to maintain the half year dividend at 0.95. Productivity gains are however being delivered and there’s confidence that the company remains well positioned once economic cycles recover – but will this placate shareholders?
2. Lloyds profits miss forecast, impairments rise
Lloyds Banking Group LON:LLOY issued full year numbers today which saw profits falling by more than 20%, landing almost 10% short of market expectations. Whilst net income was higher, falling interest rates and uncertainty in the UK economy have combined to take a toll on performance. Impairment charges are up by almost 40% from £308m a year ago to £422m, whilst RoTE fell from 15.8% to 12.3%. That was however impacted by provisions made for the ongoing motor finance claims with management confident of a medium term recovery here.
3. Mondi revenues fractionally higher, currency headwinds hamper profits
Packaging business Mondi LON:MNDI has its full year numbers out today, too. These have shown group revenues fractionally higher but currency headwinds and asset revaluation have taken a toll on profitability, which is down by 45%. The dividend is being maintained at EUR0.7 per share.
