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. Hays posts productivity gains but outlook remains challenging
Recruiter Hays LON:HAS published a Q3 trading statement today, noting net fee income down 9% with the decline most pronounced in the UK and permanent recruiting markets. Consultant productivity is up and other cost saving plans are progressing well, with management adding that trading has been sequentially stable through the quarter. However with the outlook remaining challenging, this is offering limited forward visibility.
2. Share buyback launched at Mitie as NI hit now seen as less than expected
Mitie Group LON:MTO has published a full year trading update which sees profit guidance increased to £230m following record revenues, whilst the note also highlighted a significant contract award. Perhaps most critical however is the line that the increased National Insurance contribution is now expected to be lower than had been forecast, with this combination of tailwinds enabling a £125m share buyback program to be launched.
3. Disappointing Q1 for Bunzl LON:BNZL sees share buyback suspended
The international distribution group Bunzl published a Q1 trading statement this morning, noting a modest increase in revenues although operating profits fell significantly, driven by falling margins in North America and Continental Europe. The upshot here is that full year guidance has been trimmed, with margins down 30bps YoY and that number weighted into the second half. The company is also pausing its share buyback scheme in a bid to conserve cash and reduce leverage.
We’re not expecting much in the way of corporate news tomorrow or next Tuesday, so the plan is that we will pause this column for a few days, returning on Wednesday 23rd April. Enjoy the Easter break.
