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. Lloyds ups provision for car loan mis-selling by £800m
A rocky start to the week for Lloyds Banking Group LON:LLOY shareholders as the bank this morning announced it would be extending the provision for motor finance mis-selling by a further £800m. That’s on top of the current provision of £1.15bn, reflecting the fact that the current FCA proposal puts the outcome at the adverse end of the previously expected range.
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The note adds that the current proposal remains a consultation so the final provision may yet evolve further. To put this number into context, the annual impairment provision for the group tends to be around £400m.
2. Mixed bag for Oxford Instruments but semiconductor sales remain strong
Half year numbers from Oxford Instruments LON:OXIG are out today, noting a mixed performance across the two key divisions. Whilst global economic uncertainty took a toll, semiconductor volumes have remained strong, but owing to the profile of order intake, H1 revenues will be around 8% lower. There’s more optimism over H2 although the ’fluid’ macroeconomic picture continues to weigh.
3. Positive license royalty developments flagged for IP Group
IP Group LON:IPO issued a note this morning providing the market with an update on potential future royalty revenues from portfolio company Metsera. Whilst agreement has been reached for the company to be sold to Pfizer, IP Group will continue to benefit from a license arrangement. There’s no detail here beyond the fact that the latest test results are positive and as such could deliver a healthy trail of payments.
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