Three developing stories at the UK stock market open.
1. SEGRO management hail trading momentum but occupancy rates slip
The REIT SEGRO LON:SGRO has published full year results for 2024 this morning, noting a 7% increase in income which combined with lower borrowing costs resulted in a 15% uplift in profits. The full year dividend has been increased by more than 5% and management have strong conviction that demand for the company’s services will continue in the year ahead. One point of weakness may be the falling occupancy rate is down 1% and the NAV remains unchanged YoY.
2. “Disappointing” financial performance from Wood Group
Engineering business Wood Group LON:WG. has this morning issued a full year trading update. The company has delivered against guidance having taken action to mitigate weaker than expected Q4 trading. The orderbook has however been significantly bolstered in the final quarter and good growth is expected for the year ahead, although free cash flow is tipped to remain negative until 2026. With management conceding they are disappointed with the financial performance, it could be a turbulent start for the stock.
3. NatWest dividends up 26%, government stake now below 7%
NatWest LON:NWG issued its full year results this morning. As always this is a long document, but highlights include news that the government’s stake is now below 7%, total dividends for the year are up 26%, EPS is up 12% and RoTE is 17.5% – critically this metric is forecast to soften over the next two years. Impairment losses are down by almost 40% from the 2023 figure.
