Catering provider Compass (CPG) is to pay a £1bn special dividend to shareholders following a very good half year period for the business. Revenue increased by 3.6% to £11.6bn, operating profit grew by 5.2% to £894m and free cash flow was 26.8% better at £502m in the six months to 31 March 2017.
Shares in Compass rise 2.4% to £16.33 on the news. ‘We remain excited about the significant structural growth opportunities globally,’ says chief executive Richard Cousins.
FTSE 100 media group ITV (ITV) says external revenue fell 3% in the first quarter of 2017 to £731m. Its studios revenue increased by 7% to £343m. Overall, trading is in line with expectations.
Also among the blue chips, defence giant BAE Systems (BA.) says the new year has started well thanks to numerous contract wins in the UK, US and India. It reiterates guidance for 2017 underlying earnings per share to be 5% to 10% higher than achieved last year.
Wood Group (WG.) says life remains tough in the oil services market. Improved activity levels in offshore projects in the West have been more than offset by weaker activity in places like the North Sea and the East. The setback isn’t too damaging as Wood Group doesn’t change its expectations for full year trading. The market remains worried, as reflected by a 1.9% drop in its share price to 754.75p.
A 3% drop in sales and 15% rise in net debt have prompted TalkTalk Telecom (TALK) to cut its dividend by more than half. Chairman Charles Dunstone says the business is now focused on growth, cash generation and profit ‘in that order’. Its share price slumps 13% to 158.55p.
The competition authority has elevated an investigation into Just Eat’s (JE.) proposed acquisition of UK rival Hungryhouse to ‘Phase 2’ which implies it is very concerned about the takeaway food platform group having too dominant a position in the market.
Precision engineer Renishaw (RSW) has upgraded its full year pre-tax profit guidance to a range of £99m to £108m; that compares with the previous forecast of £85m to £105m. The West Country business says revenue has grown by 24% in the nine months to 31 March 2017, helped by a 10.5% currency benefit. Its shares rise 0.8% to £36.35.
On The Beach (OTB) says the £12m acquisition of UK online travel agent Sunshine will enhances its earnings in the current financial year. The deal will be funded out of existing cash and an extended debt facility. Investors like the news, sending its shares up 5.6% to 380.25p.
Investment group Anglo Pacific (APF) jumps by 9.4% to 116.5p after reporting a 295% hike in mining royalty income for the first quarter of 2017 to £7.5m, thanks to a significant rise in the coal price.
