Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
“The FTSE 100 was flat early on Monday amid ongoing tensions over trade between the US and China and some chatter on Brexit,” says AJ Bell Investment Director Russ Mould.
HSBC
“The better-than-expected performance of HSBC shares put pressure on the company to deliver with its first half results and on that basis they came up a little short.
“Profit was slightly better than expected, but only due to lower impairments. Revenue was up by just 2% which has to be characterised as disappointing, particularly given HSBC’s exposure to higher growth markets in Asia Pacific.
“The company’s ‘jaws’ – comparing income to operating expenses growth trends – was negative as the company continued a programme of heavy investment.
“Management have said they will deliver positive jaws by the end of the year and the market is likely to hold them to this pledge.”
Spire
“It is never a good sign when a company can’t quantify just how bad things are. After delivering the latest in a series of profit warnings, private healthcare provider Spire is unable to offer clarity on where earnings are likely to end up in 2018, only that they will be ‘materially lower’.
“The company blames hospital investments and pressure on NHS-related work for the shortfall, amid growing pressure on a health system which is operating with a £1bn deficit.
“Given he was only appointed back in October 2017, chief executive Justin Ash probably deserves some patience in delivering on a promised turnaround of the group.
“He needs to come up with some good answers though when first half results are released in full on 18 September.”
IWG
“The argument from flexible workspace provider IWG that a series of bids undervalues the company holds rather less water when the company has just announced a near-30% decline in operating profit.
“This reflects investment for future growth as well as weakness in the UK market which accounts for just under a third of the business.
“Revenue was up 3% (7% at constant currency) and management are clearly confident in the growth prospects of the business – with demand benefiting from structural changes in the corporate world. The 11% hike in the dividend reflects this confidence.
“It is also logical to conclude that there is a reason the company has attracted such a long list of suitors in 2018.”
These articles are for information purposes only and are not a personal recommendation or advice