Which UK-listed stocks are affected by US tax reform?
The green light for US tax reform is a potential boost for several UK-listed businesses with significant US operations.
Some are taking hefty charges as they recalculate deferred tax assets. However, these one-off charges will have no cash impact and a cut in corporation tax from 35% to 21% is expected to provide a long-term boost.
4imprint (FOUR) – The 97% US-based promotional products firm sees no 2017 impact but its tax rate is expected to fall from 30% to low 20s going forward.
Barclays (BARC) – The bank faces a £1bn hit in its 2017 financial year.
BP (BP.) – The oil major flags a $1.5bn one-off charge in its fourth quarter 2017 results but there should be a future positive impact.
CRH (CRH) – Stockbroker Davy sees 5% earnings boost to building materials firm CRH.
Keller (KLR) – It expects to have a one-off $10m credit, plus a reduction in future effective tax rate by 5% to high 20s.
Melrose (MRO) – The industrial buy-out specialist sees no impact in 2017. A reduction in 2018 effective tax rate to 24% would be beneficial to asset valuations, as well as potentially cutting any tax liability should it sell part of its Nortek business.
Royal Dutch Shell (RDSB) – The Anglo-Dutch oil firm highlights $2bn to $2.5bn charge in Q4.
Somero (SOM:AIM) – FinnCap has upgraded 2018 earnings at construction equipment group by 19.7% as a result of the US tax reform.