Finance Friday – a brief look at this week’s finance and investor news from around the UK
Shares in Dixons Carphone fell 22% in early trading, after the group issued an unscheduled trading update.
Tough conditions in the UK mobile phone market, negative revaluation of receivables, and a new charging structure for honeybee software mean Carphone Warehouse now expects profit before tax for this year to be in the range of £360m-£440m (2016: £501m).
First half reported revenue rose 13.3% to £7.4bn. However this was largely supported by currency movements and acquisitions, with like-for-like (LFL) revenue down 0.3% at constant exchange rates (CER).
Headline diluted earnings per share of 45.4p rose 16.1%, up 2.4% at CER. The interim dividend rises 16.1% to 22.7p. The shares fell 8.4% following the announcement.
Revenues rose 12% in the first half to £1.66bn, with house prices and volumes both improving. That supported a 30% increase in first half profits before tax to £457.4m. The shares rose 2.7% in early trading.
Provident Financial today issued a second profit warning in as many months, as disruption in the core Home Credit division continued and the FCA opened an investigation into Vanquis Bank’s Repayment Option Plan.
CEO Peter Crook has stepped down with immediate effect, with Chairman Manjit Wolstenholme stepping into the role of Executive Chairman. The interim dividend announced on the 25 July has been cancelled in order to preserve capital, and a full year payment is unlikely.
Full year underlying profits rose 454% at BHP to $6.7bn, with the group announcing a final dividend of 43 cents per share. The group also announced that it was actively looking to sell its US shale gas operations. The shares rose 2.5% following the announcement.
Around 10,000 Tesco shareholders are entitled to compensation following the financial reporting misstatements of 2014 at the rate of 24.5p per share plus interest of 4% for retail investors.