BHP Billiton (LON:BHP) saw profits fall 37 percent in the second half of 2017, after recording an exceptional loss of $2 billion.
Profit for the half year to December came in at $2.0 billion, down from $3.2 billion reported in the same period the year before. The mining group attributed this to the $2 billion hit relating to the failure of the Samarco dam, as well as the effect of US tax reform.
However, underlying attributable profit climbed 25 per cent to just over $4 billion over the period, driven by an increase in sales of both copper and oil.
BHP cut net debt by 23 percent to $15.4bn from $20.1bn at the close of the last financial year, and announced a bumper dividend of 55 cents per share, up 38 percent or 15 cents per share from a year ago.
Chief executive Andrew Mackenzie said: “Higher commodity prices and a solid operating performance delivered free cash flow of US$4.9 billion. We used this cash to further reduce net debt and increase returns to shareholders through higher dividends.
“We are on track to deliver further productivity gains of US$2 billion by the end of the 2019 financial year as we secure improvements in both operating and capital productivity, aided by smarter technology application across our value chain.”
Shares in BHP Billiton (LON:BHP) are currently down 3.19 percent at 1,512.20 (0819GMT).
Leisure travel company Dart Group (LON:DTG) said on Monday that it expects underlying profit before tax to be ‘materially’ ahead of previous expectations, sending shares up nearly 15 percent.
The group attributed the change in expectation to the ‘continued success of our growing Leisure Travel business and a more normalised pricing environment after the heavy discounting in the market over the past year’.
The group also said that forward bookings for summer 2018 were ‘satisfactory’ so far, adding that the performance of its two new operating bases at London Stansted and Birmingham airports was encouraging.
“It is still early in the leisure travel booking cycle and we remain cautious on pricing”, the group added.
“However, given the satisfactory forward bookings and the execution of our growth strategy, the Board currently expects the Group’s trading performance for the year ending 31 March 2019 to be broadly in line with the current financial year.”
Shares in Dart Group are currently trading up 14.55 percent at 744.00 (0858GMT).
Petra Diamonds (LON:PDL) shares rose slightly on Monday morning, despite, reporting a loss for the first half of the 2017 fiscal year.
The group faced problems with industrial action and was forced to write down the value of its assets in South Africa over the period, leading to a net loss of $117.7 million, compared to a profit of $35.2 million in the first half of its fiscal 2017 year.
Revenue also dropped, to $225.2 million from $228.5 million.
The effect of the strong Rand on the cost base of the assets, as well as ‘continuing operational underperformance’, led to non-cash impairment charges on the carrying value of Koffiefontein and Kimberley Ekapa Mining to the tune of $118.0 million.
Annual revenue expectations remain in line with current forecasts. Petra Diamonds shares are currently trading up 0.36 percent at 68.95 (0847GMT).
Shares in consumer goods company Reckitt Benckiser (LON:RB) fell over 3 percent in early trading on Monday, after revenue came in flat for the 2017 financial year.
The company had previously downgraded their revenue guidance, with like-for-like revenue coming in line with that guidance despite increasing by 2 percent in the fourth quarter.
However net income jumped 230 percent to £6.17 billion, declaring a final dividend of 97.7p per share, up from 95.0p a year earlier and bringing to the total dividend for 2017 to 164.3p, up 7%.
“2017 was a significant year in Reckitt Benckiser’s journey to become a global leader in consumer health,” chief executive Rakesh Kapoor said.
“We returned to growth after a solid finish to the year, our acquisition of MJN is firmly on track and the creation of two business units – RB Health and RB Hygiene Home – will drive long-term growth.”
The company are targeting revenue growth of between 13 and 14 percent for 2018.
British convenience store chain McColl’s saw shares sink over 10 percent on Monday morning, after warning on disruption in the wake of the collapse of one of its key suppliers.
Palmer & Harvey entered administration late last year,with McColl’s warning that their collapse was likely to have further disruptions in 2018.
The retailer has made contingency arrangements, including signing a new short-term supply contract with Nisa and beginning a new supply partnership with Morrisons.
‘Whilst these contingency agreements have largely ensured continuity of supply, we continue to closely manage distribution to these stores and the disruption has impacted our sales performance,’ the company said.
Like-for-like sales sales for the 11-week period ended 11 February were down 2.2 percent as a result of the supplier problem, but total sales were up 26.7 percent. Other figures were also strong, with profit before tax for the year to November by 4 percent to £18.4 million, as revenue rose by 19 percent to £1.13 billion.
Shares in McColl’s (LON:MCLS) are currently trading down 10.84 percent at 222.00 (0826GMT).
Shares in homeware retailer Laura Ashley (LON:ALY) dropped nearly 10 percent on Thursday morning, after the company issued a profit warning in the wake of disappointing Christmas trading.
The group said “continued market challenges” would have an impact on profits in 2018, after like-for-like sales fell 0.5 percent in the half year December and pre-tax profit fell nearly 50 percent to £4.3 million.
Online sales were stronger, however, growing by 5.1 percent, and Laura Ashley chairman Khoo Kay Peng said he hoped the launch of a new online platform would boost figures throughout 2018.
The retailer’s hotel division also fared well, with the two UK boutique hotels reporting growth of £1.2 million for the period. Its Laura Ashley-furnished “Tea Room” experiences in other hotels also performed well.
Shares in Laura Ashley are currently trading down 9.67 percent at 5.51 (0938GMT).
Lloyds and Scottish Widows have terminated their asset management contract with Standard Life Aberdeen (LON:SLA), in the wake of the merger between Standard Life and Aberdeen Asset Management.
Shares in Standard Life Aberdeen fell over 4 percent on the news, with the fund manager set to lose revenue and take a £40 million impairment charge as a result of the relationship loss.
Lloyds, who own life insurance company Scottish Widows, have sent notices to Standard Life Aberdeen seeking to terminate the investment management arrangements. The latter company currently manages £109 billion worth of assets for Scottish Widows.
Keith Skeoch and Martin Gilbert, Standard Life Aberdeen’s chief executives, said: “We are disappointed by this decision in the context of the strong performance and good service we have delivered for LBG, Scottish Widows and their customers. We will be discussing the implications of this with LBG and Scottish Widows.”
Scottish Widows CEO Antonio Lorenzo said the tie up had created a “material competitor” , adding that “it is now appropriate to review our long-term asset management arrangements to ensure they remain up-to-date and that customers continue to receive good service and investment performance.”
The termination is subject to a 12 month notice period.
Standard Life Aberdeen (LON:SLA) shares are currently trading down 4.88 percent at 370.20 on the news (0915GMT).
InnovaDerma (LON:IDP) shares sunk over 3 percent on Thursday morning, despite the release of strong first half figures.
Revenue rose 31 percent during the first six months of the financial year to £4.2 million, up from £3.2 million a year ago. Gross profit increased by 20.6 percent to £2.22 million, with the company attributing the increase to growth in both the direct to consumer and retail channels.
The company also said in its statement that it is looking to expand further into Europe and the US, and that it expects profits to grow considerably over the next half of the year.
Executive chairman Haris Chaudhry said: ‘With good momentum behind the key brands and significant orders expected, the Board remains confident in meeting market expectations for this financial year.’
‘I am pleased with the initiatives that we have taken to progress further our core brand Skinny Tan from self-tanning into a beauty brand and in the very successful launch of Roots, both of which are expected to deliver marked improvement in revenues during this half year.’
‘We are confident in our immediate and long-term prospects and of emerging as a fast-growing international business with a diverse portfolio in the beauty, life sciences and personal care space.’
Despite the strong report InnovaDerma (LON:IDP) shares are currently trading down 3.59 percent at 188.00 (0859GMT).
Aveva (LON:AVV) reported a strong final quarter of 2017 for Schneider Electric, with a “record” EBITA figure beating its own target.
Aveva, who combined with Schneider Electric’s software business in late 2017 in a deal worth over £3 billion, reported a continued growth in SE’s licencing and maintenance revenue streams. However, this was partly offset by a slight decline in services revenue.
The group reported a 90 basis points organic increase in its 2017 adjusted core profit (EBITA) margin, ahead of its own target, as improving prices and cost management cuts begin to take effect.
Adjusted earnings before interest, taxes and amortization (EBITA) came in at 3.65 billion euros ($4.55 billion), with an adjusted core profit margin of 14.8 percent.
Schneider Electric (EPA:SE) shares are currently trading up 3.29 percent at 71.52 (0845GMT).
With the global sell-off continuing to push stocks lower over the past couple weeks, the so-called Donald Trump effect may have reached its climax.
Despite the market optimism that followed the election of decidedly pro-business Trump, the first weeks of February have signaled perhaps an end to record highs of 2017.
Last week, global stocks fell amid concern over adjustments to monetary policy and on the back of strong economic data from the US.
Despite a market rebound in Wall Street and European markets in recent days, Japan’s Nikkei 225 still remains in the red, in light of the strength of the Yen.
Accordingly, the FTSE 100 is currently up 46 points (0.65 percent), Germany’s Dax is up 0.9 percent, and the French Cac has risen 0.5 percent. Similarly, the FTSE MIB in Italy also rebounded 0.7 percent.
“We suspect that investors’ fears over inflation should subside over the coming weeks, which will help to stabilise equity markets, long-term yields and bring levels of volatility back down,” explained Derek Halpenny, analyst at MUFG , in comments to the Financial Times.
“But after the scale of this equity price correction, investors are likely to remain defensive this week. Even a slight upward surprise in the inflation data could be enough to warrant a further sell-off.”
[youtube https://www.youtube.com/watch?v=hjHuwDNcOjE?rel=0]
Ultimately, strong European economic data pushed European stocks on the whole higher on Wednesday morning, driving the slight recovery in the markets.
Specifically, Eurozone industrial production proved better-than-expected, with growth of 0.4 percent in December in comparison to the month higher, demonstrating an annual gain of 5.2 percent. Analysts had been expecting growth of 0.2 percent and 4.2 percent.
Moreover, Eurostat, the EU statistics office, said that eurozone GDP grew by 2.5 percent during 2017, marking its fastest growth rate since 2007.
However, UK economic data continued to disappoint with the slowest GDP growth across the G7 countries, behind Italy.
Nevertheless, given the focus upon inflation, markets will be bracing themselves for the scheduled release of US consumer price data, which is set to be revealed tomorrow.
It remains to be see whether the stock market rally during the latter half of 2017 and so-called ‘Trump effect’ will continue as a trend in the new year.
