Latest news with #Marlow-based
The Herald Scotland
25-07-2025
- Business
- The Herald Scotland
Shares in Glasgow's iomart fall 20% after dividend scrapped
However, the company underlined a strong performance by Atech Cloud, the Marlow-based business it acquired for £57m in November. Iomart said at the time that the acquisition, which increased its headcount to 650, would significantly strengthen its position as 'one of the UK's principal providers of secure cloud services across public, private, and hybrid environments'. A six-month contribution from Atech helped to deliver a 13% rise in revenue to £143.5m for iomart over the period. Net debt at iomart surged to £101.9m from £42.3m at the same stage last year, following cash outflow of around £57m associated with the Atech deal. Read more: Richard Last, executive chairman of iomart, said: "The year has been one of both challenge and transformation for iomart. The group's trading performance was mixed, with customer churn impacting revenue and profits. On the positive side we have seen good order bookings growth in the year, which gives the board confidence in achieving our medium-term growth strategy. "The acquisition of Atech during the year was a significant milestone, substantially enhancing the group's scale, credibility, and capabilities in public cloud and security. Since acquisition, Atech has delivered revenue growth and profitability in line with our expectations, reinforcing the value of this strategic move. "Our focus for FY26 will be to improve the operating efficiency of the group, address churn in our self-managed and private cloud customer base, increase sales momentum in high-growth service areas, including providing Atech with the support to flourish, and to reduce our level of debt. The board is committed to delivering disciplined execution, operational efficiency, and improved value for shareholders.' On the decision to suspend dividends, the company stated: "The board believes it is in the best interest of shareholders to forego the payment of a final dividend, with future dividends restored based on improved operating profitability and a reduced overall level of indebtedness." Iomart reported a statutory loss before tax of £53.2m, reflecting a £52.9m non-cash exceptional goodwill impairment charge relating to the iomart Cloud Services Cash Generating Unit. Iomar said in a statement: 'This reflects both the shift away from low growth, heritage product areas and the previously disclosed accelerated customer churn in certain areas of this CGU. 'This non-cash charge has no impact on the group's operational performance or cash flows but does result in a large statutory loss after tax of £55.1m in the year to 31 March 2025 (2024: £6.4m profit).' Shares closed down 22.8% or 6.5p, at 22p.
Yahoo
19-03-2025
- Business
- Yahoo
FTSE 100 Live 19 March: Federal Reserve jitters stall index, M&G results boost
Pfizer completes Haleon exit Santander to close 95 branches Rio Tinto backs London listing 10:14 , Graeme Evans The FTSE 100 index was held back by US jitters today as traders awaited tonight's Federal Reserve verdict on interest rates and the economic outlook. London's top flight dipped 0.25% or 21.88 points to 8683.35, not helped by another poor session on Wall Street after the S&P 500 index fell 1.1% last night US rates are seen staying in a range of 4.25%-4.5%, with tonight's focus on the Fed's updated projections and how chair Jerome Powell responds to questions about the impact of US tariffs. The S&P 500 index has fallen by as much as 10% since its mid-February peak, while the safe haven asset of gold has surged above $3000 an ounce. AJ Bell investment director Russ Mould said: 'The Fed's room for manoeuvre is restricted by current trade-related uncertainty and sticky inflation, but it will want to avoid the dreaded stagflation combination of a weak economy and rising prices.' The Bank of England latest policy meeting also takes place today, with no change on interest rates expected at noon tomorrow. The central bank uncertainty curbed risk appetite, although defence stocks remained in demand on the back of Germany's increased spending plans. BAE Systems led the FTSE 100 with a rise of 3% or 47p to record territory of 1702p, having lifted by more than 45% this year. The shares of savings and investment company M&G also fared well, rising 2% or 4.6p to 225.8p after a focus on streamlining helped 2024 profit beat City forecasts. It lifted the total dividend by 2% and announced two new targets for 2025-2027, including to grow adjusted operating profit on average by 5% or more per year. On the fallers board, contract caterer Compass slid 4% or 102p to 2523p after BNP Paribas Exane moved from an 'outperform' stance to 'underperform'. Drinks giant Diageo also lost 2% or 39.5p to 2040.5p while the poor run for Tesco shares continued with a decline of 5.3p to 320.8p. Haleon shares were broadly unchanged at 390.4p after Pfizer offloaded its remaining 7.3% stake for £2.5 billion at a price of 385p. The shares were 330p when Pfizer spun off its original 32% stake in the Sensodyne business in 2022. The FTSE 250 index fell 18.31 points to 20,079.46, with ASOS and Burberry among the leading fallers after reverses of 10p to 231p and 22p to 886.2p respectively. IT infrastructure services business Softcat jumped 12% or 201p to 1824p after reporting half-year results slightly ahead of its initial expectations. The Marlow-based firm also upgraded full-year operating profit guidance. Chief executive Graham Charlton said: 'We are excited by the rapid pace of innovation across our industry, with more organisations embedding AI and automation into their systems and processes.' 09:13 , Graeme Evans The shares of savings and investment company M&G are up 3% in the FTSE 100 index after annual results showed a surprise rise in operating profit. Driven by a focus on streamlining in the year, the figure of £837 million compared with 2023's £797 million and City expectations of about £769 million Chief executive Andrea Rossi said: 'Since starting at M&G, my priority has been to strengthen the foundations of the business. Despite a tough market environment we have done this.' His 2024 highlights included a reduction in debt, growth in asset management operating profit of nearly 20% and positive momentum in the Life business. Rossi announced two new targets for 2025-2027. These are to grow adjusted operating profit on average by 5% or more per year and to generate £2.7 billion of operating capital. The company is also moving to a progressive dividend policy, starting with a 2% increase for the 2024 total per share to 20.1p. Despite geopolitical and market volatility continuing to weigh on client sentiment, it expressed confidence it will be able to navigate this 'uncertain environment'. The shares rose 6.1p to 227.3p, leaving them 14% higher in the year to date. 08:31 , Graeme Evans The FTSE 100 index is 31.14 points lower at 8674.09, a worse-than-expected performance amid the selling of stocks including GSK, Diageo and Glencore. Caterer Compass topped the fallers board with a decline of 4% or 112p to 2513p, while the poor run for Tesco continued through a fall of 3.4p to 322.7p. Investment manager M&G rose 4% or 8.1p to 229.3p following annual results, with BAE Systems the next best stock after an advance of 3% or 43p to 1698p. Rolls-Royce rose 3.8p to 815p, Melrose Industries lifted 4.8p to 534.8p and Shell added 26p to 2722p. The FTSE 250 index fell 22.01 points to 20,075.76, but results and upgraded guidance meant IT services business Softcat surged 11% or 174p to 1797p. 08:14 , Graeme Evans The Federal Reserve is tonight expected to leave US interest rates in a range of 4.25%-4.5%, with the main focus on its updated projections for the US economy. At the subsequent press conference, chair Jerome Powell will have the opportunity to address Wall Street worries about the economic impact of recent US tariffs. The S&P 500 index has fallen by as much as 10% since its mid-February peak, while the safe haven asset of gold has surged above $3000 an ounce. Deutsche Bank strategist Jim Reid said: 'Plenty has happened since the last meeting so the press conference could see a whole host of challenging questions for Powell. 'We suspect they will mostly be answered with a straight, non-committal bat but will make for interesting viewing.' Julien Lafargue, chief market strategist at Barclays Private Bank, added: 'The Fed, just like the market, desperately needs some visibility on trade, tariffs, and overall policies and we expect Jerome Powell to avoid ifs and buts and instead continue to advocate for a data dependent approach.' The Bank of England latest policy meeting takes place today, with a no change decision on interest rates expected tomorrow at noon. 07:54 Rio Tinto today urged shareholders to reject an AGM resolution calling on the mining giant to consider ditching its dual listed company structure. Palliser Capital has argued that the current position has led to approximately $50 billion in value destruction for shareholders since its inception, including through limitations on the company's ability to pursue stock-based M&A. It wants the company unified into a single Australian-domiciled holding company. Rio Tinto, which is listed in the FTSE 100 index as well as the Australian stock market, said the value erosion claim is both unfounded and misleading. It adds that the rationale for unifying structures at other companies, including rival BHP, does not apply to Rio Tinto for several reasons. This includes the location, growth outlook and tax profile of the group's assets, as well as the scale of the entity to be absorbed in any unification. Since the dual-listing company was formed in 1995, Rio Tinto points out it has outperformed the FTSE 100 and Australian benchmark. Rio's London AGM takes place on 3 April, followed by one in Australia on 1 May. 07:33 , Graeme Evans Santander is to shut almost a quarter of its branch network in June, putting 750 jobs at risk. The Spanish owned high street bank said it plans to close 95 out of its 444 branches, leaving it with 290 full-service branches, 36 reduced hours sites, 18 counter-free locations and five Work Cafés. The bank reported a 63% increase in digital transactions since 2019, while financial transactions completed in branches reduced by 61% in the same period. Read more here 07:22 , Graeme Evans Pfizer has raised £2.5 billion by offloading its remaining 7.3% stake in Haleon, the Panadol and Sensodyne business it used to co-own with GSK. Institutional investors last night agreed to buy the FTSE 100-listed shares at a price of 385p, which compares with the closing level of 391p and 2022's original listing price of 330p. Alongside the stock market offering, some £170 million of the £2.5 billion total was achieved through a buy back of shares by Haleon. Haleon chief executive Brian McNamara said: "Today's transaction is an important milestone for the business and marks Pfizer fully exiting its stake in Haleon, having been at 32% at the time of demerger in July 2022.' He added: 'Nearly three years on from demerger, Haleon is in a position of strength and is well placed to capitalise on the significant opportunities ahead." Read more here 07:02 , Graeme Evans Leading Wall Street benchmarks last night closed lower during another poor session for tech stocks, with the Nasdaq Composite down by 1.7%. The Dow Jones Industrial Average lost 0.6% and the S&P 500 shed 1.1% ahead of tonight's Federal Reserve interest rate decision and updated guidance. The FTSE 100 index bucked the trend by closing 0.3% higher, with IG Index futures pointing to a small rise at today's opening bell. Asia markets are broadly flat, while the flight to the safe haven asset of gold has continued after the price rose to about $3044 an ounce. 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