This morning’s half year numbers from the tobacco and next generation smoking product company Imperial Brands failed to find much cheer with the market despite news that strong pricing was countering the impact of lower volumes. High single-digit EPS growth is forecast, bolstered as a result of the ongoing share buyback, but the profit performance is lacklustre and arguably there are concerns about the longer term trend here, too. The CEO is to retire this year and will be replaced by the current CFO. The Imperial Brands share price was 7% lower in early trade.
A pre-AGM trading update from cloud solutions provider Gamma Communications which moved its listing from AIM to the main market at the start of the month failed to find much favour with investors. The company highlighted weakness in the UK market earlier in the year and with this persisting, action is being taken to reduce costs. Management still expect full year earnings to within the latest forecast market range, but the Gamma share price is down 14% in early trade.
The iconic British fashion brand issued full year numbers this morning, announcing a major cost cutting drive including plans to eliminate as many as 1700 jobs over the next two years. Revenues fell 17% and the profit of £383 million posted a year ago has tumbled to a £66m loss, leaving management to announce the move although markets appear to be buying into the idea that this will create a company with sustainable profitable growth over time. The Burberry share price jumped almost 9% in the first half hour of trade.
Most read news on Investegate this morning
Burberry FY25 Preliminary Results - - Burberry Group (BRBY)
RECOMMENDED ACQUISITION OF H&T GROUP PLC - - H&T Group (HAT)
