Big losses for the drinks giant this morning as the company published interim results. Citing weakness in the North American market owing to squeezed consumer spending, along with declines in the Chinese market, the brewer and distiller advised shareholders that dividends were being pared back to a more appropriate level. The half year payout was dropping by just a shade over half and the market seemed unwilling to cut any slack in response to improved profit margins or the progress that is being made with cost savings. In early trade the Diageo share price was down 6%.
FTSE-250 listed ME Group updated the market this morning, advising that the publication of full year results would be delayed owing to delays with the audit process. No further detail is given here with management stressing that there are no material issues and the previously stated full year guidance has been reiterated. Record profitability is expected and a £15-£20m share buyback is seen as likely but investors have jumped on today’s news and the ME Group share price was down 18% shortly after the open.
Investors in Europe’s leading rail ticketing platform Trainline have been rattled this morning by news that the CEO is to stand down. That follows a six year tenure at the company and the process is all very orderly, with the incumbent noting that as Trainline embarks on next multi-year phase of growth, now is the right time to alight. The outgoing CEO will remain with the company through the transition period but Trainline shares were off around 6% at 8.45am.
Most read news on Investegate this morning
Interim Results - - Diageo (DGE)
Recommended cash offer for Augmentum Fintech plc - - Augmentum Fintech (AUGM)
