The outsourcing and energy services company Mitie published a Q4 trading update this morning which contained some encouraging news for shareholders. Revenues advanced 13% to a record £5.1bn which has been sufficient to see the company upgrade its profit guidance for the full year. What’s more, the impact of changes to national insurance contributions has been recalculated as around £10m less than had previously been forecast, paving the way for management to launch a £125m share buyback. The Mitie share price was 3% higher in early trade.
The international distribution company Bunzl saw its share price rattled this morning after announcing a disappointing first quarter of trade. Pressure on pricing in North America and Europe has taken a toll on the outlook and whilst the reduction in margins is modest, it’s seen as being weighted into the first half of the year. The potential impact on free cash and leverage is such that the previously omitted share buyback scheme has been suspended. That’s had the impact of sending the Bunzl share price down more than 26% by 8.30am.
The scientific tool manufacturer Oxford Instruments issued a full year trading update noting growing demand which will fuel a 13% uptick in adjusted operation profits on a constant currency basis, in line with expectations, whilst margins have improved by 70bps. Management note the success of the company’s pivot away from China, adding that the diversified product portfolio adds further resilience. The Oxford Instruments share price was 6% higher in early trade.
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Trading Statement - - Bunzl (BNZL)
