Vodafone (VOD), Gore Street Energy Storage (GSF), Avon Protection (AVON), CMC Markets (CMX) and Serica Energy (SQZ)
Vodafone (VOD) has kept to its FY24 guidance of adjusted free cash flow of €3.3bn (£2.8bn) after like-for-like revenue growth of 4 per cent in the three months ending 31 December.
Mobile revenue was flat in the company’s largest market, Germany, but there was growth in the UK (up 5.4 per cent to €1bn). Chief executive Margherita Della Valle said the merger with Three UK was “progressing well”, as is the sale of Vodafone Spain.
The German business has the upcoming difficulty of moving apartment blocks from collective contracts to individual TV contracts. These are worth €800mn in sales a year. The telecoms giant said trials had seen 35-65 per cent of households migrated onto individual contracts. AH
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Gore Street Energy Storage sticks to 7% dividend target
The Gore Street Energy Storage fund (GSF) has reiterated a commitment to its dividend after rivals Gresham House Energy Storage (GRID) and Harmony Energy Income (HEIT) scrapped their payouts.
Gore Street Energy Storage is sticking to a dividend target of 7 per cent of portfolio net asset value (NAV) for the fiscal year, with the board saying it "notes the turbulence in the market and reconfirms its strong liquidity and its commitment to the current dividend policy.
GRID and HEIT have struggled in the face of problems relating to the UK energy market, with Gore Street viewed as less vulnerable thanks to its international revenues. DB
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CMC efficiency plans get market approval
Following on the back of strong trading for the year, CMC Markets (CMX) got a further thumbs up from investors after the company announced a £21mn cost saving plan. This will be achieved by cutting 17 per cent of the company’s headcount (or around 200 staff) at a one-off cost of £2.5mn this year, with the full annual savings flowing through in 2025. The market responded by marking up the shares by 12 per cent, based partly on the fact that CMC had already reported a strong trading period for its swaps and contracts-for-difference.
According to Peel Hunt, the cuts will add £15mn to full year pre-tax profits for 2025, bringing forecasts up to £60mn. This translates into earnings per share of 16p and a dividend of 8p, based on the company’s 50 per cent payout policy. Overall, CMC is trading at 8 times earnings, with a forecast dividend yield of 6 per cent. JH
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