AstraZeneca (AZN), Norcros (NXR), Darktrace (DARK), Mears (MER) and Alpha Financial Markets Consulting (AFM)
AstraZeneca (AZN) has announced a 7 per cent increase in its annual dividend to $3.10 (247p) per share – on the same day investors are due to vote on executive remuneration. The company has recently been criticised by shareholder adviser groups, who have deemed chief executive Pascal Soriot’s proposed payout of £18.7mn “excessive”.
However, the vote at today’s AGM could prove contentious, as one of the group’s major shareholders told the Financial Times yesterday that Soriot was “massively underpaid” relative to the company’s performance. Either way, it’s impossible to view the dividend hike as anything other than a sweetener for shareholders ahead of today’s meeting.
Investors don’t seem to mind the tactic, with shares up more than 1 per cent this morning. Elsewhere, medical devices group Smith & Nephew (SN.) is facing a pay row of its own after it announced plans to increase its CEO’s remuneration by 30 per cent. The outcome of this will be decided at next month’s AGM. JJ
Read more: What higher CEO pay means for investors
Norcros holds its own
Norcros (NXR) reported that full-year sales are expected to decline by 11 per cent to around £390mn, although an improvement in margins means underlying operating profit will be in line with analysts’ consensus forecast of £43mn.
Like-for-like sales in South Africa have fallen by a quarter, but its UK business has performed “robustly”, with sales falling by 3.3 per cent in a tough market. Good cash generation means net debt has also been cut to £37mn, from £49.9mn a year earlier. Norcros shares rose by 2 per cent in early trading. MF
Read why we’re bullish on Norcros
Contract wins cheer Mears
Pre-tax profit rose by more than a third at social housing specialist Mears (MER) last year on the back of double-digit revenue growth.
The company made a profit of £46.9mn as sales topped £1bn following a series of new contract wins. It finished the year with net cash of £109mn despite spending £33mn on share buybacks, which equates to around 11 per cent of its share capital.
It also flagged a “strong start” to 2024 and said adjusted pre-tax profit for this year “is expected to be of a similar quantum” than last. The shares rose by 2 per cent in early trading and are up 85 per cent over the past year. MF
