This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

UK Sparks: IAG Cuts Earnings Per Share Growth Expectations


Visit: Edison

British Airways’ owner International Consolidated Airlines Group (IAG) has announced at a capital markets day that it has cut its medium-term guidance for the financial years 2020-22, due to a planned reduction in capacity. The firm now anticipates average growth in earnings per share each year of 10% – down from its previous expectation of 12%. Available seat kilometres, a metric used in the aviation industry to measure capacity, are now expected to grow by 3.4% a year in the period, compared to the 6% previously projected for 2019-23. The group also now expects gross capital expenditure for 2020-22 to average €4.7bn a year, compared to an average of €2.6bn a year of net capital expenditure previously forecast for 2019-2023.

Royal Mail has issued a statement saying it is applying to the High Court for an injunction to block planned strike action, arguing that there are potential irregularities in the ballot of workers.

Emerging markets bank Standard Chartered has announced that chief executive Bill Winters and chief financial officer Andy Halford have agreed to reduce their pensions allowance from 20% to 10% of salary from January 1. The move, which the company says is in response to shareholder concerns and new Investment Association guidance, will see Mr Winters’ annual pension allowance reduce from £474,000 to £237,000, while Mr Halford’s allowance will fall from £294,000 to £147,000. Standard Chartered agreed to look at its directors’ remuneration policy as a result of the level of votes opposing it at this year’s annual meeting.

Lloyd’s of London insurance company Beazley says in a trading statement that gross written premiums increased by 12% to $2.19bn in the nine months to the end of September. Chief executive Andrew Horton says the company continues to see strong double-digit premium growth across its business.

Games Workshop Group says in a trading statement that it expects pre-tax profits of at least £55m on sales of at least £140m in the six months to December 1.

Finally, pension funds consolidation company Phoenix Group Holdings has announced that Clive Bannister, 61, will retire as chief executive next March after nine years with the business. He will be succeeded by Andy Briggs, 53, formerly chief executive of UK insurance at Aviva and chief executive of Friends Life Group, who joins the board on January 1 as chief executive designate.

Disclosure: Edison

Edison is authorised and regulated by the Financial Conduct Authority. Our research is a marketing communication as defined by the FCA, this communication only contains information that is an acceptable minor non-monetary benefit as defined under COBS2.3A19(5).

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Edison and is being posted with permission from Edison. The views expressed in this material are solely those of the author and/or Edison and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

trading top