BT Group shares fall 8.88% to 116.4p as 1H profit slips due to rising energy costs
BT announced lower profits in 1H to 30 September as its costs were affected by higher energy prices. BT reported 18% lower profit to £831m from £1.01bn a year ago. In order to keep up with rising energy costs, BT said it would increase its cost savings target from £2.5bn to £3.0bn by the end of FY25.
On the bright side, BT's adjusted EBITDA increased 3% to £3.9bn as it reported 1% growth in revenue to £10.36bn. BT saw revenue growth in Consumer and Openreach, partially offset by legacy declines in Enterprise and Global, as well as the impact of the BT Sport disposal.
BT kept its interim dividend of 2.31p/share.
Philip Jansen, CEO, commented on the results:
"Our financial performance is on track; we grew revenue and EBITDA in the first six months of the year and we remain laser focused on modernising and simplifying BT Group. Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments. As a result, we are increasing our cost savings target from £2.5bn to £3.0bn by the end of FY25."
Aston Martin shares rebound 17.21% to 105p after yesterday's guidance downgrade
Aston Martin reported yesterday a pretax loss of £225.9m in 3Q, more than a 100% increase year-on-year (3Q21: 97.9m). Aston Martin pointed to supply chain challenges, logistics disruptions, inflationary pressures, and weakness in the GBP/USD exchange rate as reasons for the decline.
Aston Martin therefore lowered its guidance for the full year. It now sees wholesales in-line with current consensus in the 6,200-6,600 range, compared to a >6,600 target before. Similarly, the company lowered its adjusted EBITDA margin growth forecast from 350-450bps to 100-300bps.
Aston Martin did see a 33% increase in revenue year-on-year to £315.5m (3Q21: £237.6m).
Amedeo Felisa, CEO of Aston Martin Lagonda commented:
"...I am personally involved in the steps we are taking to address the supply chain issues we have encountered during the course of the year. Whilst this has created short-term impacts on our performance, I am confident that with the actions we are taking, we will exit the year in a stronger position to deliver on our goals for 2023 and beyond."
Aston Martin shares slipped 15% yesterday on the news, but recovered today to within 4% of the pre-announcement price.
Xpediator shares rise 16.67% to 24.5p on strong revenue in 2022
Xpediator said it was on track to meet full-year management expectations of adjusted pre-tax profit of £9.0m, more than double last year's £4.3m. The company reported revenues for the 9 months ended 30 September of £300m, compared to £297m for the full 12 months ended 31 December 2021.
Xpediator highlighted strong Q3 performance in its European Freight Forwarding operations, particularly in Lithuania, Bulgaria, and Romania. Affinity Transport Services and Pall-Ex Romania also continued to perform well, the company said.
Xpediator also said it would reorganise its UK freight forwarding operation, Delamode Anglia, under the successful freight forwarding template first developed in Lithuania.
The company expects its net debt to remain broadly unchanged from the £8.0m position reported on 30 June 2022.
Empire Metals share rise 28% to 1.6p on discovery of "giant copper mineralised system" at Pitfield
Empire Metals said it discovered a "large magnetic anomaly" extending over 40km N-S at its Pitfield copper project in Australia.
"The mapping shows extensive copper, silver and other base metals anomalism over a 40km strike length, giving further confidence in the potential to discover a "Giant" copper mineralised system at Pitfield." the company said in a statement.
Exploration field work is expected to commence at the site by Q1 2023, ahead of an intended drill programme to evaluate the economic significance of any SSC deposit.