RBS Lowers Impairment Charges, Wolseley Profit Soars

Nigel Thomas
30 Sep, 2014
New York City

Powerflute profit surged 68% on 10% climbing of revenue and agreed to acquire Corenso for

[R]4:00 PM Frankfurt – Powerflute profit surged 68% on 10% climbing of revenue and agreed to acquire Corenso for €81 million from Stora Enso. Royal Bank lowered impairments for fiscal 2014 of £1 billion. Saga profit tumbled 68% to £22 million. Wolseley profit soared 70.3% to £504 million.[/R]

In London trading, FTSE 100 index slipped 0.5% or 36.65 to 6,609.95 and in Frankfurt the DAX index gained 0.2% or 17.32 to 9,440.23.

In Paris, CAC 40 index climbed 1.3% or 55.15 to 4,413.22.

Powerflute Oyj surged 26.8% to 45.50 pence after the Finland-based paper and packaging company said revenue in the first-half ending in June climbed 9.6% to €72.7 million from €66.3 million a year ago period.

Profit in the year surged 67.8% from a year ago to €5.37 million compared to €3.20 million and diluted earnings per share jumped to 1.8 cents from 1.3 cents.

Separately, today the company agreed to acquire from Corenso, core board producer for €81 million on a cash and debt free basis.

Royal Bank of Scotland Group Plc gained 1.6% to 367.20 pence after the U.K.-based bank expected full-year impairments to be lower than previously estimated to £1 billion.

The bank had written back £800 million from provision that set aside to cover losses on bad loans after an improvement in economic conditions.

The lender said it plans to invest more than £1 billion to improve services for its commercial and corporate customers this will be made between 2014 and 2018.

Saga Plc slid 0.04% to 172.13 pence after the U.K.-based travel, financial, healthcare and media products and services provider said revenue in the first-half ending in July jumped 3.9% to £583.5 million from £632 million a year ago period.

Profit in the year tumbled 68.2% from a year ago to £22.1 million compared to £68.9 million and diluted earnings per share declined to 2.40 pence from 8.53 pence.

Wolseley Plc fell 0.3% to 3,248 pence after the U.K.-based plumbing and heating products distributor reported revenue in the year ending in July edged up 0.2% to £13.13 billion from £13.15 billion a year ago period.

Profit in the year soared 70.3% from a year ago to £504 million compared to £296 million and diluted earnings per share jumped to 188.8 pence from 102.1 pence.