Royal Mail Issues Profit Warning, Ferguson Declines on Weak Revenue Growth

Sarla Buch
02 Oct, 2018
New York City

DX Group jumped after net loss narrowed. Ferguson declined on weak revenue growth. Royal Mail plunged on profit warnings. Veolia Environnement agreed to sell its 30% stake in Transdev.

[R]4:00 PM Frankfurt – DX Group jumped after net loss narrowed. Ferguson declined on weak revenue growth. Royal Mail plunged on profit warnings. Veolia Environnement agreed to sell its 30% stake in Transdev.[/R]

In London trading, FTSE 100 index decreased 19.83 or 0.2% to 7,474.38 and in Frankfurt the DAX index dropped 75.15 or 0.6% to 12,263.88.

In Paris, CAC 40 index slumped 32.16 or 0.6% to 5,474.01.

DX Group Plc jumped 5.9% to 10.07 pence after the U.K.-based mail, courier and logistics services provider said revenues in the year ending in July rose 2.6% from a year ago to £299.5 million.

Net loss in the year narrowed to £19.5 million from £81.1 million in a year ago period and diluted earnings per share slumped to 8.1 pence from 40.3 pence.

Ferguson Plc declined 5.9% to 6,139 pence after the U.K.-based heating and plumbing products supplier reported revenues in the year ending in July jumped 7.6% from a year ago to £20.8 billion.

Net income in the year surged 41.3% to £1.3 billion from £920 million in a year ago period and diluted earnings per share advanced to 511.9 pence from 363.5 pence.

The heating and plumbing products supplier said that the revenue growth was driven by the businesses in the U.S., Canada and Central Europe and favorable foreign exchange rates.

Ferguson said revenues in the U.K. business dropped 5.3% after closing the domestic branches and exiting from the wholesale business.

NEX Group Plc, formerly known as ICAP Plc gained 0.5% to 1,014 pence after the U.K.-based electronic trading platforms and brokerage services provider said September month average daily volume of the U.S. Treasury fell 1% to £163.7 billion from the same month a year ago.

Royal Mail Plc plunged 5.9% to 368.50 pence after the U.K.-based postal and courier service provider lowered fiscal 2019 operating profit forecast before restructuring costs in the range of £500 million to £550 million from £694 million in the same period a year ago.

Royal Mall estimated cost savings now dropped to £100 million from £230 million as it reaffirmed addressed letter volume to decline between 4% and 6%. However, addressed letter volumes in the first-half dropped 7%.

Veolia Environnement SA increased 1.1% to €17.44 after France-based utility services provider today agreed to sell its 30% stake in transport group Transdev to Germany-based family-owned water, recycling, logistics and public transport business Rethmann Group for about €340 million or $393 million.

The transaction is expected to close by the end of this year.