Finally Pearson investors can cheer a rise in profits
Investors in Pearson welcomed the first bit of good news from the company in some time.
the education publishing specialist raised its profit forecast for the year after reporting revenue was at the upper end of guidance in the first nine months.
sales dipped 2pc over the period following lower levels of enrolment in Us higher education and a fall in the use of textbooks.
But cost-cutting and a restructure are starting to benefit performance and Pearson said it is making good progress in its digital transformation.
Pearson this year has offloaded Penguin random House and Global education, and, with things going well, it now expects earnings for the year to be at least £576m, up from a previous estimate of £546m.
Chief executive John Fallon said tough market conditions are expected to continue. shares leapt 7.3pc, or 45.5p, to 667p.
the firm was the greatest riser on the FTSE 100, which was off 0.1pc, or 10.8 points, at 7516.17.
estate agent Foxtons was the star of the all- share index, as speculation that stamp duty could be slashed for first-time buyers boosted its outlook.
Investors are banking on Chancellor Philip Hammond removing the duty for first-time buyers in next month’s Budget. that could see sales surge at London agent
Foxtons, which has suffered since additional tax was introduced for landlords and those buying second homes. shares soared 9pc, or 6p, to 73p.
enjoying the same boost, property services firm Countrywide was not far behind, up 4.8pc, or 5.5p, to 119.5p. But Laith Khalaf, senior analyst at Hargreaves Lansdown, said: ‘It’s that time ...when the treasury starts flying kites in the media to gauge public reaction. But investors who get carried away could find themselves falling back to earth with a bit of a bang as many of these proposals never make it into policy.’
While Asos (up 0.9pc, or 50p, to 5750p) impressed with super sales growth, Clipper Logistics was riding on the coat tails of its success winning a contract to handle Asos’s european returns from its site in Poland. the three-year deal will see 350 jobs created at the logistics centre. shares advanced 0.2pc, or 1p, to 433.5p. Moneysupermarket reported revenue of £90.2m in the three months to september 30, up 6pc from the same period a year ago.
While a growing number of homeowners switching insurance provider has driven growth, home services sales at the comparison site for the year to date are down 21 pc. Chief executive Mark Lewis said the group was ‘on track for another record year’ but investors seemed less confident as shares were off 0.9pc, or 2.7p, to 315.8p Private healthcare provider
Mediclinic said earnings from the Middle east had dented earnings. the firm has embarked on a cost savings programme in south Africa and switzerland as patient numbers dwindle, while regulatory changes in Abu Dhabi have put profit margins in the region under pressure. shares dropped 4.4pc, or 29.5p, to 645.5p.
ConvaTec made some ground back after yesterday’s profit warnings sparked a share price plunge. HsBC removed its ‘ buy’ rating from the stock while analysts from JP Morgan and Citigroup slashed their target price for the business. shares gained 3.9pc, or 8p, to finish on 213p.
Rotala has entered a conditional agreement to buy national express’s Hotel Hoppa business, a passenger transport service between Heathrow Airport and hotels within a five mile-radius. rotala will pay £2m. shares accelerated 2.6pc, or 1.5p, to 60p.