Annual results today fuelled strong share price performances by widely-held Centrica and Lloyds Banking Group.
Dividend and share price advances today lifted the mood of retail investors after widely-held Centrica and Lloyds Banking Group posted results.
The British Gas owner surged 8% on its distribution plans, while the UK’s biggest lender rose 4% after reporting a forecast-beating end to 2024.
It also surprised the City by adding £500 million to its share buyback plan.
UBS said that earnings were “well-guided, dependable and very under control” for what is a collection of non-regulated trading businesses.
The calming of energy market conditions meant operating profit for 2024 dropped sharply to £1.55 billion, with British Gas profits down 60% to £297 million as its closed the year with 7.46 million residential customers.
The move failed to cloud its forecast-beating fourth quarter results performance, which included an impairment charge some 43% below the City consensus.
Lloyds increased its dividend for the year by 15% to 3.17p a share and said it intends to implement a share buyback programme of up to £1.75 billion.
Shore Capital said the distribution plan suggested that management is not overly concerned about the motor finance issue spiralling out of control.
Peel Hunt added: “Lloyds is delivering on its financial targets and capital return guidance, in spite of motor finance.”
Lower commodity prices meant the group reported a 15% drop in underlying earnings to $8.5 billion for 2024.
But chief executive Duncan Wanblad said Anglo was making progress on its plan to become a “far higher margin and more valuable mining company” focused on copper, premium iron ore and crop nutrients.
In the FTSE 250, recruitment firm Hays fell 1.9p to 71.1p after it said that half-year profits had fallen in line with January’s guidance by two-thirds to £19 million.
North Sea-focused Ithaca Energy jumped 9% or 12p to 143.2p as its forecast a full year performance at the top end of management guidance.
08:48 , Graeme Evans
Anglo American today said prevailing diamond market conditions had prompted it to write down the carrying value of its De Beers stake by $2.9 billion.
The move comes as the mining giant continues with plans to separate the business as part of an ongoing overhaul of the group. It recently made significant cuts to its De Beers production guidance for this year and next.
Lower commodity prices meant the group, which last year fought off takeover interest by BHP, reported a 15% drop in underlying earnings to $8.5 billion for 2024.
Chief executive Duncan Wanblad said: “We are fast transforming Anglo American into a far higher margin and more valuable mining company focused on exceptional copper, premium iron ore and crop nutrients assets and significant growth optionality.”
Anglo American shares rose 3% or 81p to 2451p.
08:28 , Graeme Evans
Lloyds Banking Group boss Charlie Nunn received a pay package worth £5.6 million in relation to 2024 trading, the bank’s annual report reveals.
This is up from 2023’s £3.7 million due to his first vesting of long-term incentives, which contributed £2 million to the final figure.
The total included cash and deferred shares worth £1.1 million after the annual bonus scheme paid 68% of the maximum opportunity.
The group’s Performance Share annual bonus pool outcome amounted to £368 million, a reduction of 4% on last year.
08:11 , Graeme Evans
Centrica shares have jumped 8% - up 10.8p to 146.7p - after the British Gas owner forecast a big increase in 2025’s dividend to 5.5p a share and expanded its buyback programme by £500 million.
UBS said: “The buyback sharply raises liquidity in the shares to year-end, and neither we nor we believe investors expected it.”
The bank added that earnings were “well-guided, dependable and very under control” for what is a collection of non-regulated trading businesses.
Lloyds Banking Group and Anglo American shares have also risen 3% in the wake of their annual results.
On Lloyds, Peel Hunt said: “Lloyds is delivering on its financial targets and capital return guidance, in spite of motor finance.
“Having underperformed peers, we view the 2024 announcement as positive for shares, and intend to refresh our views shortly.”
The FTSE 100 index is 23.23 points lower at 8689.30.
07:57 , Graeme Evans
Lloyds shares are up 40% in the past year but have still underperformed the sector as its motor finance exposure is the largest of any major UK bank.
Hargreaves Lansdown analyst Matt Britzman said today’s £700 million provision clouded a strong fourth quarter performance.
He added: “Beneath the surface, Lloyds is delivering strong results. Excluding the motor finance charge, fourth-quarter figures exceeded expectations, thanks to borrowers performing better than anticipated.
“Remarkably, Lloyds has managed to improve its loan quality over the course of the year, defying fears that borrowers would buckle under the pressure of persistent inflation.”
Britzman also pointed out that Lloyds has returned 10% of its current market valuation to investors over 2024.
07:40 , Graeme Evans
Centrica has posted a 2024 operating profit of £1.55 billion, down from £2.75 billion in 2023 amid the impact of lower energy prices.
British Gas Energy profits fell 60% to £297 million as the business closed the year with 7.46 million residential customers, down 1% on a year earlier.
Shareholders are to receive a total dividend up 13% to 4.5p, while the company has pledged to increase the 2025 figure to 5.5p a share.
Chief executive Chris O’Shea said: “2024 was a good year for Centrica as we made further operational improvements and ramped up our investment programme.
“This has resulted in happier customers and more innovative propositions, but there is so much more we can do.”
He said most of the company's businesses have delivered against medium-term expectations two years ahead of schedule.
Read more here
07:17 , Graeme Evans
Annual results by Lloyds Banking Group today included a £700 million provision for potential remediation costs relating to motor finance commission.
Including the £450 million provided in 2023 results, Lloyds said the total of £1.15 billion represented its best estimate of the potential impact, including both redress and operational costs.
It said significant uncertainty remains around the final financial impact.
Despite the additional provision, Lloyds has increased its dividend for the year by 15% to 3.17p. This includes a full-year distribution of 2.11p.
It also intends to implement a share buyback programme of up to £1.7 billion as it continues to distribute excess capital to shareholders.
Pre-tax profits today fell 20% to £5.97 billion.
Chief executive Charlie Nunn said: “The group delivered a robust financial performance in 2024.
“Pleasingly and as expected, income grew in the second half of the year, supported by a rising banking net interest margin and momentum in other income.”
Read more here
07:00 , Graeme Evans
The FTSE 100 index is forecast to recoup some of yesterday’s losses after US markets finished slightly higher last night.
IG Index futures show London’s blue-chip index is set to rise by about 18 points, having fallen by 0.6% or 54 points to 8713 yesterday.
On Wall Street, the Dow Jones Industrial Average and the S&P 500 index rose 0.2%. In Asia, the Hang Seng is down by about 1.3%.
Meanwhile, gold continues to trade in record territory after rising to $2946 an ounce in trading this morning.
