15 November 2018 – interim results
Interim results for the six months ended 23 September 2018 have been released. Revenue was slightly higher at £4,932m versus £4,829m a year earlier. Adjusted profit before tax slumped by 27% from £250m to £183m and on the same basis earnings per share fell from 20.1p to 13,6p. The interim dividend was increased to 8.0p per share (2017: 7.7p) and the attractive yield on the shares remains a notable feature for investors. The company has instigated a a range of actions to improve performance. It has reiterated commitment to a revised £100m cost avoidance target and adjusted operating profit before transformation costs of between £500m and £550m for the financial year. The results were slightly disappointing but the shares have fallen to a level which represents excellent value. A BUY rating is appropriate in our view, particularly for those seeking income.