16 November 2017 – interim results
Results for the half year ended 24 September 2017 have been released. Revenue was up 2% on an underlying basis, rising from £4.6bn to £4.8bn. Adjusted operating profit before transformation costs was £323m, up 7% on the corresponding period last year. Adjusted basic earnings per share were 20.1p (2016: 19.2p). Net cash investment of around £450m is forecast versus £492m last year and £656m two years ago. In line with stated interim dividend policy, a dividend of 7.7p per share will be paid on 10 January 2018 with the ex-dividend date being 7 December. There are fears with regards to the potential for staff costs to rise but in our view the impact of this is more than priced in. We continue to rate the shares as a BUY.