Yahoo Finance Trending tickers: Ocado, IAG, London Stock Exchange, Drax Group
The latest investor updates on stocks that are trending on Thursday
Ocado (OCDO.L)
Online retailer Ocado received a boost on Thursday after it revealed it narrowed losses last year. It made a pre-tax loss of £394m ($498m) in 2023, compared with a £500m loss in 2022.
Meanwhile, revenues rose almost 10% to £2.8bn, boosted by its Technology Solutions arm which sells robotic grocery warehouse kit worldwide.
Adjusted earnings before interest and charges reached £51.6m, up £125.7m from a loss of £74.1m in 2022.
Ocado Retail, the group's grocery venture with Marks & Spencer (MKS.L), returned to an underlying profit and also increased revenues by 7%.
Overall group revenues increased by 9.9% to £2.8bn over the year.
Last summer Archie Norman, the chairman of M&S, told shareholders that he was “not happy” with the performance of the joint venture and said there was “work to do” to improve the business.
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On Thursday, Ocado chief executive Tim Steiner said: "I am pleased to report good progress across the group in 2023. Our technology is transforming the way people shop for food as we help some of the world’s best and most innovative retailers set the bar for excellence in grocery ecommerce worldwide.
"Ocado Retail, our joint venture with M&S in the UK, has had significant success growing customer numbers, taking online grocery market share and rebuilding profitability, proving, once again, the attractions of our online model.”
International Consolidated Airlines Group (IAG.L)
British Airways owner IAG gave a positive outlook for the year ahead on the back of sustained travel demand.
It more than doubled its operating profit last year to €3.5bn ($3.8bn), up from €1.22bn in 2022, while its debt, which has been a concern to investors and has weighed on its shares, fell to €9.2bn from €10.4bn.
"In 2023 IAG more than doubled its operating margin and profit compared to 2022, generated excellent free cash flow and strengthened its balance sheet position, recovering capacity to close to pre-Covid 19 levels in most of its core markets." CEO Luis Gallego said in a statement.
"Our airlines operate in the largest and most attractive markets globally and we will continue to invest in our brands to transform the business, improve the customer experience and support the delivery of sustainable growth and world-class margins."
Gallego said that the Middle East conflict had impacted mostly corporate demand in the last quarter of 2023 and the first quarter of 2024, but was expected to recover.
The group, which also owns Iberia, Vueling and Aer Lingus, said it would continue investing in BA in particular as part of its growth strategy and that it would aim to improve its website and customer service.
The group’s airlines are 92% booked for the first quarter of the year and 62% booked up for the first half.
It also announced a new order for six Boeing 787-10 aircraft to be delivered to British Airways in 2025 and 2026, and one new Airbus A350-900 aircraft for Iberia.
London Stock Exchange Group (LSEG.L)
London Stock Exchange Group posted full year income for 2023 at the higher end of its guidance, and confirmed plans to buy £1bn in shares this year directly from Blackstone and Thomson Reuters.
Reported total income, excluding recoveries, came in at £8bn, up 7.8% from 2022, and at the higher end of a 6% to 8% forecast. This was also slightly above analysts consensus provided by LSEG.
Earnings per share totalled 323.9 pence, up 1.9% on the previous year and slightly below analysts consensus of 328.2p.
"We continued our track record of broad-based growth, despite an uncertain environment, and delivered on all the targets we set at the time of the Refinitiv acquisition," LSEG CEO David Schwimmer said in a statement. "We look forward to further progress in 2024," he added.
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Shares slipped 0.6% in London on the back of the results, at the time of writing.
Ben Bathurst, analyst at RBC Capital markets, said the company presented “a healthy ongoing revenue development picture”
Drax Group (DRX.L)
Drax Group, the UK's largest source of renewable electricity, posted a 66% jump in annual profit on Thursday, thanks to robust renewable power generation.
Shares climbed more than 10% on the back of the news.
The company also proposed a final dividend of 13.9 pence per share, a 10% increase from last year, while total basic earnings per share came in at 142p, up from 21.3p this time last year.
Full-year adjusted core profit came in at £1.21bn, compared to £731m a year ago. It now expects capital investments to fall to around £410m to £450m this year, from £519m in 2023.
Will Gardiner, chief executive of Drax Group, said: “Drax performed strongly in 2023 and we remained the single largest provider of renewable power by output in the UK.
“We have created a business which plays an essential role in supporting energy security, providing dispatchable, renewable power for millions of homes and businesses, particularly during periods of peak demand when there is low wind and solar power.”
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