Corporate News Roundup: SSE, Vodafone, Marks & Spencer, and British Airways Report Modest Gains

Strategic Insights -

Analysts expect modest profits at Scottish & Southern Energy's (SSE) annual results, with Deutsche Bank predicting underlying profits of about GBP 1.25 billion for the year to the end of March, a marginal increase from the previous year's GBP 1.23 billion. Meanwhile, Marks & Spencer is set to post a 40% decline in profits, attributed to problems with its food business and the bleak retail climate. British Airways is expected to announce annual operating losses of about GBP 150 million, while Vodafone is looking to reveal slight growth in full-year operating profits and revenues.

Key Takeaways:

  • SSE is expected to post underlying profits of about GBP 1.25 billion for the year to the end of March, a marginal increase from the previous year's GBP 1.23 billion.
  • Marks & Spencer's profits for the year to the end of March are expected to decline by 40% at GBP 603 million, with prospects for the current trading year little better.
  • British Airways is expected to announce annual operating losses of about GBP 150 million, with prospects for the current financial year little brighter.
  • Vodafone is targeting GBP 1 billion of cost savings worldwide by March 2011, and is expected to reveal revenues of GBP 40.9 billion for the full year across its world markets, up from GBP 35.5 billion in 2007-8.
  • Shell's remuneration committee has been criticized for awarding directors under the long-term incentive plan (LTIP) despite missing targets, with at least two voting advisory firms recommending that investors throw out the firm's remuneration report.

Statistics:

  • SSE's underlying profits are expected to increase by GBP 2 million to about GBP 1.25 billion.
  • Marks & Spencer's planned job cuts will result in the loss of 1,200 jobs by the end of the year.
  • British Airways is expected to pay out approximately GBP 3 billion in fuel costs this year, down 10% from the previous year.
  • Vodafone is aiming for GBP 1 billion of cost savings worldwide by March 2011.
  • Shell's long-term incentive plan (LTIP) has awarded directors half the shares they would have been entitled to for the 2006-8 period, despite missing targets.

Sources:

  • Deutsche Bank estimates
  • Marks & Spencer annual report and financial statements
  • British Airways annual report and financial statements
  • Vodafone press release and annual report and financial statements
  • Shell remuneration report and annual report and financial statements