What Boris Johnson’s cabinet tells us

Boris Johnson has appointed his cabinet. We analyse what it tells us and hear from some of them. Also today, the prime minister has gone head-to-head with Jeremy Corbyn in the Commons.

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Vodafone to create European mobile mast company with potential for IPO

Vodafone said on Friday it would move its mobile mast operations in 10 European markets into a new company that it potentially could list, in a move it said would unlock value for shareholders.

Chief Executive Nick Read said the tower company, which will be created in the next 18 months, would be Europe's largest, comprising about 61,700 sites, with 75% in its biggest markets of Germany, Italy, Spain and Britain.

"Given the scale and quality of our infrastructure, we believe there is a substantial opportunity to unlock value for shareholders while capturing the significant industrial benefits of network sharing for the digital society," he said.

The world's second largest mobile operator announced the spin off along with a first-quarter trading update on Friday that saw group service revenue decline by a smaller-than-expected 0.2%. It said a gradual recovery in its previously weak top line would continue.

It said market conditions in Italy had continued to improve and retail growth in Germany remained robust, which in part had been offsetting intense competition in Spain.

Vodafone said it was confident about its full year guidance for adjusted core earnings of 13.8-14.2 billion euros and free cash flow before spectrum costs of at least 5.4 billion euros.

IMI HY Profit Rises; Sees FY Results In-line With View

IMI Plc. (IMI.L) reported that its profit for the six-month ended 30 June 2019 increased to 76.8 million pounds or 28.3 pence per share from 74.2 million pounds or 27.3 pence per share in the prior year.

Statutory profit before tax was 92.7 million pounds, compared 92.9 million pounds in the previous year.

Adjusted earnings per share were 32.0 pence compared to 32.9 pence in the prior year.

Adjusted revenues of 910 million pounds were 1% lower due to 18 million pounds lower divisional results offset by 13 million pounds favourable exchange movements. Organic revenues were 3% lower when compared with the same period in 2018.

The trading outlook for the Group remains substantially unchanged. In the second half of 2019 the company continues to expect that organic revenue will experience a decline similar to that in the first half, when compared with the same period in 2018.

Nonetheless, second half profits are expected to be similar to last year, supported by the business improvement initiatives pursued by each of the three divisions.

The company anticipates full year 2019 results will be in-line with expectations.

Based on the global industrial outlook the company still expects full year organic revenues and margins to be slightly lower than for 2018.

Mothercare Sees Flat Annual Underlying Pre-tax Profit

Mothercare plc (MTC.L) said that it expects full-year underlying profit before tax to be broadly comparable to the prior year.

In a trading update covering the 15-week period ended 13th July 2019, the mother and baby products retailer said that its total group sales fell 9.2%.

International retail sales were down 4.5% in constant currency and down 2.1% in actual currency.

Total UK sales 23.2% lower than last year, as a result of the extensive store closure programme. UK like-for-like sales were 3.2%.

Rightmove Plc H1 Pretax Profit Rises; Revenue Up 10% – Quick Facts

Rightmove Plc (RMV.L) reported pretax profit of 108.1 million pounds for the six months ended 30 June 2019 compared to 98.0 million pounds, previous year. Earnings per share was 9.81 pence compared to 8.69 pence. Underlying operating profit improved 10% to 111.0 million pounds. Underlying basic earnings per share was 10.2 pence compared to 9.1 pence.

First-half revenue increased to 143.9 million pounds from 131.1 million pounds, a yer ago. Revenue was up 10% year-on-year driven by continued growth in Agency and New Homes businesses.

The Board has announced an interim dividend of 2.8 pence per ordinary share, an increase of 12%.

Pearson lifts guidance for the year

Pearson PLC (PSON.LN) said Friday that pretax profit fell 94% in the first half but adjusted operating profit exceeded expectations, and raised its adjusted earnings per share guidance.

The London-based education company said pretax profit fell to 13 million pounds ($16.2 million) in the first half compared with GBP202 million in the same period a year earlier. The company attributed the lower profit to declining business sales and higher restructuring charges.

Adjusted operating profit–the company’s preferred metric, which strips out exceptional and other one-off items–grew to GBP144 million from GBP107 million. This compared with analysts’ expectations of GBP136 million, according to a company-provided consensus.

First-half organic revenue growth was up 2%, topping analysts’ expectations of a 1% to 2% rise, Pearson said. Total revenue fell to GBP1.83 billion from GBP1.87 billion a year earlier.

Pearson raised its adjusted EPS guidance to between 57.5 pence and 63.0 pence for 2019, from between 55.5 pence and 61.0 pence previously, reflecting more favorable finance charges, taxation and currency rates.

The board raised its interim dividend to 6 pence a share from 5.5 pence a share a year earlier.

Vodafone to split off Europe tower unit

Vodafone Group PLC (VOD.LN) said Friday that it will separate its European tower infrastructure business and consider monetization options, including via a potential initial public offering, as it posted a 2.3% fall in first-quarter revenue.

The U.K. telecommunications said its European tower infrastructure into a new organization, which will be operational by May 2020. The new business will comprise the company’s 61,700 towers in ten markets. Preparations are under way for a variety of monetization alternatives to be executed over the next 18 months, including a potential IPO, Vodafone said.

Proceeds from the separation will be used to reduce the group’s debt, Vodafone said. The company said the separation will depend on market conditions.

Separately, Vodafone said revenue for the quarter to June 30 fell to 10.65 billion euros ($11.87 billion) from EUR10.90 billion in the year-earlier period due to foreign-exchange movements, and backed its guidance for fiscal 2020

Quarterly organic service revenue–a closely-watched metric for Vodafone–was down 0.2%, following a 0.7% decline in the previous quarter, the company said.

The company confirmed that it is confident in delivering adjusted earnings before interest, taxes, depreciation and amortization of between EUR13.8 billion and EUR14.2 billion and free cash flow, excluding spectrum costs, of at least EUR5.4 billion in fiscal 2020.