Diageo DGE produced a strong performance in the 6 months to the 31st December. All regions contributed to organic net sales growth of 4.2% although organic volume growth was considerably lower at 1.8%.This was all due to constant and rigorous execution of strategy by management – nothing like self praise when things are claimed to be going well, although a fall of 2% in reported growth is hardly consistent and is not thought worthy of particular mention. Basic earnings per share rose by 36.3% and the interim dividend is to be increased by 5% to 24.9p. As for 2018, that is expected to bring in mid single digit top line growth.
SKY plc SKY The half year to the 31st December produced a strong set of results. Indeed the blurb for the half year outcome is almost such a parrot like repetition of that for Diageo that it takes some convincing that they were not both written by the same script writer. In the case of Diageo the excellent performance was down to “consistent execution of strategy” by management. Now where did I read that before. Like for like revenue rose by 5% and earnings per share by 11%. On a statutory basis operating profit was up by 24% and earnings per share by 39%. 365,000 new customers were signed up and pay as you go buys rose by 8%. .All this was achieved despite a challenging consumer environment. The interim dividend is to be increased by 4% to 13.06 p per share, on top of the previously announced special dividend of 10p per share.Plans for 2018 and beyond are said to be ambitious.
Paypoint PAY claims to have “driven” profitable growth in the UK and in Romania where net revenue rose by 42% most of which was accounted for by the acquisition of Payzone. Where exactly it drove this profitable growth to, is difficult to understand as it included a fall of 4.3% in Group retail Networks, a volume fall of 10.5% in UK bill and generals and a net revenue fall of 6.3% in UK retail services.Nonetheless it did have a good day on the 22nd December, its best trading day of the year where processed transactions rose by 67% on the previous year.
Countryside Props CSP made a strong start to its year with first quarter completions up by 47% helped by a record year end order book and believe it or not, a fall of 11% in its private average selling price. Perhaps somewhere there is a link between those two sets of figures, which no doubt will be studiously avoided by the rest of the British housebuilding industry