04 July 2024
Market Round-Up
Airbus, a multinational aircraft manufacturer, saw shares fall by 9% on Tuesday 25th June, in reaction to the news that it is cutting its earnings and delivery targets for 2024. It had initially stated it would be delivering 800 aircraft but has since reduced the target to 770. This is due to the persistent supply chain issues that the company has been facing since the 2020 pandemic, when air travel was halted worldwide. Subsequently, post-COVID demand for air travel has soared, and the sector has faced issues in acquiring engines, aerostructures and cabin equipment. However, the company still projects annual growth of 5% for the year of 2024, with hopes that this will grow as tensions ease.
British tech retailer, Currys, has reported a 10% increase in its full year profits and holds a positive outlook for the year ahead. Last year it struggled in the Nordic region, which accounts for 40% of revenue for the business, due to intense competition and a deterioration in its trading levels. This, alongside persistent inflation and high interest rates, resulted in the dividend being pulled.
Earlier this year, Currys found itself in the middle of a bidding war, with Waterstones and JD.com both considering takeover bids for the retailer. The bidding then came to a close at the end of March, with no offers secured.
However, the company has since reported a rise in its gross annual profits to £28m, up from the previous year’s loss of £462m. The company is now targeting higher recurring revenue streams, through its care and repair, credit provision, mobile plans and protection plans. The improvements have led to calls for the dividend to return, which the company claims it will fulfil, should conditions continue.
Please note that this communication is for information only and does not constitute a recommendation to buy or sell the investments mentioned. Investments and income arising from them can fall as well as rise in value. The information and views were correct at time of publication but may have changed at point of reading.