Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Vodafone and M&S disappointments drag FTSE lower

Vodafone and M&S disappointments drag FTSE lower

Vodafone (VOD) and Marks & Spencer (MKS) have dragged the FTSE lower after both companies unveiled disappointing results.

Vodafone shed 9.2p, or 4.2%, as it unveiled full-year earnings below investors expectations at £12.8 billion, 7.4% down on the previous year. Marks & Spencer meanwhile dropped 14.8p, or 3.3%, to 436.2p as the retailer reported a third year of falling earnings. The FTSE 100 slipped 33 points, or 0.5%, to 6,811.

Analysts at Jeffries said Vodafone's results contained 'little to inspire confidence in turnaround prospects', adding there was scant evidence of any improvement in revenues. They added that investment in Germany and the UK was weighing on margins and that in Germany in particular, results had been modest given the scale of the investment.

'Our operational performance has been mixed,' said Vodafone chief executive Vittorio Colao. 'In Europe, where we continue to face competitive, regulatory and macroeconomic pressures, we have taken steps to improve our commercial performance, particularly in Germany and Italy, and are beginning to see encouraging early signs.'

Declining revenues at Marks & Spencer, which made a pre-tax profit of £623 million in the year to 29 March, meant it fell behind fast growing rival Next (NXT) for the first time.

Having now launched a troubled new website, capital expenditure levels are set to fall, but investors are worried online difficulties could persist and are waiting to see if an improvement in performance follows. 'We need to see a sutained pick up in clothing performance and signs of market share recovery to take a more positive view on M&S,' said Peel Hunt analyst John Stevenson.

AstraZeneca (AZN) continued falling after yesterday's plunge following the pharmaceuctial giant's rejection of a 'final' takeover approach from US rival Pfizer. It fell a further 53p, or 1.2%, to £42.38 as investors appeared to accept any lingering hopes of the deal being revived were now dead.

Carnival (CCL) was the biggest riser on the FTSE 100, adding 112p, or 4.9%, to £24.14 as the cruise company announced plans to expand its Australian operations.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter