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DividendMax Limited
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UNITED UTILITIES GROUP PLC 2012 ANNUAL GENERAL MEETING AND INTERIM MANAGEMENT STATEMENTUnited Utilities issues an interim management statement, for the period 1 April 2012 to 26 July 2012, ahead of its annual general meeting to be held today at The Midland Hotel, Peter Street, Manchester. Commenting on the group's performance for the year ended 31 March 2012, Chairman, Dr John McAdam, will say:"During the last 12 months we have made good progress towards achieving our vision of becoming a leading North West service provider and one of the best UK water and wastewater companies. We have reported another good set of results in a tough economic climate and have delivered significant improvements in customer satisfaction. We are also confident that we can improve further. Alongside this, we increased capital investment in our assets by 12 per cent to Â£680 million for the year, providing benefits for our customers, the regional economy and the wider environment."In line with our policy, the board has proposed a final dividend of 21.34 pence per share. Taken together with the interim dividend of 10.67 pence, paid in February, the total dividend for the 2011/12 year is 32.01 pence per share, an increase of 6.7 per cent over the prior year. Looking ahead, we plan to continue with our policy of targeting real dividend growth of RPI inflation plus two per cent per annum through to at least 2015."Trading updateCurrent trading is in line with the group's expectations of delivering a good underlying financial performance for 2012/13. The company's business improvement initiatives continue to progress well and this, coupled with performance to date, has reinforced management's confidence in delivering its regulatory outperformance targets over the 2010-15 regulatory period.Revenue is higher, reflecting the regulated price increase for 2012/13. However, as expected, this increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and continued lower commercial volumes. The increase in revenue is largely offset by higher depreciation, as outlined previously, and higher levels of infrastructure renewals expenditure and other operating costs which are both impacted by the transfer of private sewers. Infrastructure renewals expenditure has increased in line with the company's planned investment profile, as United Utilities invests to maintain and improve the resilience ofits network. The increase in other operating costs also reflects higher property rates, as expected. Regulatory capital investment has continued at high levels and is expected to be around £700 million (including infrastructure renewals expenditure) in 2012/13.
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Strong first half - guidance confirmed Results for the six months ended 30 June 2012- Revenues up 7.3% to £508.7m - underlying revenue growth of 6.8%- Adjusted operating profit up 12.5% to £103.4m- Fully diluted adjusted EPS up 13.9% to 28.6p- Cash generation from operating activities up to £113.9m (112% conversion)- Events operating profit up 29.6% to £74.8m, 66.5% of group total (excluding corporate costs)- Forward bookings for top 20 events up 12.7%- Emerging Markets revenues up 20.9% to £93.1m, representing 18.3% of total- Seven acquisitions completed in H1 for expected consideration of £26.6m- Initiated strategic review of Data Services businessesDavid Levin, UBM's Chief Executive Officer, commented:"We have had a good first half of the year with underlying revenue growth of 6.8% and margins up almost a percentage point to 20.3%. Our strategy is yielding positive results as we continue to improve the quality of the business. We have decided to explore strategic options for the Data Services businesses to confirm we are allocating capital appropriately between the growing number of opportunities now available to us.Our events portfolio performed very well with good attendee-led technology events in the US, an above-plan performance at Ecobuild in its first edition under UBM ownership, and strong results from our events in Emerging Markets,particularly in China. PR Newswire generated GDP-plus revenue growth and improved its margins while also launching new products. Data Services results reflect specific challenges in two verticals but overall the business made good progress. Marketing Services - Online grew well, led by our community-focused products, while the Print component declined more rapidly than anticipated.We remain on track to meet our expectations for the full year. We now expect improved underlying growth for Events of 12%-14%. PR Newswire remains on track. We maintain full year guidance for Data Services where we expect an improved performance notably from UBM TechInsights in the second half. However,we now expect Marketing Services - Online and Print to deliver growth of between 0%-2%. While our business is trending positively, we are retaining our consolidated guidance as we are mindful of the uncertain external environment."
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