BUSINESS LIVE: HSBC Profits More Than Double; BP raises dividend

Cineworld Group has emerged from Chapter 11 bankruptcy after almost 11 months, with lower debt and a new slate of management and governance.

The world’s second-largest movie theater chain, after AMC Entertainment, has named former Warner Bros. chairman and CEO Ann Sarnoff to its board of directors, along with four other members to join new chairman Eric Foss and CEO Edwardo Acuna.

The accounting watchdog has appointed its new boss. Richard Moriarty takes over from Sir Jon Thompson at the Financial Reporting Council after leading the Civil Aviation Authority for five years.

But he inherits the role at a time when the FRC is undergoing a major transformation to avoid a repeat of scandals such as the collapse of outsourcer Carillion and retailer BHS.

Diageo beat full-year sales forecasts as customers continued to buy expensive whiskey, scotch and tequila despite high prices.

The world’s largest spirits manufacturer, which also makes Johnnie Walker whiskey, Captain Morgan’s rum and Ketel One vodka, saw organic net sales growth of 6.5 percent in the year ended June 30.

This was slightly better than analysts’ forecasts for a 6.4 percent increase.

John Moore, senior investment manager at RBC Brewin Dolphin:

As expected, bp’s results are similar to Shell’s last week, but there are strategic differences worth noting.

A declining oil price environment and with it a sharp drop in earnings are the headlines, but BP is still in a robust position over a longer period of time.

The energy company has focused more than rivals on diversification, and that is highlighted in today’s update with the completion of the acquisition of TravelCenters of America and its entry into the German offshore wind market. bp also has strong credentials in carbon capture, offering potential that has yet to be realised.

“The litmus test is share buybacks and BP has announced a further $1.5 billion, on top of a 10% dividend increase, indicating management confidence despite the large drop in earnings.”

Mike Ashley’s retail empire has once again increased its stake in Boohoo.

Frasers, the owner of Flannels and Sports Direct, increased its stake in the fast fashion brand from 6.78 percent to just over 7.8 percent yesterday.

The group increased its stake in the online retailer from 5 percent to 6.78 percent earlier last week.

Greggs’ profits jumped 14 percent in the first half, with the bakery chain saying it is easing inflationary pressures and planning to open new stores.

Roisin Currie, CEO, said:

“Gregg’s strong performance continued into the first half of 2023 as we deliver on our strategic growth plan. As consumers remain under pressure, we continue to provide exceptional value, which is reflected in our performance and growing market share.

“During that time we continued to open new stores, extended opening hours into the evening and saw an increase in participation in the Greggs app.

“Our ambitious growth plans are on track and our great teams are committed to seizing the opportunity to become a significantly larger, multi-channel company.”

BP’s second-quarter earnings fell 70 percent year-on-year to $2.6 billion, missing market expectations of $3.5 billion, due to lower fuel prices and weaker oil trading.

However, the energy giant has increased its dividend by 10 percent to 7.27 cents per share, its fourth increase since halving it in the wake of the coronavirus pandemic three years ago. It will repurchase $1.5 billion of its own shares over the next three months.

Aston Martin has unveiled plans to raise a further £210 million in funding to accelerate debt reduction efforts.

The cash call is backed by the luxury car maker’s biggest investors, including the Saudi Arabian sovereign wealth fund and Chinese rival Geely.

HSBC raised its key performance target after first-half pre-tax earnings more than doubled to $21.7 billion, boosted by rising global interest rates and gains from the planned sale of its French division.

Earnings rose from $9.2 billion at the same time last year, beating analyst expectations of $20.9 billion.

The bank also announced new share buybacks of up to $2 billion and a dividend of 10 cents per share.

HSBC raised its short-term return on tangible equity target, a key performance target, to at least the mid-teens for 2023 and 2024, from a previous target of at least 12 percent from 2023. It reported a return on tangible equity of 9, 9 percent for 2022.