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Market Update

DFS Issues Earnings Warning, Drax Declares Dividend Plan

Author: Sarla Buch
Last Update: 1:30 PM ET June 15 2017

DFS Issues Earnings Warning, Drax Declares Dividend Plan

4:00 PM Frankfurt DFS Furniture issued earnings watch on sharp decline in demand. Drax Group plans to pay annual dividend of 50 million in the current year. Majestic Wine net swung to a loss but reaffirmed its outlook. Safestore profit surged 29%. WS Atkins profit jumped ahead of acquisition by SNC-Lavalin.

In London trading, FTSE 100 index dropped 80.53 or 1.1% to 7,393.58 and in Frankfurt the DAX index declined 146.43 or 1.1% to 12,660.52.

In Paris, CAC 40 index slumped 50.53 or 0.9% to 5,193.43.

DFS Furniture Plc tumbled 21.4% to 198 pence after the U.K.-based upholstery retailer said demand declined sharply in the second-half ending in March and forecasted profit in the year between 82 million and 87 million.

DFS said the general election and ""uncertain macroeconomic environment"" resulted in a sharp decline in customer demand.

The furniture retailer warned profit in the year may be weaker than the market expectations.

Drax Group Plc fell 2.5% to 351.20 pence after the U.K.-based electricity producer today forecasted operating profit by fiscal 2025 to reach about 425 million and the utility estimated operating profit from retail business of more than 80 million and in biomass supply segment operating profit may cross to 75 million.

However, electricity producer said under new dividend policy plans to pay dividend of 50 million for the fiscal financial year 2017.

Majestic Wine Plc slumped 2.7% to 374.50 pence after the U.K.-based wine retailer reported revenues in the year ending on April 3 soared 15.8% from a year ago to 465.4 million.

Net in the year swung to a loss from a year ago to 2.7 million from profit of 2.3 million.

""We remain confident about the medium term outlook, and therefore reaffirmed our 500 million sales target by 2019 and affirming current analyst profit expectations,"" said chief executive officer Rowan Gormley.

Safestore Holdings Plc declined 3.3% to 439.60 pence after the U.K.-based self-storage facilities provider said revenues in the first-half ending in April jumped 15.7% from a year ago to 62.6 million.

Profit in the period surged 28.7% from a year ago to 58.8 million from 45.7 million and diluted earnings per share increased to 28 pence from 21.8 pence.

Pretax profit in the period advanced 12% from a year ago to 55 million and average storage rate increased 5.6% to 27.5 million.

The storage company opened a new site at Combs-la-Ville in Paris and also new consumer website was launched in France.

WS Atkins Plc unchanged at 2,075 pence after the U.K.-based management consulting services provider reported revenues in the first-half ending in March surged 11.8% from a year ago to 2.1 billion.

Profit in the period jumped 24.5% from a year ago to 128.8 million from 103.4 million and diluted earnings per share advanced to 129.9 pence from 103 pence.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc