Listed international firm DWF made a new attempt to combat stock market jitters this morning by announcing earnings ahead of budget amid strong trading in the first two months of the new financial year. The trading update also revealed hopes that 'swift management action' following the departure of long-serving chief executive Andrew Leaitherland in May would save £15m this year.
DWF Group shares rallied 15% to 65.7p on the announcement, less than half their value in March.
According to the update, preliminary earnings figures (EBITDA) for the first two months are £3m up on the same period last year. 'After encountering some headwinds from Covid-19 in Q4 of FY20, the group is cautiously optimistic about FY21 performance,' the update states.
Sir Nigel Knowles, who replaced Leaitherland as group chief executive, said he was pleased with the 'positive momentum' generated during the first two months. 'We have taken decisive action focused on consolidating our existing operations to increase profitability, deliver cost efficiencies and improve lock-up and cash generation,' he said.
The firm revealed today that between 15 and 18 jobs are expected to be axed as a result of a redundancy consultation. A spokesperson for DWF said: ‘We have begun a consultation process with groups of colleagues in central services. We will not be able to make any further comments at this stage.’
Last month the business announced the closure of offices in Brussels and Singapore and the scaling back of operations in Dubai and Cologne.
Lockup has fallen from 208 days at 30 April to 197 days in June, the update said.
In another trading update, RGB Holdings, the junior market-listed owner of City firm Rosenblatt, announced that revenues from fees earned in the first six months are 38% ahead of the same period last year, at £11.4 million. However it cautioned: 'While the group continues to enjoy a strong pipeline of opportunities, the board notes that it is not certain that this rate of growth will continue in the second half of the year.'
RGB Holdings shares dipped 3.6% to 68p on the news.