Evolution forecasts full-year earnings will fall despite higher market levels boosting second-half profits. It forecasts net new money of £300m, is concerned about future capital requirements and progress on the New Star transaction and market volatility means it remains cautious over short term growth credentials. “Reduce” is the rating.
S&P reiterates its “sell” rating on the company as both full-year figures and the outlook were weaker-than-expected, weighed down by challenging conditions in the US legal markets. S&P says management is “running to stand still in an environment of growing customer demands and increased competition”.
Charles Stanley rates Hays a “buy” ahead of half-year results due this week, noting the group reported a stabilisation of demand within all its major markets in its second quarter update. Gross profit was down 30 per cent year-on-year in the quarter, compared with a 40 per cent decline in the first quarter.