Poor results from Barclays, BP and Associated British Foods
Barclays, BP and Associated British Foods have all posted disappointing first quarter results, according to The Share Centre.
The bank recorded a pre-tax profit of £1.66 billon in the first three months of the year, but this was tempered by a 15 per cent decrease in revenues at Barclays Capital, usually "the main driver of profits" at the bank.
Nick Raynor, investment adviser at The Share Centre said Barclays is in a "tentative" position, but said that investors "should be attracted by its ability to offer a dividend, its strong profit growth and its international exposure".
Oil giant BP saw its profits drop two per cent from a year ago as expenses related to the Gulf of Mexico spill continue to have an impact.
The company is currently selling off a huge portion of its assets, but how this will effect its future is still unclear.
"The cost of the clean up is still rising, however a quarterly dividend is expected and high risk investors may wish to take a small stake," suggests Raynor.
Despite group adjusted earnings growth of eight per cent, driven by Primark and Sugar, Associated British Foods' performance remains underwhelming in the eyes of Raynor.
"Sadly, we feel this can only get worse as the remainder of 2011 is expected to see costs rise and margins squeezed by the increased price of cotton," he said.
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