Hobson: Hide Your Profit Warning at Your Peril

THE WEEK: Morningstar columnist Rodney Hobson is angry - fed up with UK firms who try to hide their profit warnings

Rodney Hobson 27 October, 2017 | 11:05AM

Profit warnings cause share prices to slump

The one aspect of equity investing that really gets me angry is when companies try to hide profit warnings. The latest culprit is car retailer Pendragon (PDG ), where the board has shamefully tried to hide such a warning by pretending that they have launched a strategic review.

After 14 paragraphs chief executive Trevor Finn gets round to saying: “We anticipate that our full year underlying profit before tax will now be approximately £60 million.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Lloyds Banking Group PLC30.46 GBX2.42
Pendragon PLC8.99 GBX-3.70
The Royal Bank of Scotland Group PLC121.50 GBX2.92
Whitbread PLC2,268.00 GBX4.81

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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