News provider Reuters has bounced back into profit, reporting annual profits above market expectations and sending its shares to 20-month highs.
Reuters, which reported a record loss for 2002 after being hit hard by a slide in revenues reported a profit of £190 million sterling. The results exceeded expectations mainly due to lower costs and a weaker dollar. A large portion of the group's costs are incurred in US dollars.
Reuters shares jumped nearly 9 per cent in early trade to 395 pence, their highest level since June 2002, as investors warmed to evidence that cost savings were running ahead of target and that restructuring charges were less than expected.
Group revenue fell 11 per cent, its second straight decline, but cost cutting more than offset this. Reuters said it had cut £75 million under an efficiency plan last year, above its original target of £45 million .
Reuters, which provides real-time news, market data and trading facilities to banks, brokerages and fund managers worldwide, has been hit hard by a downturn in the financial services industry, but demand has begun to pick up again, especially in the United States.
The company declared a full-year dividend of 10 pence per share, out of earnings per share of 11.1p, which was well above expectations for 5.9p to 8.4p.