One of Britain’s leading investor bodies claims that BT Group (LON:BT.A) still has work to do to restore shareholders’ confidence following a difficult year, Reuters has reported. The comments come as the former telecoms monopoly, which was hit by an accounting scandal last year, prepares to update investors on its third-quarter performance a week from today.
BT’s share price has been steady in London this morning, having added 0.50 percent to 261.85p as of 08:35 GMT. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.32 percent higher at 7,641.47 points.
BT has work to do to restore confidence
Reuters reported last night that the Investor Forum, an independent body whose members are institutions managing about £14 trillion of global assets, had disclosed that had raised concerns with BT last year at the behest of shareholders who own about 12 percent of the business.
“The objective was to ensure that the company had a clear view of investor frustrations as well as an understanding of the need for prompt and decisive action to help restore the reputation of the company,” the Forum said, adding that while the former telecoms monopoly had “taken comprehensive action to address a number of issues that were weighing on investors’ minds,” the process of rebuilding confidence was still ongoing.
Analysts flag drop in third-quarter earnings
The comments come ahead of BT’s third-quarter results next Friday and Proactive Investors reports that the telco is likely to report a drop in earnings, with consensus forecasts pointing to a seven-percent fall in EBITDA.
The results will come after BT recently suffered a setback in its efforts to overhaul its pension scheme, with the High Court rejecting its attempt to change the index for pension increases.