Home Business NewsBusiness Windfall tax threat for renewable energy firms and SSP back in fashion

Windfall tax threat for renewable energy firms and SSP back in fashion

by LLB Reporter
24th May 22 12:24 pm

The UK market fell nearly 1% in early trading on Tuesday, dragged down by SSE which plummeted on reports that the Government might impose a windfall tax on big profits from electricity generators including wind farm operators.

The Government wants to raise money to help households hit by a sharp rise in energy bills. While it is right that some support should be given to those most in need during these difficult times, the way in which new funds are raised means the Government runs the risk that energy companies slow down investment in new green projects which could make it harder for the country to hit its net zero emissions targets.

“A 2% drop in Hikma Pharmaceuticals is the market’s way of saying it is disappointed that Siggi Olafsson is stepping down as CEO. Shares in the group have risen by 84% since his appointment in February 2018, making Hikma the seventh best performing FTSE 100 stock during that period,” said AJ Bell’s Russ Mould.

“It’s been a long time since anyone upgraded earnings forecasts for SSP, the railway and airport food seller seriously derailed by the pandemic. However, signs of business recovery have gone down well with investors, triggering a 7% hike in the share price following half-year results. Some analysts have signalled they will now nudge up their earnings estimates. Interestingly, Restaurant Group also said its transport hub concessions were recovering fast.”

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