Monday morning trading on the UK equity market was distinctly subdued with the FTSE 100 index edging 0.2% higher to 7112.17, whilst the FTSE 250 drifted -0.2% lower to 22,474.27.
There were fears UK investors could be rattled by comments over the weekend from external MPC member Michael Saunders who argued the rapid rise in energy markets coupled with labor shortages were fueling inflationary pressures and suggested interest rate rises were justified.
However, stocks brushed off the comments and followed Asian markets higher with gains for the mining, energy and financial sectors.
COMPANY NEWS
Pharmaceutical giant AstraZeneca (AZN) revealed that a late-stage trial showed its Covid-19 antibody combination treatment reduced the risk of developing severe COVID-19 or death by 50% compared to placebo in outpatients who had been symptomatic for seven days or less. The shares were trading 0.09% higher at 8897p.
GROWTH SLOWS AT ASOS, CEO QUITS
Shares fashion retailer ASOS (ASC:AIM), fell 16% to 456p after it reported a rise in annual profit, but forecast slower growth for its new fiscal year amid cost pressures.
For the year to 31 August 2021, adjusted pre-tax profit rose 36% to £193.6 million as revenue increased 22% to £3.91 billion. Looking ahead to fiscal 2022, adjusted pre-tax profit was now expected in the range of £110 million £140 million, around a third lower than consensus while sales growth was expected to be in the range of 10% and 15% with H1 revenue growth in mid-single digits.
According to the company the lower 2022 growth outlook was a result of higher labor and freight costs, coupled with the removal of Covid related benefits.
Chief executive Nick Beighton stepped down with immediate effect after 12 years with the firm and six as the head honcho.
Ingredients supplier to the food and beverage sector Treatt (TET) expected its annual revenue to rise around 14%, confirming its recently upgraded earnings guidance.
Revenue for the year through September was seen rising to about £124 million, representing constant currency growth of around 18%, the company said in a trading update. The company said it had a “positive outlook” for the current financial year. The shares were trading 0.72% higher at 1042.5p.
Banknote verification business Spectra Systems (SPSY:AIM) increased its profit guidance for 2021, after one of its long standing central bank customers placed a new order.
This year's order is 50% higher than the typical orders with the exception of the large 2020 order during the peak of the pandemic, Spectra said.
Based on the size of this order Spectra is confident that it will exceed 2021 profit before tax and amortization expectations for 2021. The shares were trading flat at 135p
Global payments group Equals (EQLS:AIM), confirmed that the record start to the third quarter of the year had been sustained throughout the remainder of the period.
For the three months to 30 September 2021, run-rate increased 62% year-on-year, and 47% on the pre-Covid comparative period. The shares were trading 5.9% higher at 64.6p.
Networks company CyanConnode (CYAN:AIM) reported higher revenue in the first half of the year as new business wins boosted performance. For the six months ended 30 September 2021, turnover was £4.1 million, 2.7 times higher than the equivalent fiscal 2021 period, as cash received from customers rose 2.4 times to £3.8 million. The shares were trading 3.27% higher at 12.65p.
Consultancy firm Science Group (SAG:AIM) said it expected 'further upside' in its 2021 profit forecasts, even as it faces supply constrains, FX headwinds and inflationary cost pressures. Today’s announcement marks the third upgrade during the current year. The shares were trading 5.3% higher at 469p.
