UK stocks headed lower on Tuesday afternoon as the debate on interest rates reared its head again following better than expected jobs data in the UK and stronger than forecast US retail sales.
While the Bank of England’s decision to hold off on hiking rates last month surprised investors, today’s employment data may add pressure on the central bank to finally take the plunge.
At the close the FTSE 100 index of leading shares was 0.34% lower at 7,327.
COMPANY NEWS
Shares in advanced materials group Versarien (VRS:AIM) jumped 14% this afternoon to 34.8p after fashion retailer Superdry (SDRY) announced a joint-venture with the company to pioneer graphene enhanced garments.
Superdry said it believes using Versarien's innovative graphene technology will result in product lines with improved performance and extended product lifespan, with lower environmental impact in their creation, whilst also reducing the need to add any virgin material during recycling. Superdry shares added 0.8% to 301p.
Shares in robotic process automation company Blue Prism (PRSM:AIM) leapt 9% to £12.20 after receiving a £12.20 takeover offer from US-based S&SC Technologies, trumping the existing £11.25 offer from private equity firm Vista Equity Partners.
Shares in tobacco producer Imperial Brands (IMB) dropped 1.75% to £15.70 despite the firm posting a surge in profits for the full year to September driven by higher cigarette prices.
Net profits reached £2.83 billion compared with £1.5 billion the previous year and a consensus estimate of £2.35 billion, while revenues were little changed at £32.79 billion.
Property company Land Securities (LAND) returned to profit in the first half to September, delivering pre-tax earnings of £275 million against a loss of £835 million last year, as the London office market saw ‘a recovery in investment and operational activity’.
The firm also put forward a new strategy for its offices, retail properties and mixed-use urban sites, along with a plan to de-carbonise the business. The shares added 3.7% to 736.4p.
Transport groups National Express (NEX) and Stagecoach (SGC) reported that ‘constructive discussions’ over their proposed merger were ongoing and the Takeover Panel had agreed to extend the deadline for a deal to 14 December. National Express backed-up 1.2% to 238.4p while Stagecoach shares gained 1.2% to 77.40p.
Mobile operator Vodafone (VOD) gained 3.1% to 116p after the firm posted a fall in first half profits but raised its guidance for the full year.
Pre-tax profits for the first half to September were €1.28 billion against €2 billion last year, but the company raised its outlook for full year operating earnings and cash flow generation.
SMALL- AND MID-CAP NEWS
Audio specialist Focusrite (TUNE:AIM) posted a 28% rise in sales on a like-for-like basis for the year to the end of August and an operating profit of £35.9m or more than four times last year’s figure.
Chief executive Tim Carroll said he was ‘cautiously optimistic about the prospects for modest revenue growth in the current year’, helping lift the shares 8.3% to £16.25.
Online retailer Gear4Music (G4M) disappointed the market instead with a fall in first half sales and a warning that supply chain shortages had impacted third quarter trading.
Chief executive Andrew Wass lowered his outlook for full year operating profits to ‘no less than £12 million’ compared with market forecasts of £14 million, sending shares 15% lower to 680p.
Shares in home repair group Homeserve (HSV) climbed 6.9% to 916p after it reported strong progress in the six months to September with revenues up 14% to £610 million and operating profits up 24% to £54.7 million.
The North American business beat expectations with an ‘outstanding’ performance in the half, while the Home Experts business finally turned a profit.
Mr Kipling cake-maker Premier Foods (PFD) delivered first half revenues ahead of its previous guidance at £391 million and said it was ‘firmly on track’ to meet its full year targets.
However, investors were unimpressed with net profits which were half the year-ago level at £21 million and the shares fell 4.4% to 109.2p.
Shares in Restaurant Group (RTN) leapt 16.8% to 92.6p, topping the FTSE 250 leader board, after the owner of Wagamama raised its full year operating profit forecast on better than expected trading across the business including at its airport concessions.
In contrast, shares in Revolution Bars (RBG) dropped 7.4% to 24.7p after its full year results to the beginning of July showed a sharp drop in revenues and continued operating losses.
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