The FTSE 100 Index was struggling for direction in lunchtime trading. At midday. the index was trading 0.5% higher at 7,196.53. The performance of the FTSE 250 Index mirrored this lackadaisical performance recording a midday rise of 0.2% at 23,622.60.
Shares in Engineering company Spirax-Sarco (SPX) were trading over 3.5% higher at midday making it the top FTSE 100 index performer.
The thermal energy specialist registered a 42% increase in first half operating profit to £162.9 million on a like-for-like basis, although currency headwinds reduced the reported growth rate to 37%.
The firm saw strong growth across its business due a recovery in global industrial output, as well as strong vaccine-demand for its Watson-Marlow pump and fluid technology products. Shares were the top performer in the FTSE 100, gaining 2.7% to £155.40.
Shares in Cyber-security company Avast (AVST) were in demand rising 2.36%. This was in response to news that it had reached agreement with NortonLifeLock on a sweetened bid for the company. Under the terms of the new deal, for each Avast share investors will receive $7,61 in cash and 0.03 of a new share in NortonLifeLock.
The revised deal raises the cash component to 90% and represents close to a 21% premium to the Avast share price on 14 July, before the initial approach. Shares drifted up 3% to 585p.
Shares in London Stock Exchange (LSEG) continued their recent run, rising 2.2% to trade at £80.24. Interim results for the group announced last Friday, demonstrated strong earnings growth and allayed concerns regarding the integration costs associated with their $27 billion acquisition of data company Refinitiv.
Cost synergy targets for the acquisition have been increased from £88 million to £125 million.
Car and house insurer Admiral Group (ADM) gave up the majority of its early trading gains, despite announcing interim results that were ahead of consensus expectations. In a move designed to appeal to income investors, the group also announced a 62% increase in the interim dividend to 115p, and a special dividend of 46 pence per share.
The group reported a 76% increase in first half pre-tax earnings to £482.2 million thanks to increased policy numbers, lower claims frequency due to the pandemic and a large release of prior-year reserves.
‘It’s been a half year of good execution for Admiral. By and large, we’ve done the right things more often and a bit earlier than most’, said chief executive Milena Mondini. Shares rose 2.2% to £35.24
The muted share price response to today’s strong numbers reflects the fact these results were partly flagged in a trading update last month, since when the share price has risen by 10%.
Shares in Insurance and pensions group Phoenix (PHNX) drifted below the 700p, to trade at 696p depite the group reporting a 46% increase in first half operating profit to £527 million thanks to several acquisitions including the Standard Life brand.
Cash generation was £872 million, more than double last year’s level, and the firm said it was on track to hit the top end of its target range of £1.5 billion to £1.6 billion of cash by the year-end. Shares drifted off 1.7% to 688p.
