UK stocks traded sideways on Thursday as gains in mining and aerospace stocks were offset by weakness in utilities and consumer names. By 9am the FTSE 100 was down 3 points at 7,024, while the FTSE 250 mid-cap index was up 4 points at 22,644.
Overnight, markets in America and Asia were largely unchanged as investors sat on the sidelines ahead of crucial trade talks between the US and China later today.
Sterling was steady at $1.41 against the dollar, while Brent crude futures dipped slightly to $68.40 per barrel and gold retraced to $1,900 per ounce.
COMPANY NEWS
Insurer Aviva (AV.) reported record quarterly savings and retirement net flows and its highest first quarter general insurance sales for a decade.
Having disposed of eight businesses and generated £7.5 billion in cash, chief executive Amanda Blanc is now focused on improving the core business, with impressive results. Aviva shares climbed 2.2% to 408p.
Ingredients firm Tate & Lyle (TATE) eked out a 1% gain in revenues for the year to March supported by strong growth at its food and beverage solutions unit and its new products business.
Meanwhile, the firm revealed it is looking to sell a controlling stake in its primary products business, leaving the unit as a key supplier rather than a directly controlled subsidiary. There was no suggestion proceeds from the sale would be returned to shareholders, however. Shares fell 5.4% to 770p on the news.
Savings and investment platform AJ Bell (AJB) reported a 21% jump in revenues for the six months to March and a 39% increase in pre-tax profits to £31.6 million thanks to a 17% increase in customer numbers over the period.
Total net inflows of £3.1 billion lifted the firm’s assets under administration to £65.2 billion, an increase of 15%, while assets under management jumped 75% to £1.4 billion. Shares gave up 1.2% to 430p.
Specialist asset manager Impax (IPX) posted a record £6.8 billion of net inflows in its first half, taking total assets under management to £30 billion at the end of March.
Continued strong investment performance, especially in its Environmental Markets strategy, saw assets rise to £32.2 billion by the end of April. Shares eased 0.4% to £11.02 after a blistering run from early March which has seen them gain more than 50%.
Pet care firm Pets at Home (PETS) reported full year revenues for the end of March up 7.9% to £1.14 billion, boosted by retail revenues which topped £1 billion for the first time.
Underlying pre-tax earnings of £87.5 million were ahead of forecasts, and the firm said it expected profits for the current financial year in a range of £120 million to £130 million against a consensus of £112 million. Shares dipped 2% to 455p after a strong run since the middle of the month.
AIM MOVERS
In a statement ahead of its annual general meeting, safety component maker Strix (KETL:AIM) said the strong momentum it enjoyed in the second half of its last financial year had continued into the current financial year, with the result that revenues would likely increase by 30%, slightly ahead of estimates.
As well as seeing strong demand in the kettles category, the firm has been able to push through price increases to its customers to offset cost inflation. Shares gained 1% to 295p.
Data management firm Restore (RST:AIM) posted a positive trading update for the four months to April, topped by the news it had been awarded a £10 million document services contract by the Department for Work and Pensions.
Recent acquisitions including the EDM record management and digital business are bedding down, while technology acquisitions mean revenues from that division are likely to double this year. Shares eased 2.5% to 418p after gaining almost a third from their March lows.
Shares in waste management services firm Augean (AUG:AIM) jumped 19% to 296p after Morgan Stanley Infrastructure Inc confirmed it was in talks regarding a possible takeover.
MSI has until 5pm on 24 June to either announce a firm offer or not under what are known as the 'put up or shut up' rules.
Disclaimer: The author owns shares in AJ Bell, owner and publisher of Shares magazine
