Banking giant Barclays (BARC) is bid up 2.3% to 240.5p as CEO Jes Staley reports a surprise increase in its core capital ratio, a key measure of financial strength, up to 12.4% versus the 11.8% envisaged by analysts.
Barclays’ capital boost came from increased profits amid a huge reduction in provisions for fines and rebuilding the balance sheet. The optimistic Jes Staley also says Barclays is ‘just months away’ from wrapping up a long restructuring of the high street bank.
Cigarettes titan British American Tobacco (BATS) puffs 11p higher to £50.11 after unveiling a 12.6% hike in annual profits to £5.48bn and 10% growth in the dividend to 169.4p. Results benefitted from sterling weakness, since most of ‘BATS’ profits are generated abroad, as well as outperformance by the tobacco giant’s Global Drive Brands.
British Gas owner Centrica (CNA) softens 3% to 226.7p as it holds the full year dividend at 12p and says further debt reductions are needed before increases can be paid.
Construction group Morgan Sindall (MGNS) is marked up 5% to 950p as investors cheer a strong full year cash and profit performance and a confident outlook statement.
Also in demand is Morgan Advanced Materials (MGAM), the engineer chased 5.7% higher to 316.2p following solid full year figures including improved free cash flow. CEO Pete Raby expects a tough 2017, yet operational improvements are ‘creating the funds to increase research and development, strengthen our selling capability and add business development resources, all aimed at supporting future growth in key business areas’.
RSA Insurance (RSA) improves 24.5p to 601.5p as the Stephen Hester-led group announces forecast-busting 2016 results driven by record underwriting profits.
Isle of Man-based long-term savings provider Hansard Global (HSD) slumps 10.8% to 99p as it reports a drop in half year profits and flags a 50% cut in the dividend from the first half of 2018.
Flavour and fragrance specialist Treatt (TET) sweetens up 13% to 293.5p on news profits for the year to September are expected to ‘substantially exceed’ previous expectations thanks to strong sales growth and the beneficial impact from higher product margins.
Online estate agent Purplebricks (PURP:AIM) powers 17.6% higher to 265.8p after completing an oversubscribed £50m placing of new shares to fund its US expansion.
