London’s FTSE 100 opens on the front foot, ticking 21.8 points higher to 7,534 as investors digest a busy day of corporate reporting.
One eye-catching mover is outsourcer Capita (CPI), which climbs 14.1% higher to 628p as it assures profitability will improve in the second half thanks to self-help initiatives.
In a bullish update ahead of its annual general meeting, Capita confirms it is exploring a potential partnership with British Airways, flags a buoyant £3.8bn bid pipeline and insists disposals will reduce borrowings by the end of 2017.
Quirky British fashion brand Ted Baker (TED) struts 3.1% higher to £25 on news of a strong start to the financial year with growth continuing across all areas of the business. Group sales grew 14.2% in the 19 weeks to 10 June, great going given tough prior year first quarter comparatives and despite wider macro uncertainties, Ted’s management remains confident on the outlook.
High-flying Halma (HLMA), which sells equipment demanded by health, safety and environmental rules, is marked 19p higher to £11.59. The FTSE 250 firm reports its fourteenth year of record sales and profit, raises the dividend for the 38th consecutive year by 5% or more and says orders are running ahead in the new financial year too.
Low-cost multi-utility supplier Telecom Plus (TEP) tumbles 9.1% to £11.83. This is despite achieving a 20th consecutive year of organic growth in membership and the number of services supplied, with investors focusing instead on a drop in revenue due to lower energy prices.
Merlin Entertainments (MERL) sheds 2.6% at 489.7p after warning that terrorist attacks in Manchester and London have caused a drop in visitors to its attractions.
Equipment rental outfit Ashtead (AHT) improves 9p to £16.50 as the market gives the thumbs-up to strong annual numbers and news there has been a good seasonal Spring uplift in fleet rentals.
Kalibrate Technologies (KLBT:AIM) storms 46% higher to 83p as private equity firm Hanover agrees a £29m takeover at a 50% premium to Kalibrate’s undisturbed share price.
Payments network platform Monitise (MONI:AIM) sparks up 24% to 2.85p after recommending a £70m takeover offer from NASDAQ-traded financial services technology group Fiserv.
Life sciences group Abzena (ABZA:AIM) improves 2.4% to 43.5p on full year results revealing strong top-line growth. CEO John Burt insists Abzena’s recent £25m fundraising ‘gives us the means to establish the capacity to meet the increasing demand for our integrated services and will accelerate our progress towards profitability.'
