London’s FTSE 100 opens on the front foot, ticking 6.7 points higher to 7,380.4 early doors as investors react positively to Theresa May’s triggering of the formal start of Brexit talks with the EU.
On a busy day of corporate news, agriculture-to-engineering combine Carr’s (CARR) crashes more than 20% or 30.5p to 120p as it warns full year results will be significantly below forecasts.
Carr’s has been hit by delays to a major contract in the US and a slower-than-anticipated recovery in US cattle prices. Management has seen encouraging signs of returning customer confidence in its UK agriculture business but this is being overshadowed by significantly reduced profitability in its US feed block business.
Also under pressure is electrical retailer AO World (AO.), which wanes 2.8% to 134.1p on news of a £50m placing with institutional investors. The funds will underpin AO World’s European growth ambitions, albeit with dilution for existing shareholders. A pre-close trading statement also contains a cautious outlook for the UK, where necessary price hikes due to weak sterling may crimp demand.
Bookie William Hill (WMH) is marked up 0.2p to 288p on the appointment of Worldpay (WPG) executive Ruth Prior as chief financial officer.
Food wholesaler Booker (BOK), in the midst of a mega-merger with Tesco (TSCO), improves 0.4p to 199.5p on a broadly positive fourth quarter trading update. Non tobacco like-for-like sales were up 4.7%, although tobacco sales tumbled 7.5% due to a tobacco display ban and new plain packaging restrictions.
Petra Diamonds (PDL) perks up 2.8% to 127.3p as investors welcome news of a US$600m notes issue, which the miner will use to restructure its debts.
Sofas seller DFS Furniture (DFS) sits pretty with a 3.75p gain to 256p after posting record half year results and declaring a 9.5p special dividend. CEO Ian Filby leaves full year sales and profit guidance unchanged, albeit factoring in a ‘softer market environment’ for furniture retailing to follow.
Flavour and fragrance specialist Treatt (TET) sweetens up another 4.2% to 372p as it confirms trading has continued ahead of expectations with the order book continuing to build, news that triggers another round of earnings upgrades.
There’s appetite for meat packing business Hilton Food (HFG), marked up 4.1% to 667p on annual numbers revealing pre-tax profits of £33.2m, towards the top end of the consensus forecast range, as well as prodigious cash generation and a tasty dividend hike.
Investors eshew low-cost operator EasyHotel (EZH:AIM), off 4.6% at 83.5p, on news the retrospective planning permission for its Old Street Hotel has been unsuccessful.
Theme park ticketing technology specialist Accesso (ACSO:AIM) advances 45p to £16.20 as investors cheer the earnings enhancing acquisition of global ticket distributor Ingresso for up to £28m.
