The FTSE 100 is flat at 7,389 in early trading on 19 July with weakness in financial stocks offset by strength in drug and consumer goods firms.
Power generation company Drax (DRX) sheds 6.5% to 322.9p as it records an £83m loss before tax for the six months to 30 June. Although the company’s total dividends grew to 4.9p per share compared to 2.1p at the same time last year, its net debt has ballooned from £85m to £372m. The company attributes part of this result to losses related to foreign currency hedging and the acquisition of Opus Energy.
Reckitt Benckiser (RB.) has sold its food business for $4.2bn to McCormick. The news lifts its share price by 1.2% to £79.07, making it the best performing FTSE 100 stock in early morning trading.
Low cost carrier Wizz Air (WIZZ) falls up 1.9% to £25.44 despite its first quarter results to 30 June show major improvements. We put that down to profit taking following a surge in the share price since May 2017.
The numbers of passengers carried by Wizz Air is up by 25.2% to 7.2m and revenue is up by 28.6%to €469.3m. The company’s profits also hit €58.1m, a 50.4% improvement on the same time last year. Full year net income is now guided to be in the top end of the previous €250m to €270m range.
International plastics company RPC (RPC) sees its shares rise 5.9% to 892.25p as its trading statement reveals revenues for the first quarter to 30 June are £960m, well ahead of last year. The company attributes this to ‘continued organic growth, the contribution from acquisitions and positive foreign exchange movements’.
RPC claims its share price is undervalued relative to its past performance and future prospects, so it plans to buy back £100m worth of shares over the next 12 months.
Pharma company Horizon Discovery (HZD) enjoys a share price hike of 5.6% to 226.5p as it agrees to buy gene editing firm Dharmacon for £65m from General Electric. It plans to raise £80m by issuing new shares at 205p.
Electronic components manufacturer TT Electronics (TTG) jumps 7.7% to 1198.25p as it proposes to dispose of its transportation sensing and control division to AVX Corporation for £118.8m.
The company says after the disposal the company will be in a stronger position to focus on its ‘strategy of investing in structural growth markets where there is increasing electronic content, with the benefit of significantly enhanced financial capacity’.
UK construction company Morgan Sindall (MGNS) rises 5.7% to £12.90 as its first half trading statement reveals it is significantly ahead on a year-on-year basis. The company now expects half year results to show pre-tax profit of £23.5m, around a 45% improvement on last year.
The People’s Operator (TPOP:AIM) soars by 18.2% to 3.25p after making several changes to its board following an abysmal performance on the stock market. Wikipedia co-founder Jimmy Wales has been removed as chairman and replaced by Michael Butler, former chief operating officer (COO) of FTSE 250 satellites firm Inmarsat (ISAT). Chief executive Mark Epstein has been replaced by COO Sam Tillotson on an interim basis.
