Blue-chips are on the front foot on Thursday, the FTSE 100 trading 34.5 points higher at 7,422.3 with banks and miners to the fore.
One of the session’s key early risers is packaging group DS Smith (SMDS), which skips 8.7% higher to 482.6p on strong full year results driven by organic growth and five acquisitions for £85m. There's also a confident outlook statement from CEO Miles Roberts, who also announces the £722m acquisition of US paper and packaging business Interstate Resources in the US, to be part funded through a £285m placing.
In an increasingly tough retail sector, self-styled ‘King of Trainers' JD Sports Fashion (JD.) slips 11.2% to 353.2p as an AGM update highlights margin pressure in achieving recent top line growth.
This rattles investors, who’ve become accustomed to upgrades from the sports, fashion and outdoor brands purveyor. Reassuringly, the core UK sports division carries strong momentum and JD Sports remains on track to deliver against full year market expectations.
Britain’s biggest logistics group Wincanton (WIN) reverses 9.4% to 265p after flagging a weaker than expected performance in some of its transport-related contracts in the first quarter. Full year profit before tax guidance is however left unchanged, for now.
Energy broker Utilitywise (UTW:AIM) slumps 37.6% to 68p after revealing it will have to repay £7.6m worth of commission payments to an energy company. It says several clients for whom it secured new energy deals are consuming far less than expected. Utilitywise gets commission from utility companies for finding new customers; its fee is based on forecast energy consumption.
Online estate agent Purplebricks (PURP:AIM) perks up 17p to 416p on full year results revealing a top line surge from £18.6m to £46.7m and a reduction in operating losses from £11.9m to £6m. Investors also applaud the news that the group’s UK business made its first full year operating profit.
Security specialist Westminster (WSG:AIM) surges 17.8% higher to 15.75p on excitement surrounding a £35m per annum project in the Middle East, which the company is on the cusp of securing.
Harwood Wealth Management (HW.:AIM) improves 6.2% to 172.5p on stellar half year results, reflecting organic progress and a boost from February’s Network Direct acquisition. Chairman Peter Mann says ‘the market for financial advice is highly fragmented and with our strong balance sheet and cash reserves the board is confident that the group is well placed to continue its growth journey'.
