The FTSE 100 is trading 54 points ahead at 7,373 in early trading following improved market sentiment in the US and Asia. Sterling weakness will have also benefited the multitude of overseas earners on the UK’s Main Market.
On the corporate front, it is rare to see a FTSE 100 company lose more than half its market value in a day - but today we have a clear example. Beleaguered Provident Financial (PFG) crashes by 57% to 743.5p after the company reveals the progress of its home collection business is ‘too weak and the business is now falling a long way short of achieving...objectives’.
Its trading statement also says that its collection performance is running at 57% compared to 90% in 2016 and sales are £9m a week lower compared to the same period last year.
Mining giant BHP Biliton (BLT) ticks up by 2.7% to £14.02 as it posts a $5.9bn profit for the year ending 30 June. The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is up 64% to $20.3bn with an underlying return on capital employed of 10% after tax.
The firm declares a dividend per share of $0.83, a 177% improvement on 2016’s figure of $0.30.
Homebuilder Persimmon (PSN) ticks up 3% to £26.32 as its half year to 30 June results show a pre-tax profit increase of 30% to £457.4m. Revenue is up by 12% to £1.66bn.
The company has made a commitment to return 110p per share to shareholders every July until 2021 from its surplus capital.
Copper miner Antofagasta (ANTO) enjoys a share price lift of 3.1% to 984.5p on revealing a strong first half to 30 June. The company’s revenue is up by 41.9% to $2.049bn as realised copper prices increased by 25.3% and sales volumes increased by 14.3% during the period on a year-on-year basis.
The miner’s operating profit and earnings per share are up by 149.9% and 231.5% respectively. The company has declared a dividend per share of $0.103, a big increase from half year 2016 which stood at $0.031 per share.
Backpackers' favourite Hostelworld (HSW) nudges up up 2.9% to 299.12p as it releases a strong set of half year results to 30 June. Bookings are up 11%, with 50% of those coming from mobile devices, up seven percentage points on a year on year basis. Revenue is up 16% to €46.6m and its adjusted pre-tax profit hits €10.3m compared to €7.7m at the same time last year.
Energy procurement company Inspired Energy (INSE) inch up 1.3% to 20p as it releases its half year results to 30 June. Highlights include a 20% increase in revenue to £12.24m, a 24% increase in adjusted pre-tax profit to £4.17m and a 60% increase in its order book to £411.2m all on a year on year basis.
