London’s FTSE 100 rose 15 points to 7,568 on Monday with strength in miners and tobacco stocks helping to offset weakness in banking and utilities names. European markets were less volatile than those in Asia, where big declines were seen across China, Hong Kong, India and Japan. Market chatter suggested that investors were no longer betting on sharp interest rate cuts in the US and so appetite had dampened for equities.
Tobacco company Imperial Brands (IMB) puffed 2.2% higher to £20.04 after it announced plans to buy back shares worth up to £200m and revised its dividend policy. Cash-generative Imperial Brands reaffirmed a 10% increase in the final dividend for the current financial year, but beyond that, it has committed to a simple progressive policy.
Payments will continue to grow going forwards, but share buybacks and debt reduction have moved up the list of priorities and surplus cash will be used to invest in growth opportunities, particularly Next Generation Products (NGPs).
British Airways owner International Consolidated Airlines (IAG) fell 2.5p to 454p on news the UK Information Commissioner’s Office (ICO) plans to hit the airline with a £183.4m penalty following last year’s customer data theft. IAG’s chief executive officer (CEO) Willie Walsh insisted ‘British Airways will be making representations to the ICO in relation to the proposed fine. We intend to take all appropriate steps to defend the airline’s position vigorously, including making any necessary appeals.’
Elsewhere, Photo-Me International (PHTM) cheapened 5.5p to 91p as a delay in publishing accounts for the year to April gave investors the jitters. The photobooths-to-laundry machines operator assured the delay reflects the time Grant Thornton needs to complete its work and that the new auditor has ‘not raised any material issues’ with the accounts, although the news clearly unsettled investors.
Software group Attraqt (ATQT:AIM), whose technology powers online shopping experiences, ticked 3% higher to 35p on a positive trading update. Attraqt is on track to meet full year expectations thanks to contract renewal momentum, while the integration of recent acquisition Early Birds is ‘progressing to plan’.
Mercia Asset Management (MERC:AIM) was marked up 4% to 33.5p as the regionally-focused asset manager’s full year results revealed its strongest level of deal completions and investments to date and investors welcomed a confident outlook statement.
Telematics technology business Trakm8 (TRAK:AIM) tumbled 17.8% lower to 18.5p on full year results revealing a substantial drop in revenue, a lurch into loss and a tempered outlook statement.
Advanced materials engineering minnow Versarien (VRS:AIM) improved 3% to 103p after securing its first graphene orders from a Japanese-headquartered company.
