London’s FTSE 100 sheds 14.6 points to trade at 7,476 early on Friday, ahead of the widely followed US non-farm payrolls release later in the day.
Telecommunications networks and services titan BT (BT.A) cheapens 2.8% to 248.9p as third quarter revenues reverse 3% to £5.97bn due to challenging market conditions for its Global Services arm.
CEO Gavin Patterson remains confident in the full year outlook for the broadband, mobile and TV services giant, though investors are unnerved by the decline in order intake seen in the Wholesale and Ventures and Global Services businesses. Deteriorating market conditions may raise fears that BT's progressive dividend is under threat.
Drugs giant AstraZeneca (AZN) softens 68p to £48.18 after posting a 2% dip in revenue for 2017 to $22.46bn on product sales down 5%. The performance is at odds with chief executive Pascal Soriot’s target to start growing revenue again in 2017.
Oil sector engineering-to-technical services play Wood Group (WG.) improves 3.4% to 671.6p on the news US tax changes will result in a non-cash credit to the profit and loss account for the year to December and lower Wood’s effective tax rate going forwards. Wood, which acquired Amec Foster Wheeler in October, also flags lower than expected year-end net debt of US$1.65bn.
Online estate agent Purplebricks (PURP:AIM) continues to slide, tumbling another 4% to 435.2p following broker Jefferies’ publication of a scathing note which included criticism of its revenue recognition policy.
Purplebricks is coming out fighting however, contesting the findings of the Jefferies research report and assuring trading is in line with management’s expectations for the year to April.
Troubled lender Provident Financial (PFG) perks up 3.6% to 694p after finally concluding its search for a new permanent CEO almost six months after the departure of Peter Crook. Interim executive chairman Malcolm Le May’s appointment as CEO ‘with immediate effect’ has been discussed with leading shareholders and the Financial Conduct Authority, suggesting approval by these key stakeholders.
Top-performing investment trust Phoenix Spree Deutschland (PSDL) is marked up 12p (3.2%) to 388p after announcing a 43.8% increase in its portfolio value for the year to December 2017, boosted by the ongoing strength of demand in the Berlin residential market.
Fashion-to-homewares seller Laura Ashley (ALY) advances 2.5% to 6.46p after taking back the brand licensing rights to Japan, Taiwan and Hong Kong from Aeon. Though Laura Ashley stores in Japan will close in September, CEO KC Ng insists ‘the Laura Ashley Brand has been much-loved in Japan for over 30 years, and we see an exciting opportunity to build on this with the master licensing rights back under our management.'
