The FTSE 100 is down slightly by 18.74 points to 7042.28 as the market eagerly awaits the US Federal Reserve’s decision on interest rates. The consensus view is that the US will keep its rate hiking policy on track with a 0.25% interest rate rise.
In corporate news, Screwfix-owner Kingfisher (KGF) dips 7.9% to 311p on news that its pre-tax profits are down 10% to £682m for its 2017 year to 31 January. The company, which also owns DIY brand B&Q, like-for-like sales are down 0.7% to £11.7m at constant currencies.
CEO Veronique Laury says ‘the UK is more uncertain, France is encouraging yet volatile, whilst the market in Poland remains supportive’. The company is now in its third year of a transformation plan as the company deals with ‘root causes of disruption’ such as product availability and clearing old stock.
Long suffering retailer Carpetright (CPR) gains 9.6% to 44.5p as it plans to close poorly performing stores and restructure the business.
The company is ‘currently exploring’ a company voluntary agreement (CVA) which would allow it to shut loss-making stores and reduce its debt burden. Carpetright has also agreed a £12.5m loan with one of its shareholders and if the CVA goes through will try and raise £40m to £60m through a rights issue.
Another high street retailer Moss Bros (MOSB) crashes 28.3% to 42p after saying that its profit for the year to January 2019 would now be ‘at a level materially lower than current market expectations’.
The company also says that due to sterling weakness it has consolidated its supplier base which has lead to short term issues regarding the availability of stock. This has had a negative impact on sales across the board and will continue to do so ‘until late spring’.
Baby and children’s goods retailer Mothecare (MTC) ticks up 3.2% to 16.2p on announcing that its lenders have deferred testing its financial covenants due on 24 March. The company, which issued a profit warning after Christmas, says ‘we are engaged in preliminary discussion on securing additional funding’.
Printing technology company XAAR (XAR) leaps 11.9% to 300p as it reveals that new products helped boost revenue by 4% to £100.1m for 2017. For the year ending 31 December 2017, the company also upped its gross profit to £47m from £44.7m in 2016 and increased its profit margins by 0.6% to 47%. The company also has a net cash position of £44.7m.
IT infrastructure products company Softcat (SCT) is down 11.3% to 602p as its profit margin for the six months to 31 January 2018 is down on a year-on-year basis. The company’s revenue and adjusted operating profit are up by 24.9% and 18.1% to £472.8m and £24.1m respectively, suggesting that some profit taking has impacted the company’s share price.
