London’s FTSE 100 is off to a slow start on Tuesday, the blue chip benchmark index softening 7.5 points to 7,096.4 with the US midterm elections not yielding any tradable news until the small hours of Wednesday. Strength among miners and financials is more than offset by weakness among construction firms and telecoms.
On a busy day for corporate news, Miles Roberts-marshalled packaging company DS Smith (SMDS) is in demand, the shares marked up 4.6% to 398p on the news first half margins and operating profit will be ‘materially ahead’ of the comparable period last year. This forecast-busting performance reflects good volume growth from the company’s ‘highly resilient’ fast moving consumer goods (FMCG) business and the recovery of rising input costs earlier in the year.
Bradford-based grocer WM Morrison Supermarkets (MRW) cheapens 4.2% to 243.9p despite serving up impressive 5.6% like-for-like sales growth for the third quarter to 4 November with a boost from its wholesale business. There’s disappointment as the rate of growth is slightly behind forecasts and slower than the 6.3% improvement generated in the second quarter, albeit expected as Q2 was flattered by favourable weather and the World Cup.
Tobacco giant Imperial Brands (IMB) puffs 72.5p higher to £27.16 after reporting growth in full year sales and earnings, high cash generation and another 10% hike in the dividend to 187.8p. There’s also a confident outlook statement from Imperial Brands, which expects to deliver constant currency revenue growth ‘at, or above, the upper end of our 1-4% revenue growth range’, driven by consistent growth in tobacco and an acceleration in Next Generation Product (NGP) revenues.
Associated British Foods (ABF) firms 2% to £24.36 as full year pre-tax profit rises modestly, up 5% to a shade over £1.37bn, with a strong performance at retail chain Primark and the conglomerate’s grocery arm offsetting a plunge in sugar profits. In the outlook statement, Associated British Foods assures ‘Primark’s selling space expansion will continue and, if margins are in line with the current year, we expect an increase in Retail profit.'
Gambling giant William Hill (WMH) reverses 5% to 202.9p as investors look past rapid US progress to focus on a warning full year profits will be £20m lower in 2018 and a further £25m lower in 2019 due to ‘adverse regulatory and tax changes’ impacting online profit growth.
Pubs operator Greene King (GNK) softens 3.4% to 480p on the news long-serving CEO Rooney Anand is stepping down as boss at the end of the current financial year ending 30 April 2019. ‘It has been a great privilege to lead Greene King for nearly 14 years and to serve as a director for 18 years,’ says Anand. ‘As we announced recently, the business is performing in line with our expectations and ahead of the market. With a strong team and business culture firmly in place, the time is now right for me to hand over the baton.'
Unloved value-focused consumer goods brands distributor UP Global Sourcing (UPGS) rallies 3.9% to 40p as full year results confirm EBITDA in line with Shore Capital’s recently raised expectations at £6.5m, albeit a 44% decline year-on-year. Investors are encouraged by positive momentum in current trading, with the forward order book ahead year-on-year supported by international and online growth and a firmer UK.
