High street bellwether Marks & Spencer (MKS) is marked down 2.7% to 319.1p despite half year results revealing a better-than-feared 5.3% drop in profit before tax to £219.1m. The first set of results announced since the appointment of Archie Norman as non-executive chairman reveal a 0.7% like-for-like sales decline in the Clothing & Home division, although there was significant improvement in the second quarter, showing early progress with Steve Rowe’s turnaround plan with a boost from cooler weather.
However, like-for-like food sales were 0.1% lower in a ‘challenging market environment’. Investors are also unsettled by news of the departure of CFO Helen Weir to pursue 'a plural career'.
Insurer Esure (ESUR) rises 3.4% to 265.8p as CEO Stuart Vann upgrades full year guidance following a record quarter of premiums at £233m.
Also in demand is specialist lender Onesavings Bank (OSB), which ticks 5% higher to 417.3p on a positive trading statement demonstrating that strong momentum has continued with net loan growth of 23% in the third quarter to £6.9bn. Management now expects net loan book growth of around 20% for the full year, compared to previous guidance of achieving at least mid-teens growth.
Pubs group JD Wetherspoon (JDW) edges 1.1% higher to £12.58 after reporting 6.1% growth in first quarter like-for-like sales and maintaining full year operating margin expectations. In contrast to many of his peers, chairman Tim Martin believes the UK will get the lowest food prices without a deal with the EU. He sees no ‘cliff edge’ and insists Wetherspoon is ready to leave the EU now.
Retail meat packer Hilton Food (HFG) improves 1.8% to 879.5p on a positive trading update showing the core business is performing strongly, volumes continuing to grow thanks to close cooperation with retailer partners. Brisk business and Hilton’s acquisition of fish packing specialist Seachill encourages broker Panmure Gordon to upgrade its profit forecasts for this Shares Great Ideas pick.
Real estate investment trust Workspace (WKP) is bid up 18p to 924p on news of an excellent start to the year, profits and net asset value both up with little sign of a slowdown in demand for its office space and the interim dividend lifted 30% to 8.84p.
Equipment rental specialist VP (VP.) sparks up 34.5p (4.4%) to 827p on the £41.6m acquisition of tool hire rival Brandon Hire.
Hungarian low-cost airline Wizz Air (WIZZ) encounters turbulence, the shares slumping 6% to £31.39 despite solid first half results, as full year guidance falls modestly short of consensus.
