London’s FTSE 100 dips 23 points to 7,420.5 on Wednesday with investors waiting for the latest Federal Reserve meeting with bated breath. In stark contrast, Asian shares rally after US President Donald Trump said on Twitter that he had a ‘very good’ call with Chinese President Xi Jinping, raising investors’ hopes of an amicable resolution to the US-China trade war.
High-end housebuilder Berkeley (BKG) improves 2.1% to £36.32 on forecast-beating full year results delivered in the face of challenging market conditions. For the year ended 30 April, pre-tax profit fell 20.7% to £775.2m at the Tony Pidgley-chaired builder, although this was at the top end of market expectations on revenue up 4.1% to £2.96bn.
Berkeley also says it is ahead of its stated plan to deliver £3bn of pre-tax profit over the five years to 30 April 2021, despite ‘the extended period of macro and political uncertainty’.
Struggling over-50s insurer and travel provider Saga (SAGA) comes under renewed selling pressure, the shares off 8.3% to 34.5p on a sobering AGM statement. Saga warns tour operations bookings are being impacted by current political uncertainties and margins are being crimped by price competition.
Hotels operator Whitbread (WTB) cheapens 1.3% to £45.41 after reporting a drop in first quarter room revenue due to competitive market conditions and ongoing Brexit uncertainty.
CEO Alison Brittain is ‘cautious about short-term market conditions’, yet ‘confident in our plans given the significant growth opportunities in the UK and internationally’ for the Premier Inn brand.
Elsewhere, Clydesdale and Yorkshire Bank owner CYBG (CYBG) sparks up 6.9p to 192.3p on an update detailing its refreshed strategy and updated financial targets. Having acquired Virgin Money, the newly-combined group will be re-named Virgin Money by the end of 2019 and investors also welcome upgraded cost savings targets under an enhanced transformation plan.
Robotic process automation software specialist Blue Prism (PRSM:AIM) softens 4% to £16.82 despite posting half year results showing revenue tracking slightly ahead of full year expectations and announcing the acquisition of Thoughtonomy. Investors are focusing on Blue Prism’s dramatically widened EBITDA loss, one reflecting continued investment to grow the business.
Ormonde Mining (ORM:AIM) is marked down 13.5% to 3.15p after booking a loss for 2018 and warning the remainder of 2019 will be ‘somewhat challenging’, with profitability and cash flows constrained during the ramp-up phase of its Spanish tungsten mine.
Software minnow Blackbird (BIRD:AIM) soars 12.5% higher to 7.9p after inking a significant six-figure, multi-year deal with A+E Networks, one of the USA’s biggest broadcast companies, to supply its productivity enhancing Blackbird platform.
