The FTSE 100 recovered its opening losses to be in positive territory after some good news by supermarket giant Tesco (TSCO). However, the market remains on tender hooks awaiting prime minister Theresa May’s speech at Conservative Party conference
Corporate news is led by Tesco gaining 1.8% to 193.83p as it reports its turnaround is ‘firmly on track’. The company’s group sales are up 3.3% to £25.2bn in its first half to 26 August and its pre-tax profits up nearly 8-times to £562m. It has also resumed dividend payments at 1p per share and the company’s earnings per share figure has increased by almost 12..5-times to 5.21p.
Defence and aerospace company Ultra Electronics (ULE) rises 1.6% to £18.58 after revealing a contract modification worth $16.2m by the US Navy. The modification is to a previously awarded cost-plus-fixed-fee contract by the US Navy and extends the UK company’s services to providing solutions to syber0secure Navy infrastructure.
UK tile retailer Topps Tiles (TPT) slumps 2.8% to 72.63p as the company releases a profit warning for the 52 week period ending 30 September. The company says that its revenues for the period are expected to be down to £211.6m compared to £215m on a year-on-year basis. It now expects pre-tax profits to be at the lower end of current market expectations.
FTSE 250 property investment company CLS Holdings (CLI) ticks up 2% to 207p on confirming the renewal of leases on 14 properties with the Secretary of State for Communities and Local Government. These properties are mainly used as Job Centres by the Department of Work and Pensions.
Loans and credit provider International Personal Finance (IPF) slumps 10.8% after proposed changes to the Polish corporate income tax rate would increase the company’s tax bill for activities in that country. Although proposals aren’t ratified yet, the company estimates that the changes would result in a one-time accounting charge of up to £30m in 2017 arising from the write-down of a deferred tax asset.
Publishing house Future (FUTR) surges 10% to 350p on releasing a positive trading statement for the 12 months to 30 September. The company anticipates results for the full year will be ahead of the boards expectations and it has achieved good growth in operating profitability.
On the AIM market, science research company Avacta (AVCT:AIM) sheds 7.6% to 61p after revealing losses from continuing operations have risen to £6.37m, up from £4.65m in 2016. The company says its cash balance of £13.17m is well ahead of market expectations despite being lower than its 2016 figure of £19.52m.
