UK stocks rallied on Monday afternoon to finish in positive territory after early losses were recouped following a positive opening in the US with the S&P 500 index making a new high.
Boris Johnson confirmed the removal of Covid-19 restrictions as planned on 19 July, despite virus cases accelerating.
At the close the FTSE 100 index of leading shares was up 3.5 points to 7,125.
COMPANY NEWS
FTSE 100 insurer Admiral (ADM) raised its first half earnings guidance due to ‘the unusually positive development in the cost of UK motor bodily injury claims from a number of prior underwriting years which has led to higher reserve releases and profit commission revenue’.
Also, lower motor claims this year due to extended lockdowns mean a favourable current period loss ratio, therefore pre-tax profits are seen in the range of £450 million to £500 million and the interim dividend is expected to be between 110p and 125p per share. Admiral shares topped the FTSE risers, jumping 3.9% to £32.44.
Shares in publishing group Daily Mail & General Trust (DMGT) added 3.5% to £10.76 after it revealed that major shareholder the Rothermere family was ready to launch an £810 million bid for the business conditional on the sale of its RMS insurance risk division and distributing its 20% stake in Cazoo, the online car delivery business, to shareholders.
The RMS business is already slated for sale, while Cazoo is being taken public in a New York listing through a merger with a special-purpose acquisition company or SPAC.
Specialty food and beverage products group Tate & Lyle (TATE) announced it had agreed to sell its Primary Products business to KPS Capital Partners for net cash proceeds of £900 million.
The deal creates two standalone businesses, Tate & Lyle which focuses on faster growing specialty markets, and NewCo which focuses on plant-based products for the food and industrial markets. The shares nudged up 0.1% to 762.4p.
Contracts-for-difference investment platform Plus500 (PLUS) posted an upbeat first half trading update with customer income significantly ahead of the first six months of 2019 but below the record level of last year, as anticipated.
The group continued to acquire new customers at a high rate, which should drive growth longer term, and maintained a high cash balance driven by strong cash generation. The shares ticked up 2.2% to £13.97.
Veterinary drug maker Dechra Pharmaceuticals (DPH) said strong trading had continued through its financial year end in June with full year revenues expected to rise by 21% at constant exchange rates.
As well as strong underlying sales, the company saw ‘good incremental growth’ from its acquired products Osurnia and Mirataz with the latter performing ahead of expectations. The shares gained 1.8% to £46.53.
AIM MOVERS
Online fashion giant Asos (ASC:AIM) announced it had formed a joint venture in North America with Nordstrom, the multi-channel retailer, to drive sales growth in the region.
Nordstrom, which has marketed Topshop clothing in the US since 2012, will take a minority interest in the Topshop, Topman, Miss Selfridge and HIIT brands under the agreement. Asos shares dropped 1.7% to £47.55.
Omni-channel retailer Quiz (QUIZ:AIM) posted an increase in sales for the quarter to the end of June but said its ‘trademark dressy and occasion wear continues to be negatively impacted by the various restrictions on social activities and events’.
The group’s net cash position was just £2.7 million, in addition to which it had £3.5 million of bank facilities which it expects to renew by October. The shares spiked 17.8% to £11.50.
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