UK stocks drifted lower at midday on Wednesday ahead of the release of key US inflation data. Given the recent market fears over rising bond yields and inflation, all eyes will be on US consumer price inflation data due to be released at 1.30 today.
Economists are expecting February inflation to be 0.2% compared with 0.3% in January.
At 12pm the FTSE 100 index of leading shares was 0.3% lower at 6,717 points.
ENGINEER UPS DIVIDEND
Pump and heat management equipment maker Spirax-Sarco (SPX) posted a 3% drop in full year revenues and a 1% drop in operating profits, but strong cost control meant per-share earnings were up 4% allowing the firm to raise the total dividend by 7% to 118p.
The firm cited a better-than-expected performance in the final quarter of last year and strong demand for its Watson-Marlow products from the pharmaceutical sector. The shares gained 3.6% to £114.15.
The UK’s largest life insurer Legal & General (LGEN) posted flat operating profits for the year to December while pre-tax profits were down 12% reflecting the impact of lower interest rates on its investments.
The firm said that despite the impact of Covid it had met its targets as part of its five-year 2020 to 2024 plan with a Solvency II operational surplus of £1.5 billion and full year dividend of 17.57p per share, in line with the previous year. The shares drifted off 0.3% to 281p.
GROWTH PACE PLEASES
Fast food delivery firm Just Eat Takeaway (JET) reported full year sales in line with estimates at €2.4bn, an increase of 54%, and earnings before interest, taxes, depreciation and amortisation (EBITDA) ahead of forecasts at €256 million.
Chief executive Jitse Groen said he expected ‘a further acceleration of our order growth in 2021 compared with last year’. The shares added 4% to £71.20.
Shares in Tullow Oil (TLW) advanced 1.8% to 52.9p after the energy exploration and production firm reported a smaller 2020 pre-tax loss than the previous year and confirmed its production targets for 2021.
Wagamama owner Restaurant Group (RTN) has taken advantage of the sharp rally in its share price, from 60p in January to 110p yesterday, to raise £175 million of fresh capital.
The firm says it will use the cash to protect the business from any resurgence of Covid, reduce gearing and give it flexibility to acquire new sites. The shares gained 1.3% to 11.7p as investors applauded the cash raise.
