UK shares added to their recent gains with the FTSE 100 index tacking on another 25 points or 0.4% to 6,549 in early trading as corporate results continued to inspire buying.
The pound pulled back from its recent peak of almost $1.39 to $1.382 while Brent crude futures held their ground above $61 per barrel and gold continued to lag other metals, trading at $1,840 per ounce.
COMPANY NEWS
Packaging and bottling firm Coca-Cola Hellenic (CCH) was the best performer in the FTSE 100, rallying 5.7% to £23.89 as it delivered a ‘resilient’ performance last year despite the closure of most of the foodservice industry and the on-trade.
Despite a fall of 12.7% in revenues, the company’s EBIT (earnings before interest and taxes) profit margin actually increased slightly thanks to structural improvements to the firm’s cost base and a decision to cut discretionary capex early in the pandemic.
Shares in house builder MJ Gleeson (GLE) climbed 2.7% to 756p after the firm posted a 36% increase in first half revenues and a 53% increase in pre-tax earnings, and said that full year results would be ‘significantly ahead of current market consensus’.
Shares in delivery firm Royal Mail (RMG) jumped 7.8% to 463p after it said it experienced an ‘unprecedented’ third quarter to December, including its busiest day ever, delivering 11.7 million parcels or 32% more than the busiest day during the first national lockdown.
At the same time, addressed letter volumes improved, declining by 14% in the third quarter compared with a drop of a third during the first quarter.
Media group RELX (REL) posted close to a 10% decrease in turnover for the year to December as growth in digital services was offset by a steeper than normal fall in print revenues and significantly lower revenues from its exhibitions business.
Despite a more than 16% fall in operating profits, the board raised the dividend by a small amount ‘reflecting our consistent track record and our confidence in the outlook for the company’. That was enough to see the shares gain 1.8% to £18.05.
Drug giant AstraZeneca (AZN) reported full year 2020 earnings in line with its previous guidance. Total revenues rose by 10% to $26.6 billion and accelerated in the final quarter to over $7 billion, a milestone for the firm.
For this year the company expects revenues to grow by a low-teens percentage, with faster growth in earnings per share from $4.02 to between $4.75 and $5.00. Despite the upbeat outlook, Astra shares eased 0.9% to £72.47.
Shares in insurer Prudential (PRU) were 0.7% lower at £12.86 after the firm shuffled the deck at its US subsidiary Jackson Financial following its decision to demerge it rather than list it separately, a move which caused the shares to fall sharply last month.
After a review of Jackson’s ‘management needs’ ahead of the demerger, 30-year veterans of the firm Laura Prieskorn and Marcia Wadsten were appointed chief executive and chief financial officer respectively.
Pub group Marston’s (MARS) fell 9.1% to 90.35p following the announcement from private equity firm Platinum Equity Advisors that, after the board rejected its approach earlier this month, it wouldn’t be making a revised proposal or indeed a firm offer for the company.
The board of Marston’s said it ‘continues to believe that the company is well placed to benefit from the opportunities in a post-COVID 19 trading environment, harnessing factors such as a reduction in on-trade industry supply, and increased home-working that will benefit pubs in suburban locations.’
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