Despite mixed trading in Asia overnight, London’s FTSE 100 returned to life on Wednesday as summer holidays came to an end with the index up 0.7% to 7,171.68 points early on.

Mining was the only sector to struggle after metal prices took a hit, with investors showing greater interest in the oil and gas sector where commodities prices were stronger.

CORPORATE NEWS

Magazines, books and snacks seller WH Smith (SMWH) cheapened 5.6% to £15.42 after the retailer said it expects to post a slight earnings beat for the year to August 2021, but also but also warned that profits for full year 2022 would be at the lower end of expectations.

Annual revenue for the year to August 2021 recovered to 71% of 2019 levels as footfall improved at travel locations and on the high street and the retailer remains confident that revenues will return to pre-Covid levels in the next two to three years.

‘Although the pace of recovery varies across our markets, we are financially strong and well placed to capitalise on the multiple growth opportunities in our key markets,’ insisted the company.

Digital transition company Kainos (KNOS) improved 1.2% to £19.85 after saying it expects revenue for the year to next March to beat current market expectations, though profit will still be in line with forecasts amid an increase in headcount.

Kainos said trading in the period since 1 April has ‘continued to be resilient’ across its two businesses: digital services and workday practice.

‘While the ongoing economic disruption caused by Covid-19 will be a feature in future trading periods, our outlook remains confident, which reflects our significant pipeline and robust backlog,’ added Kainos.

Defence contractor Babcock International (BAB) was bid up 1.1% to 367.2p after selling its oil and gas aviation business to CHC for £10 million.

888 (888) advanced 3.4p to 411p as the online gambling group booked a 14% rise in first half profit and guided for a ‘slight’ annual earnings beat, as the pandemic fails to dissuade people from having a punt at home.

Pre-tax profit for the six months to June increased to $57.9 million, up from $50.9 million year-on-year, as revenue climbed 29% to $528.4 million.

Utility company National Grid (NG.) nudged 0.8% higher to 949.5p after the Competition and Markets Authority cleared its acquisition of WPD.

Steel scaffolding provider Severfield (SFR) nudged 1% higher to 82p on news it has made a bright start to its financial year, although annual profit will be weighted to the second half.

IN OTHER NEWS

Russia-focused gold miner Petropavlovsk (POG) gained 1.1% to 21.2p as it swung to a first half profit, though its underlying performance weakened owing to a drop in production volumes.

Aviation services group John Menzies (MNZS) was marked up 1.2% to 328p after swinging to a modest first half profit thanks to cost-cutting and a gradual improvement in demand amid what is still a challenging time for the transport sector.

Confident about the long-term outlook, John Menzies said: ‘The prompt actions taken at the start of the pandemic have put us in a good position to prosper now the aviation sector has begun to recover.

Alternative fuel developer Quadrise Fuels (QFI:AIM) rose 5.4% to 4.5p after announcing positive test results for its flagship bioMSAR product.

And Churchill China (CHH:AIM) edged 5p higher to £18.88 as the ceramic tableware maker’s first half results confirmed trading has continued to recover strongly since the easing of Covid restrictions on the hospitality sector.

Churchill China said current trading is ahead of the comparable period in 2019 with the company seeing share gains across key markets.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Issue Date: 01 Sep 2021