London’s FTSE 100 remained flat at midday on Thursday at 7,145.94 points, with shares in mining titan BHP (BHP) down 6.3% at £20.91 as it traded without the rights to its dividend.
The high-flying FTSE 250 was 0.25% lower at 24,189.71 points by lunch.
Engineering firm Melrose Industries (MRO) gained 4% to 179p to top the risers on the FTSE 100 after it confirmed alongside first half results it was ‘trading ahead of expectations, with better profit margins, better earnings per share and significantly lower net debt’.
The fall in borrowings underpinned plans for a further return of capital to shareholders in 2022. This follows the approved and imminent £730 million being paid out to shareholders from the proceeds of the £2.6 billion sale of Nortek Air Management.
The company, which specialises in buying and turning around industrial businesses and acquired GKN in a high-profile and controversial deal in 2018, reported a 5.6% year-on-year increase in adjusted revenue to £3.83 billion for the six months to 30 June 2021.
Adjusted profit after tax swung from a £80 million loss in 2020 to a £109 million profit. Free cash flow came in at £75 million.
Shares in trainers-to-tracksuits seller JD Sports Fashion (JD.) were flat at £10.41 even after the retailer’s acquisition of Footasylum was provisionally prohibited again by the Competition and Markets Authority (CMA).
Having reassessed the merger, the CMA still argues JD Sports’ takeover of Footasylum ‘could lead to a worse deal for shoppers’, while JD Sports struggles to understand how the merger could substantially lessen competition in a market being shaped by the direct-to-consumer (DTC) strategies of Nike and Adidas.
However, the shares were marked 3.2% lower to 719.2p as the market focused on the rising costs and weakening demand which were highlighted by management.
CMC now expects full year 2022 operating income of between £250 million and £280 million compared to previous guidance of over £330 million.
OTHER RISERS AND FALLERS
Budget airline Jet2 (JET2:AIM) dipped 1% to £11.81 as it reported that since 19 July, when fully vaccinated UK holidaymakers have been able to travel without quarantine to amber list destinations, it has seen a programme at around 55% of pre-Covid summer 2019 capacity.
Gulf Keystone Petroleum (GKP) shot up 14.1% to 177p after the company revealed the extent to which it is a beneficiary of higher oil prices, announcing a more than tripling of EBITDA for the six months ended 30 June, compared to that reported in the first half of 2020.