UK stocks inched higher with the week getting off to a slow start and few major company announcements for traders to focus on. That said, there were healthy gains for several mid- and small-cap firms which raised earnings guidance.

A cyber-attack on a US oil pipeline company boosted crude prices, with Brent futures moving back towards $69 per barrel, while gold prices looked comfortable around $1,835 per ounce and silver continued its recent rally.

Sterling breached the $1.40 level for the first time since February as the US dollar suffered a fall on international markets.

By 9am the FTSE 100 index had added just 10 points to 7,140, with miners BHP (BHP), Glencore (GLEN) and Rio Tinto (RIO) the major points contributors due to continued strength in commodity prices, while technology-related and travel and leisure stocks limited the index’s gains.


Shares in food-on-the-go purveyor Greggs (GRG) jumped 9% to a new post-pandemic high of £25.57 after the company reported a ‘significant’ pick-up in sales once its shops were able to re-open on 12 April, with like-for-like growth up on the same period of 2019 as well as last year.

The firm predicted that, as long as restrictions continued to ease in line with current plans, overall sales for the year would be higher than forecast and earnings would be ‘materially higher’ than expected, potentially equalling their 2019 peak.

Up-market chocolatier Hotel Chocolat (HOTC:AIM) posted a 60% rise in sales for the eight weeks to 25 April, a period which includes Mother’s Day and Easter and represents the second-largest seasonal peak for the business.

Thanks to the strength of demand since its shops were allowed to re-open, the firm said it expected trading for the year to end-June to be ‘significantly ahead of expectations’, sending the shares up 10% to 386p.

Safety services company Marlowe (MRL) increased its earnings guidance for the year ended in March thanks to better-than-expected second half trading.

Following better revenue and margin performance, the firm said it expected earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in excess of £28 million, compared with February’s increased guidance of the top end of market expectations of £26.3 million. Shares gained 5% to 798p.

Audio-visual products distributor Midwich (MIDW:AIM) said trading in the first four months of 2021 was ‘significantly’ above last year’s levels, partly thanks to acquisitions which had given it a much stronger market position.

As a result, the firm said full year revenues and profits would be ‘comfortably ahead’ of its original expectations and it would resume dividend payments, starting with a 3p per share payment in July. Shares leapt 15% to 533p in response.

Self-storage firm Safestore (SAFE) posted a strong first half trading update and raised its full year earnings guidance for the second time in three months.

Thanks to a stronger-than-expected second quarter, which saw an 11% rise in revenues and a 16.8% increase in occupancy rates, chief executive Frederic Vecchioli forecast full year earnings per share of between 37p and 38p compared with February’s raised guidance of above 34.6p, the top of analysts’ forecasts. Shares rose 4% to 903p.

Specialist chemical producer Victrex (VCT) posted a 5% rise in first half volume sales thanks to improving end-markets, while hinting there could be ‘upside’ to its full year targets without changing its forecasts.

The firm also reinstated its interim dividend, due to what it called a ‘solid and sustainable recovery’ in its business, sending the shares 6.5% higher to £25.18.


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Issue Date: 10 May 2021