UK shares eased back after a firm opening on Friday as investors awaited US monthly non-farm payrolls data, with expectations that the economy added 0.5 million jobs in September.
Brent Crude prices gained to $82.50 per barrel while it was reported that US diesel stockpiles were at 20-year lows heading into the winter.
At midday the FTSE 100 index of leading shares was flat at 7,078 despite gains in 'reopening' stocks such as airlines and retailers.
CANADA DELIVERY FOR ROYAL MAIL
Royal Mail (RMG) has agreed to purchase Canadian freight company Mid-Nite Sun Transportation, one of the largest independent freight carriers in western Canada for around C$360 million (£210.5 million).
The combination of the two businesses will enable its General Logistics Systems arm to cover most of the Canadian population and create synergies as well as delivering further growth. The shares dipped 0.4% to 412p.
The UK’s leading owner, manager, and operator of student accommodation Unite (UTG) said it had let 94% of bed spaces across the portfolio, slightly below management’s prior expectations for 95%-to-98% occupancy.
Consequently, earnings per share is expected to be at the lower end of guidance of between 27p to 30p per share. The company will seek to mitigate the effect by targeting international students and cost savings. Unite said it fully hedged for energy costs for the year which represent around 5% of rental income.
At 30 September the USAF property portfolio was valued at £2.825 billion, representing a 1.1% like-for-like increase during the third quarter, while the LSAV portfolio was independently valued at £1.764 billion, an increase of 3.7% during the quarter. The shares dropped 2.7% to £10.74.
EARNINGS BEAT
Industrial parts electronics distributer Electrocomponents (ECM) said first half trading was ahead of expectations with like-for-like revenues up 31% compared with last year and 22% compared with pre-pandemic levels.
The company upped its full-year guidance saying it expected revenue growth and adjusted operating margin to be slightly ahead of prior guidance of double-digit-to-mid-teens like-for-like growth and a return to 2019/20 margins. The shares added 2% £10.97.
Engineering group Weir (WEIR) said it had been the victim of a ransom wear cyber attack at the end of the third quarter which impacted profitability and caused revenue deferrals.
It said capabilities had been gradually restored but operational inefficiencies are expected to impact the fourth quarter.
The company said full year profit before tax and amortisation was expected to be in the range of £230 million to £245 million. The shares dropped 3% to £15.96.
Shares in clothing and footwear digital retailer N Brown (BWNG:AIM) jumped 4% higher to 49.25p after it said first half pre-tax profit was 7.1% ahead year-on-year to £24.2 million.
The company current trading was in line with expectations and that it was ‘well prepared’ for peak Christmas trading.
A list of FTSE 100 movers can be seen HERE
