London’s FTSE 100 finished Thursday’s session lower, the blue chip benchmark off 0.68% at 6,338.94, as its vaccine-driven winning streak was halted by worries over the continuing surge in Covid-19 cases in the US.
Coming off the back of eight consecutive days of gains, the blue chip benchmark was led lower by the banking sector and a reversal at Rolls-Royce (RR.), marked down 8.65% to 90p following a rights issue.
GVC SETS OUT FUTURE STRATEGY
In company news, betting company GVC (GVC) fell 1.9% to £10 after it said it would focus entirely on nationally regulated markets for all of its revenue by 2023, as new boss Shay Segev laid out his plans to transform the group and grow its presence.
The Ladbrokes owner, which will be renamed Entain, said its new corporate actions would cut operating profit by around £40 million in 2021.
But the company emphasised the ‘significant’ opportunities for growth in four key areas: the US market, its core UK business, new markets, and expanding to new audiences.
Retailer WH Smith (SMWH) cheapened 3.3% to £14.02 after posting a headline loss of £69 million in the 12 months to the end of August, according to its preliminary results statement.
On an IAS 17 accounting basis, the £69 million loss compared to a £155 million profit before tax in the 2018-19 financial year, while revenue from its travel outlets was down 32%, with high street store revenue down 19%.
Despite having to close many of its stores throughout the first lockdowns, particularly in airports, seemingly investors were more focused on the fact that WH Smith reported its US business was showing signs of recovery through an increase in domestic travel.
L&G RULES OUT DIVIDEND GROWTH
UK insurer Legal & General (LGEN) dropped 1.9% to 232p after it said it will keep its final dividend payment for 2020 flat due to the impact of the coronavirus pandemic.
The FTSE 100 company set out five-year targets ahead of its investor day, with aims to generate £8 billion-to-£9 billion in combined cash and capital, paying dividends in the range of £5.6 billion-to-£5.9 billion over the 2020 to 2024 period.
Broadcaster ITV (ITV) crept 0.04p higher to 89.76p after reporting much improved advertising trends in the third quarter, as revenue remained lower and costs higher due to the pandemic.
Advertising spend was down 7% in the three months to 30 September quarter, compared to the 43% in the prior three , with advertising spend in its final quarter expected to be up 6% year-on-year.
But total external revenue was down 16% to £1.86 billion, with broadcast revenue down 13% at £1.3 billion and the production arm ITV Studios down 19% at £0.9 billion.
B&M PROFITS ALMOST DOUBLE
Discount retailer B&M European Value Retail (BME) softened 1.1% to 496p despite reporting a 95% rise in first half core earnings.
B&M, which entered the FTSE 100 index in September, said it made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £295.6 million in the six months to 26 September, versus the £151.4 million reported in the same period last year.
Revenue increased 25.3% to £2.24 billion, the company said. Like-for-like sales at B&M’s UK stores were allowed to stay open through lockdowns because they sell some food, fuelling a 23% hike during the half.
Luxury brand Burberry (BRBY) ended 2.3% lower at £15.90, even after it saw sales return to growth in October.
Burberry reported revenue of £878 million for the six months to 26 September, down 31% on a year earlier but better than analysts had predicted, with comparable store sales falling by less than expected in the previous quarter. Adjusted operating profit fell 75% to £51 million.
Analysts had expected comparable sales to fall by around 12% in the second quarter, but Burberry said on Thursday that the drop was only 6% and that it had seen strong double-digit growth in key markets, including mainland China, Korea and the US during the half.
OTHER COMPANY NEWS
Defence technology company Qinetiq (QQ.) jumped 11.1% to 323.2p after it boosted its profit after tax by 19% in the first half of its financial year compared to the previous year, to £74.2 million.
The company increased its full-year guidance, saying it now expected to deliver ‘low double-digit revenue growth’.
Power network operator National Grid (NG.) shed 0.75% to trade at 953.6p after posting a 78% increase in statutory profit before tax in the six months to the end of September compared to last year.
Housebuilder Vistry (VTY) jumped 2.2% to 775.5p after the company said it was on track to deliver profit before tax at the top end of its expected range of £130-140 million and plans to resume paying dividends next year.
Telecommunications company Spirent Communications (SPT) dropped 11.37% to 252p despite reporting that demand for 5G services continued to show strong growth in the third quarter of 2020.
