The FTSE 100 is down slightly after interest rates were hiked in the US as expected. Markets in the US closed down last night and now all eyes will be on the Bank of England’s policy makers who will make their decision on interests at midday. It is widely expected that no change to the UK’s base rate will be made today.
In corporate news, Cilit Bang-maker Reckitt Benckiser (RB.) ticks up 7% to £60.19 as it ends talks with US pharma giant Pfizer regarding the takeover of the latter’s consumer healthcare business. Reckitt’s CEO Rakesh Kapoor says the priority is creating further value by reorganising into two business units, health and ‘hygiene home’.
He adds that the company did not want the entire Pfizer consumer health business and an acquisition of part of the business ‘was not possible’.
Fashion brand Ted Baker (TED) loses 3.5% to £28.33 after it warns of ‘challenging’ trading conditions for this year. For the 52 weeks ending 27 January 2018, the company saw revenue and pre-tax profits improve by 11.4% and 12.7% to £591.7m and £68.8m respectively. It also hiked its dividend per share by 12% to 60.1p with retail sales increasing by 10.4% to £442.5m, all on a year-on-year basis.
Trading platform IG (IGG) strengthens 2.2% to 835.5p on releasing its 2018 third quarter results. For the three months to 28 February, the company enjoyed a record revenue quarter, taking in £421.3m. Its sales benefitted from a high level of client trading activity as well as an increase in client numbers. The company says that while client trading cryptocurrencies accounted for 11% of revenue in the quarter, this slowed dramatically at the end of January.
Oil and gas contracting company Lamprell (LAM) sheds 8.4% to 64.5p after its 2017 financial results are ‘dominated by [a] loss on windfarm project’. For its year ending 31 December 2017, its net loss of $98.1m was driven by a $80m loss on its East Anglia offshore wind contract. The company says ‘lessons have been learned’ regarding the offshore wind project and it has implemented performance enhancing opportunities to mitigate project costs.
Motor insurer Sabre (SBRE) is down 7.2% to 257p after failing to pay a maiden dividend for its year ending 31 December 2017. The company’s underwriting profit was up by over £3m to £59m on a year-on-year basis with revenue improving by £14.1m to £210.7m compared to 2016. Sabre only listed in December last year and has ‘confidence of delivering an attractive dividend in 2018.
Intellectual property commercialisation company Allied Minds (ALM) ticks up 5.2% to 113.6p after narrowing its net loss to $111.1m, down from $128.7m in 2016. The company has been spending amounts of cash on general and administrative functions as well as research and development, $55.2m and $49m respectively.
