UK markets are starting to bounce back after yesterday’s Brexit calamity. The FTSE 250, which is considered the benchmark index for UK-focused companies, nudges up 0.2 points to 17,493, although that still leaves it trading well below the 21,324 year-to-date high. The FTSE 100 achieves a stronger lift, advancing 24 points to 6,746 off the back of gains in the mining and oil sectors, plus support from utilities and consumer goods stocks.
Plant hire giant Ashtead (AHT) advances 3.5% to £16.63 on the news it expects full year results to beat expectations, its dominant Sunbelt business in the US having rented out more industrial equipment in the six months ended 31 October. During the half, Ashtead’s pre-tax profits powered 19% higher to £633.4m and there’s an 18% dividend hike to 6.5p to please income seekers too.
Also in demand is lately-unloved advertising titan WPP (WPP), bid up 53.4p or 6.6% to 858.4p as new CEO Mark Read sets out his new plan to return the business to growth and assures full year results will meet consensus expectations.
Bombed-out floor coverings retailer Carpetright (CPR) rallies 7.6% to 17.6p, despite half year results making for grim reading with sales down 15.7% to £191.1m with a widened statutory loss. Optimistic investors are focusing on the fact the retailer’s restructuring programme is on schedule and there’s relief as Carpetright reports a marked sequential improvement in UK like-for-like sales in the second quarter, albeit still in negative territory.
Groceries giant Tesco (TSCO) softens 1.9p to 194.6p, J Sainsbury (SBRY) cheapens 1.9p to 292.6p and their smaller rival Wm Morrison (MRW) is marked down 2% to 219.15p. The catalyst is the latest Kantar Worldpanel grocery market share figures, covering the 12 weeks ending 2 December, which show the overall market growing at 2%, its slowest rate since March 2017 with shoppers benefiting from falling inflation.
Online gaming group 888 (888) sparks up 3.6% to 159.5p after acquiring the remaining 53% stake in the All American Poker Network for $28m in a bid to boost its growth strategy in the US.
International online retailer MySale (MYSL:AIM), whose backers include Philip Green and Mike Ashley’s Sports Direct International (SPD), slumps 45% lower to 19p on a punishing profit warning. MySale experienced ‘challenging conditions’ during its peak second quarter, principally in Australia following disruptive sales tax changes, and now sees sales and profits for the year to 30 June 2019 coming in ‘significantly below market expectations’, even guiding to a small loss for the first half year.
Gas heating, electrical and building services provider Bilby (BILB:AIM) bombs on half year results showing a reduction in sales and profits, sending the shares 24% lower to 69.5p. Bilby also warns the full revenue and earnings benefits from recently secured contracts won’t be achieved until the next financial year. Furthermore, the decision to cease building services work for the Ministry of Defence (MOD), a delay in a gas installation programme and the review of certain activities within its three divisions ‘will impact this year’s financial performance’.
Guarantor loans provider Amigo (AMGO) weakens 3.1p to 263.5p on the news finance director Simon Dighton, instrumental in this summer’s Main Market IPO, will step down from his role and the board by the end of the current financial year. His successor is seasoned finance industry player Nayan Kisnadwala, whose CV includes a spell as the finance director of Barclaycard.
Business energy services company Inspired Energy (INSE:AIM) improves 2.1% to 16.9p as house broker Shore Capital upgrades its forecasts to account for the acquisition of peer and competitor Inprova Finance for £19.5m in cash.
