The FTSE 100 trades 16 points lower at 7,354.48 in early trading on 11 July as investors await a speech at noon by the Bank of England’s deputy governor Ben Broadbent. Any comment on monetary policy has the potential to move markets.
Among corporate news, UK retail favourite Marks & Spencer (MKS) drops 1.7% to 333.3p on releasing its first quarter trading update to 1 July. Like-for-like food sales are down by 0.1% which is below expectations. Its clothing & home division is down by 1.2% on a like-for like basis. Among the positives is news that full price sales are up by 7% which will help profit margins.
Media company Pearson (PSON) ticks up 2.5% to 707.5p after selling a 22% stake in publisher Penguin Random House. This will recapitalise the business to the tune of $1bn and strengthen the company’s balance sheet. It plans to return £300m of surplus capital to shareholders via a share buyback and maintain an income stream from its remaining 25% stake in Penguin.
Builders merchant Grafton (GFTU) is up 5.2% to 745p after releasing a strong set of first half results to 30 June. Its revenue increased by 9% to £1.34bn and like-for-like revenue increased by 5.7%. Irish stockbroker Davy says Grafton remains its top pick in the builders’ merchant sector.
Housebuilder Galliford Try (GFRD) rises 5.1% to £12.27 as it reports a strong underlying financial and operating performance across its three businesses. All are trading at the upper end of analyst expectations. The company says Linden Homes and its partnerships/regeneration business are expected to deliver increased revenue and improved operating margins, while newer contracts in its construction arm are performing well.
Price comparision website GoCompare (GOCO) rises 6% to 110p on news that first half revenue is up by 4% to £75.8m. It says adjusted operating profit is expected to be approximately £17.5m, which represents 22% year-on-year growth, driven primarily by an improvement in marketing margin.
Indian fashion retailer Bagir (BAGR:AIM) slumps 31% to 3p after issuing a profit warning. It says progress with developing new production lines in Vietnam and Ethiopia is behind schedule and orders have slowed down.
Construction services company Carillion (CLLN) falls a further 14.2% to 100.5p following yesterday’s profit warning.
Software firm Craneware (CRW:AIM) has maintained its double digit growth for the second half of its year ended 30 June. Its share price ticks up 1.8% to £13.05. The company says it expects to report full year revenue growth of 16% to $57.8m, up from $49.8m in 2016.
