London's FTSE 100 softens by 2.9 points to 7,505 and the FTSE 250 weakens 32.8 points to 20,428 in a muted start for UK and European markets on Wednesday, although online fashion purveyor Boohoo (BOO:AIM) puts smiles on investors’ faces with a 9% share price gain to 208.7p as it raises full year sales guidance.
Boohoo is drawing confidence from a record first half to August for sales and profits with all brands performing ‘extremely well across all territories’ and the PrettyLittleThing brand proving the star performer.
Group revenue growth for the year to 28 February is now expected to be 38% to 43%, up from previous guidance for 35% to 40% growth, with an unchanged adjusted EBITDA margin of between 9% and 10%. The boohoo, PrettyLittleThing and Nasty Gal brands owner also reiterates medium term guidance to deliver sales growth of at least 25% per annum at an EBITDA margin of 10%.
Roadside assistance provider AA (AA.) reverses 4.5% to 114.1p after reporting a 65% slump in first half profit before tax to £28m, costs rising amid a weather-induced 15-year high in the number of breakdowns the AA had to service. ‘The first half of full year 2019 has seen exceptional weather conditions, from extreme cold and snow in February and March to the hottest summer in recent memory, with the severe winter also creating a pothole “epidemic” on the UK’s roads’, laments aptly-named CEO Simon Breakwell, insisting his charge is on track to return to growth next year.
Unloved consumer products play PZ Cussons (PZC) perks up 5.4p to 235p on relief overall results for the first quarter to August met expectations, with good performances in Europe and Asia offsetting challenging conditions in Nigeria.
Mitie (MTO) is marked down 6.2% to 144.5p as the facilities management business says first half operating profit will be ‘flat to slightly down’ year-on-year due to ongoing investment to drive faster sales growth.
Food and drink concessions star turn SSP (SSPG) sheds 3% to trade at 694.4p on profit-taking following a strong run. A solid pre-close trading update flagging a stronger than expected annual sales performance encourages Shore Capital to push through its fourth upgrade this year.
Chemicals group Elementis (ELM) cheapens 2.8p to 264.4p on the news production at its chromium facility in Castle Hayne, North Carolina, has been disrupted by flooding caused by Hurricane Florence. CEO Paul Waterman insists ‘the shutdown of the facility was well managed and we anticipate production to restart as conditions in the surrounding area return to normal over the coming weeks.'
Engineering support services play Redhall (RHL:AIM) slumps 31% to 4.65p after warning full year results are expected to be ‘materially’ below previous expectations following project delays and slower than expected efficiency gains.
And flight training systems supplier SimiGon (SIM:AIM) gains altitude, rising 6.9% higher to 15.5p after winning a $1.1m contract with the Israeli air force.
