London’s blue-chip benchmark opens 35 points lower at 7,369.2 with investors waiting on a string of UK inflation data out mid-morning from the Bank of England, the country's consumer-price index in particular focus.
In corporate news, construction services group Carillion (CLLN), whose shares collapsed following a profit warning last week, rebounds 8.2% to 72.35p after bagging two new facilities management contracts with the Defence Infrastructure Organisation (DIO).
Another unloved stock rallying is Royal Mail (RMG), bid up 3.5% to 412.6p on an in-line first quarter trading update. CEO Moya Greene highlights a good start to the financial year driven by a strong performance in its european parcels business GLS. Royal Mail also enjoyed a boost from last month’s general election, with political mailings helping to slow the decline in UK letter volumes.
European floor coverings distributor Headlam (HEAD) races 22.5p higher to 566.5p on a positive pre-close trading update. Total sales rose 4% to £341.9m in the first half to June, with both the UK and Continental European businesses delivering growth and gross margin improving across the company.
Also in demand is online trading giant IG Group (IGG), which improves 5% to 582.5p on news it delivered record sales and profits in the year ended 31 May.
Windows and doors seller and fitter Safestyle UK (SFE:AIM) slumps 15.9% to 216.25p after posting its second profit warning in two months. Amid patchier consumer demand, Safestyle now expects ‘only modest revenue growth again in the second half of the year’, which will result in annual profits being lower than expected and broadly flat year-on-year.
Elsewhere, troubled cyber security consultancy NCC (NCC) is marked up 6.9% to 181.5p despite annual results showing a lurch into operating losses of £53.4m. Investors focus on the positives contained within new executive chairman Chris Stone’s strategic review and there’s also relief as earnings expectations for 2018 are unchanged and the total dividend is maintained at 4.65p in a show of confidence.
