London’s FTSE 100 sheds 30 points to trade at 7,100.5, hit by the strong pound and its impact on the relative value of the overseas earnings generated by the blue chips. Sterling is strengthening on hopes that a (somewhat) revised offer from the EU at the 11th hour can smooth the passage of Theresa May’s Brexit deal through the House of Commons.
Sentiment towards Domino’s Pizza (DOM) continues to sour, the shares off 5.7p to 227.4p as full year results reveal a 24% drop in pre-tax profit to £61.9m. The pizza delivery chain’s performance was hampered by international growing pains last year. CEO David Wild expects continued UK growth this year and an improved performance from the international arm, although the best investors can hope for is a break even result overseas.
Fertilizer project developer Sirius Minerals (SXX) digs 7.2% higher to 19.25p as investors welcome an approach by a ‘major global financial institution’ with an alternative funding proposal for its flagship potash project in Yorkshire. Sirius has been working on a senior debt financing with a group of prospective lenders since 2016, but believes this alternative proposal ‘potentially offers a more flexible and attractive solution to its stage 2 financing requirements’ and is therefore pausing discussions with existing prospective lenders.
Mother and baby products purveyor Mothercare (MTC) is marked up 6.5% to 17.9p after announcing positive progress with its turnaround plan and the £13.5m disposal of Early Learning Centre to family-owned toy shops chain The Entertainer.
Mothercare says the sale of Early Learning Centre is the next step towards being free of bank debt. And the restructured, refinanced retailer also insists its UK store close program is ahead of schedule and the high street brand is on track to deliver annual cost savings of ‘at least’ £19m.
Security services giant G4S (GFS) cheapens 5.4% to 197.1p on subdued full year results, with growth in the company’s Secure Solutions business offset by tough trading conditions ‘in a number of Cash Solutions markets and a strong comparative performance in Retail Cash Solutions in 2017’.
IT services business and total returns star Computacenter (CCC) clips ahead 2.9% to £11.46 as CEO Mike Norris announces record full year results, with sales topping £4bn for the first time, as well as a confident outlook.
Aviation services business John Menzies (MNZS) drops 4.6% to trade at 515p as the surprise news chief executive officer (CEO) Forsyth Black is stepping down overshadows resilient full year results.
Payments and administration specialist Equiniti (EQN) reverses 12.5% to 177.6p despite delivering strong full year results, as organic growth and margin disappointment in the UK along with news of platform integration difficulties in the US conspire to trigger earnings downgrades.
French Connection (FCCN) firms 1.4% to 43p as the fashion brand turns losses into a modest profit for the year ended 31 January. The turnaround was driven by a strong wholesale performance, which offset a 6.8% fall in retail like-for-like sales amid tough trading in the UK. There is no update given on the potential sale of the company flagged back in October.
