London’s FTSE 100 opens 88.3 points down at 7,313.2 as the latest round of Brexit negotiations highlight the widening division between Brussels and London and amid rising geopolitical tensions after North Korea launched a ballistic missile over Japan.
In corporate news, struggling outsourcer Mitie (MTO) is marked down 1.8p to 264p on news the Financial Conduct Authority (FCA) is investigating the timeliness of a profit warning last September, the first of three earnings alerts in five months. The FCA is also examining ‘the manner of preparation and content’ of Mitie’s accounts for the year to 31 March 2016.
Business supplies company Bunzl (BNZL) softens 1p to £23.31, despite posting first half results showing further increases in sales and earnings per share, a continuation of its 24 year track record of dividend growth and announcing its first acquisition in China. Some investors are focusing on a 20 basis point decline in group operating margin to 6.6%, mainly reflecting the impact of lower margin business bagged in North America.
Home shopping firm Findel (FDL) sparks up 9.6% to 183p on a positive trading statement ahead of today’s annual general meeting (AGM). The online value retailer has made a good start to the year, with biggest business Express Gifts growing customers and revenue in the 20 weeks to 18 August and Findel Education seeing an improved performance in recent weeks following a difficult start to the year.
Frankie & Benny’s owner Restaurant Group (RTN) sours 3.5% to 311.7p as investors digest Peel Hunt leisure analyst Douglas Jack’s view that its recovery could take longer than expected. Jack has downgraded his recommendation from ‘hold’ to ‘reduce’ ahead of half year results (31 Aug) he forecasts will show a near-30% slump in profit before tax to £26.1m.
Gift packaging-to-creative play products maker IG Design (IGR:AIM) improves another 9p to 392.5p on news of a strong first quarter to June, which combined with a record order book, gives management ‘confidence in the outcome for the full financial year’.
X-ray screening systems supplier Image Scan (IGE:AIM) surges 16.1% higher to 8.12p as it upgrades guidance for the year to September following a rapid order book increase.
Software and services company Gresham Technologies (GHT) takes on 2p at 181p after announcing a third North American bank win for its Clareti software platform in the last 9 months.
