London’s blue-chips surrender some of yesterday's gains, the FTSE 100 down 45 points at 7,416 as traders mull news that an agreement may have been reached over the Brexit divorce bill, potentially leading the way to future trade talks with the EU.
Unloved online value retail-to-education firm Findel (FDL) jumps 17.7% higher to 180p on news of forecast-busting first half profit before tax, up £10.1m to £11.9m, strong sales driven by largest business Express Gifts.
Brisk business in November and a successful Black Friday campaign mean Findel is on track to meet full year expectations, while the turnaround of its Findel Education arm is ‘proceeding in line with our plans’.
Soft drinks giant Britvic (BVIC) fizzes up 41p to 799.5p on palate-pleasing full year results, the Fruit Shoot, Tango and Robinsons brand owner reporting robust top line growth, better than expected profit and a surge in free cash flow.
In a confident outlook statement, Britvic acknowledges next year’s introduction of the Soft Drinks Industry Levy in Britain and Ireland will bring uncertainty, yet it insists it has ‘prepared well and, with our great portfolio of brands and our strong marketing and innovation plans, we believe we are well placed to navigate it.'
FTSE 250 leisure group Cineworld (CINE) cheapens 13.4% to 601.5p after proposing to pay $23 per share for Regal Entertainment, the second largest cinema chain in the US. Cineworld says such a deal, estimated to be worth $3.6bn, would be funded by debt and cash obtained through a rights issue.
Tobacco giant Imperial Brands (IMB) falls 1.6% to £30.89 after warning operating profits face a hit of up to £160m due to the collapse of its trading partner Palmer & Harvey.
Plastic products specialist RPC (RPC) reverses 2.9% to 937p, despite reporting encouraging first half trading ‘with record profitability levels and strong cash generation’. Some investors are disappointed by the news no significant acquisitions are anticipated in the second half of the year, as RPC will instead focus on integrating previous deals.
Respiratory disease-focused biopharma business Circassia (CIR) improves 5.8% to 86.75p. Investors are pricing in the positives following the National Institute for Health and Care Excellence’s (NICE) publication of new guidelines highlighting the importance of fractional exhaled nitric oxide (FeNO) testing in asthma diagnosis.
Premium memory foam mattress seller Eve Sleep (EVE:AIM) surges 12% higher to 99.7p on news positive sales momentum continues with marketing efforts proving successful. Besides stronger than expected trading in the UK and rapid overseas growth, Eve’s CEO Jas Bagniewski assures the sleep brand is on track for UK profitability in the fourth quarter of 2018.
