London’s blue chip index trades 0.7% higher at 6,715.80 in early trading as the pound rises against the dollar after Theresa May walked into 10 Downing street as prime minister for the first time on Wednesday night.
Expectations that the Bank of England could cut interest rates later today have also been welcomed by the market.
Car parts, bicycles and camping equipment retailer Halfords (HFD) trades 1% lower to 331.8p after reporting a 0.6% drop in like-for-like sales in its first quarter period. It warns that a US dollar to the pound rate below $1.45 in the near future may hit earnings.
Financial information provider Experian’s (EXPN) first quarter revenues improved 5% year-on-year during the three months to 30 June. Growth was strong in Latin America, North America, EMEA and Asia Pacific. Management has not seen an adverse impact in the UK business from Brexit. Shares remain flat at £14.65.
Price comparison website Moneysupermarket (MONY) advances 2% to 276.2p on expectations of a 10% revenue rise to £158 million in the first half of 2016, while operating profit could be 6% higher at around £54 million. Drivers include higher demand for credit cards and insurance. The board is confident of meeting full-year expectations with future growth driven by higher insurance rates, energy prices and lower interest rates following Brexit.
Franco Manco pizza restaurant owner Fulham Shore (FUL:AIM) jumps 18% to 20.5p after reporting £3.3 million operating profit in the year to March 2016, versus £790,000 in the previous 12 months. It plans to expand Franco Manco nationally and says there are a growing number of property opportunities as a result of retailers struggling under the pressure of online shopping.
In other news investor Marwyn is to delist its Marwyn Management Partners (MMP:AIM) vehicle, saying the core asset – a 97.3% in posh wellies maker Le Chameau – continues to struggle. It says MMP is no longer suitable to be a listed entity, sending the shares down 6.3% to 1.88p.
Goldplat (GDP:AIM) recovers some lost ground from its recent profit warning, rising 9.3% to 5.88p after striking a deal for Canadian-listed Gulf Shore Resources to earn a stake in its Anumso gold project in Ghana.
Veterinary medicines specialist Animalcare (ANCR:AIM) rises 3.7% to 266p on operating profit for the year to 30 June set to exceed market expectations. The introduction of dog chipping legalisation in April played a part in this growth.