British baker Greggs (GRG) reported a 3.2% rise in like-for-like sales for the third quarter to 29 September, an improvement on its first half, thanks to drinks and pizza. The food outlet chain’s drinks range and new focaccia-style pizzas proved popular during a particularly hot summer.
Sales at bakery chain Greggs grew over the summer, despite fears that the stores would see a drop off in demand during the heatwave.
That sends Greggs’ share price racing to the head of the FTSE All-Share leader board in early trade on Tuesday, jumping close on 7% to £10.74.
That helps set a mildly positive tone for the wider markets with the FTSE 100 opening up close to 10 points higher, or about 0.13%, at 7,242.58.
Mid indices are also on the front foot with the FTSE 250 up nearly 60 points at 19,705.48.
DEPARTURE MAY MARK END OF TURNAROUND
Coming out of left-field is news on Tuesday that the chief executive of Aviva (AV.) is stepping down from his role after directing a sweeping restructuring of the insurance giant during his near-six years at the helm.
Shares in Aviva rise 1.7% at 473.3p following news that Mark Wilson is to step down. The company was embroiled in controversy earlier this year when it threatened to cancel high-yielding preference shares.
British recruiter Robert Walters (RWA) reported an 11.6% rise in quarterly net fee income and said recruitment activity levels remain highest across the UK. The news comes in a trading update for the period to 30 September.
Net fee income was strongest for the company across Europe, up 22% after currency fluctuations are stripped out. That sends the share price surging 5% to 672p.
Plastic packaging maker RPC (RPC) sees its share price rally more than 4% to 811.8p after confirming an extension for potential buyers to study their options late on Monday.
RPC is being circled by private equity firms Bain Capital and Apollo, and the pair now have until Bonfire night (5 November) to put up or shut-up. RPC also put out a short trading update showing modest organic growth that is pretty much in line with expectations.
SMALL CAPS IN FOCUS
Serica Energy(SQZ:AIM) is the big movers among AIM stocks on Tuesday after getting approval for a conditional licence from US authorities to continue operating a North Sea gas field partly owned by Iran’s national oil company.
Serica’s shares have soared nearly 30% on Tuesday to 100p, valuing the business at about £265m, a record for the company.
Relating to the Rhum field in the UK part of the North Sea, Serica runs operations alongside FTSE 100 partner BP (BP.).
Tiny metals producer Wolf Minerals (WLFE:AIM) is the big AIM loser of the day, slumping 20% to 1.4p after warning of the magnitude of ongoing funding talks. Wolf has already had to suspend trading its stock listed in Australia due to the firm’s failure to get annual results out.
Gold prices edged higher on Tuesday drawing some safe-haven bids from risk-averse investors as Asian stocks fell amid worries over a potential slowdown in China’s economic growth and as the dollar eased against the yen.
Oil prices also rose as more evidence emerged that crude exports from Iran, OPEC’s third-largest producer, are declining in the run-up to the re-imposition of US sanctions and as a hurricane moved across the Gulf of Mexico.
