The FTSE 100 recovers from Thursday’s decline, up 30 points to 7,532.21. This move was aided by a rally in Wall Street as Treasury yields retreated following some strong US economic data regarding trade and factory orders.
Bank HSBC (HSBA) retreats 1.7% to 708.85p as it reveals first quarter pre-tax profits are down 4% to $4.8bn due to higher operating costs. The bank did report a revenue increase of 6% to $13.7bn driven by higher deposit margins in its retail banking sector as well as growth in its commercial banking division. Despite the profits slip the bank says it will launch a $2bn share buy back scheme.
Airline conglomerate International Consolidated Airlines (IAG) glides up 3.6% to 663.6p on news that passenger revenue grew by 3.4% to €4.42bn in the first three months to 31 March. Operating profit after exceptional items rose 552% to €919m and its available seat kilometres, a measure of its capacity grew by 4.1% to 71.1bn.
Budget airline EasyJet (EZJ) ascends 2.3% to £16.50 as its releases its passenger numbers have increased by 4.7% to 7.45m. On a rolling 12 month period ending April 2018 its passenger numbers are up 8% to 82.8m which the company says is in line with expectations.
Educational publishing company Pearson (PSON) gains 4.5% to 867.7p after growing revenues by 1% in its first quarter on a year-on-year basis. The company also reaffirms its 2018 operating profit guidance at between £520m to £560m.
Construction company Morgan Sindall (MGNS) ticks up 2.6% to £13.56 after releasing a positive trading update. The company says its construction and infrastructure division is delivering further margin growth while property services has returned to profits following last year’s restructuring.
The company expects its daily net cash position to be in excess of £70m and says it is on track to deliver full year 2018 results ahead of expectations.
Sub-prime lender International Personal Finance (IPF) loses 4.5% to 227p as it says the previously mooted Romanian APR cap of 18% for consumer lending is highly likely to be implemented. The company says this will have a ‘material adverse effect’ on its Romanian business.
Intellectual property developer business IP Group (IPO) is down by 0.8% to 134p on news that its non-executive chairman Mike Humphrey is retiring as soon as a replacement can be found. The company is also losing non-executive director Lynn Gladden as she has been appointed to the Physical Sciences Research Council and wished to avoid any potential conflicts of interest.
Broker Numis (NUM:AIM) gains 2% to 418p after reporting its first half pre-tax profits jumped 86% to £19.5m. The company’s revenues are up 41% to £74.1m although it is keeping its interim dividend flat at 5.5p per share.
