The FTSE 100 manages a solid start despite selling in Asia overnight. Ahead of the Budget later the index of leading UK shares is up 0.6% to 6,979.44.
Index heavyweight and Europe’s largest bank HBSC (HSBA) reports higher profit in the third quarter of the year, supported by cost cuts and a rise in deposit revenue.
Pre-tax profit rose 28% to $5.9bn in the three months to the end of September, while revenue increased 6% to $13.8bn and operating expenses fell 2% to $7.74bn.
Growth in the retail banking and wealth management along with commercial banking boosted total revenue, though weaker corporate centre growth limited upside, the bank says. Overall investors are pleased with the update marking the shares 3.7% higher to 627.5p.
Miner Rio Tinto (RIO) says an agreement signed two years ago for Chinalco to acquire its interest in the Simandou iron ore project in Guinea has lapsed.
The miner had signed a non-binding heads of agreement on 26 October 2016 to sell its 45.05% stake in the asset to the Chinese group, which currently owns a 39.95% stake.
The two companies would continue to work with the government to 'explore other options to realise value' from the iron ore deposit, Rio Tinto adds. The shares tick up 0.4% to £36.79.
Cosmetics company Warpaint London (W7L:AIM) dives 39.1% to 124.0p as it warns the challenging trading conditions in the UK will weigh on its annual sales and profits.
The company says that the UK market, which accounted for 44% of sales in the first half, had recently seen further softening, with retailers reducing stock levels and Christmas orders.
'This reduction in previously anticipated UK sales will have an impact on group performance for the full year that will not be completely offset by better-than-anticipated performance in our major overseas sales territories,' Warpaint says.
The company said it expected to post revenue for the year through December of £48m to £52m and adjusted pre-tax profit of £8.5m to £10m.
Flooring retailer Victoria (VCP:AIM), typically an AIM star, loses some of its sparkle as it says it expects its margin performance to fall short of market expectations as it cuts prices to win market share. The shares tumble 13.7% to 521p.
In a trading update for the six months through September, the company says its overall margin would be down by around 1.5 percentage points compared to consensus market forecasts.
‘The board firmly believes that it should capitalise on the strength of the group by driving sales and market share at this time, although this comes with a short-term investment in operating margin,' Victoria adds.
First-half revenue had risen 'in a challenging market' by more than 3% in the first half on-year, on a like-for-like basis, the company said.
Victoria also says it plans to offer €450m of senior secured notes due in 2023, to repay its existing senior bank facility.
Educational services group Wey Education (WEY:AIM) swings to a first-half loss as higher costs offset rising revenue.
Pre-tax losses for the year through August amount to £229k, compared to a profit of £18,000 a year earlier.
Revenue rose 73% to £4.2m though and the shares are up 4.3% to 12.68p
ITM Power (ITM:AIM), an energy storage and clean fuel company, says it expects another year of 'significant' financial progress, with revenues expected to ramp up in the second half of the year.
The company said the current financial year had started well, with underlying performance of project delivery on track.
The group currently has £27.6m under contract and a further £6.7m in the final stages of negotiation, taking the total pipeline to £34.3m, an increase of £3.7m since the full year results announced on 13 August. Its shares surge 7.3% higher to 24.25p.
