London’s high-flying FTSE 100 falls back 2.8 points to 7,766.4, investors keeping their powder dry ahead of key UK inflation data. Upbeat growth forecasts, as well as improved optimism over negotiating a satisfactory Brexit deal, has seen the pound rally in recent days.
In corporate news, self-styled ‘King of Trainers’ JD Sports Fashion (JD.) sprints 7.9% higher to 394.4p as boss Peter Cowgill upgrades profit before tax guidance for the year ended 3 February 2018 to ‘around £300m’. This is up from a previous market consensus range of £270m-to-£295m, the retailer’s positive trading momentum having continued over the key Christmas period.
Bakery food-on-the-go retailer Greggs (GRG) fattens up 3.2% to £13.47 on a tasty fourth quarter trading update. The value sausage rolls-to-sandwiches seller finished 2017 off well by delivering its seventeenth consecutive quarter of like-for-like sales growth, ‘classic favourites’ performing well with a boost from Greggs’ seasonal offerings including the Festive Bake and mince pies. CEO Roger Whiteside expects cost pressures to continue in 2018, ‘albeit at a lower level than we experienced in 2017’.
Specialist emerging markets asset manager Ashmore (ASHM) advances 9p to 436.8p on news assets under management grew by US$4.5bn to $69.5bn in the second quarter. Investors are putting more money to work with Ashmore’s funds and CEO Mark Coombs’ 2018 outlook ‘is for another year of outperformance across the range of Emerging Markets asset classes’.
Greetings cards-to-gift packaging maker IG Design (IGR:AIM) sparks up 4% to 396.5p after upgrading full year guidance following strong trading in the third quarter including Christmas. CEO Paul Fineman says all regions are on track to achieve year on year revenue and profit growth and IG Design's future prospects have also been bolstered by US tax reforms with earnings per share set to benefit from the 2019 financial year and beyond.
Also in demand is low-cost gym operator The Gym Group (GYM), which gains 8p at 235p as investors cheer news of total revenue growth of 24.3% for calendar year 2017, during which membership numbers rose 35.5% to 607,000.
Heading south is teleradiology services provider Medica (MGP), marked down almost 16% to 163.6p as it warns full year results will be ‘slightly behind market expectations’. It blames ‘some capacity constraints in the period’ and says demand for out-of-hours reporting service NightHawk and radiology reporting service Cross Sectional were modestly below expectations in the final quarter of 2017.
Provident Financial (PFG) plunges 38.6p lower to 881.4p after warning its consumer credit division will report a pre-exceptional loss for 2017 of around £120m. The group has been attempting to woo back home credit customers who were lost when a new operating model was introduced in July but this ‘reconnection’ was lower than expected in the fourth quarter.
