The FTSE100 is nudging higher after a report in the South China Post hinted that the US and China had reached a tentative truce in their on-going trade dispute. The index of the top 100 shares gains three points to 7,419 in early trade.
Banks, builders and miners are leading the index, up 0.72%, 0.63% and 0.95% respectively, while tobacco, down 1.2%, and personal goods, down 0.82%, are a drag on the market.
Home improvements company Kingfisher (KGF) is the leading FTSE100 performer, its shares given a 3% boost to 212p following the appointment of Thierry Garnier as chief executive.
An experienced retailer, Garnier has spent 20 years in senior roles at French supermarket group Carrefour and has been chief executive of the Asian business since 2012. Garnier replaces the outgoing chief executive Veronique Laury.
Outsourcer Serco (SRP) releases a positive trading update saying that it expects revenues for the year ended 31 December 2019 to be at the top end of its previously stated £2.9bn to 3.0bn range. The market shows its appreciation, giving the shares a 7% boost to 145p.
Chief executive Rupert Soames said ‘Following a strong 2018, which marked an inflection point for Serco after several years of decline, we expect to report another good performance in the first half of 2019.’
In May the company announced the acquisition of NSBU, a leading ship and submarine design and engineering group in the US Navy, significantly reducing the group’s dependence on the UK. We wrote about the deal here.
Shares in troubled recruitment firm Staffline (STAF) are clobbered 16% to 125p after it announces a placing to raise up to £41m at 100p per share. The company intends to use the proceeds to reduce its debts.
On 30 January 2019, the Company revealed that concerns were brought to the attention of the Board relating to invoicing and payroll practices within the Recruitment division which would be fully investigated.
On 17 May 2019, the Company issued a trading update referencing headwinds faced in the Group's training and recruitment divisions.
The company's shares have fallen over 90% since their peak in November 2015.
On the down escalator today were shares in Insolvency litigation financing company Manolete Partners (MANO:AIM), down 9% to 979p following the release of its maiden full year results for the period ended 31 March 2019.
While the company reported strong growth in revenues up 30% to £13.8m, it was circa 7% shy of market expectations, disappointing investors in this highly rated stock.
Shares in closed end life sciences investment trust Syncona (SYNC) rise 1.6% to 226.5p after it announces the sale of Blue Earth Diagnostics to Bracco Imaging for £337m.
The trust has made 10 times its original investment of £35.3m giving an internal rate of return of 87%. The proceeds represent an uplift of £69.8m or 10.4p per share.
At the smaller end of the market, shares in floor coverings manufacturer Airea (AIEA:AIM), crash 31% to 52.5p after it reports a profit warning due to ‘significantly tougher conditions’ during the quarter.
Chief executive Neil Rylance sold his entire shareholding of 2.5m shares for 72p on April 5th 2019, to his employees via a recently created Employee Benefit Trust. (EBT)
