Following stronger advances in the US and Asian markets, yet with Brexit and political developments tempering investors’ enthusiasm, London’s FTSE 100 creeps 1.14 points higher to 7,276.4 early on Wednesday.
Unloved home improvement products powerhouse Kingfisher (KGF) rallies 6.6% to 316p on better-than-expected half year results, underlying profit before tax up 0.9% to £440m versus a consensus estimate of £426m thanks to solid growth at Screwfix and in Poland.
The DIY specialist also highlights progress with its ONE Kingfisher transformation plan, aiming to deliver £500m of sustainable annual profit uplift after five years, although management is ‘cautious on the second half backdrop in the UK and France’, which are the retailer’s core markets.
Heading south is outsourcer Mitie (MTO), marked down 8.3p to 250p on news the loss of a top 20 contract will mean a £6m non-cash write-off. The FTSE 250 cleaner, caterer and engineering concern’s half year trading update does however highlight turnaround progress, which encouraging in light of recent profit warnings. Revenues are ahead of forecast for the year to date and Mitie’s growing order book has been boosted by wins from ‘a multi-national grocery retailer, an e-commerce and cloud computing company, and a major homewares and household goods retailer’.
Support services peer Babcock International (BAB) rebounds 19.5p (2.4%) to 819.5p on news of in-line trading with revenue visibility continuing to improve. The engineering services company also assures that the introduction of the IFRS15 accounting standard is ‘not expected to have a significant impact on earnings’.
Drinks giant Diageo (DGE) softens 1.9% to £24.50 on news the Johnnie Walker-to-Captain Morgan maker’s first half growth rate will be hit by the later timing of Chinese New Year and the highway ban in India.
Quick eats chain Domino’s Pizza (DOM) fattens up 3.9% to 285.9p as investors cheer news of a £15m share buyback programme.
Toys distributor Character Group (CCT:AIM) gives up the best part of 10% to trade at 457.5p as investors digest a trading update slipped out yesterday afternoon. While Character assures profits for the year to August just-ended will meet expectations, it warns market conditions ‘remain challenging at the consumer level’ and visibility for Christmas is limited with troubled major customer Toys “R” Us filing for bankruptcy protection in the US and Canada.
Cash-strapped mobile services supplier The People’s Operator (TPOP:AIM) tumbles 6.7% to 1.75p on news it intends to seek further funding ‘in the near future’. Poor half year figures reveal slightly lower total revenue of £1.62m (2016: £1.7m) and a £2.9m loss, albeit the deficit is reduced by 26% year-on-year.
Online and mobile display and inventory control technology business ATTRAQT (ATQT:AIM) improves 2.1% to 49.5p on well-received half year results and a confident outlook statement.
Boosted by its recent Fredhopper acquisition, ATTRAQT’s sales shot up 224% to £5.5m in the six months to June. Drawing confidence from high recurring revenues, ATTRAQT is bagging business with leading retailers and reports a strong pipeline for new business in the second half.
