Mining companies act as a drag on early deals on London’s stock market on Tuesday capping gains for a record-setting FTSE 100. The UK’s blue-chip index closed at 7,853.17 on Monday. In early trades on Tuesday the index is limited to single-digit progress, nudging the FTSE 100 to 7,860.62.

There’s also shock news that energy watchdog Ofgem has opened an investigation into National Grid's (NG.) UK transmission business.

The probe will examine whether National Grid has breached rules relating to its duty to operate the system in an economic and efficient manner, the regulator said. This comes just days after National Grid posted full year results that strengthened its inflation-beating dividend commitment.

National Grid shares are on Tuesday fractionally lower at 883p, although some way off 12-month highs of nearly £11.00.

HALFORD PROFITS PRANG

Also acting as a drag are full year results from cycling and car maintenance company Halfords (HFD). It sees its share price slump more than 13% to 336.4p after reporting a 5% fall in underlying pre-tax profits to £71.6m on a modest 2% revenue increase to £1.1bn.

Like-for-like sales for the 12 months to 30 March rose by 2%, lifted by Halfords' cycling business. The company hopes to turn things around by stepping-up investment in the business.

The company has also appointed a new non-executive chairman, with former British Airways man Keith Williams stepping into the role. But this is scant consolation for investors in Tuesday’s biggest FTSE All Share loser early on.

Going the other way and giving some of the lift to share prices is British pork and poultry supplier Cranswick (CWK). It posted full year adjusted pre-tax profits up 22.4%, with growth coming from across all product categories, plus and higher exports.

Investors rallying to the stock, which heads the FTSE All-Share leader board in early deals, running nearly 9% higher to £34.40.

SOFTLY, SOFTLY RECOVERY

Pet supplies retailer Pets at Home (PETS) is a year into its turnaround programme but it is clearly too early for investors to get terribly excited. The £790m company posts a 12.3% decline in underlying pre-tax profit despite a 5% increase in sales as a squeeze on profit margins takes its toll.

The company, which has cut prices and pumped money into online, said it had made market share gains in both food and accessories. Shares in the company remain largely flat at 158p.

Harry Potter publisher Bloomsbury Publishing (BMY) posted a 10% rise in profits and a 13% jump in full year revenue on Tuesday, beating analyst expectations.

The company credits the performance to high demand for special editions of the boy wizard’s adventures. This conjures a near 6% share price jump to 219p, the highest the stock has been in more than a decade.

There is strong growth optimism from a couple of high class UK software businesses on Tuesday, with data analytics tools supplier First Derivatives (FDP:AIM) posting full year figures marginally ahead of forecasts with 23% and 19% hikes in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) respectively.

Theme parks and events software provider Accesso Technology (ACSO:AIM) is also upbeat, noting strong trading so far this year in a first quarter update.

London-listed specialist fund manager Intermediate Capital (ICP) on Tuesday posted 29% rise in full year pre-ax profit at its fund management business, buoyed by a strong rise in its assets under management.

The shares rallying 5% to £12.21.

GALLIFORD FACING WEATHER JAM

British construction company Galliford Try (GFRD) is likely to face additional costs due to weather-driven delays in the construction of Aberdeen’s new ring road this year, the company said on Tuesday.

That’s not great news for sector investors still reeling from the construction industry fall out following the collapse of Carillion, although the share prices remains largely flat at 969.5p, suggesting that investors see this as a temporary blip.

Oil prices rose on Tuesday on concerns that Venezuela’s crude output could drop further following a disputed presidential election and potential US sanctions on the OPEC-member.

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Issue Date: 22 May 2018