The FTSE 100 starts flat at 7,253.47 as traders look ahead to first quarter earnings releases in the US and absorb the latest Chinese trade figures.
IT firm Sage’s (SGE) troubled start to 2018 continues. Following a slow start to the September 2018 financial year reported in January, the shares fall 16.6% to 560.2p as it cuts annual revenue guidance from 8% to 7%, citing ‘inconsistent operational execution’.
Aircraft engine maker Rolls-Royce (RR.) dips 2.2% to 862p as it warns of more disruptions to its engine customers in the airline sector after it decided to conduct more inspections of its Trent 100 Package C series than previously planned.
More regulator inspections would increase cash costs for the company, though it says it plans to absorb them by 'reprioritising various items of discretionary spend', without being more specific. Consequently, the company says guidance for 2018 free cash flow remains unchanged at £450m plus or minus £100m. Rolls had previously indicated there were reliability issues with the engines' compressor systems.
The London Stock Exchange Group (LSE) ticks up 0.4% to £42.55 as it unveils the appointment of David Schwimmer as chief executive officer. Schwimmer, 49, is a 20-year veteran of US investment bank Goldman Sachs.
Shopping centre landlord Hammerson (HMSO) falls 12.6% to 454.6p as French real estate investor Klepierre walks away after seeing its latest bid of 635p rebuffed.
Paper firm Mondi (MNDI) gains 1.9% to £19.43 after Thursday afternoon’s upgrade of its credit rating to BBB+ by ratings agency S&P.
British Airways-owner International Consolidated Airlines (IAG) gains 2.1% to 621.2p. Yesterday it revealed it was building a stake in rival Norwegian Air ahead of a potential takeover bid.
Sofa seller DFS Furniture (DFS) gains 8.1% to 213p. On Thursday broker Peel Hunt upgraded its recommendation on the stock from ‘hold’ to ‘buy’ with an upgraded price target of 250p.
On AIM Latin American oil and gas play Echo Energy (ECHO) gains 13.2% to 15.45p as it reveals it has brought gas to surface on the first reworked well on its Fraccion D asset in Argentina.
