Supermarket chain Sainsbury's (SBRY) half year profits have fallen 9% to £251m for the 28 weeks to 23 September. That’s despite a 1.6% rise in like-for-like sales, excluding fuel.
That’s a fourth straight decline in quarterly sales growth as intense competition in the UK grocery market shows no sign of letting up. But this is not new news for investors, which explains why the share price remains largely flat at 233.1p on Thursday.
Supergroup (SPG), which is soon to change its name to Superdry to reflect its key branding, says in a trading statement that ‘global brand revenue’ has jumped 25% to £756.3m for the six months to 31 October.
But the stock slips 17p to £18.31 in early trade on Thursday as profit takers hold the edge. The stock has rallied 230% since listing back in 2010, making the company worth £1.5bn.
ULTRAFAST BROADBAND DEAL
Superfast broadband network builder CityFibre (CITY:AIM) secures a massive vote of confidence as it seals a £500m infrastructure build with Vodafone (VOD).
The British telecoms pair will partner up to bring ultrafast broadband to up to 5m UK homes and businesses by 2025. CityFibre shares jump nearly 22% on the announcement to 52.5p, valuing the business at close on £334m.
EX-DIVIDEND STOCKS DRAG
Markets overall weaken modestly on Thursday as a collection of blue-chip stocks go ex-dividend, when new potential investors lose the right to the next payout. The FTSE 100 sags around 13 points from near record highs, to 7,515.
Today’s list includes oil giant BP (BP.), drug group GlaxoSmithKline (GSK) and coffee-to-hotels chain Whitbread (WTB), trimming 9.48 points off the FTSE 100, according to Reuters calculations.
FLYBE PROFITS SLUMP
Elsewhere on the markets on Thursday, regional airline Flybe (FLYB) has reported a 47% drop in adjusted pre-tax profit to £8.4m.
The stock actually rises 2% to 37p with investors cheered by company promises to continue to work to keep costs down in the fall-out from last month’s profit warning, as the increased cost of aircraft maintenance weighs on profits.
Financial services company Arrow Global (ARW) reports higher revenue for the first nine months of 2017, as it bought more non-performing loans and non-core assets from banks in Europe.
This is being driven by the continued reform across Europe’s banking sector. Shares in Arrow trade modestly higher on Thursday at 440.75p.
Lloyd’s of London insurer Beazley (BEZ) increases its expected second half pre-tax profit hit from natural catastrophes by $25 million to $175 million as a result of wildfires in California. Investors take the news in their stride, the shares edging 3p higher to 507p.
NEW HOPE FOR UK CAR SALES
UK motor dealer chain Lookers (LOOK) says major carmakers are reducing targets and boosting incentives in Britain as new car sales look set for their first annual decline since 2011.
Investors clearly see this as a sensible way to boost UK new car sales and are buoyed by otherwise robust trading for the group and its positive outlook. Shares in the firm rise 4.6% to 102.5p.
Drugs group Hikma Pharmaceuticals (HIK) has cut its 2017 revenue guidance for its generics business for a third time. Challenging markets continue to impact performance.
The news sparks a big sell-off in the company’s shares, down 5.7% at 981.5p, while the stock of smaller developer Vectura (VEC) are also hit, falling 8% to 89p. The pair are working together in developing inhaled delivery products.
POUND PINCHES HALFORD’S PROFITS
British bicycles to car parts retailer Halfords (HFD) reports a smaller-than-expected half year profit, hurt by higher costs resulting from a weaker pound. The shares fall nearly 3% to 323.1p.
British power grid operator National Grid (NG.) reports a slightly worse-than-expected fall in half year profit on Thursday hurt by weakness in its UK electricity transmission business. That sees shares of the big income stock come off by around 1.3% to 916.4p.
British luxury brand Burberry (BRBY) gets hammered as it unveils a product strategy rethink that may mean lower profits in the short-term.
The stock slumps nearly 10% to £17.97 as Burberry plans to shift further up-market by focusing on leather goods and fashion and cutting sales to non-luxury stores, initially in the United States, under a plan by new CEO Marco Gobbetti revealed alongside interim results.
RAPID FALL IN LONDON HOUSE PRICES
In other economic news, house prices in Britain are no longer rising and are falling in London at their fastest pace since 2009, the Royal Institution of Chartered Surveyors says. The organisation cites political worries and last week's Bank of England interest rate hike.
Gold prices hold largely steady on Thursday after marking a near three-week highs in the previous session, while palladium remains close to a more than 16-year peak touched on Wednesday.
Oil prices also hold steady after falling late in the previous session, supported by ongoing supply cuts led by OPEC and Russia.
