London’s FTSE 100 opens on the front foot on Thursday, edging 3.27 points higher to 7,192 following a mostly positive turn by Wall Street overnight and a mixed session in Asia this morning.
In corporate news, travel agent Thomas Cook (TCG) tumbles 7% to 85.6p as investors are left unimpressed by first quarter results, revenues up a meagre 1% to £1.6bn and losses modestly reduced. Tourists are ditching terror-stricken Turkey for destinations such as Greece and Spain and there’s a cautious tone to the outlook statement from CEO Peter Fankhauser too.
Specialist emerging markets asset manager Ashmore (ASHM) is marked up 12.3p to 331.3p on strong half year results, taxable profits powering ahead 94% to £121.5m in the six months to December. CEO Mark Coombs also issues a positive outlook, stating ‘the prospects for Emerging Markets in 2017, and over the longer term, are very attractive’.
Sofa seller DFS Furniture (DFS) sits pretty with a 2p gain at 231p after reassuring full year profit expectations remain unchanged, despite some impact on margins due to weaker sterling. A positive half year trading update highlights continued good sales growth and cash generation in the 26 weeks to 28 January, while DFS also delights with news of an impending special dividend, set to be paid out before the end of July.
Food ingredients giant Tate & Lyle (TATE) sweetens up 4.5p to 725p as CEO Javed Ahmed says full year profits in constant currency will be modestly ahead of previous expectations following a strong third quarter performance.
Fellow food producer Dairy Crest (DCG), behind the Cathedral City, Clover and Country Life grocery brands, sours 18.5p or 3% to 598p after warning milk cost inflation and high market prices for cream have caused a short-term working capital outflow and year-end net debt will be higher than expected.
Medical technology business Smith & Nephew (SN.) slumps 4.4% to £11.48 as full year growth fails to meet expectations. Pre-tax profits almost doubled to $1.06bn as the group kept a tight rein on expenses and benefited from the sale of its gynaecology business. However 'market conditions in China and the Gulf States together shaved more than a percentage point of growth off the group in 2016’.
Online fashion purveyor Boohoo.com (BOO:AIM) improves another 3.7% to 140p as its bid to acquire US retailer Nasty Gal finally succeeds; the $20m acquisition will help turbo-charge Boohoo.com’s growth across the pond.
Wishbone Gold (WSBN:AIM) cheapens 9.1% to 0.75p after warning margins came under pressure in 2016, despite good volumes, due to changes in import rules in India, the largest ultimate purchaser of gold in the world followed by China.
Northbridge Industrial Services (NBI:AIM), which hires out loadbanks, oil tools and transformers, crashes 9% to 122.5p on the news sterling weakness since the EU referendum has driven an increase in its debts and losses from overseas businesses exposed to the oil and gas market.
