UK shares open stronger with the FTSE100 up by 0.6% or 42 points to 7,095 despite a weak US session which ended with S&P 500 down 2% and Nasdaq down 3% lead by Apple which dropped 5% on fears of ‘peak iPhone’.
Leading the UK market higher is mobile network giant Vodafone (VOD) with shares up 7% to 155p after its first-half result update.
Although overall revenues were down by 5%, organic service revenues, a metric closely watched by analysts, rose 0.8% in the first half. The company also raised its full-year free cash-flow guidance while maintaining organic EBITDA growth.
Chief executive Nick Read is reducing costs to make the company more profitable and issued a new goal to cut net operating expenses by at least €1.2bn by 2021.
Information services group Experian (EXPN) is the second-best FTSE performer with shares rising 5% to £18.83 after the company delivered strong first-half results and raised its full-year guidance.
Revenues were up 8% on a like-for-like basis in the first six months led by the US and Asia with business-to-business sales particularly strong.
The company now sees full year sales at the top end of its previous guidance and ‘strong progress’ in earnings per share so analysts will have to raise their forecasts.
The worst performer in the FTSE100 is house-builder Taylor Wimpey (TW.) with shares down 3% to 158p after a steady-as-you-go second-half trading update.
Sales rates have been ‘very good’ thanks to positive customer demand and a supportive mortgage market, putting the firm ‘on track’ to meet full-year expectations.
Looking ahead the company is rightly cautious and is expecting sales to remain flat next year with potential for ‘significant growth’ from 2020 onwards.
BIG WINNERS AND LOSERS IN THE FTSE 250
Also having a good day is healthcare company BTG (BTG) with shares up 12% to 666p following a positive first-half update and another increase in full-year sales guidance.
The company raised guidance for sales of its Varithena varicose vein treatment in early October, sending the shares up sharply. In today's update it has raised its forecast for pharmaceutical revenues due to better than expected sales of its Voraxaze drug for patients with impaired renal function.
Chasing hard is bus and rail operator FirstGroup (FGP) with shares up 9% to 87p after a solid first-half trading update.
Revenues are up 19% to £3.3bn and pre-tax profits are up 38% to £42m as the company continues to push improvements in its core bus and rail businesses.
It also confirmed full-year profit expectations and announced the appointment of current chief financial officer Matthew Gregory to the post of chief executive with immediate effect.
At the other end of the table shares in discount retailer B&M European Value (BME) reverse recent gains, falling 10% to 365p despite the company reporting strong first-half sales and profits.
In the six months to the end of September sales were up 16% to £1.56bn while pre-tax profits were up by 32% to £115m.
The chief executive remains bullish despite the tough retail market and it’s difficult to see anything in the trading update to merit the sell-off.
However, with the shares trading on more than 20-times this year's earnings before today's update, many investors presumably see the stock as expensive relative to the rest of the UK retail sector.
