UK shares moved into positive territory at midday on Tuesday ahead of the deadline for the US congress to reach agreement on a stimulus package.

First-quarter earnings released by consumer goods company Proctor & Gamble showed sales up 9% and net earnings up 20%, helping the shares to a 2% gain ahead of the US market open.

At 12:00 the FTSE 100 index of leading shares was up 0.4% to 5,906 points.

CORPORATE NEWS

Shares in LED lighting and wiring supplier Luceco (LUCE) soared 12% to 245p after it raised its full year operating profit target as third quarter trading beat expectations.

Third quarter sales growth of 7.5% was comfortably ahead of forecasts thanks to both retail and professional demand, meaning operating earnings are now likely to reach between £28 million and £30 million against previous guidance of ‘at least £23 million’.

Health and hygiene products powerhouse Reckitt Benckiser (RB.) added 1.75% to £73.3 after it reported continued strong demand for its products in the third quarter.

Like-for-like sales for the three months to September rose 13.3% to £3.5 billion while nine-month like-for-like sales rose 12.4% to £10.4 billion.

The firm saw high demand for its Lysol, Dettol and Finish brands, and has improved its supply chain to make sure products are on the shelves when and where customers want them. It also nudged up its full year revenue growth target to low double digits against high single digits previously.

Shares in housebuilder Bellway (BWY) fell 3.7% to £25.3 after it posted gloomy results for the year to end-July with revenues down 30.7% to £2.25 billion.

Operating profits plunged by 52.3% to £321.7 million as housing completions dropped over 30% and it took a non-exceptional charge of £18.9 million to extend site durations and beef up health and safety requirements.

On a positive note, given its net cash position of £1.4 billion the firm decided to reinstate dividends with a final payment of 50p per share, a 50% reduction on last year, while holding out the promise of further payments ‘commensurate with the group’s recovery in earnings’.

Technology infrastructure supplier Softcat (SCT) reported solid growth in the year to the end of July with revenues up 8.6% to £1.08 billion and operating profit up 10.9% to £93.7 million.

The firm increased its market share and its average gross profit per customer, allowing it to reinstate its 5.4p interim dividend which will be paid together with the full year dividend of 11.2p per share, making for an 11% increase over the previous year.

Softcat is also paying a 7.6p per share special dividend, down from last year’s 16p but still a good return for shareholders. Despite the positive update, Softcat shares slid 6.9% to £11.6.

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Issue Date: 20 Oct 2020