FTSE 100 Live 02 October: JD Sports “on front foot” as results impress, AO swoops for musicMagpie
FTSE 100 Live Wednesday
JD Sports results beat forecasts
Saga in talks on Ageas insurance deal
AO World set to buy musicMagpie
Market update: Oil stocks help FTSE 100, JD Sports Fashion struggles despite results cheer
10:11 , Graeme Evans
BP, Shell and BAE Systems underpinned the FTSE 100 index today in a session when forecast-beating results by JD Sports Fashion got a cool reception.
With Brent Crude back above $75 a barrel amid the escalation of the Middle East conflict, BP reversed recent losses with a rise of 3% or 11.9p to 412.9p and Shell added 72.56p to 2550.5p.
Defence firm BAE Systems also put on 24p to 1297.5p as the FTSE 100 showed its resilience for a second session in a row, up 35.12 points to 8311.77.
Airline stocks easyJet and IAG struggled, while JD Sports Fashion topped the fallers board due to a results-day reverse of 4% or 5.35p to 144.1p.
The selling came even though half-year revenues rose 5.2% to a record £5 billion and adjusted profits lifted 2% to above City forecasts at £405.6 million.
Broker Peel Hunt called the results impressive, particularly in the US market.
However, shares fell after JD flagged a potential £20 million second-half currency hit and investors reacted to last night’s results by Nike, which withdrew full-year guidance alongside a fall in first quarter net income.
The UK-focused FTSE 250 index dropped 41.10 points to 20,873.60, with Wizz Air down 4% and Aston Martin Lagonda off 5% at the top of the fallers board.
Electricals retailer AO World rose 2% or 1.8p to 111.4p after it unveiled a £10 million takeover of musicMagpie, which buys and sells used electronics, music and games. The proposal price of 9.07p sent AIM-listed musicMagpie up 2.7p to 8.5p.
Among companies reporting today, Topps Tiles shares were broadly unchanged at 43.8p after it reported annual sales of £248 million. In the face of “very challenging” conditions, it said the figure was down 5.7% on last year’s record but in line with the 2022 financial year.
Meanwhile, Saga shares jumped 12% or 13.8p to 126.4p after it confirmed it was in discussions with Belgium's Ageas over a potential insurance partnership.
Saga shares jump on potential Ageas tie-up
09:40 , Graeme Evans
Saga shares are up by more than 10% after the over-50s financial services and travel provider confirmed it is discussing a possible insurance tie-up with Belgium’s Ageas.
Sky News, which first reported the talks last night, said the planned deal would see Ageas make an upfront payment and subsequent commission payments in return for taking over the running of parts of Saga’s insurance operations.
The move would enable Saga to pay down debt and shift to a new operating model, it added. Ageas is one of Europe’s biggest insurers and abandoned a takeover of Direct Line in March.
Saga, which has delayed the publication of interim results scheduled for today, had a market value of £160 million at last night’s close. Shares rose 14% or 16.2p to 128p this morning.
JD impresses but Nike shares slide on weak Q1 performance
09:28 , Graeme Evans
JD Sports Fashion’s profit haul of £406 million in the six months to 3 August came in ahead of City expectations for a figure of about £386 million.
Peel Hunt called the outturn as impressive given the conditions, particularly in the US where margins improved alongside a pick-up in like-for-like sales.
The UK and Europe were resilient in tough promotional markets, while the broker said the retailer had controlled costs well.
The shares were 5.1p lower at 144.4p, not helped by last night’s 6% fall for Nike after it withdrew full-year guidance alongside a fall in first quarter net income.
AJ Bell investment analyst Dan Coatsworth said: “Cracks in the athleisure market increasingly look like they are more to do with company-specific problems than an industry losing momentum.
Peel Hunt reiterated its Buy recommendation and 250p target price following JD’s results.
BP and Shell keep FTSE 100 in positive territory, easyJet lower
08:36
BP and Shell shares are 2% higher in the FTSE 100 index after the escalation of the Middle East conflict sent Brent Crude back over $75 a barrel.
Defence firm BAE Systems also lifted 2% or 24.5p to 1298p in a session when London’s top flight rose by 31.54 points to 8308.19.
Airline stocks endured another difficult session as easyJet and BA owner IAG reversed by 7.4p to 494.2p and 2p to 193.2p respectively.
The FTSE 250 index is 23.03 points lower at 20,891.67, with AO World half a penny higher at 110p following its recommended deal to buy musicMagpie.
JD Sports “on front foot” amid retail optimism
08:26
JD Sports Fashion shares are 4% lower after today’s half-year results, a decline of 6.25p to 143.25p that has unwound some of the recovery from 113p in early July.
Despite today’s weakness, Hargreaves Lansdown analyst Aarin Chiekrie said JD looked to be back on the front foot after a period of volatile conditions and missing market expectations.
He added: “The recent US-based Hibbett acquisition is massive, increasing the group’s store count by around a third. That means there are serious growth opportunities ahead if JD can nail its execution.
“The valuation’s still a long way below its long-term average, which looks like an attractive entry point for investors willing to bet on an upturn in the retail sector.”
Topps Tiles sales fall in “very challenging” market
07:52 , Graeme Evans
Topps Tiles has reported annual sales of £248 million, a decline of 5.7% on last year’s record but broadly in line with the 2022 financial year.
Sales in the fourth quarter were 4.4% lower, or 8.2% on a like-for-like basis as trends improved towards the end of the year due to weaker comparatives.
The FTSE All-Share company described conditions across the year as “very challenging”, particularly for bigger ticket projects. It believes the wider market declined by 10-15% year-on-year.
While economic indicators point to a stronger market in 2025, chief executive Rob Parker said the timing and trajectory of the recovery is hard to predict.
AO World in swoop for musicMagpie
07:38 , Graeme Evans
Household electricals firm AO World is to buy musicMagpie after the two companies agreed a takeover deal worth almost £10 million today.
AIM-listed musicMagpie, which sells pre-owned mobile phones, tech, CDs, DVDs, games, books and clothes, will boost AO’s consumer tech offering.
Founder and chief executive John Roberts said: “A top-tier trade-in service will be essential, and musicMagpie represents a significant enabler in unlocking value through our reverse supply chain.”
Founded in 2007, musicMagpie has operations in Macclesfield and Greater Manchester and in the US in Atlanta, Georgia. AO’s offer price of 9.07p a compares with last night’s level of 5.75p and 25p at the end of last year.
JD Sports Fashion profits rise amid currency headwinds
07:21 , Graeme Evans
Transatlantic retailer JD Sports Fashion today reported record half-year results after revenues hit £5 billion and adjusted profits rose 2% to £405.6 million.
The group trades from 4506 stores after 1179 Hibbett sports fashion stores were acquired in a deal that was completed towards the end of the half year.
JD continues to expect a profit for the year in the region of £955 million to £1.03 billion, although this is based on certain exchange rates.
The stronger pound impacted today’s headline profit figure by £6 million and at current rates the company estimates a £20 million hit in the second half.
Index seen slightly higher, Brent Crude nears $75 a barrel
07:00 , Graeme Evans
Brent Crude oil futures today rose 1.7% to $74.77 a barrel, continuing their rise since yesterday’s Iran missile attack.
On Wall Street, the S&P 500 index closed 0.9% lower as traders reacted to events in the Middle East as well as a poor report on the manufacturing sector.
The FTSE 100 index is seen 11 points higher at 8287 this morning, having closed 0.5% higher yesterday. Defence firm BAE Systems rose 2.5% and oil company BP by 2%.