Yahoo Finance FTSE 100 Live: FTSE closes almost exactly flat; $48bn taken off Tesla market cap; FCA WANDisco probe
WH Smith, Deliveroo and Dunelm are in the spotlight today during another busy session for results and trading updates.
Their latest guidance comes amid further signs of stock market resilience, with the FTSE 100 index remaining near the 7900 mark.
Last night Tesla shares fell 6% in after-hours trading on Wall Street after the electric car maker revealed that net income fell 24% in the most recent quarter.
FTSE 100 Live Thursday
Haleon leads FTSE 100 after upgrade
Dunelm gains share in tough market
Deliveroo orders down 9% at start of 2023
FTSE closes almost exactly flat
16:41 , Daniel O'Boyle
The FTSE 100 closed almost exactly where it opened today, up by less than four points at 7902.61.
While shares fell in the morning to hit a low of 7878, they recovered in the afternoon.
The top riser of the day was Segro after it posed strong results, while miner Antofagasta was the biggest faller.
Chelsea landlord files winding-up order against cult spin class business SoulCycle’s UK arm
16:00 , Daniel O'Boyle
The landlord for luxury fitness chain SoulCycle has filed a court order calling for the cycling gym’s London arm to be wound up.
Cadogan Estates - which owns large swathes of land in Chelsea - filed a winding up petition to the High Court under the Insolvency Act, related to a property on the King’s Road that was originally set to open in 2019, but has been subject to extended delays.
$40 billion swiped from Tesla market cap
15:03 , Daniel O'Boyle
Tesla shares are down more than 7% so far today, after disappointing results yesterday.
Tesla shares are down $12 to $168.09 since market opened. The electric car maker revealed after markets closed last night that its revenue for the first three months of the year missed expectations ,
The market cap of the business has fallen by more than $40 billion, meaning CEO Elon Musk has lost close to $5 billion.
US shares set to fall further after results disappointments
13:50 , Daniel O'Boyle
Wall Street is in for another tough day after disappointing earnings announcements after markets closed last night.
According to futures markets, the S&P 500 is set to fall 0.8% to 4145, while the Dow Jones is set to lose 0.6% to33834 and the Nasdaq 0.9% to 13059.
Among the fallers is Tesla, with shares set to drop by 6% after it missed on revenue.
US jobless claims slightly ahead of expectations
13:35 , Daniel O'Boyle
US jobless claims for the last week came to 245,000, up slightly from last week’s 240,000.
Analysts had predicted claims to remain level, meaning the figures came in ahead of expectations.
It may be a sign that Federal Reserve rate hikes are having an impact and the US economy is cooling down, after core inflation proved more stubborn than expected.
EY probed by watchdog over audit of collapsed Made.com
12:53 , Daniel O'Boyle
EY is under investigation by the UK accounting watchdog over how it evaluated the finances of collapsed furniture retailer Made.com.
The Financial Reporting Council (FRC) said it has launched a probe into the “big four” accounting giant – which also counts PwC, Deloitte and KPMG in the ranks – in relation to the auditing of financial statements of Made.com during 2021.
WHSmith to open pharmacy hybrid shops at eight of London’s busiest rail stations
12:42 , Daniel O'Boyle
WHSmith has set its sights on new bigger shops including pharmacies at eight of London’s busiest rail stations, as rail and airport shops continue to overshadow the high street as the main part of the retailer’s business.
For the six months to 28 February, profit doubled to £71 million, thanks mostly to profits from its UK travel shops rocketing from £3 million to £31 million.
CEO Carl Cowling attributed the travel success to expansion into new product lines, especially within health and beauty.
Justice for Woodford investors has been too long delayed — Now deliver it fast
12:20 , Jonathan Prynn
The wheels of financial redress turn painfully slowly.
While there will be huge relief that the Financial Conduct Authority is in a position to give some sort of detail on the compensation that will be on offer to investors stuck in Neil Woodford’s Equity Income Fund, they are a long way from seeing it nestling in their bank accounts — even after more than 1400 days of waiting.
Live entertainment hits all-time high as fans rush for tickets
11:43 , Michael Hunter
Sales of tickets for live entertainment hit an all-time high last year at big-name events after two years of lockdowns, new figures reveal today.
Fans snapped up more seats than in any other calendar year and 43% more than in 2019, according to numbers out from O2’s Priority Tickets platform.
Blockbuster demand for shows from Harry Styles (left), Sam Fender, The Weeknd and even veteran rocker Bruce Springsteen sent sales for music gig spiralling.
One of the most popular acts was Peter Kay, whose longawaited return to stand-up comedy pulled in the punters.
Virgin Media O2’s director of partnerships and sponsorship Gareth Griffiths said: “Last year truly was the return of live entertainment with millions of tickets sold at thousands of events right across the UK. This year is already shaping up to be even bigger.”
Woodford fund investors offered up to £235m in FCA’s redress scheme
11:02 , Daniel O'Boyle
Investors in fallen stock-picker Neil Woodford’s failed Equity Income Fund have been offered a compensation package worth up to £235 million almost four years after its collapse.
The proposed redress for more than 300,000 investors in the former City star’s LF Woodford Equity Income Fund was revealed late last night by City watchdog the Financial Conduct Authority (FCA). It will be paid by fund administrator Link Fund Solutions, with support from its Australian parent Link Group.
Rank upgrade boosts shares, FTSE 100 flat
10:23 , Graeme Evans
Shares in Grosvenor casinos business Rank today rose as much as 8% after a strong update from the gambling firm.
Rank revealed average weekly gaming revenues for Grosvenor of £6.1 million, a rise of 2% on the Christmas quarter amid improved visitor numbers in London and its sites elsewhere.
Customer visits and average spend at Rank’s Mecca bingo chain have also offered encouragment, meaning operating profits for the year to June will be at the upper end or slightly ahead of the company’s previous £10 million to £20 million guidance.
Shares touched 78p at one point today before settling 4.5p higher at 75.7p. Broker Peel Hunt has a 100p target price, forecasting further momentum as it believes Rank’s recent investment in customer experience will continue to pay off.
Elsewhere in a busy session for trading updates, Panadol-to-Sensodyne consumer healthcare business Haleon lifted guidance on 2023 revenues towards the upper end of its 4-6% forecast range. The move followed first quarter growth of 9.9%, with price accounting for 7.1 percentage points of the increase.
Shares rose 2% or 7.15p to 350.75p after the update, which came ahead of the company's first AGM since splitting from drugs giant GSK.
Haleon’s rise and demand for banking stocks including Barclays failed to prevent the FTSE 100 index from drifting 14.08 points lower at 7884.69.
The FTSE 250 index also eased 6.34 points to 19,194.51, with Babcock International among the fallers after the defence contractor revealed a provision of up to £100 million to cover a dispute with the MoD over additional costs on its Type 31 frigate contract.
Shares fell 7.6p to 284.4p as Babcock softened the blow by reporting a strong update on 2023 cash flows and forecasting a return to dividend payments from next year.
On AIM, shares in greetings card, stationery and crackers firm IG Design tumbled 23.5p to 160p after it said 2024 results would be impacted by tough trading conditions and “very limited pricing expectations” in the UK for next Christmas.
The company, whose Tom Smith brand is a supplier of Christmas crackers to the Royal Household, continues to target a return to pre-Covid margins by the following year.
Caledonia acquires car wash machine business for £142.5 million
10:07 , Daniel O'Boyle
Private equity business Caledonia Investments has acquired the European arm of car wash machine business AIR-serv.
Caledonia will pay £142.5 million for the business, which has 200 employees and is based in Wigan.
“We are proud to have become the new owners of AIR-serv Europe and to partner with Clive Steel and his team in the next stage of the company's development,” Caledonia's head of private capital Tom Leader said. “The strength and consistency of AIR-serv Europe's profitability, cash generation and market position are an ideal fit with our private capital investment strategy.
“We believe there are exciting opportunities to build further on the business’ excellent record and to expand its European presence."
Jet2 to post almost £400m profit as holiday firm revises target figures
09:37
jet2 has said it is set to post almost £400 million in profit for the past year as it upgraded its targets for the second time in three months.
The low-cost airline and holiday firm saw shares rise after it hailed “encouraging” summer bookings.
It told shareholders on Thursday that it expects to record a profit before tax and foreign exchange revaluation of between £387 million and £392 million for the past year to March.
JD Sports appoints former shop assistant to new MD role
09:31 , Simon Hunt
JD Sports has appointed Michael Armstrong to a newly-created role of global managing director.
Armstrong joined JD in 1995 as a store sales assistant in the Glasgow store, and has risen in the ranks over two decades, most recently acting as buying director from 2014 until March 2023, controlling all product strategy across JD.
It’s the latest in a series of top-management reshuffles at the sports retailer, after the shock departure of former executive chairman Peter Cowgill following a CMA investigation that found he had arranged clandestine meetings with the boss of Footasylum to discuss a proposed merger.
JD subsequently began a corporate governance review which it said would include the separation of the roles of chair and chief executive officer.
Régis Schultz, CEO of JD, said Armstrong is “respected by colleagues and brand partners as one of the leading market authorities on what works and why, making him the right person to take the JD brand through its next chapter of growth.”
GB Group shares soar after confirming profit guidance
09:28 , Daniel O'Boyle
Shares in GB Group - which provides ID verification for crypto firms - rocketed today, after it confirmed it was still on course to hit the earnings figures it announced in a February profit warning.
The business revealed two months ago that it was set to miss its targets for the year, amid the wider struggles of the crypto sector.
However, it today revealed that revenue will still be up slightly to £59.8 million, prompting shares to soar by 9% to 307p.
"As noted in our February update, the difficult global macroeconomic environment has impacted performance in certain parts of the group, particularly our GBG Americas Identity business,” CEO Chris Clark said. “Despite this, the wider group has displayed resilience, including double-digit growth in both Location and Fraud.
“GBG’s ability to continue to deliver growth, maintain strong operating margins and cash generation against the difficult backdrop, is in no small part due to our team and their dedication throughout the year to deliver for our valued customers.”
Dunelm revenue up against stagnant market
09:15 , Daniel O'Boyle
Home furnishings retailer Dunelm’s revenue grew in Q3 as it gained market share against higher-priced rivals.
Revenue in the first three months of the year - including the January sale period - was up 6% to £423 million.
Analysts at Peel Hunt noted that this came against a stagnant wider market.
John Coldham, retail partner at Gowling WLG, said the business will have to continue to adapt as customers cut back further amid the cost-of-living crisis.
“Managing costs will be crucial to Dunelm's future success and CEO Nick Wilkinson will want to focus on smaller ticket items rather than larger purchases amidst the economic downturn until consumer confidence returns,” he said.
For spring and summer, the retailer said garden decorations and window dressings would be some of the product lines where it hoped to see strong sales.
Dunelm still expects profit for the year to be £185 million. Shares are down by 0.1p to 1,136p.
Haleon leads FTSE 100, Babcock down 2%
08:55 , Graeme Evans
Consumer healthcare business Haleon is the top riser in the FTSE 100 index after it lifted guidance on 2023 revenues towards the upper end of its 4-6% forecast range.
Shares rose 2% or 7.15p to 350.75p following the update, which was released ahead of the company’s first AGM since splitting from drugs giant GSK.
Other strong performances came from the banking sector after gains of 1% for Barclays, Lloyds and NatWest but the wider FTSE 100 index drifted in line with other European markets to stand 18.47 points lower at 7880.30.
A large number of ex-dividend stocks including Antofagasta and London Stock Exchange added to the downward pressure.
The FTSE 250 index fell 29.30 points to 19,171.55, with Babcock International among the fallers after the defence contractor revealed a one-off provision of up to £100 million in relation to a dispute with the MoD over additional costs on its Type 31 frigate contract.
Shares fell 2% or 7.6p to 284.4p as Babcock softened the blow by reporting a strong update on 2023 trading and forecasting a return to dividend payments from next year.
Travel helps profits triple at WHSmith
08:11 , Daniel O'Boyle
A strong rebound in travel helped WHSmith’s profits triple for the six months to 28 February.
The retailer’s UK travel division reported a 66% increase in revenue, as its shops at airports and railway stations continued to eclipse the high street as its main focus. Its North AAmerican travel division also did well after winning tenders for a number of sites at Canadian airports, and is set to overtake the UK high street division in profit this year.
“We have seen a strong performance in the first half of the year further strengthening our confidence in the prospects of our global travel business,” CEO Carl Cowling said. “We expect Travel to represent over 70% of group revenue and around 85% of group profit from trading operations by the end of this financial year.”
Overall profit was £45 million, up from £14 million a year earlier.
Deliveroo orders drop 9% in first three months of 2023
07:46 , Simon Hunt
Orders at Deliveroo fell 9% in the first three months of 2023 as cost-of-living pressures continue to hurt demand for takeaways.
The fall in order volumes was steeper outside the UK, down 15% to 32.5 million, while the decline was more modest in the UK and Ireland, down 3%.
Group revenues increased 4% to top £500 million, while gross transaction value, a measure of the size of orders, declined 1% to £1.7 billion.
CEO Will Shu said the results “represent a resilient performance, particularly in the context of inflationary pressures and the ongoing cost of living crisis and against a challenging comparison base.”
FTSE 100 seen flat, Brent crude down 1%
07:45 , Graeme Evans
More signs that policymakers will need further interest rate rises to control inflation kept a lid on the recent progress of global stock markets yesterday.
The Dow Jones Industrial Average and S&P 500 index finished down 0.2% and the FTSE 100 index snapped an eight-day winning streak by dropping just over 10 points.
IG Index futures are pointing to a broadly flat opening for London’s top flight at just below 7900. Several stocks including BAE Systems and London Stock Exchange are due to start trading without the right to their latest dividend award, exerting some downward pressure on the overall performance.
The pound remains close to a 10-month high at $1.244, while Brent crude is trading at $82.12 a barrel after a 1% fall this morning. Gold is just below $2000 an ounce.
Sagi ups bid to take ExpressVPN owner private
07:43 , Daniel O'Boyle
Playtech billionaire Teddy Sagi has upped his offer for ExpressVPN owner Kape to £1.55bn.
Sagi’s Unikmind holdings bid £1.25 billion for Kape in February, with the plan to take the company private.
However, Kape’s board said that offer undervalued the business, though they warned that Sagi - who already owns half the business - could take the company private and leave shareholders with little option to accept.
Now, Unikmind has increased its offer to 360p per share, or £1.55 billion.
Transatlantic dealmaking helps Rentokil report revenue of over £1 billion for the first quarter
07:40 , Michael Hunter
Rentokil Initial revenue crossed above £1 billion in the first quarter, after its purchase of US firm Terminix helped bring in more business.
The FTSE 100 pest control company pointed to the “benefit of M&A” as it reported a rise of almost three quarters in revenue of £1.3 billion for the first quarter. The performance was also helped by a stronger dollar.
Rentokil bought Terminix for $6.7 billion in 2022, helping it bring its core pest control business to a global scale. It said today that demand for help with termite infestations contributed to “ a strong start to the year” and its integration plan for the US company “progressed well”, with its cost saving programme “on track to meet full year guidance.”
It stood by its expectations for the group for the rest of the year.
Tesla shares drop after Q1 update
07:31 , Graeme Evans
Tesla shares were 6% lower in after-hours trading last night after the electric car maker revealed the profits impact of lower selling prices and higher raw material and logistics costs.
Revenues rose 24% to $23.3 billion (£18.7 billion) after Tesla delivered 422,875 vehicles, an increase of 36% on the figure for the same quarter a year earlier.
However, net income dropped 24% to $2.5 billion (£2 billion) after a near eight percentage point drop in operating margin to 11.4%.
Tesla, which is led by Elon Musk, said: “Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate.
“We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale.”
For 2023, the company said it expects to remain ahead of its long-term 50% compound annual growth rate target with around 1.8 million cars for the year. It added: “We continue to believe that our operating margin will remain among the highest in the industry.”
FCA launches probe into WANdisco amid concerns over fraud
07:11 , Simon Hunt
The UK’s finance watchdog has begun an investigation into beleaguered tech firm WANdisco amid concerns over fraud.
The investigation follows a series of trading updates by WANdisco, which may have materially mis-stated the company’s financial position. An internal investigation into suspected fraud found over $115 million in missing bookings.
WANdisco said it “ has been notified by the Financial Conduct Authority of its commencement of an investigation into the Company.”
“The Board is co-operating with the FCA in this endeavour, in addition to continuing to support the completion of the independent investigation already being undertaken by FRP Advisory.”
Recap: Yesterday’s top stories
06:50 , Simon Hunt
Good morning. Here’s a summary of our top stories from yesterday:
City traders are now expecting the Bank of England to raise interest rates to 5% after ONS data showed CPI inflation stayed stubbornly high at over 10%.
Average house prices dipped 1.1% in February but London rents increased at their highest rates in a decade in March amid a shortage in housing supply, with an average of ten prospective tenants registering per available property.
Tony Danker, the former boss of the CBI, has claimed his reputation has been ‘totally destroyed’ after he was abruptly sacked by the organisation last week.
Just Eat said it was hiring for scores of new tech roles in London despite a wave of delivery driver layoffs earlier in the year amid a slump in food orders.
Today we’re expecting:
WH Smith results
Rio Tinto trading update
Rentokil trading update
Segro trading update
Dunelm trading update
