24th Jul 2019 08:42
(Alliance News) - The FTSE 100 started Wednesday's session on a downbeat note, with Croda International offsetting gains for ITV and Informa. The FTSE 250, conversely, shot into the green despite constituent Aston Martin Lagonda Global Holdings slumping more than 20% in the wake of a profit warning.The large-cap FTSE 100 index was 16.38 points lower, or down 0.2%, at 7,540.48 early Wednesday. The mid-cap FTSE 250 index was up 49.64 points, or 0.3%, at 19,801.98, while the AIM All-Share was 0.2% higher at 922.20.The Cboe UK 100 index was down 0.4% at 12,781.05. The Cboe UK 250 was up 0.2% at 17,671.27, while the Cboe UK Small Companies was up 0.1% at 11,076.39."The attention is almost all on Boris Johnson who won his party's leadership contest yesterday with about two-thirds of members' vote," said Lloyds Banking, adding the shape of Johnson's Cabinet will be "closely watched".The new Tory leader - who beat out rival Jeremy Hunt on Tuesday - will take over the reins of power after Theresa May leaves No 10 for the final time on Wednesday to formally tender her resignation to the Queen.A number of vacancies have opened up with the announcements by Chancellor Philip Hammond, Justice Secretary David Gauke and International Development Secretary Rory Stewart that they intend to resign before Johnson take office. However, Johnson is likely to be faced by a gaggle of Brexiteer ministers who resigned from May's government now jostling to get back in - including Dominic Raab, Esther McVey and Andrea Leadsom.Outside of the UK, the economic events calendar on Wednesday has PMI readings from Germany, the eurozone and US at 0830 BST, 0900 BST and 1445 BST, respectively.Already released, France's composite PMI slipped to 51.7 in July from 52.7 in June, below expectations to come in at 52.5. The easing growth was driven by the manufacturing sector, which returned a score of 50.0, indicating stagnation in the space, from 51.9 in June.In Paris early Wednesday, the CAC 40 was up 0.1% while the DAX 30 in Frankfurt was also 0.1% higher.In Asia on Wednesday, the Japanese Nikkei 225 index closed up 0.4%. In China, the Shanghai Composite closed up 0.8%, while the Hang Seng index in Hong Kong is up 0.4% in late trade.In London, ITV was the top performer in the FTSE 100, rising 6.5% after posting a better than feared advertising performance. Total external revenue in the first half of 2019 was down 7% to GBP1.48 billion, while ITV total advertising revenue fell 5%, though this was, the company noted, better than previously guided.As revenue fell, pretax profit slipped to GBP222 million from GBP265 million."ITV delivered another good viewing performance in the first half of the year. Online revenues grew strongly up 18% despite tough comparatives, with Love Island providing a strong finish to the half. This was reflected in better than expected total advertising revenue," commented Chief Executive Carolyn McCall.Over 2019, as a whole, ITV said it is confident in delivering GBP20 million of cost savings, double-digit online revenue growth and dividend of at least 8.0 pence per share. For the first half, ITV paid a dividend of 2.6p, flat on a year before. Informa gained 3.3% as the events and publishing company said it is "performing to plan" after seeing strong interim revenue and profit growth.Revenue was up 47% on a reported basis at GBP1.41 billion, 3.4% higher on a underlying basis. Pretax profit, meanwhile, rose to GBP232.8 million from GBP118.7 million. On an adjusted basis, profit was up to GBP377.8 million from GBP264.7 million.Informa benefited from a full period of contribution from the acquisition of UBM, whereas in the first half of 2018 the purchase was only included for 15 days."A year on from the acquisition of UBM, the enlarged Informa Group is performing to plan, delivering a further period of growth in revenue, adjusted operating profit, free cash flow and dividends," said Chief Executive Stephen Carter.However, weighing at the bottom was Croda, down 5.0%. The speciality chemicals company posted a 2.5% fall in adjusted interim pretax profit, down to GBP170.6 million from GBP175.0 million. Revenue inched up to GBP714.7 million from GBP702.8 million."We have a strong pipeline, a robust business model and a strategy to leverage innovation, customer intimacy and sustainability," said Chief Executive Steve Foots."Life Sciences is expected to show continued progress and in Personal Care we anticipate the US remaining subdued while Asia recovers progressively. Performance Technologies is likely to remain softer until end markets improve," he added.Firmly at the bottom of the FTSE 250 was car maker Aston Martin Lagonda Global Holdings, down 22% after downgrading annual guidance. Aston Martin now sees 2019 wholesale sales at 6,300 to 6,500 vehicles, with the company describing this downgrade as "disappointing". Wholesale volumes in 2018 were 6,441, and it had previously guided for 2019 sales of 7,100 vehicles to 7,300 vehicles. Further, the company has guided for an adjusted earnings before interest, tax, depreciation, and amortisation margin of around 20%, and an adjusted operating margin of approximately 8%. Capital expenditure guidance for 2019 has also been revised to GBP300 million.Before, the adjusted Ebitda margin was seen at 24%, the adjusted operating profit margin at 13%, and capex and research & development spend at between GBP320 million and GBP340 million. To come, drugmaker GlaxoSmithKline releases interim results at midday.
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