14th May 2018 07:44
LONDON (Alliance News) - Stock prices in London are seen opening marginally lower on Monday as a stronger pound drags the FTSE 100 index, as Centrica reported improved performance in the first four months of 2018.In other UK company news, Victrex and Diploma reported solid first half results, while Indivior has reached an agreement in the US in a SUBOXONE patent dispute. IG futures indicate the FTSE 100 index is to open down slightly, by 4.50 points, at 7,719.40. On Friday, the large-cap measure closed up 0.3%, or 23.59 points, at 7,724.55 to end the week up 2.1%. The index hit an intraday high of 7,722.33 in late afternoon trade on Friday - its highest level in 14 weeks. Sterling was quoted at USD1.3553 early Monday, slightly higher than USD1.3536 at the London equities close on Friday.In early UK company news, British Gas-owner Centrica said financial performance so far this year has been good with colder-than-normal weather pushing up energy demand. In Centrica's Consumer business, account holdings fell 62,000 in the first four months of 2018, declining in both the US and the UK, generally reflecting market switching trends. The UK business has improved, Centrica said, and it is also doing well in North America despite "intense" competition. Overall, both businesses are expected to deliver an improved 2018 adjusted operating profit than 2017. Energy Marketing & Trading did well the first quarter, as did Distributed Energy & Power, though volumes in the Central Power Generation arm were 4% lower year-on-year for the first four months due to outages. Spirit Energy's production so far this year has been below expectations, Centrica said, and for 2018 it expects production in the lower half of its 50 to 55 million barrels of oil equivalent guidance. Regarding its cost efficiency programme, Centrica said it is on track to meet 2018 targets outlined in its 2017 results release. In the FTSE 250, pharmaceutical firm Indivior said it has agreed a settlement deal with Par Pharmaceutical, Endo International, and IntelGenx Technologies in a patent dispute related to SUBOXONE. The disagreement came after Par submitted a new drug application to the US Food & Drug Administration to get approval to market generic versions of Indivior's opiate addiction treatment SUBOXONE.The settlement, Indivior said, allows Par to start selling generic versions from 2023, while all other terms are "confidential". Technical products and services firm Diploma posted a rise in first half profit on the back of good revenue growth despite a foreign currency headwind. Pretax profit rose 8% to GBP35.4 million for the six months to March, and increased 9% to GBP40.4 million on an adjusted basis. This came after year-on-year revenue growth of 8% to GBP234.9 million. Diploma raised its interim dividend by 10% to 7.7 pence per share, and the company said this reflects its positive outlook for the rest of its financial year. Chief Executive Richard Ingram said: "Diploma has continued to deliver robust growth in revenues and earnings. "During the first half of the year the group's businesses have taken advantage of the continuing strong global trading environment and delivered a good performance despite currency headwinds."Polymers firm Victrex reported a strong increase in profit in what it described as a "record" first half of its financial year on the back of 21% revenue growth to GBP166.6 million. Sales were up 21% year-on-year to 2,256 tonnes, and Victrex said it has experienced continued broad based growth.Pretax profit increased by 26% to GBP63.3 million, and it is paying an interim dividend of 13.42p compared to 12.20p for the corresponding period a year prior. Currency remains a tailwind, Victrex said, but this will "significantly" reduce in its second half, and it now expects a more than GBP10.0 million hit to profit in its next financial year. Elsewhere, funeral services firm Dignity reported broadly flat underlying operating profit in the first 13 weeks of 2018, though it said the step change in simple funerals performed has not been as high as expected.The company said it has had a positive start to the year, but still believes it is too early to conclude first quarter trading will reflect its likely funeral price and volume mix going forward. Chief Executive Mike McCollum said: "While the first quarter produced a much stronger result than we had anticipated when implementing the price changes in January, the current year is all about completing our review of our funeral business and ensuring we provide the excellent service our clients expect from us. "We will also continue to demonstrate industry leadership by calling for stronger regulation in the funeral plan sector to protect customers."Underlying operating profit for the period was GBP37.5 million, compared to GBP37.4 million a year before, while revenue was up 2% to GBP95.1 million. Deaths during the period were 8% higher year-on-year at 181,000. Miner Lonmin's pretax loss narrowed significantly in its first half as revenue rose, despite weak platinum prices and adverse currency movements. Its pretax loss for the six months to March came in at USD51.0 million compared to USD199.0 million, with the comparative hit by impairments, while revenue rose to USD561.0 million from USD486.0 million.For the three months to March, platinum group metals production was up 3.5% to 274,941 ounces and platinum production itself increased 3.9% to 143,374 ounces. Lonmin has maintained its sales guidance of between 650,000 ounces and 680,000 platinum ounces for its full financial year, and has revised down capital expenditure guidance to between ZAR1.2 billion and ZAR1.3 billion from ZAR1.4 billion and ZAR1.5 billion. In UK economic news, March and April's combined footfall decline was the worst since "the depths of the recession" in 2009, the British Retail Consortium/Springboard Retail Footfall Monitor revealed Monday.A 3.3% drop in April, following on from 6% in March, resulted in an "unprecedented" drop of 4.8% over the two months, the study showed."Not since the depths of recession in 2009, has footfall over March and April declined to such a degree, and even then the drop was less severe at minus 3.8%," said Diane Wehrle, marketing & insights director at Springboard.Theresa May faces another week of Tory infighting over Brexit as Cabinet splits over customs arrangements show no sign of healing.With key Brexiteer ministers openly challenging the UK prime minister's preferred option for post EU withdrawal trade arrangements, Tory voices have suggested extending the present relationship with Brussels in order to allow time for a compromise solution to be hammered-out.Ireland's construction activity expanded at a marked rate in April, driven by growth in new projects, survey data from IHS Markit showed Monday. The Ulster Bank construction Purchasing Managers' Index rose to a 3-month high of 60.7 in April from 57.5 in March. Any reading above 50 indicates expansion in the sector.In the US on Friday, Wall Street ended generally higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.2%, and Nasdaq Composite ending broadly flat.US President Donald Trump thanked North Korea after it said Saturday it plans to dismantle its nuclear test site during a ceremony attended by international media between May 23 and 25, the state-run KCNA news agency reported.Trump on Twitter described the move to dismantle the Punggye-ri site in the country's north as a "very smart and gracious gesture".North Korea's Ministry of Foreign Affairs said that in order "to ensure transparency," international journalists would be allowed to attend the event, according to the report.The event is scheduled to take place ahead of unprecedented talks between US President Donald Trump and North Korean leader Kim Jong Un on June 12.Brent oil was quoted at USD76.74 early Monday, up from USD77.24 late Friday.The Japanese Nikkei 225 index closed up 0.5% Monday. In China, the Shanghai Composite is 0.3% higher, while the Hang Seng index in Hong Kong is up 1.1%.Related Shares:
VictrexDiplomaCentricaDTY.LIndiviorLonmin