29th Aug 2018 07:43
LONDON (Alliance News) - Stock prices in London are seen opening higher on Wednesday, as James Bond car marker Aston Martin confirmed plans to join the London Stock Exchange.IG futures indicate the FTSE 100 index is to open 7.0 points higher at 7,632.70 on Wednesday. The blue chip index closed 0.6% higher, or 48.79 points, at 7,626.28 on Tuesday."US stocks enjoyed a positive session yesterday as traders remained elated by the US-Mexico trade deal, and there is talk of Canada following suit, and that added to the bullish sentiment," said David Madden of CMC Markets UK."There is speculation a Canadian deal could be achieved in the next few days. There is a growing sense that trading relationships in North American are on the way up and this helped the NASDAQ 100 and S&P 500 reach new record-highs yesterday."In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 marginally higher, and the Nasdaq Composite closing 0.2% higher. In US corporate news, Hewlett Packard Enterprise reported an increase in profit for the third quarter, as revenue grew. The company also announced the appointment of former Sprint executive Tarek Robbiati as new financial chief.In early UK company news, luxury auto maker Aston Martin announced plans for an initial public offering in London, with a prospectus to be sent out around September 20. Aston Martin is aiming to join the London Main Market, floating at least 25% of its shares, and it said Germany's Daimler, which currently has a 4.9% stake, will remain a shareholder.The company did not give any financial details of its IPO. Joint coordinators are Deutsche Bank, Goldman Sachs, and JPMorgan Securities, while its financial advisor is Lazard. Aston Martin also announced results for the six months to June. Revenue increased 8% to GBP444.9 million, while adjusted earnings before interest, tax, depreciation, and amortisation was up 14% to GBP106 million. FTSE 250-listed marine services firm James Fisher reported a strong increase in both interim pretax profit and revenue.On a statutory basis, pretax profit was up 26% year-on-year for the six months to June to GBP21.5 million, and on an underlying basis the figure rose 205 to GBP21.7 million - all divisions posted a profit in the period. James Fisher's revenue increased 12% year-on-year to GBP260.5 million, with organic revenue growth standing at 11%. James Fisher is paying a 10.3 pence interim dividend, compared to 9.4p a year prior. The company described the first half of 2018 as "encouraging", with its Marine Support and Specialist Technical divisions recording particularly strong results. James Fisher is confident going forward, and expects the second half of 2018 will benefit from new contracts as well as further momentum in Marine Support. Specialised technical products firm Diploma announced the departure of Chief Executive Richard Ingram, while it also said it has had a solid second half of its financial year.Ingram is leaving with immediate effect, and Non-Executive Chairman John Nicholas will take over while Diploma looks for a permanent replacement, with a search already underway. Turning to trading, Diploma's revenue for its year ending September 30 is guided to be 7% ahead year-on-year, with revenue in its prior year at GBP451.9 million. Currency headwinds have eased, Diploma added, though will still be a drag. Excluding currency and acquisitions, revenue is guided to likewise grow 7%. Revenue growth is expected across all divisions, and its operating margin is guided to be similar year-on-year, in line with expectations. Oilfield services firm Petrofac reported a "strong" performance for a six months to June, though revenue did fall to USD2.79 billion from USD3.13 billion a year prior.Earnings before interest, tax, depreciation, and amortisation was USD333 million from USD323 million, while net profit increased 20% to USD190 million. Petrofac is paying an interim dividend of 12.7 US dollar cents, flat year-on-year but in line with its payout policy. The company also announced Wednesday it has won a USD600 million contract, via a provisional letter of award, to construct a new inlet separation and compression centre at the Tinhert project in Algeria. Elsewhere on the Main Market, Gym Group reported a 36% rise in revenue for the six months to June to GBP58.3 million, though statutory pretax profit fell 14% to GBP5.1 million due to higher costs.Adjusted pretax profit was 8.4% higher at GBP7.0 million, while adjusted Ebitda increased 28% year-on-year to GBP17.5 million. Gym Group has raised its interim dividend by 17% to 0.35 pence per share. The company described it as an "excellent" first six months, and it is confident on meeting 2018 expectations. On AIM, wafer products firm IQE reported a 4.0% increase in revenue for 2018's first six months to GBP73.4 million, but adjusted pretax profit fell 21% to GBP7.6 million.On a reported basis, pretax profit rose 19% to GBP6.6 million. IQE has also swung to a net cash position of GBP40.6 million at the end of June from net debt of GBP41.9 million a year before that.IQE "looks forward" to the rest of 2018, and it also said it is set to conduct interviews for a new chief financial officer in early September following the death of former CFO Philip Rasmussen in April. Sterling was lower against the dollar, quoted at USD1.2854 early Wednesday from USD1.2891 at the market close Tuesday.UK shop prices increased for the first time in more than five years in August, the British Retail Consortium said Wednesday.Shop prices edged up 0.1% in August, following a 0.3% drop in July. This broke a deflation cycle of 63 months, BRC said.Higher food price inflation as well as lower non-food price deflation contributed to the return of shop prices to inflation. Nonetheless, shop price inflation remained well below the headline consumer price inflation.Data showed that non-food deflation continued to ease in August, to 1% from 1.4% in July. This was the lowest rate of deflation since April 2013.The Japanese Nikkei 225 index closed 0.2% higher. In China, the Shanghai Composite is down 0.5%, while the Hang Seng index in Hong Kong is down 0.1%.The economic calendar on Wednesday has US weekly mortgage applications at 1200 BST and a second US GDP estimate at 1330 BST.Related Shares:
PetrofacDiplomaIQEGym GrpJames Fisher and Sons