17th May 2018 07:44
LONDON (Alliance News) - Stocks in London are set for a tentative start on Thursday as the pound moves off its worst levels of 2018, while Ocado signed a major new technology partnership deal in the US and Royal Mail's Canadian chief executive bowed out with a rise in annual revenue.Elsewhere, the UK government cut the maximum stake that can be wagered on fixed-odds betting terminals to GBP2 from GBP100, prompting dire warnings on profits and shop closures from William Hill and GVC. IG says futures indicate the FTSE 100 index to open 8.5 points lower at 7,725.70 on Thursday. The FTSE 100 index closed up 0.2% at 7,734.20 on Wednesday. The large cap index's record intraday high currently stands at 7,792.56.Sterling was higher quoted at USD1.3542 early Thursday, compared to USD1.3480 at the London equities close on Wednesday - its lowest levels since early January.In early corporate news, postal operator Royal Mail reported its final set of annual results under outgoing Chief Executive Moya Greene. For the year ending March 25, revenue rose 2% to GBP10.17 billion from GBP9.77 billion last year driven by its two main unit UKPIL and GLS. Royal Mail's UKPIL revenue came in flat but revenue from the GLS arm was up 10%. Pretax profit fell to GBP212 million from GBP335 million in 2017, although adjusted pretax profit rose to GBP565 million from GBP559 million. The company is maintaining its outlook for addressed letter volume declines of 4% to 6% per annum over the medium term. Royal Mail proposed full year dividend of 24.0 pence, 4.3% from 23.0p last year. "It has been another successful year, despite the challenging environment. Group revenue is now over GBP10 billion, a significant milestone, thanks to our geographical diversification and focus on growth. GLS had another strong year. Its revenue grew organically and through targeted acquisitions in higher growth markets. Parcel volume growth in UKPIL was our best for four years. We delivered a resilient letters performance," said Greene. Commercial property company British Land said it delivered a robust performance following significant asset sales and made further strategic and operational progress. For the year ending March 31, revenue was up to GBP639.0 million from GBP589.0 million last year. Pretax profit was GBP501.0 million from GBP195.0 million prior. The group declared a full year dividend of 30.08 pence up from 29.20p the year before. "Looking forward, we are mindful of the uncertainties. In retail, market conditions are likely to remain challenging. In offices, demand for our space is healthy, with a range of businesses continuing to commit to London and the supply of high quality new space relatively constrained in the short term. As the ways in which businesses and people use space evolves, our strong and flexible balance sheet means we can capitalise on the opportunities we have created, which broaden the type of space we offer and further enhance the mix of uses and occupiers at our places to deliver enduring growth and returns," said CEO Chris Grigg. Online grocer Ocado Group announced a partnership agreement with US-based grocer Kroger Co. Ocado said its technology would be used in the US exclusively by Kroger for groceries. In addition, Kroger will acquire a 5% stake in Ocado which is equal to 33.1 million new Ocado shares in a deal worth GBP183 million. "The opportunity to partner with Kroger to transform the way in which US customers buy grocery represents a huge opportunity to redefine the grocery experience of Kroger's customers and create value for the stakeholders of both Kroger and Ocado," said Ocado CEO Tim Steiner. In political news, UK Prime Minister Theresa May is being urged to take "a pragmatic view" of a series of changes made by peers to flagship Brexit legislation as it returns to the elected House of Commons.The government suffered a total 15 defeats to the EU (Withdrawal) Bill during its 20-day passage through the House of Lords, including in key areas of a customs union, the Irish border, a decisive say for Parliament on the outcome of the Brexit negotiations and membership of the European Economic Area.MPs will now consider the amendments made to the draft Bill, although no date has yet been set for this, leading to claims by critics that the prime minister is fearful of a backbench revolt and defeats in the Commons.In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.7%. In China, the Shanghai Composite is down 0.4%, while the Hang Seng index in Hong Kong is down 0.2%.Related Shares:
WMH.LBritish LandGVC.LOcadoRMG.L