18th Feb 2019 07:43
LONDON (Alliance News) - Stock prices in London are seen opening marginally higher on Monday following a strong close in the US on Friday and gains in Asia overnight, amid optimism over US-China trade talks, which are set to continue in Washington this week.In early UK corporate news, household goods maker Reckitt Benckiser reported strong annual results, education publisher Pearson sold its K12 courseware unit in the US, and enginner Spirax-Sarco is in talks to acquire a business. IG futures indicate the FTSE 100 index is to open 10.82 points higher at 7,247.50. The blue chip index closed up 39.67 points, or 0.6% at 7,236.68 on Friday.A statement from the White House on Friday said high level US-China trade talks this week led to "progress between the two parties", but noted "much work remains".US President Donald Trump said the meetings were very productive and he is ready to extend the March 1 deadline and hold off a planned tariff hike on Chinese goods.Reckitt Benckiser said 2018 was a "good year of financial progress" as the company pressed ahead with its RB2.0 strategy and its integration of US infant formula maker Mead Johnson Nutrition as its sharpens its focus toward health and hygiene. The company, which makes Finish dishwasher tablets, Nurofen painkillers and Air Wick air fresheners, reported pretax profit rose 8.4% to GBP2.71 billion in 2018 from GBP2.50 billion in 2017. Revenue increased 10% to GBP12.60 billion from GBP11.45 billion the year before. Reckitt Benckiser declared a final dividend 100.2 pence, up from 97.7 pence the year before. This brings the total payout to 170.7 pence from 164.3p last year. For 2019, the company expects its trading momentum to continue, and target 3% to 4% like for like net revenue growth. "RB has been on a well-established journey with a focussed, strategic evolution from a household cleaning company to a world leader in consumer health. Our most recent acquisition, MJN, has been a catalyst for RB2.0 - the creation of two end-to-end accountable Business Units. RB2.0 provides a platform for future growth and outperformance in each Business Unit. We remain committed to executing on this important project and will continue to evaluate opportunities to maximise shareholder value from RB2.0," Chair Chris Sinclair said.Pearson said it sold its US K12 school courseware business to Nexus Capital Management for USD250 million. The education publisher is to receive an initial cash payment of USD25 million and vendor note of USD225 million. The vendor note will be repaid in three to seven years. Pearson also will receive 20% of all future cash flow from the sold business or 20% of the proceeds if sold onward.Pearson said the disposal of the US K12 Courseware business is part of its simplification plan, and proceeds from the sale will be used for general corporate purposes.The education publisher will report annual results on Friday. "The sale frees us up to focus on the digital first strategy that will drive our future growth. Through our assessment, virtual school, advanced placement and career and technical education programmes, we will still serve schools across America and we will now be better placed to focus on the areas in which we can best help their students to be successful in their studies and future careers," said Chief Executive John Fallon. Spirax-Sarco Engineering said it is in exclusive talks to buy Thermocoax Development for GBP139 million from Chequers Capital, TCR Capital and other minority shareholders on a cash-free, debt-free basis. Thermocoax is a provider of heating and temperature measurement solutions.McColl's Retail reported an increase in annual revenue of 8.1% to GBP1.24 billion from GBP1.15 billion in 2017. However, 2018 pretax profit more than halved to GBP7.9 million from GBP18.4 million. The company said profitability was hurt by supply chain disruption and transition to a new supply partner.The convenience store operator declared a total dividend of 4.0p per share from 10.3p the year before. "In the short term, mitigating cost pressures will continue to be a priority. In addition to a further about 5% increase in the National Living Wage, we will need to manage significant energy cost inflation and additional rental costs following the sale and leaseback programme. To improve efficiency we are continuing to invest in systems and processes; alongside pursuing further estate optimisation. We have already taken some further action in the new financial year, including a head office and overheads efficiency review," Chief Financial Officer Robbie Bell said. The Japanese Nikkei 225 index closed up 1.8%. In China, the Shanghai Composite closed up 2.5%, while the Hang Seng index in Hong Kong is up 1.7%.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.7%, S&P 500 up 1.1% and Nasdaq Composite up 0.6%.Financial markets in the US are closed on Monday for the President's Day holiday.The pound was up against the dollar, quoted at USD1.2911 from USD1.2855 at the London equities close Friday.In political news, top-level Brexit negotiations between the UK and the EU will resume this week as UK Prime Minister Theresa May prepares to return to Brussels to gain concessions on her withdrawal deal.May will meet European Commission President Jean-Claude Juncker in the coming days, while Brexit Secretary Stephen Barclay will hold talks with the EU's chief negotiator Michel Barnier on Monday.The pair are expected to discuss the proposals of the Alternative Arrangements Working Group of Tories, who have been seeking a compromise solution to avoid the need for the controversial Irish backstop.On the economic front, average price tag on a home in the UK is just GBP714 higher than it was a year ago, according to a property website. The average asking price in February is GBP300,715, an annual increase of just 0.2% or GBP714, Rightmove said.
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