11th Sep 2018 07:40
LONDON (Alliance News) - Stock prices in London are seen opening marginally higher amid the absence of any fresh developments in the US-China trade standoff, while Ashtead Group said it expects its annual results ahead of expectations after reporting a strong first quarter.IG futures indicate the FTSE 100 index is to open up 5.50 points at 7,284.80. The blue chip index closed broadly flat, just 1.60 points higher at 7,279.30 on Monday.FTSE 100 equipment rental firm Ashtead Group said it saw a strong first quarter supported by its strategy of combining organic growth and bolt-on acquisitions.For the quarter ended July 31, revenue was up 22% to GBP1.05 billion from GBP880.1 million last year and rental revenue was up 19% to GBP961 million from GBP828.8 million the year before. Additionally, pretax profit rose 23% to GBP274.4 million from GBP228.9 million last year. Ashtead said it expects its annual results to be ahead of its expectations and looks to the medium term with confidence."We have spent GBP300 million to date under the share buyback programme announced in December 2017. In line with our capital allocation priorities, we have decided to increase and extend our current buyback plans. The level of share buyback will be increased to GBP125 million per quarter resulting in a total outlay of GBP675 million under the programme announced in December 2017. The programme will be extended for financial year 2019-20 with an anticipated spend of at least GBP500 million," said Chief Executive Geoff Drabble.Sportswear retailer JD Sports Fashion said it enjoyed "another record result", saying it continued to make excellent progress against a challenging market backdrop within the UK retail sector. For the half year ended August 4, revenue rose 34% to GBP1.84 billion from GBP1.37 billion last year, and pretax profit increased 19% to GBP121.9 million from GBP102.7 million last year. JD Sports also said it saw "encouraging" like-for-like sales growth of 3% against a backdrop of well-documented retailing challenges in the UK.JD Sports raised its interim dividend 4% to 0.27p from 0.26p last year. The company said it is confident it is well positioned to deliver a full-year result in line with current market expectations and remains encouraged by its prospects for future growth."Against a backdrop of widely reported retail challenges in the UK, it is extremely reassuring that the profitability in the UK and Ireland Sports Fascias has been further enhanced. This reflects the value of the investments that we have made over a number of years in developing a dynamic multichannel proposition which marries the best of physical and digital retail enabling customers to interact with us where and when they want and through the channel of their choice," said JD Sports Chairman Peter Cowgill. Anglo-Dutch consumer goods firm Unilever announced the next stage in its plans to become a "simpler, more agile and more focused business". The restructuring involves simplifying Unilever's parent company structure from two legal entities, NV and PLC, into a single holding company - Unilever NV. This is to be based in the Netherlands and listed in London, Amsterdam and, in the form of American depositary shares, in New York. "The expected last day of trading in NV and PLC shares will be Friday, December 21. Simplification is expected to complete over the weekend of December 22 and 23, with dealings in New Unilever NV shares commencing on December 24," the company said. Meanwhile, optimism about a potential second US-North Korea summit has boosted investor sentiment.The governments of the US and North Korea are preparing for a second summit between US President Donald Trump and North Korean leader Kim Jong Un, White House spokeswoman Sarah Sanders said Monday.Trump received a letter from Kim last week, which Sanders said is related to the summit. The president thanked Kim for the letter and said he was looking forward to seeing him soon."The announcement is seen as a step in the right direction for political stability in the region," said David Madden, market analyst at CMC Markets.In addition, US and Canadian officials are set to meet in Washington for another round of talks to renew the NAFTA trade pact.The pound was firm against the dollar quoted at USD1.3045, compared to USD1.3022 at the London equities close Monday, with UK unemployment data to come at 0930 BST.The headline UK unemployment rate dropped to a multi-decade low of 4.0% in the three months to June and is expected to remain unchanged in the three months to July, to be reported on Tuesday.In the economic calendar on Tuesday has the ZEW survey in Germany at 1000 BST, with the survey for the eurozone also due at the same time. In the afternoon is the US Redbook index at 1355 BST and JOLTS job openings at 1500 BST.The Japanese Nikkei 225 index closed up 1.3%. In China, the Shanghai Composite is down 0.4%, while the Hang Seng index in Hong Kong is down 0.5%.Related Shares:
Ashtead GroupJD Sports