LONDON (Alliance News) - Stock prices in London were lower on Thursday, despite having been pointed to a higher open, with company results dragging down both the FTSE 100 and FTSE 250 indices, while China made its next move in its trade battle with the US. The FTSE 100 index was 0.5% lower early Thursday, or 39.57 points, at 7,736.86.The mid-cap FTSE 250 index was 0.1% lower at 20,749.00, while the the AIM All-Share index was up 0.2% at 1,0686.33.The Cboe UK 100 was 0.5% down at 13,109.32, the Cboe UK 250 was down 0.2% at 18,820.49, and the Cboe UK Small Companies was 0.1% lower at 12,355.56.In early UK company news, Travel and tourism firm
TUI Group was down 7.4%, as it reiterated annual earnings guidance despite a 27% drop in third-quarter pretax profit.The Anglo-German travel operator also said summer bookings for the current year are up 4%, with 86% of the programme sold, in line with prior year.For the three months to June-end, TUI recorded pretax profit of EUR147.5 million, down from EUR203.3 million recorded in the comparative year ago period, on a revenue of EUR5.02 billion and EUR4.78 billion, respectively.The drop in quarterly pretax profit was blamed upon a decline in financial income and increased cost of sales. The rise in revenue was credited to 5% growth in customer volumes, good portfolio performance, and additional hotel and cruise ship capacity.Adjusted earnings before income, taxes and amortisation - the company's preferred profit measure - fell 18% to EUR193.4 million in the quarter.For its 2018 financial year, ending in September, TUI expects to record at least 10% underlying Ebita growth over the year earlier, with revenue growth of around 3%. In the 2017 financial year, TUI posted underlying Ebita of EUR1.10 billion and revenue of EUR18.54 billion.
Randgold Resources was down 3.1% as it reported a fall in second quarter pretax profit, the figure declining to USD74.3 million from USD87.3 million a year prior, as costs rose.Revenue for the three months to June increased to USD283.7 million from USD273.3 million, with gold sales rising 5% quarter-on-quarter to USD411.5 million.Cash costs were 4% higher on the first quarter and 15% higher year-on-year due to higher throughput at several mines, while total cash costs per ounce of gold rose 21% year-on-year.Randgold's gold output for the quarter was 313,302 ounces, 9% higher quarter-on-quarter.The company said the results show its ability "to deal with multiple challenges", such as work stoppages, negotiations over the Democratic Republic of the Congo's new mining code, as well as a permitting delay.Russian firm
Evraz was 2.0% lower despite earlier gains as it reported "strong" cash flow for the six months to June, rising to USD661 million from USD549 million.Revenue increased 24% to USD6.34 million for the period, while pretax profit soared to USD1.54 billion from USD294 million due to both the increase in revenue and a foreign exchange gain.Earnings before interest, tax, depreciation, and amortisation increased 66% year-on-year to USD1.15 billion, with the Ebitda margin climbing to 30% from 23% on the back of higher vanadium, steel, and coal prices as well as lower costs.Total debt has fallen by some USD646 million to USD4.79 billion, while cost savings of USD117 million were made in the period due to productivity improvements and cost-cutting, the company said.Evraz is paying a 40 US cent interim dividend, compared to 30 cents a year prior, when it restored its interim payout.Looking ahead, Evraz said it was pleased with its performance, and it expects the market to remain positive for the rest of 2018 despite possible price corrections.In the midcap FTSE 250,
Card Factory slumped to the bottom of the index, down 7.6%, as it reported total first half sales growth, for the six months to July 31, of 3.2%, but like-for-like sales fell 0.2% due to the weak consumer environment and "extreme" weather.This like-for-like sales growth compares to the 3.1% recorded in the same period a year prior.In its Getting Personal business, sales fell 8.5% year-on-year. The first half a year ago had reported 5% sales growth on the year before that.Due to weather, and the uncertain UK consumer environment, Card Factory expects underlying Ebitda for its year ending January to be between GBP89 million and GBP91 million, with the figure in its last financial year GBP94.0 million.However, it does expect a return of surplus cash towards the end of its year of between 5p and 10p a share.
G4S was the next biggest midcap faller, down 5.9%, as it reported a 7.5% fall in revenue for the six months to June to GBP3.67 billion, while pretax profit has slumped 33% to GBP139 million.G4S said second quarter revenue was a "step change" ahead of first quarter, and this gives the company momentum going into the second half of the year.Second quarter organic revenue growth was 2.8% year-on-year, leading to 0.2% organic growth for the first half overall following a decline in first quarter organic revenue.
BTG was 2.1% lower as the US Food & Drug Administration said the premarket approval application for its Elevair endobronchial coil system is not approvable.The system is used for treating people with severe emphysema.Estate agent
Savills was 1.7% lower as it reported 2% revenue growth for the six months to June, rising 5% at constant currency, to GBP727.8 million.However, underlying pretax profit fell 12%, and 10% constant currency, to GBP42.4 million, with the reported figure falling 18% to GBP26.7 million.Savills is paying an interim dividend of 4.8p per share, from the 4.65p it paid a year before.The company said full-year expectations remain unchanged, and that is has been "resilient" in the face of difficult market conditions with a good pipeline for the second half of the year.Also in the midcap index,
Cineworld was 5.8% higher, the lead gainer, as revenue for the first half rose to USD1.86 billion from USD528.7 million, with the results including its Regal Entertainment acquisition in February.Pretax profit for the six months to June more than doubled to USD160.2 million from USD60.5 million, while adjusted pretax profit has likewise soared to USD152.4 million from USD54 million.Admissions for the period rose 4.9% on a pro forma basis, with pro forma revenue up 11% to USD2.46 billion and adjusted Ebitda up 14% pro forma to USD553.8 million.Cineworld is paying an interim dividend of 4.85 US cents per share, compared to 6p a year prior - the company has switched to reporting in dollars following the Regal takeover.
UDG Healthcare was 4.9% higher as Jefferies raised its rating for the firm to a Buy from Hold. Brickmaker
Ibstock was 2.3% higher as it confirmed it is paying a special dividend alongside its normal interim payout, following a strong six months to June of cash generation and a positive market.Ibstock is paying a supplementary dividend of 6.5p for the period, alongside an interim dividend of 3.0p compared to 2.6p a year prior.The company had said at the time of its 2017 results in 2017 it was mulling extra shareholder returns and that it would be similar to the final dividend of that year, which was 6.5p.Revenue nudged up 0.7% to GBP229.9 million, while pretax profit was up 31% to GBP50.9 million but adjusted Ebitda fell 2.2% to GBP58.4 million due to previously cited bad weather and higher energy costs.Ibstock said brick demand in the UK was strong in the half, but maintenance spending in brick making assets will hit short-term financial performance. However, the market remains strong, it said, and it is well placed for a good second half.
Capita was 2.0% higher, as Jefferies raised it to a Buy rating from Hold, and increased its price target to 180p from 122p. Turning to the US-China trade spat, China will impose retaliatory tariffs on USD16 billion worth of US goods starting on August 23, the Commerce Ministry said on Wednesday.The announcement came hours after the US announced it will impose 25% duties on the same amount of Chinese goods, starting on the same date.In China, the Shanghai Composite closed 1.8% higher on Thursday.Consumer prices in China rose 2.1% on year in July, the National Bureau of Statistics said on Thursday. That exceeded expectations for 2.0% and was up from 1.9% in June. On a monthly basis, CPI added 0.3% after easing 0.1% in June.The bureau also said producer prices jumped an annual 4.6% - beating forecasts for 4.5% and down from 4.7% in the previous month.In other political news, the US announced fresh sanctions on Moscow on Wednesday, citing Russia's responsibility for an assassination attempt on a former double agent, Sergei Skripal and his daughter in an English city earlier this year with a nerve agent.The sanctions, which will likely come into effect on August 22, would affect a range of security and defence goods. Certain exceptions would be made for commercial aviation and space flight materials.The pound was quoted at USD1.2856 Thursday, down from USD1.2888 at the London equities close Wednesday, as sterling slipped below the USD1.29 mark for the first time since last September on fears of a no-deal Brexit.The euro stood at USD1.1584 Thursday, down from USD1.1620 at the European equities close Wednesday.Stocks in New York were mixed at the London equities close Wednesday. The DJIA was down 0.1%, the S&P 500 index up 0.1% and the Nasdaq Composite up 0.1%.Coming up in US economic news on Thursday is July PPI at 1330 BST, with consensus expecting producer price inflation to remain flat at 3.4%, CMC Markets UK's Madden said.The Japanese Nikkei 225 index closed 0.2% lower Thursday, while the Hang Seng index in Hong Kong is up 0.8%.
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