Distil Share News (DIS)

LONDON (Alliance News) - Johnson Matthey has seen its shares fall Thursday after it reported a large rise in pretax profit and its dividend that both comfortably beat market expectations but then gave a mixed outlook for the current financial year.

The specialty chemicals and metals company reported a pretax profit of GBP495.8 million in the year ended March 31, up from GBP406.6 million a year earlier and ahead of analysts' forecasts of GBP437.3 million. Revenue fell to GBP10.05 billion from GBP11.15 billion, but its margin improved as it produced a higher gross profit of GBP817.7 million from GBP799.1 million.

The rise in pretax profit was mainly attributable to a GBP73.0 million gain from the sale of the Precious Metal Products division's gold and silver refining business to Asahi Holdings, which included the sale of a collector, refiner and recycler of precious and rare metals from waste materials. Most of its divisions reported strong sales growth, but the revenue decline was caused by a drop in its metals division due to lower commodity prices and a change in the contracts between Johnson Matthey and Anglo Platinum.

"In 2015/16, Johnson Matthey's continuing businesses are expected to deliver good underlying growth. A strong performance in Emission Control Technologies and good progress in Fine Chemicals is likely to be partially offset by a weaker year for Precious Metal Products. We anticipate that Process Technologies' performance will be broadly stable and that the operating loss in New Businesses will reduce modestly," said Chief Executive Robert MacLeod.

Low cost airline easyJet is one of the very few gainers in the FTSE 100 after it reported a strong rise in passenger numbers in May, and its planes were more full. EasyJet said it flew nearly 6.5 million passengers in May, up 7.2% from nearly 6.1 million a year earlier, while its load factor, a measure of how full its planes are, rose to 91.6% from 89.4%.

Lloyds Banking Group is to be hit with a fine of more than GBP100 million over mishandling complaints relating to payment protection insurance, a product widely mis-sold by high street banks, Sky News has reported citing market sources.

Crispin Odey's Odey Asset Management, which has been building a big stake in ailing contracts-for-difference trading platform Plus500, has rejected Playtech's 400 pence a share bid for the company. Odey now has a 25.49% stake in Plus500 and said Playtech's offer is "an opportunistic bid exploiting current regulatory issues and risks" that it will vote against.

The Bank of England has again left it key interest rate unchanged at an historic low of 0.5%, as expected.

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Markets: London shares are sharply lower, as volatility in debt markets again weighs on investor sentiment, while easyJet is amongst a handful of gainers in the FTSE 100 after it reported a strong rise in passenger numbers in May. The pound was up against the dollar ahead of the Bank of England's monetary policy decision and remains so.

Futures point to a lower open for US stock indices, with the DJIA currently indicated down 0.6%, the S&P 500 down 0.7% and the Nasdaq 100 up 0.9%.

FTSE 100: down 1.3% at 6,860.48
FTSE 250: down 0.8% at 18,116.82
AIM ALL-SHARE: down 0.1% at 777.57
GBP: up at USD1.5410
EUR: up at USD1.1340
GOLD: down at USD1,182.97 an ounce
OIL (Brent): up at US63.74 a barrel
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Other Top Corporate News
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Smith & Nephew said it has voluntarily removed smaller-size components for its Birmingham Hip Resurfacing system from the market, as recent performance data has shown patients may be "at a greater risk of revision surgery that previously believed". Revision surgery refers to when a hip replacement needs to be replaced. The products account for around 1% of Smith & Nephew's hit implant revenue in 2014 and 0.1% of group revenues, it said, and will have no impact in its guidance for the full year.
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Sports Direct International said it has made Financial Controller Matt Pearson its acting chief financial officer and he will take his place on the board with immediate effect. Pearson joined the sports goods retailer as group financial accountant from EY in June 2007, and subsequently became financial controller.
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FTSE confirmed late Wednesday that satellite firm Inmarsat will replace temporary-power provider Aggreko in the FTSE 100 from the market open on Monday, June 22, following the completion of its quarterly review.
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Pets at Home Group posted a substantial rise in pretax profit for its 2015 financial year, flattered in part by costs it booked last year not recurring, but also by revenue growth in its merchandise and services businesses as it paid its maiden dividend. The FTSE 250-listed pet retailer said its pretax profit for the 52 weeks to March 27 was GBP87 million, nearly quadruple the GBP22.5 million it posted a year earlier. The figure for the 2014 financial year was pulled lower by the company booking GBP29.7 million in exceptional costs related to its listing on the London Stock Exchange, but even stripping out those costs, pretax profit was up in the recent financial year from GBP52.2 million previously.
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Ladbrokes may be forced to provide a rival bookmaker in Ireland more information to allow the company to launch a bid for its Irish arm, The Daily Telegraph reports. Boylesports, the largest independent bookmaker in Ireland, has said it is interested in acquiring Ladbrokes' Irish business, but claims the assets were placed under court protection to prevent them being sold. The 'examinership' process gave Ladbrokes' business in Ireland protection from creditors while the FTSE 250-listed company formulated a rescue plan to turnaround the unit.
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AIM Movers
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Crimson Tide shares are up after it won a contract for its mpro5 product that it expects to be worth at least GBP218,000 over the next four years. Arcontech Group is doing well after it resolved and agreed new terms with a "significant" customer that it had previously warned had requested to cancel its contract 18 months early. Feedback is another gainer, prompting it to say it knows of no other reasons for the recent jump in its share price aside from the completion of a successful placing which attracted positive media comments Wednesday. Marimedia is up after it said it expects to post high single-digit revenue growth for 2015 compared with the previous year, although it warned that lower margins in its mobile segment and further investment will result in lower earnings before interest, tax, depreciation, and amortisation than in 2014. Kefi Minerals is also up after it said test results from three prospects in the adjacent exploration licences to the company's Tulu Kapi project in Ethiopia indicate the company could double the project's existing ore reserve. Scisys has lost nearly a third of its value after it warned it will see a "substantial short-fall in profits" for 2015 compared with guidance it gave in March, as a result of issues with a development project in its enterprise solutions and defence division, and a continued hit from the strength of sterling against the euro. Pressure Technologies is down 30% after it too issued a profit warning as the fall in world oil prices eats into its Precision Machined Components and Engineered Products divisions. The weak market conditions for the two divisions are expected to continue into the next financial year and will then also start to hit its Cylinder Division, the company said. Pressure Technologies added that the planned restructuring of its Alternative Energy arm has been completed, but the arm has seen delays in securing new orders, which will also hit its performance in 2015. Distil is another faller after its revenue dropped substantially in its financial year to the end of March as it shifted its business model, though its pretax loss narrowed as the changes resulted in much lower costs.
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Top Economics And General
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UK house prices dropped for the first time in three months in May, data from Lloyds Banking Group's Halifax division showed. House prices edged down unexpectedly by 0.1% month-on-month in May, reversing April's 1.6% increase. This was the first fall since February. Prices were forecast to grow 0.2% from April. In three months to May, house prices were 2% higher than in the preceding three months. This measure of the underlying rate of house price growth eased for the second consecutive month, falling to its lowest since January, said Martin Ellis housing economist at Halifax.
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Critical bailout talks between Greek Prime Minister Alexis Tsipras and European officials were to continue Thursday, after a late-night meeting in Brussels left officials upbeat but reached no firm conclusion. "The discussions are going to continue in the coming days," Tsipras said after the meeting with European Commission President Jean-Claude Juncker. "The more we talk sincerely, the closer we will get to a mutually acceptable solution," he said after what many consider to be a final push for a deal allowing Athens to access urgently needed bailout aid in return for reforms. Jeroen Dijsselbloem, head of the Eurogroup of eurozone finance ministers, said the talks were "very good," a sentiment echoed by the European Commission, which described it as a "good, constructive" meeting.
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The French unemployment rate decreased unexpectedly in the first quarter, though slightly, data from the statistical office Insee showed. The jobless rate, measured according to International Labour Organisation, or ILO, standards, edged down to 10.3% in the three months ended March from 10.4% in the fourth quarter. Economists had expected the rate to remain stable at 10.4%.
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Ireland's service sector expanded at the fastest pace in three months in May, driven by greater levels of new business on improving economic conditions, survey figures from Markit Economics showed. The Investec services purchasing managers' index rose to 61.4 in May from 60.6 in the previous month. A reading a above 50 indicates expansion in the sector.
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At least 17 people were reportedly killed Wednesday in eastern Ukraine in the bloodiest fighting since the February ceasefire. The Ukrainian government and pro-Russian separatists traded blame for the escalation, which was predominantly within the partially rebel-held Donetsk region.
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Brazil's central bank lifted its key interest rate by 50 basis points despite seeing signs of recession in the economy. The Selic rate was raised by 50 basis points to 13.75% from 13.25%. Policymakers unanimously voted for a rate hike. The bank said policymakers took decision after evaluating the macroeconomic scenario and the outlook for inflation. The central bank intends to bring inflation to 2.5% to 6.5% range. The inflation measured by the 12-month accumulated broad national consumer price index reached 7.7% in February. In the first quarter, the economy contracted 0.2%, which was the first fall in three quarters. The central bank earlier projected the economy to shrink 0.5% this year.
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The US economy continued to plod along after another rough winter, according to the latest Federal Reserve Beige Book released. Seven districts reported "moderate" or "modest" growth in May, while others described growth as "slight," "mixed," or "steady." A number of economists were expecting the US to snap back in the second quarter after a brutal start to the year, but it appears for now that the recovery has stalled. Stronger growth is seen later in the year, but the strong dollar has been hurting manufacturers of late.
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Ailing former FIFA official Chuck Blazer admits that he and others accepted bribes before the votes that gave the 1998 World Cup to France and the 2010 World Cup to South Africa, according to newly unsealed US court documents. A former FIFA executive committee member, Blazer confessed to taking bribes in connection with the votes on the two World Cup hosts, according to a transcript released Wednesday of his November 2013 plea hearing in a closed Brooklyn federal courtroom.
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Afternoon Watchlist (all times in BST)

12:30 US Challenger Job Cuts
13:30 US Jobless Claims
15:30 US EIA Natural Gas Storage change
17:00 US Fed's Tarullo speech
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Friday's UK Corporate Events

Halfords Group - Full Year Results
Bellway - Interim Management Statement
Fuller Smith & Turner - Full Year Results
KCOM Group - Full Year Results
Edinburgh Worldwide Investment Trust - Half Year Results
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Friday's Key Economic Events (all times in BST)

07:00 Germany Factory Orders
07:45 France Trade Balance
09:30 UK Consumer Inflation Expectations
10:00 EU Gross Domestic Product
13:30 US Nonfarm Payrolls
17:30 US Fed's William Dudley speech
20:00 US Consumer Credit Change
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