GFS.L Share News (GFS)

LONDON (Alliance News) - Stock prices in London were seen opening higher on Tuesday after positive Brexit developments overnight for UK Prime Minister Theresa May ahead of a crucial vote in the House of Commons later in the day.In corporate news, outsourcer G4S reported a drop in annual earnings, pizza delivery chain Domino's Pizza reported mixed annual results, and Close Brothers said it was confident in its prospects for the rest of the year. However, gains for large-cap stocks are expected to be restricted, as the pound also rallied on the news of further assurances to May by the EU.IG futures indicate the FTSE 100 index is to open 2.08 points higher at 7,132.70. The blue chip index closed up 26.31 points, or 0.4%, at 7,130.62 on Monday."Whilst European futures are pointing to a higher start, the FTSE is lagging behind. The stronger pound will weigh on the UK index, keeping any gains in check. Bright Brexit prospects may be helping sterling but multinationals firms earning abroad, are negatively impacted by a less favourable exchange rate," said London Capital Group's Jasper Lawler.Domino's Pizza said 2018 was a mixed year against a "very challenging environment" for the casual dining market.For 2018, revenue rose 13% to GBP534.3 million from GBP474.6 million in 2017, but pretax profit was down 24% to GBP61.9 million from GBP81.4 million. Group system sales were up 9% to GBP1.26 billion from GBP1.16 billion in 2017. The company said increased wage costs alongside high rents and rising business rates dented profitability. Moreover, Domino's expects economic uncertainty to continue until the UK's future relationship with the EU becomes clearer. "In our international businesses, we are investing in new stores and improved capabilities to sharpen execution, and, while recognising a heightened risk profile in delivery in the Nordics, we anticipate a break-even result for International as a whole in 2019. Overall group capex is expected to be GBP25 million to GBP30 million," the company said. G4S said it said it booked a GBP100 million charge relating to a class-action lawsuit in California, as annual earnings slipped.The legal case involved claims made against one of its subsidiaries over meal and rest breaks under California employment law.For 2018, revenue was down 4.0% at GBP7.51 billion from GBP7.82 billion in 2017, and pretax profit fell 63% to GBP143 billion from GBP387 billion. The company said profitability was hurt by increased restructuring costs and a net loss on disposal and closure of its operations, including its businesses in Hungary and the Philippines.G4S declared a full year 9.70p per share, unchanged from 2017. "We believe good growth opportunities exist in all of our markets where we possess the infrastructure, technology, licenses and a strong track record of reliable and efficient delivery, for banks and retailers to outsource more of their cash management activity to G4S. In addition, we expect our network and operational efficiency programmes to contribute to profitability through 2019 and 2020," the company said. Merchant Bank Close Brothers said that it saw a solid performance in the first half of its financial year and that it remains well positioned for the remainder of the year. For the six months to January 31, adjusted operating income was GBP407.4 million, up from GBP402.5 million in the prior year. However adjusted operating profit was down to GBP135.6 million from GBP140.2 million.Close Brothers said its CET1 ratio, a key measure of a bank's financial strength, stood at 13.0%.Close Brothers declared an interim dividend of 22.0p, up 5% from 21.0p. "We recognise the uncertainties in the external economic and political environment, but believe that our proven and resilient business model leaves us well placed to support our customers and deliver good returns in a wide range of market conditions. Our Banking division remains well positioned, benefiting from the diversity of its business portfolio and strong customer focus. We remain committed to protecting margins, maintaining our prudent underwriting and continuing to invest in our businesses for the long-term." the company said. The pound was quoted at USD1.3208, up from USD1.3101 at the London equities close Monday and 1.3000 at the start of the week.UK PM May insisted she has secured "legally binding" changes to the Brexit deal which ensure the Irish backstop cannot be permanent.Following last-ditch talks in Strasbourg ahead of a crunch Commons vote on Tuesday, May said she has now delivered what Parliament asked her to do.The PM said she "passionately believed" her Brexit deal addressed concerns raised by MPs who feared the backstop would keep the UK in a customs arrangement with the EU indefinitely.At a joint press conference with European Commission president Jean-Claude Juncker, May said the three new documents agreed provided the legal assurances critics of her stance had called for.May believes the three new documents agreed with Juncker will give MPs the legally-binding reassurances they require to approve her withdrawal agreement and political declaration on the future EU/UK relationship.The Japanese Nikkei 225 index closed up 1.8%. In China, the Shanghai Composite closed up 0.3%, while the Hang Seng index in Hong Kong is up 1.0%.The economic events calendar has UK industrial and manufacturing figures at 0930 GMT and US inflation readings at 1230 GMT.