Ocado Share News (OCDO)

LONDON (Alliance News) - The FTSE 100 got off to a slightly lower start on Thursday, with a tumble for TUI and further slump for Ocado offsetting gains for Compass and Smith & Nephew. Focus in the day ahead lies on the latest Bank of England monetary policy decision at midday, which will be followed by a press conference with BoE Governor Mark Carney at 1230 GMT. "Given ongoing Brexit uncertainty an immediate hike in interest rates is very unlikely, and we expect a unanimous vote for no change in policy. Less certain is what hints the bank will give on its future policy intentions," said Lloyds Banking."The market's expectations for UK interest rate hikes have already been pared back in response to recent weaker UK and international economic data," Lloyds continued. "Consequently, while the BoE will likely acknowledge increased 'headwinds' to economic growth it will probably want to avoid endorsing an even more 'dovish' path for rates."The FTSE 100 index of large-caps was 4.87 points lower, or 0.1%, at 7,168.22 in early dealings. The FTSE 250 was down 109.90 points, or 0.6%, at 18,963.51 on Thursday, and the AIM All-Share was down 0.5% at 919.57.The Cboe UK 100 was down 0.1% at 12,171.64, while the Cboe UK 250 was down 0.5% at 16,942.18 and the Cboe UK Small Companies flat at 11,203.48.Sterling was quoted at USD1.2906 early Thursday ahead of the BoE decision, lower than USD1.2960 at the London equities close on Wednesday.The pound also will be sensitive to news from May's trip to Brussels on Thursday to seek concessions from the European Union, despite the bloc's insistence that the withdrawal agreement reached last year is not up for renegotiation.May is seeking changes to the "backstop" protocol in the withdrawal agreement that is designed to guarantee that the Irish border remain open, in order to win parliamentary approval of the Brexit deal.European Council President Donald Tusk on Wednesday said the EU was not making "any new offer" and was hoping to hear from May "a realistic suggestion on how to end the impasse in which the process of the orderly withdrawal of the UK from the EU has found itself following the latest votes in the House of Commons".In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were 0.1% and 0.6% lower, respectively, early Thursday.Compass was the best blue-chip performer in London, up 3.8% after the contract caterer said it made an "excellent" start to the financial year.Organic revenue for the three months to December 31 grew 6.9%, driven by new business wins, good retention rates, new UK defence contracts, and a "positive" sporting calendar.By geography, North American revenue was up 8.0% organically, while sales rose 6.4% in Europe and 2.8% in Rest of the World."We had an excellent start to the year and now expect to be slightly above the middle of our target 4% to 6% organic growth range for the full year, with modest margin progression. In the longer-term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue growth and margin expansion," said Compass.Smith & Nephew gained 2.7% after the medical devices maker said 2018 profit dipped on restructuring costs despite revenue improving.Smith & Nephew makes, among other things, products for treating wounds and joint replacement systems. Pretax profit for 2018 was USD781 million, 11% less than USD879 million in profit in 2017.The company undertook its Accelerating Performance & Execution restructuring programme, beginning at the end of 2017, which incurred USD120 million of costs in 2018. This compares to around USD60 million of benefit from the effort realised in the course of the year.Underlying revenue growth was 2% in 2018. Smith & Nephew's guidance was for underlying revenue growth in the lower half of the 2% to 3% range. Consensus was for underlying revenue growth of 1.9%.For 2019, Smith & Nephew is guiding for underlying revenue growth in the 2.5% to 3.5% range. On a reported basis, this will be equivalent to 1.8% to 2.8% of revenue growth.Travel operator TUI sank 14% after saying late Wednesday that earnings for its current financial year will be "broadly stable" on last year due to "extraordinary" hot weather last summer and a weak pound.For the year ending September 30, TUI said it expects adjusted earnings before interest, taxes, depreciation and amortisation to be broadly stable on the record performance in the prior year of EUR1.17 billion."Consequently, we are not reiterating our guidance of at least 10% [compound annual growth rate] in underlying Ebitda at constant currency for the three years to FY20," the company said.Shares in peer Thomas Cook were up 13% after the tour operator said its first quarter loss widened and it announced a strategic review of its airline unit.First quarter revenue was up 1% to GBP1.66 billion, while its underlying operating loss widened by GBP14 million to GBP60 million."As expected, the knock-on effect from the prolonged summer heatwave and high prices in the Canaries have impacted customer demand for winter sun. Where Summer 2018 bookings started very strongly, bookings for Summer 2019 reflect some consumer uncertainty," said Chief Executive Peter Fankhauser.The tour operator also said it is in the early stages of reviewing its airline business, and will consider "all options" to enhance value to shareholders. In 2018, the airline generated GBP3.5 billion in revenue and underlying operating profit of GBP129 million.

Ocado shares were down again, falling 5.1% in early trade, extending Wednesday's 6.3% slide after reporting extensive fire damage at its automated warehouse in Hampshire. Cranswick was down 16% after the pork and poultry producer said its annual forecasts remain unchanged, but its operating margin is likely to decline in the following year, due to higher costs.Revenue for the third quarter, or three months to December 31, was down 2% on last year. Strong growth in poultry and continental products was offset by lower sales from other, pork related, categories, the company said.Nonetheless, management expectations for the current year remain unchanged.However, for the following financial year, Cranswick said its operating margin is likely to decline, reflecting the "potentially challenging commercial landscape", together with start-up and commissioning costs associated with the Eye, Suffolk, poultry processing facility.In Asia on Thursday, the Japanese Nikkei 225 index closed down 0.6%. Financial markets in China and Hong Kong were closed for the Lunar New Year holiday.The economic events calendar on Thursday has a UK Halifax house price index reading at 0830 GMT while the European Commission will release its economic growth forecasts at 1000 GMT.