Victoria Share News (VCP)

LONDON (Alliance News) - Strong gains by Asian stock markets overnight and robust annual results from consumer goods firm Reckitt Benckiser were unable to lift the FTSE 100 at the start of the week. The FTSE 100 was 14.59 points lower, or 0.2%, at 7,222.09 on Monday at midday. The mid-cap FTSE 250 was up 101.49 points, or 0.5%, at 19,088.72, and the AIM All-Share index was flat at 907.86.The Cboe UK 100 index was down 0.2% at 12,267.77, while the Cboe UK 250 was up 0.4% at 16,982.50 and the Cboe UK Small Companies flat at 11,214.60.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.2% and down 0.2% respectively at midday."European markets are treading water after a week of substantial gains across global stocks," said IG market analyst Joshua Mahony."Much of the focus has been on US-China trade talks, and whilst we saw little by way of notable breakthroughs, the tone and willingness to find a solution is certainly improving," he commented.Other international talks ongoing this week are Brexit negotiations between the UK and the EU, which will resume as Prime Minister Theresa May prepares to return to Brussels to gain concessions on her withdrawal deal. May will meet European Commission President Jean-Claude Juncker in the coming days, while Brexit Secretary Stephen Barclay will hold talks with the EU's chief negotiator Michel Barnier on Monday.The pair are expected to discuss the proposals of the Alternative Arrangements Working Group of Tories, who have been seeking a compromise solution to avoid the need for the controversial Irish backstop. Meanwhile, seven Labour MPs have quit the party in a major blow for leader Jeremy Corbyn. Luciana Berger, Chris Leslie, Angela Smith, Gavin Shuker, Mike Gapes, Ann Coffey and Chuka Umunna announced their decisions at a press conference in London on Monday.Simmering tensions within Labour ranks over Corbyn's approach to leaving the EU and the party leadership's handling of anti-Semitism allegations have prompted the schism.The pound was quoted at USD1.2929 at midday, up from USD1.2855 late Friday.Markets in the US are closed on Monday for the Presidents' Day holiday, and will re-open on Tuesday.Though London's FTSE 100 was lower at midday, constituent Reckitt Benckiser was up 5.1% after a strong set of annual results.Reckitt posted pretax profit of GBP2.72 billion for 2018, up 8.8% from GBP2.50 billion in 2017.This marked the first full year of contribution from US baby formula maker Mead Johnson Nutrition, acquired in June 2017, which took Reckitt's infant formula & child nutrition revenue to GBP2.84 billion from GBP1.56 billion the year before. This was in line with company-compiled market consensus.Group revenue totalled GBP12.60 billion, a 10% rise from GBP11.45 billion the year before and in line with consensus of GBP12.59 billion.Like-for-like net revenue growth totalled 3%, equalling growth last year and ahead of the 2.7% market consensus.In the FTSE 250, JD Sports Fashion was 2.8% higher after disclosing it has acquired an 8.3% interest in rival Footasylum for "investment purposes".The sports fashion retailer, which bought 8.7 million shares in Footasylum, added that it is prepared to acquire up to an aggregate interest of 29.9% in the company.JD, however, said it does not intend to make a takeover offer for Footasylum. Shares in Footasylum were up 50% to 43.50 pence on Monday, though the AIM stock remains 79% lower compared to this time a year ago.Plus500 was the worst performer among the mid-caps, sliding 3.9% to 886p after Canaccord slashed its price target on the stock to 546p from 1,052p. This comes after a turbulent week for the online trading services provider, which last week issued a profit warning for 2019 and revealed drafting errors in its 2016 and 2017 accounts.Elsewhere on the London Main Market, shares in McColl's Retail were up 11% as profit fell in a challenging year, but 2019 is expected to see a slight improvement. For the year ended November 25, the retailer posted a pretax profit of GBP7.9 million, down from GBP18.4 million a year ago. Revenue increased by 8.1% year-on-year to GBP1.24 billion from GBP1.15 billion.McColl's said it continues to expect earnings before interest, taxes, depreciation and amortisation for the financial year just begun to show a "modest improvement" on financial 2018's adjusted GBP35.0 million.On London's AIM market, floor coverings retailer Victoria was down 13% after saying it expects to see a significant improvement in its annual earnings, despite margins taking a hit from a strategy to increase market share. Victoria expects Ebitda for the year ending March of between GBP95 million to GBP97 million. Last year, Ebitda was GBP64.7 million. "In the group's interim results released in November, Victoria advised it was taking advantage of difficult market conditions to actively pursue market share. The board recognises this approach, which impacted earnings this year, has unsettled some shareholders but it believes it to be in the best long-term interests of the group and its shareholders," Victoria explained.