LONDON MARKET PRE-OPEN: HomeServe Hikes Payout As Annual Profit Climbs

LONDON (Alliance News) - Shares in London are called to open slightly lower on Tuesday, as the FTSE 100 pulls back from impressive gains on Monday.Amid a chunky corporate calendar for London's mid-cap companies, retailers Halfords and Pets at Home reported a rise annual like-for-like sales, HomeServe hiked its dividend significantly after strong profit growth, and Galliford Try said it has seen further cost pressures at the Aberdeen Western Peripheral Route.The UK macro-economic focus in the day ahead lies on appearances from Bank of England Monetary Policy Committee members in front of the Treasury Select Committee as they are questioned on the May inflation report.IG says futures indicate the FTSE 100 index of large-caps to open 2.07 points lower at 7,857.10 on Tuesday. The FTSE 100 index closed up 1.0%, or 80.38 points at 7,859.17 on Monday, a record closing high for the index.FTSE 100-listed Glencore is close to a USD1 billion deal to buy Chevron's southern African assets, potentially scuppering an earlier agreement with China Petroleum & Chemical, Bloomberg reported citing three people familiar with the matter.The Switzerland-based miner and trader will complete the deal within the next six weeks, the financial news service said, citing one of the people who asked not to be identified because the information is not public.The assets include a 100,000 barrel-a-day refinery in Cape Town and more than 800 gas stations in South Africa and neighboring Botswana.FTSE 250-listed Close Brothers said it performed well in the third quarter, "notwithstanding slightly weaker market conditions at the start of the period". The Banking division achieved "solid loan book growth", with the net interest margin remaining in line with last year.The loan book grew 2.4% in the quarter, and 4.1% year to date, to GBP7.2 billion. This is compared to GBP7.0 billion at the end of January 2018. Commercial and Property both delivered good growth, while the Retail loan book remained "broadly flat".Managed assets increased 2% in the quarter to GBP9.9 billion at April 30 from GBP9.7 billion at January 31."Following our good performance in the year to date, we remain well positioned for the full year," Close Brothers said.Bike and car parts seller Halfords posted a rise in like-for-like sales in its recently-ended financial year, with underlying profit to be steady in the year ahead.Revenue rose 3.7% in the year to March 31, coming in at GBP1.14 billion, up 2.0% on a like-for-like basis. Retail sales were up 2.3% like-for-like. Pretax profit slipped to GBP67.1 million from GBP71.4 million. Underlying pretax profit fell 5.0% to GBP71.6 million from GBP75.4 million.The gross margin in Retail fell to 47.4% from 48.6% last year, though Autocentres improved to 67.5% from 65.1%.Halfords proposed a full-year dividend of 18.03p, up 3.0% from last year's 17.51p.Looking ahead, the company said it anticipates the motoring market will remain "robust", though does not expect prices to rise in cycling this year. Underlying pretax profit for its current financial year is expected to be "broadly in line" with 2018's figure."We are pleased with the FY18 performance in a challenging retail environment, with profits in line with expectations," said Chief Executive Graham Stapleton, adding that he looks forward to "presenting our longer-term plans in September."Halfords also announced the appointment of Keith Williams as non-executive chairman, replacing Dennis Millard, who is retiring at the company's annual general meeting in July. Williams is the former chief executive officer and executive chairman of British Airways.Pets at Home said like-for-like revenue rose 5.5% in the year to March 29, as reported sales rose 7.8% to GBP898.9 million. The gross margin slipped to 51.7% from 54.2%, as pretax profit tumbled 17% to GBP79.6 million from GBP95.4 million.Within divisions, retail like-for-like sales were up 4.6% while Vet sales climbed 15.0%. The pets product retailer maintained its total dividend for the year at 7.5p."FY19 will be the second of our three-year financial transition back to sustainable profit growth, and following our progress in FY18, we are determined to achieve our plan. In the coming financial year we are targeting like-for-like revenue growth ahead of the market in both Retail and our Vet Group, and a transition back to low single digit underlying Group profit growth," the company said.Home repairs firm HomeServe said revenue rose 15% in the year to the end of March, coming in at GBP899.7 million, as pretax profit jumped 25% to GBP123.3 million.The FTSE 250-listed company proposed a final dividend of 14.4p, taking the total dividend for the year to 19.1p, up 25%. HomeServe said it has "good prospects" for growth in its recently-commenced financial year, with "attractive strategic opportunities" in all its geographies. Continued strong organic growth is expected in North America."This has been another great year for HomeServe, with record profit growth and another step change in our growth in North America," said Chief Executive & founder Richard Harpin.NEX Group - whose shareholders agreed last week for the company to be taken over by US-based CME Group in a GBP3.9 billion deal - said revenue and profit edged up in its recently-ended financial year.Revenue came in at GBP591 million in the year to March 31, up from GBP541 million last year. Pretax profit came in at GBP125 million, from GBP122 million last year."Last week our shareholders voted overwhelmingly in favour of the acquisition of NEX by CME Group. CME is the best buyer of NEX. Scale matters in this industry and bringing these companies together creates exciting revenue, technology and synergy opportunities," said Chief Executive Michael Spencer.Spencer added: "Once complete, this will be a truly industry-defining transaction and one which will bring huge benefits to our clients, the market, and to the City of London through CME's commitment to maintain London as its European headquarters."NEX recommended a final dividend of 7.65p, bringing its total dividend for the year to 11.15p. This was down from 38.5p last year. TP ICAP, formerly Tullett Prebon, completed its acquisition of the global hybrid voice broking and information business of NEX, formerly named ICAP, at the end of 2016.Galliford Try said sales at Linden Homes remain "encouraging", though it has seen extra cost pressures at the Aberdeen Western Peripheral Route.The construction firm said it is making "good progress" on the Aberdeen Western Peripheral Route, though has experienced further cost pressures due to weather delays, which is likely to increase the exceptional charge in the current year.The amount will depend upon progress recovered through the summer, and is expected to be lower than the GBP25 million charge taken in the first half. Galliford in February said it would take on this charge following the collapse of outsourcer Carillion, which had been a partner in the joint venture."The group's operating outlook is unchanged and all three businesses remain on track to deliver further profitable growth over the full year. We anticipate achieving a full year result in line with the current range of analysts' expectations," said Galliford on Tuesday.In the US on Monday, Wall Street ended firmly in the green, with the Dow Jones Industrial Average ending up 1.2%, the S&P 500 up 0.7% and Nasdaq Composite closing 0.5% higher.Secretary of State Mike Pompeo said Monday the US will exert "unprecedented financial pressure" on Tehran in the wake of President Donald Trump's withdrawal from the international nuclear agreement with Iran."The leaders in Tehran will have no doubt about our seriousness," he said in a speech in Washington on Monday, two weeks after Trump announced his decision to cancel US participation in the 2015 Joint Comprehensive Plan of Action.Pompeo laid out a number of demands that Tehran would have to meet including halting support for terrorism, such as for the Hezbollah militia in Lebanon and Houthi rebels in Yemen, and withdrawing all its forces from Syria. He said US sanctions, suspended under the nuclear deal, would be restored over the next five months.Iranian President Hassan Rowhani retorted several hours later, saying Washington had no right to make decisions for his country. The EU's foreign policy chief, Federica Mogherini, criticised the secretary of state's stance.Meanwhile, US Vice President Mike Pence on Monday warned North Korean leader Kim Jong Un not to "play" President Donald Trump if they meet at a proposed June 12 summit.Pence said there is "no question" that Trump would be prepared to walk away from the meeting set to be held in Singapore. "I don't think President Trump is thinking about public relations, he's thinking about peace," he said.North Korea last week said it would walk away from the landmark summit if the US insisted on its complete denuclearization. Trump is expected to discuss the meeting with South Korean President Moon Jae In who is due to visit the White House on Tuesday.In Asia on Tuesday, the Japanese Nikkei 225 index closed down 0.2%. In China, the Shanghai Composite is down 0.3%. Markets in Hong Kong are closed on Tuesday for the Birthday of the Buddha holiday.To come in the economic calendar on Tuesday, UK public sector net borrowing is at 0930 BST, with the CBI industrial trends survey at 1100 BST. In the afternoon is the US Redbook index at 1355 BST."Over the past few sessions a lack of influential data has left the pound vulnerable to Brexit uncertainties and dollar strength; today the economic calendar starts to fill up," says Jasper Lawler, head of research at London Capital Group.Bank of England Governor Mark Carney and Monetary Policy Committee Members Dave Ramsden, Gertjan Vlieghe and Michael Saunders appear in front of the Treasury Select Committee to be questioned on the May inflation report at 1000 BST.This comes ahead of the UK's consumer price index data for April on Wednesday, retail sales on Thursday and a first quarter gross domestic product reading on Friday."Given the dovish nature of the Inflation report it wouldn't be surprising to hear more dovish language from the BoE governor, Carney. There may also be some questions raised about the Carney's latest 'switcheroo' in forward guidance. Expectations of a rate hike went from fully almost fully baked in to nearly completely priced out in the 2 weeks leading up to the last Bank of England decision," Lawler added.Sterling was quoted at USD1.3416 early Tuesday ahead of the hearings, firm compared to USD1.3407 at the London equities close on Monday.Boris Johnson has told Conservative MPs to rein in talk of another snap election, warning that UK voters would have little patience for being told to go back to the ballot boxes so soon after last year's poll.Responding to reports this weekend that some backbenchers are actively making preparations for an election as early as October, the UK foreign secretary said "the British people deserve a break from politicians".Speculation over a possible election has been fuelled by discord within Theresa May's minority administration over the precise shape of the Brexit deal which Britain is seeking from the EU.