(Alliance News) - Stock prices in London are seen opening slightly higher on Thursday ahead of the latest PMI figures, as investors keep an eye on developments in Ukraine with the US president holding meetings in Europe.
In early company news, clothing and homeware retailer Next lowered sales and profit guidance for its new financial year. Private investment firm Bridgepoint delivered strong results in its maiden year as a listed company. Magazine publisher Future made two acquisitions.
IG futures indicate the FTSE 100 index is to open 4.67 points higher at 7,465.30. The index closed down 16.09 points, or 0.2%, at 7,460.63 on Wednesday.
Next reported a surge in annual profit but downgraded its earnings expectations following the closure of websites in Ukraine and Russia.
For the financial year that ended January 29, revenue was up 31% to GBP4.63 billion from GBP3.53 billion the year before, and pretax profit surged to GBP823.1 million from GBP342.4 million. Pretax profit was marginally higher than the company's recent guidance of GBP822 million.
The high street chain said it was seeing a sharp reversal of lockdown fashion trends and return to formalwear.
Looking ahead, Next reduced its central guidance for full-year full price sales growth to 5% from 7%, amid closure of its websites in Ukraine and Russia. For the current financial year, Next lowered its sales guidance by GBP85 million and profit by GBP10 million.
"We enter 2022 with confidence in the outlook for our business and its ability to continue its successful evolution. The effects of the pandemic are ongoing and we remain mindful of macroeconomic and geopolitical risks, but our continued investment over many years in our people and our systems has
generated strong and resilient results in the past year and we believe that it will continue to do so," said Chair Michael Roney.
Bridgepoint Group said it delivered a strong trading performance ahead of the expectations it set out at the time of its initial public offering last year.
For 2021, pretax profit was GBP62.6 million, up 29% from GBP48.5 million in 2020, and total operating income GBP270.6 million, up 41% from GBP191.8 million.
Bridgepoint had total assets under management of EUR32.9 billion at December 31, up 24% from EUR26.6 billion at the same time the year before.
Bridgepoint declared a 3.64p dividend for 2021, up from 0.79p in 2020.
Looking ahead, Bridgepoint said it is well positioned for 2022, with its financial performance in line with expectations.
"Looking forward, whilst we expect market volatility to continue, we are excited by the medium-term strategic growth prospects for the group with our business development plans continuing to evolve post IPO and we remain confident in Bridgepoint's ability to deliver strong returns for our fund investors and our shareholders alike," said Chair William Jackson.
Games Workshop said trading in the three months to the end of February 2022 has been in line with expectations. It declared a dividend of 70 pence per share, in line with the company's policy of distributing truly surplus cash.
Future said it has acquired digital-only entertainment publisher WhatCulture.com and data insight platform Waive, both for undisclosed amounts.
Future said the Whatculture acquisition strengthens its position in video, notably with expertise in the monetisation on YouTube.
Future said the Waive purchase will extend its Aperture data platform and enhanced data science capabilities. Aperture is Future's proprietary platform that allows advertisers to access Future's first-party audience data captured across its portfolio of brands, helping them reach high-intent target audiences, it explained.
In Asia on Thursday, the Japanese Nikkei 225 index closed up 0.3%. In China, the Shanghai Composite ended down 0.6%, while the Hang Seng index in Hong Kong was down 0.6%. The S&P/ASX 200 in Sydney closed up 0.1%.
"As we look ahead to this morning's European open, we look set to see a modest rebound despite a slightly softer theme in Asia, ahead of the latest insight into economic activity in March, and how businesses and consumers are dealing with the challenges being posed by the sharp rise in energy prices seen over the last few weeks, with the latest flash PMI numbers, from France, Germany, the UK and US," said CMC Markets analyst Michael Hewson.
Already out, Japan's private sector economy remained in contraction territory in March, though it got closer to growth after an improved month for the manufacturing arm, figures on Thursday showed.
The au Jibun Bank Japan flash composite purchasing managers' index rose to 49.3 points in March, from February's final tally of 45.8. The figure was closer to the 50.0 mark, which separates growth from decline.
The flash manufacturing PMI rose to 53.2 in March from 52.7 in February, suggesting growth has quickened.
The flash services PMI rose to 48.7 in March from 44.2 in February, "indicating the softest decline in services activity in the current three-month sequence," IHS Markit added.
US President Joe Biden is in Brussels for back-to-back emergency NATO, G7, and EU summits from Thursday that will bring pledges of more lethal weapons for Ukraine, more punishing sanctions on Russia's economy and warnings about further escalation.
However, NATO members, while maintaining a steady supply of anti-tank and short-range anti-aircraft missiles, have refused Ukrainian President Volodymyr Zelensky's demands for a no-fly zone over Ukraine or shipment of warplanes to the Ukrainian air force, fearing all-out war with nuclear-armed Russia.
The pound was quoted at USD1.3198 early Thursday, marginally lower from USD1.3201 at the London equities close Wednesday. The euro was priced at USD1.0982, down from USD1.1005. Against the yen, the dollar was trading at JPY121.67 in London, up from JPY121.03.
Brent oil was quoted at USD121.07 a barrel on Thursday morning, down from USD121.99 late Wednesday. Gold stood at USD1,944.77 an ounce, higher against USD1,933.76.
The economic calendar on Thursday has a raft of PMI readings, with Germany at 0830 GMT, the eurozone at 0900 GMT and the UK at 0930 GMT. US jobless claims are at 1230 GMT followed by the PMI at 1345 GMT.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Next (NXT)
Bridgepoint (BPT)
Games Workshop (GAW)
Future (FUTR)
