(Alliance News) - Stock prices in London are seen opening higher on Monday as investors look ahead to the planned signing of a US-China trade deal later this week.
In early UK company news, bookmaker William Hill said 2019 adjusted operating profit is set to come in line with expectations and announced the departure of its chief financial officer. Real estate services firm Savills said it delivered a resilient annual performanc. Healthcare property specialist Assura said it saw strong progress in the third quarter.
IG futures indicate the FTSE 100 index will open up 11.35 points at 7,599.20. The UK blue-chip index closed down 10.27 points, or 0.1% at 7,587.85 on Friday.
William Hill said adjusted operating profit is expected to be in the range of GBP143 million to GBP148 million, which it said is ahead of market and management expectations. The betting firm attributed this to favourable sporting results. In 2018, adjusted operating profit came in at GBP266.8 million.
In addition, the US business continued to generate strong growth during the fourth quarter, William Hill said, driven by wagering growth and disciplined investment. The company now expects to breakeven for the US business overall in 2019, which is a better performance than previously guided.
The bookmaker said its high street Retail business generated operating profit above the guided range of GBP50 million to GBP70 million.
"The group has delivered a strong operating performance, ahead of our expectations and against a challenging regulatory backdrop. We made good progress on a number of fronts, including our Retail business, Online and in the US, enabling us to deliver on our long-term strategic ambitions. We look forward to building on these efforts in 2020 with a strong focus on customer, team and execution," said Chief Executive Officer Ulrik Bengtsson.
William Hill will report annual results on February 26.
William Hill also said Chief Financial Officer Ruth Prior intends to step down from the role and join Element Materials Technology as its CFO. William Hill has started the search to find a new CFO and said Prior's departure date will be determined in due course.
Savills said it delivered an annual performance which reflects both the "robustness and geographic diversity" of its market position.
The estate agent said it has shown "considerable resilience" during a year in which it was exposed to significant challenges in the UK, due to uncertainty over Brexit and a general election, and in Hong Kong, which saw violent clashes between police and protestors.
"The strength of Savills positions in both markets contributed to a resilient performance through increased market share, despite lower volumes of activity generally," the company said.
Due to an "excellent" performance in the UK, significant growth in the US and a strong performance from Savills Investment Management, Savills said it expects underlying results for 2019 to be at the upper end of expectations.
"Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets. Global investor demand for secure income, restricted supply and expectations of continued low interest rates suggest that the medium and long term dynamics of the UK real estate market should remain largely positive," Savills said.
"Nevertheless, some caution may remain until the full impact of Brexit is better understood. Certain other global markets continue to be overshadowed by macro-economic and political uncertainties. As a result of these factors, at this early stage in the year the board's expectations for 2020 remain unchanged," the company added.
Assura said it has continued to make strong progress in the third quarter. The Warrington, Cheshire-based firm said it has a strong pipeline of opportunities worth GBP252 million including 13 developments on site.
"With the new government enshrining in law increased funding for the National Health Service and taking forward the Health Infrastructure Plan, better primary care facilities for patients, staff and services are at the heart of the agenda. In this context, Assura is well positioned to deliver high-quality assets and value for money for the NHS," said CEO Jonathan Murphy.
LondonMetric Property said it sold an office park in Worcester for GBP6.2 million. The property investor said the disposal price is 4.3% above acquisition cost and 2.5% above book value.
Focus this week is on Washington, where China and the US will finally put pen to paper on their highly anticipated "phase one" trade deal on Wednesday. The preliminary trade deal agreement has eased tensions between the economic superpowers and boosted prospects for the global economy.
In currencies, the pound was quoted at USD1.3028 early Monday, down from USD1.3061 late Friday. The euro was at USD1.1128, up from USD1.1112. Against the yen, the dollar was trading at JPY109.63, flat against JPY109.60 late Friday.
Oil was quoted at USD65.08 a barrel early Monday, down from USD65.40 late Friday.
"Oil prices edged down Monday as fears of conflict between the United States and Iran eased, although the decline was checked by the planned signing of an initial US-China trade deal this week, which could boost demand," said analysts at RMB.
Gold was trading at USD1,553.93 early Monday, lower than USD1,559.30 late Friday.
In China, the Shanghai Composite closed up 0.8%, while the Hang Seng index in Hong Kong is up 1.1%. Financial markets in Japan are closed on Monday for the Coming of Age public holiday.
The economic events calendar on Monday has UK GDP readings, alongside industrial and manufacturing figures, at 0930 GMT.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Assura (AGR)
Savills (SVS)
