Updates from Rolls-Royce, InterContinental Hotels and Numis

Updated
savings, tax, stockmarket, pensions, cash, investment FTSE 100
savings, tax, stockmarket, pensions, cash, investment FTSE 100

Election jitters saw the FTSE 100 give away almost 47 points on Thursday to 6,886.9. Morrisons shares slumped more than 6.5% yesterday to 176.90p on news that sales were 3% down in the last quarter. GSK shares also took a steep hit, down almost 4.5% to 1447p. In contrast, Carnival shares climbed 3.7% to 3011p, helped on its way by an Outperform rating from Credit Suisse.

Overnight much of the emerging election clarity saw sterling climb. In the US on Thursday the Dow Jones put on weight, up 82 points to 17,924 helped by tech gains. New jobs data arrives today.

We start the UK post-election morning with an interim from Rolls-Royce, which is maintaining its full year guidance for 2015 and expects performance to be more weighted towards the second half.

On the aerospace side deliveries of Trent XWB engines will ramp up says Rolls-Royce while Land & Sea trading continues to be affected by lower oil prices and has started more slowly than in 2014.

In terms of currency exchange gusts, the company expects a £350 million reduction in earnings. "Since we last reported, we have continued to grow our order book and to invest in the future growth of our business."

We move onto InterContinental Hotels Group. Global Q1 revenue per available room (revPAR) climbs 5.9%. Americas RevPAR is up 6.2%, partially offset by softer trading in Canada and Latin America.

UK growth of 7.7% was driven by rate increases in both London and the provinces as the economic environment continues to improve, claims InterContinental (recently subject to some analyst upgrades).

"We achieved," says boss Richard Solomons, "our highest first quarter for hotel signings in seven years, and openings in five years, demonstrating the continued momentum behind both our established and new brands."

Lastly, half year results from stockbroker Numis. Revenues come in at £45.7m compared to £51.5m for 2014. Adjusted profits before tax slumps to £14.3m from £20.7m.

Numis claims the second half of 2015 has started strongly with the completion of a number of transactions including equity and bond issuances for Provident Financial, Clinigen and Cambian.

"We are actively supporting UK companies," says chief exec Oliver Hemsley, "seeking capital for organic growth and acquisitions. Numis' focus on building long-term relationships with companies and investors is bearing fruit."

Questions for Warren Buffett
Questions for Warren Buffett


Read more:

FTSE 100 at record highs

The Election - winners and losers

The Naked Trader

Advertisement