Updates from FirstGroup, Michael Page and Carillion
A less than euphoric climb for the FTSE 100 on the back of Monday's Greek deal. The FTSE 100 rose just 64.5 points to 6,737.9 with BA owner IAG the biggest winner, up 3.4% to 549p. Morrisons also was up sharply, rising 3% to 178p while there was also a strong 3% gain for Kingfisher, also up 3%, to 363p.
European shares were rather more optimistic on 'aGreekment' with France's Cac 40 up almost 2% while the German Dax climbed 1.49%. Stateside, the Dow was up 1.2% to 17,977.6 while the Shanghai composite climbed 2.4%.
We commence this morning with a second quarter and first half trading update from recruiter Michael Page. Ongoing currency headwinds lowered reported Q2 gross profit by about £6.2m (£11.0m total in H1) and growth rates by 4.6 percentage points to 6.0% in reported rates says Page.
The strongest growth was in the UK, up 12.8% with Page Personnel UK up 21%. Gross profits for Q2 2015 came in at £145.3m compared with £137.1m a year ago.
"Excluding the effects of foreign exchange movements during the second quarter," says Page, "forecast to reduce full year operating profit by an additional £4m (£2m in Q1, £6m in total), the Board's expectations for the full year results remain unchanged."
Moving on to FirstGroup and a first quarter trading statement. Overall trading for the Group is in line with expectations claims FirstGroup; First Student continues to achieve slightly higher average price increases while UK Bus delivered more growth.
For First Student in the current year it expects to make progress towards a double digit margin target, despite the impact of approximately $17m to operating profit from fewer operating days.
For the first quarter, FG's UK Rail division delivered like-for-like passenger revenue growth of 6.3%, underpinned by robust volume growth it claims. Meanwhile there is some unhappiness about FirstGroup chairman's recent pay rise (rising more than 240% in four years).
Lastly, a half-year trading update from Carillion. Performance is in line with expectations with full-year targets unchanged meanwhile it reports a "significant" increase in first-half revenue with progress on contract mobilisations.
The Group claims it's on track to deliver healthy full-year revenue growth, while maintaining margin discipline. Given the effect of the 2014 final dividend in June a modest increase in net borrowing at the half year to around £200m is anticipated.
"Our exceptionally strong work winning performance in 2014 meant that the Group entered 2015 with secured and probable orders worth £18.6 billion, record revenue visibility of 85%."
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