Updates from BP, Next and Domino's Pizza

Updated
savings, tax, stockmarket, pensions, cash, investment FTSE 100 BP, Next Domino's Pizza
savings, tax, stockmarket, pensions, cash, investment FTSE 100 BP, Next Domino's Pizza


Yet more pressure on the FTSE 100 on Monday with the Big Board tumbling 1.1% to 6,505.1, a 74-point drop. Pearson and MerlinEntertainments took the biggest hits, down 4.7% and 4.2% respectively to 1161p and 405p. SageGroup was also down significantly taking a 3.8% tumble to 520.50p. However Bunzl and ReckittBenckiser shares climbed 1.7% and 1.4% respectively to 1791p and 5993p.

Things weren't much better Stateside with the Dow Jones down 127 points to 17,440 as fears on Chinese share prices, and global growth prospects, widened; Boeing shares dived 2.1%. Chinese shares continued to sink this morning.

We start on the high street with a new trading statement from Next. Full price sales for the first half of the year were up 3.5%, of which 1.7% came from the opening of new space. Full price sales for NEXT Retail were up 0.8% and NEXT Directory was up 7.5%.

Total sales including markdown sales were up 3.3%. Sales were better than expected and marginally ahead of the 0%-3% guidance range given in March. "We believe," the retailer said in a statement this morning, "the improvements experienced at the end of the season were mainly driven by warmer weather."

The mid-point of Next's full-year profit guidance has consequently been upped by 1.9% from £810m to £825m; full year sales guidance range has been increased and is now 3.5%-6%.

Not such good news for BP: lower oil and gas prices saw underlying replacement cost profit for the quarter coming in at $1.3bn compared with $2.6bn for the last quarter and $3.6bn for the second quarter of 2014.

In the second quarter Brent crude averaged $62 a barrel, compared with $54 a barrel in the first quarter and $110 a barrel in 2Q 2014. In the third quarter to date, the price averaged $58 a barrel.

BP put a brave face on the numbers: "Our work to increase efficiency and reduce costs," said BP chief exec Bob Dudley, "is embedding sustainable benefits throughout the Group and we continue with capital discipline and divestments."

Lastly, a brief nibble atDomino's Pizza half-year numbers. Sales are up 14% to £426.7m overall while UK like-for-like sales climb 10% to £378.8m. Underlying operating profit soars 30% to £32.1m.

Online sales were ahead by 24.4% with app-based sales now taking the largest distribution channel driving 51.6% of online sales, so Domino's claims.

"We've had a strong first half," says boss David Wild, "driven by an excellent performance in our core UK business, which has again recorded double digit like-for-like sales growth. Our international operations have also shown improvements compared to last year."

Eating Out in London: Is Pizza in England Better Than in Italy?
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