Updates from Marks & Spencer, Glencore and Persimmon

Updated
savings, tax, stockmarket, pensions, cash, investment FTSE 100, Glencore, M&S Chevron
savings, tax, stockmarket, pensions, cash, investment FTSE 100, Glencore, M&S Chevron

Little momentum from stocks again yesterday. The FTSE 100 rose just 21.8 points higher taking it to 6,383.6. Resources gained with BP, Glencore and AngloAmerican taking 3.8%, 3.3% and 3.2% lifts (to 403p, 119.45p and 561.90p). However aerospace and defence operator Meggitt surged almost 4.5% to 373.10p following a positive revaluation from Barclays.

Across the water, again, the Dow picked up. The US stock market climbed almost 90 points to 17,918.1 with Visa and Chevron both up sharply. Strong car sales data added to positive US consumer sentiment.

We start on the high street at M&S and a very mixed picture. Half year pre-tax profits are down 22% to £216m though underlying profit was rather better, up 6.1% to £284m. The dividend is up 6.3% to 6.8p.

As usual, food sales were strong, up 3.3% though general merchandise sales slipped -1.2% in the three months to September on like-for-like metrics. International M&S revenues were down 5.1% (or 0.9% on constant currency).

"In General Merchandise," says chief exec Marc Bolland, "we decided to improve profitability by focusing on gross margin, delivering another significant increase, which in part resulted in slightly lower sales."

Moving next onto troubled resources operator Glencore (which has lost 60% of its market value this year, the worst FTSE 100 performer). However Glencore claims its debt levels should fall to $25bn by the year end.

Swiss-based Glencore still has a $30bn debt load and has been put under severe pressure by the slump in commodity prices and the Chinese consumption slough. Copper production - crucial to its business - is being slowed.

"Marketing was stronger over the quarter," said the company in an update, "with improved contributions from metals and minerals and agricultural products."

Finally, a third quarter update from house builder Persimmon. Private sales since half year numbers on 18 August are 12% ahead of last year. Pricing remains "robust" across its regional markets it claims.

Mortgage approval volumes are 13% ahead year on year it adds; the operating margin is on the move and Persimmon expects "further progress in the second half" from 20.5% (currently).

"Land availability," it says, "is improving as a result of the consistent application of the National Planning Policy Framework with Local Plans identifying sustainable locations for residential development."

Spectrum Investing: Monetizing Internet of Things
Spectrum Investing: Monetizing Internet of Things

Advertisement