Updates from Kingfisher, Tate & Lyle and IAG
Shares in London got a 1.2% boost on Wednesday with the FTSE 100 soaring more than 84 points to 7,033.3. Building materials player CRH was the biggest winner, up 3.5% to 1839p while ImperialTobaccoGroup was up 3.3% to 3393p. BA owner IAG lifted 3.2%, helped by its Aer Lingus offer. Losers were limited though Glencore was down 1% to 286.7p. Greek debt anxiety was less pronounced.
Stateside, the Dow Jones lifted more than 121 points to 18,162 with tech shares gaining ground: Microsoft was up 2.1% and Intel up 1.8%.
The main news this morning is from Screwfix and B&Q owner Kingfisher: Q1 sales are worth £2.6bn, up 0.8% like-for-like and with retail profit coming in at £150m, up 1.4% in constant currencies.
On a constant currency basis, retail profit, excluding new country development, was up 3.1% to £157m says the group. Véronique Laury, Kingfisher boss, says the numbers are a solid start to the year.
"In the UK, B&Q continued to grow sales volumes and Screwfix delivered an excellent performance, opening its 400th store in May. In France, our businesses performed broadly in line with the market."
Next, final numbers from multinational agribusiness Tate & Lyle. On a statuary level operating profits slump from £251m to £33m while pre-tax profits dive from £277m to £51m. However adjusted profits come in at £224m, 30% lower.
Speciality Food Ingredients adjusted operating profit was 29% lower in constant currency at £149m (2014 – £213m) with Bulk Ingredients adjusted operating profit 19% lower in constant currency at £133m (2014 – £172m).
"It has been a very challenging year for the Group," says boss Javed Ahmed, "but with the necessary actions underway we are firmly focused on improving our performance and continuing the evolution of Tate & Lyle into a global Speciality Food Ingredients business."
Lastly, a terse statement from IAG on its €1.4bn Aer Lingus takeover offer. "IAG confirms that the Offer Price is final and will not be increased."
The statement will be partly directed at Ryanair, who owns 30% of Aer Lingus. Ryanair has not yet made any move to confirm whether it will accept the €2.55 per share offer from IAG.
"I expect Ryanair," says IAG boss Willie Walsh, "to behave in a rational way, they are a well-run business with proper corporate governance in place."
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