Sterling strength sees FTSE slip 0.3% lower

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The FTSE 100 saw a modest decline on Tuesday after trading broadly flat for much of the day as strength in sterling weighed on the overseas earnings dominated index.

By the close it was down 0.3% at 7,029.79. In the US the S&P 500 was also a bit lower, slipping 0..2% to 4,188.64 by 4.30pm UK time.

Industrial software group Aveva rallied 1.6% to £33.28 even as it reported a 63% slump in annual profit after the pandemic hits sales in the first half.

Aveva nevertheless upped its dividend by 1% to 23.5p per share, citing a second-half sales recovery that had limited a full-year fall in revenue to just 1.4%.

Engineering group Smiths fell 1.1% to £15.43 on announcing that chief executive Andy Reynolds Smith had stood down with immediate effect and been replaced by former 3M executive Paul Keel.

The change had been 'mutually agreed as the right time to provide new leadership as Smiths enters into its next growth phase,' the company said.

Military gas-mask maker Avon Rubber fell 10.7% to £29.18 despite hiking its interim dividend 30% to 14.3c per share, having swung to a first-half profit.

Avon Rubber also announced that it would change its name to Avon Protection in the second half, for which trading so far was in line with expectations.

London West End property group Shaftesbury was down 1.8% at 588p after it booked a deeper first-half loss as the pandemic hurt retail footfall, squeezing rental income and lowering asset valuations.

On a brighter note, Shaftesbury said footfall and spending were recovering as lockdowns ease. It declared an interim dividend of 2.4p per share.

Infrastructure group Hill & Smith climbed 1.1% to £15.20 as its revenue rose 10% in the first four months of the year, alongside an improvement in operating profit.

Wagamama owner Restaurant Group fell 2% to 125.8p on announcing that it had seen a 'very encouraging' recovery in sales since UK lockdowns eased.

In the five weeks to 16 May, Wagamama sites traded at about 85% of comparable 2019 sales levels, pub division sales also at about 85% and leisure division sales at about 60%.

Infant merchandise retailer Mothercare was down 3.1% at 15.9p after it guided for a small underlying operating profit for the full year, even as its sales slumped 40%.

Mothercare had previously forecast a small loss at the underlying earnings before interest, tax, depreciation and amortisation level for the year through 27 March.

Fashion retailer Ted Baker fell 1.6% to 177.2p, having secured an extension to its revolving credit facility with its existing lending syndicate to November 2023 with amended covenants.

Equipment and plant hire company Speedy Hire shed 4.9% to 77p as it booked a 21% drop in annual profit but resumed its dividend, citing a strong recovery in the second half.