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UK stocks drifted lower in early trading on Wednesday as concerns about the more transmission Delta variant of Covid-19 tempered recovery hopes, even as more local companies upgraded earnings guidance.
At 0825, the benchmark FTSE 100 index was down 13.05 points, or 0.2%, at 7,074.50.
Pharmaceutical play Indivior jumped 11% to 160.7p, having raised its annual profit and revenue guidance following a strong first half.
Revenue for the full year was now expected at $705 million-to-$740 million, up from previous guidance of up to $625 million, with pre-tax profit 'significantly' above previous guidance.
Outsourced services group Serco edged up less than 0.1% to 137.59p on guiding for a a more than 50% rise in first-half underlying profit, while sticking to its revenue and earnings guidance for the full year.
Sercos annual underlying trading profit was still expected at around £200 million, up 30% in constant currency, but it upgraded free-cash flow guidance to around £300 million, from $275 million.
Mining giant Rio Tinto gained 0.2% to £60.388, even as it declared force majeure on customer contracts at its Richards Bay mineral sands operations in South Africa due to security concerns.
All mining and smelting operations at Richard May had been halted until further notice, Rio Tinto said.
Electronics retailer Dixons Carphone was little changed at 122.95p as it resumed its dividend after swinging to a £33 million annual profit, underpinned by surging online sales.
Dixons Carphone declared a full-year dividend of 3p per share.
Auto dealer Pendragon rose 2.1% to 18.81p, having upgraded its first-half profit guidance and reinstated its guidance for the full year, citing a recovery in demand.
Pendragon's underlying pre-tax profit for the six months through June was now expected at around £30 million, swinging from a year-on-year £31 million loss, rising to £45 million-to-£50 million for the full year.
Logistics property investor Urban Logistics REIT shed 3.2% to 158.2p after it launched a £108 million equity raising to snap up investment opportunities.
New shares in the company were being offered at 155p per share, a 5.2% discount to its closing price on Tuesday.
Fellow property play LXi REIT firmed 0.2% to 134.21p as it upped the target size of a previously announced placing to £100 million from around £75 million, citing strong investor demand.
Advertising firm M&C Saatchi rallied 6.9% to 158.22p, having booked a £8.5 million full-year loss but upgraded its annual guidance, citing a corporate restructure that saw it cut costs.
M&C Saatchi said it expected its full-year results to be ahead of consensus market expectations, with first-half 'headline' profit expected to exceed £10 million.
Train and bus company Stagecoach advanced 1.1% to 83p, even as it reported a 39% fall in annual profit after pandemic-related lockdowns and other restrictions weighed on sales.
Stagecoach's pre-tax profit for the year through May dropped to £24.7 million, down from £40.6 million year-on-year, as revenue dropped 35% to £928.2 million.
Flooring retailer Topps Tiles added 0.7% to 72.37p on reporting a 13% rise in third-quarter like-for-like sales, driving 'strong' profits, following an easing of UK lockdown measures.
Topps Tile's sales were up by a more impressive 19% in the 11 weeks since stores reopened, having fallen 17% in the two weeks to 10 April during trading restrictions.