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UK stocks edged higher in early trading on Tuesday after a number of local companies issued pleasing earnings updates, though investors were still bracing for key US inflation data due Wednesday.
At 0821, the benchmark FTSE 100 index was up 4.81 points, or less than 0.1%, at 7,305.21.
Food and clothing conglomerate Associated British Foods jumped 6.5% to £19.7925 after it declared a special dividend, having notched a 5.7% rise in annual profit amid a post-lockdown recovery in demand.
The Primark-owner declared a special dividend of 13.8p per share, plus a full-year dividend of 34.3p, compared to zero payments in the previous financial year.
Engineering group Rolls-Royce rose 2.8% to 145.76p on announcing the launch of a mini nuclear reactor business, having secured £195 million of equity funding plus £210 million of UK government grant support.
Rolls-Royce said the £195 million would be provided by it and partners BNF Resources UK and Exelon Generation across a period of around three years.
Luxury-watch retailer Watches of Switzerland rallied 11% to £12.537 having upgraded its annual outlook after notching a better-than-expected performance in the first half.
Watches of Switzerland upgraded its full-year revenue guidance to £1.15 billion-to-£1.20 billion, up from previous guidance £1.05 billion-to-£1.10 billion, and also upped its margin guidance.
Building materials group Grafton eased back 0.2% to £13.59, even as it raised its full-year profit outlook after experiencing stronger-than-expected growth in July to October.
Grafton's full-year adjusted operating profit was now expected to be in the range of £265 million to £270 million, compared to the current consensus forecast of £256 million.
High-tech products supplier Oxford Instruments firmed 1.3% to £24.30 as it booked a 5.9% rise in first-half profit on the back of higher sales and fatter margins. Its adjusted profit jumped 27%.
Oxford Instruments declared an interim dividend of 4.4p per share, up 7.3% year-on-year.
Estate agent Savills gained 1.3% to £14.39 having upgraded its annual earnings guidance, citing particularly strong trading in the UK and Asia Pacific region.
Savaills said its profits for 2021 were expected to be 'materially ahead' of those achieved back in 2019, before a resumption of 'more normalised' trading and cost dynamics in 2022.
Insurance company Direct Line fell 1.3% to 284.6p after it reported a modest 0.7% rise in third-quarter premium revenue.
Strong growth in the commercial and green flag rescue divisions were offset by lower premiums in motor and travel, Direct Line said.
Africa-focused fuel retailer Vivo Energy added 0.4% to 106.4p following news chief executive Christian Chammas would retire from the role in 2022.
Stanislas Mittelman, currently Africa head at TotalEnergies Marketing & Services, had been appointed as CEO designate.