Mitchells & Butlers cut losses | Macfarlane | Omega
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5 p.m .: The market is rising again
The UK blue chip benchmark closed around 24 points at 7310, with European markets benefiting from any volatility on Wall Street, closed for Thanksgiving Day.
Hospitality companies have helped FTSE 100 extend his winning streak into a fourth day.
Pentecost bread, owner of Premier Inn, finished among the top performers, up 2.8%, following an optimistic rating from Jefferies.
He said: “As we move from bottlenecks to pent-up demand and vaccine-induced standardization, we expect a disaffection of investor attention from the leisure sub-sector. Encouraging data focuses on hotels for 2022. “
Compass shares rose 3% to 1581p after Morgan Stanley set a price target of 1800p for the catering company.
Vodafone led the falls, down 3.65% after its shares were ex-dividend.
Brent Oil was listed at $ 81.92 a barrel at the close of London shares Thursday, down from $ 82.73 Wednesday night.
9:30 am: Drinks in the spotlight
Diageo has seen a strong recovery since September and Thursday was again the biggest contributor to the FTSE 100.
Investors have warmed to the story of the recovery as it benefits from increased sales of pubs, restaurants and hotels now that many Covid restrictions have been lifted, said Russ Mold, chief investment officer at AJ Bell .
“The contribution to the growth of Diageo shares has been positive for Remy Cointreau, whose shares jumped 9.4% after posting half-year results above expectations, including operating margins at a new all-time high.
“While there is a growing trend for more and more people not to drink alcohol, there is also a shift with others preferring more premium spirits, which plays on Diageo’s strengths. and Remy Cointreau. “
Since the start of the year, Diageo’s share price has risen 33%, meaning it has achieved three times the returns of the FTSE 100 in 2021.
Mr. Mold adds that the last few years have been difficult for Mitchells & Butlers, but that he eventually returned to profitability in his second half of the period.
“However, it seems the business is working really hard just to make the smallest gains,” he says.
“Mitchells & Butlers has long lagged behind in the pub and restaurant business, and you can’t help but feel that it needs to sharpen its focus. The company says it tries to offer something for everyone, whether it’s a sleepy country pub or a more lively atmosphere in a downtown establishment.
“However, the group has 17 different brands, which seems a bit excessive. Perhaps the current environment could force the group to focus more on what they do best, rather than being something for everyone? “
The FTSE 100 itself was stable as strength in consumer, industrials and health care stocks was offset by weakness in technology, energy, financials and real estate.
7h: Mitchells and butlers
Pub group Mitchells & Butlers saw their loss decline to £ 42million in the year through September 25, from £ 123million in the previous 12 months. Like-for-like sales are down 9.6%.
The owner of All Bar One and Miller & Carter chains, as well as pubs such as Sheep Heid in Duddingston, said since unrestricted trading resumed on July 19, it has seen an encouraging return to comparable sales growth .
This development was encouraged by the reduction in the VAT rate on sales of food and non-alcoholic beverages.
Like-for-like sales have grown by 2.7% since the end of the year compared to the same period in fiscal 2019.
“However, headwinds on costs represent a major challenge for the hospitality industry as a whole, especially when it comes to utilities and employment costs,” he said.
7h: Macfarlane expects to exceed expectations
Packaging company Macfarlane said performance since the first half of the year has been strong and the board now expects the group to exceed its previous expectations for the full year.
Turnover has increased by 25% since the start of the year and the group’s pre-tax profit is well above that of the corresponding period in 2020. The two acquisitions made in 2021 are doing well.
The Glasgow-based company said it expects the remainder of 2021 to remain difficult with inflation in input prices, constraints on the supply of some raw materials and increasing operating costs in due to pressure on staff.
Some customers are also experiencing supply chain issues that affect their packaging demand. However, the group’s management team remains focused on effectively managing these challenges.
Net bank debt at October 31, 2021 reduced to £ 2.0m (June 30, 2021: £ 8.7m).
Stuart Paterson, President, said: “The performance of the Macfarlane Group has been strong in demanding market conditions and is a testament to the strength of our business model and the diligence of our employees.
“In the interim results we indicated that we expect headwinds in the second half of 2021, so it is particularly pleasant to raise our expectations again for the full year. “
7h: The loss of omega is accentuated
Omega Diagnostics, the food and pharmaceutical testing company, said revenue from COVID-19 “remains extremely difficult to predict” as negotiations on a contract with the UK government continue.
The company recorded an increased statutory loss of £ 2.75 million (H1 2020: £ 0.28 million) for the six-month period ended at the end of September.
Simon Douglas, President, said: “We are confident that second half revenues will see significant growth in health and nutrition and for our CD4 product, and although revenues from COVID-19 remain extremely difficult to predict, they are expected to depend more on business partnerships than UK government procurement opportunities and are impacted by the timing of pending regulatory approvals.
“Overall, we expect improved sales performance across the group for the full year and reduced losses in the second half of the year. “
7h: Menzies extends contract with easyJet
Menzies Aviation, the global specialist in aviation logistics, has secured an extension of its long-standing ground services partnership with easyJet at 21 airports across Europe.
The contract renewals will allow Menzies to provide a range of ground services, such as passenger, ramp, cabin cleaning and de-icing, for easyJet flights at major European and UK airports.
Edinburgh-based Menzies have had a well-established relationship with the airline for over 15 years.
Oil price paused as investors waited to see how major producers react to the emergency release of crude by major consuming countries aimed at controlling rising prices.
Brent crude futures slipped 3 cents to $ 82.22 a barrel after losing 6 cents on Wednesday.
US West Texas Intermediate (WTI) crude futures fell 9 cents, or 0.1%, to $ 78.30 a barrel, extending an 11-cent loss on Wednesday.
Attention is turning to the Organization of the Petroleum Exporting Countries Russia and Their Allies, known as OPEC +, which will meet next week to discuss oil demand and supply.
In stock markets, Japanese stocks rose Thursday, led by technology stocks as investors struck good deals after steep losses in the previous session.
The Nikkei stock average rose 0.67%.
Wall Street stocks ended higher ahead of the Thanksgiving holiday, with the Nasdaq Composite recover technological gains.