The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are JD Spots, Associated British Foods, Taylor Wimpey, Watkin Jones, THG and PureGym. Read the Tuesday 23 April Business Live blog below.
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MARKET REPORT: Retailers lead the way on FTSE’s historic day
Retailers guided the FTSE 100 to a record high yesterday.
On a positive day for investors, London’s blue-chip index rose 1.6 per cent, or 128.02 points, to 8023.87.
That left the FTSE 100 above its previous record close of 8014.31 in February last year.
The mid-cap FTSE 250 index was also on the march, up 1.1 per cent, or 208.09 points, to 19599.39.
High Street store chains and major supermarkets led the way as optimism coursed through City trading floors.
ABF eyes ‘significant growth’ as profits soar
Primark owner Associated British Foods expects ‘significant growth’ in profitability this year after earnings jumped 39 per cent in the first half, partly driven by margin recovery at its clothing chain amid the opening of new stores.
The group, which also owns major sugar, grocery, agriculture and ingredients businesses, said adjusted operating profit, its key profit measure, was £951million in the six months to 2 March, on revenue up 2 per cent to £9.7billion.
‘The group has delivered a strong first half performance and is on track to deliver significant growth in both profitability and cash generation ahead of expectations at the start of this financial year,’ it said.
It was previously forecasting ‘meaningful progress’ in full-year profit.
Primark’s first half revenue rose 7.5 per cent to £4.5billion, with like-for-like sales up 2.1 per cent and margin recovery to 11.3 per cent, up from 8.3 per cent.
JD Sports buys Hibbett for £899m
JD Sports Fashion is set to buy American athletic-fashion retailer Hibbett for about $1.08billion (£899million), as the British sportswear retailer expands across the southeastern US.
JD Sports, Britain’s largest sportswear retailer, will pay $87.50 per Hibbett share in cash, representing a premium of about 20 per cent to the US firm’s last closing price.
The Bury, Greater Manchester-based company said it expects to fund the deal and refinance Hibbett’s existing debt through its existing US cash resources of $300million and a $1billion extension to its existing bank facilities.
The enlarged group would have combined revenues of about £4.7billion in North America, JD Sports said, adding that the region’s contribution to total sales would increase to about 40 per cent from the current 32 per cent.
Footsie hits a record as Investors eye lower interest rates in UK
The FTSE 100 closed at an all-time high yesterday as easing tensions in the Middle East and hopes of interest rate cuts in the UK sent shares soaring.
On a bumper day for savers with money tied up in the stock market through pensions, Isas and other investments, the blue-chip index closed up 1.6 per cent, or 128.02 points, at 8023.87.
That eclipsed the previous record close of 8014 in February last year.
Government borrowing £6.6bn higher than forecast last year
Government borrowing was £6.6billion higher than forecast last year, hitting £120.7billion as wages and benefit payments surged, fresh data from the Office for Budget Responsibility shows.
Public sector net borrowing was £7.6billion less than the prior year in the 12 months to 31 March, but was higher than OBR forecasts of £114.1billion.
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BUSINESS LIVE: UK borrowing soars; JD Sports buys Hibbett; ABF eyes ‘significant growth’
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