Yahoo Finance FTSE 100 Live: FCA money laundering charges, easyJet profits upgrade, Aviva reveals cold snap cost
Low-cost airline easyJet today upped its profits guidance after “strong and sustained demand” for travel in the final three months of 2022.
Revenue per seat increased 36% year-on-year, while the company’s holidays division is now over 60% sold for this summer.
Elsewhere, insurer Aviva said claims linked to December's cold snap will cost it around £50 million but that its overall weather experience for 2022 was in line with expectations.
FTSE 100 Live Wednesday
Upbeat easyJet raises profits guidance
Aviva reassures after £50 million weather hit
JD Wetherspoon reports 13% rise in sales
That’s all folks. Tomorrow: Diageo
Wednesday 25 January 2023 17:45 , Simon Hunt
That concludes our liveblog coverage for today, after easyJet boosted its profits guidance after stronger-than-expected demand for flights in the run-up to Christmas.
The Evening Standard City Desk will be back at 7am tomorrow, where we’ll be covering a trading update from Guinness, Tanqueray gin and Smirnoff vodka owner Diageo.
FTSE 100 closes down 12 points: Evening wrap
Wednesday 25 January 2023 16:40 , Simon Hunt
The FTSE 100 closed down 12 points to 7,745 at the end of the day’s trading session in London, in a further blow to hopes the index might hit a record high before the end of the month.
Industrials stocks fell the most, down 1.15% on average, while Ocado was the single worst performer, down 4.94%.
It was a better day for sterling, however, which gained about half a cent on the dollar, with the greenback weakening amid fears Germany sending tanks into Ukraine amounted to an escalation in the war with Russia.
Sales of £5million+ London mansions hit record high
Wednesday 25 January 2023 15:30 , Simon Hunt
A record number of mansions were sold in London in 2022, in signs the capital’s super-rich are shrugging off an economic downturn to get their hands on luxury property with a seven-figure price tag.
Over 600 homes over the value of £5 million were sold in the capital last year, the highest level property business Savills has seen since records began in 2006.
New York stocks open lower amid disappointing tech earnings and escalating war in Ukraine
Wednesday 25 January 2023 14:37 , Simon Hunt
Stocks slumped in the opening minutes of trade on Wall Street, as investors were unsetlled by a combination of disappointing earnings from key tech businesses, as well as fears Germany sending tanks into Ukraine amounted to an escalation in the war with Russia.
The Nasdaq fell 1.7%, while thr S&P fell 1.2% and the Dow fell 0.8% in the moments following the opening bell.
Shares in Microsoft dropped 3.3%, following a cautionary note on the future of its cloud unit on top of ongoing server issues that appear to be affecting users worldwide today.
City Comment: More London firms are closing than opening. That should cause alarm
Wednesday 25 January 2023 13:26 , Simon Hunt
Goodness me, what a mine of information (useful and useless) is The State of London, the annual statistical round-up from the GLA’s City Intelligence Unit that was published this week.
Amid all the factual flotsam and jetsam, one piece of information really caught my eye. For the first time since records began (although admittedly that is only 2017) the number of business starts in the capital is being consistently outstripped by closures.
The graph illustrating the trend shows business “births” bobbing along at between 20,000 and 25,000 a year, while closures are well below 20,000. Then as Covid takes hold in 2020 the closures line starts to climb rapidly, overtaking births at the start of last year. Alarmingly over the past 12 months on average London saw more than 5,000 businesses close than open per quarter.
It is no great secret that London’s economy took a harder hit from Covid than any other region when its lifeblood of daily commuters and tourists dried up. It is on a strong recovery now but large parts of central London, such as the City, are still notably quieter than before the hybrid revolution transformed working patterns forever. Across the week transport networks are still around 15% quieter than before Covid and footfall has still not fully recovered. And of course the endless strikes do not help.
For many smaller more vulnerable retailers, hospitality outlets such as pubs, and other businesses in London’s vast ecosystem, that could all add up to the difference between life and death. And you will miss them when they are gone.
FCA says five individuals face conspiracy to insider deal and money laundering charges
Wednesday 25 January 2023 12:40 , Simon Hunt
The Financial Conduct Authority (FCA) has started criminal proceedings against five individuals for conspiracy to commit insider dealing and money laundering.
The FCA alleges that Redinel Korfuzi, Oerta Korfuzi, Iva Spahiu, Rogerio de Aquino and Dema Almeziad conspired to commit offences of insider dealing between 17 December 2019 and 25 March 2021.
The FCA alleges that Mr Korfuzi used confidential inside information he accessed as an Analyst in his former role at Janus Henderson to enable timely and profitable trading in 49 companies through accounts held by his co-conspirators.
In each case, the defendants used a derivative product called Contracts for Difference in relation to each of these companies, betting that the value of shares would go down after the announcements.⯠In doing so, they were able to realise profits of approximately £1.5 million.
All five are also charged with money laundering offences relating to over 170 cash deposits totalling approximately £200,000.
The case was formally sent to Southwark Crown Court, where the defendants will appear on 22 February 2023 for a Plea and Case Management Hearing. All the defendants have indicated Not Guilty pleas.
The FCA said Janus Henderson has co-operated fully with the FCA’s investigation.
Australian start-up launches late rescue move for collapsed Britishvolt
Wednesday 25 January 2023 11:45 , Simon Hunt
An Australian start-up has tabled an 11th-hour rescue bid for collapsed electric battery business Britishvolt.
Recharge Industries said it lodged a late takeover bid on Tuesday for the firm, which had plans to build a £3.8 billion gigafactory to make batteries in Northumberland.
It comes a week after Britishvolt collapsed into administration and made the majority of its roughly 300 workers redundant.
The company appointed administrators at EY after failing to raise enough cash for its research and the development of its Cambois site.
Shares up as Cannes Lions owner Ascential updates on portfolio split
Wednesday 25 January 2023 11:15 , Joanna Bourke
Ascential has revealed plans to break up its business, in a move that will see its event arm behind the Cannes Lions advertising festival remain London-listed but other divisions being sold or moving.
The events and data firm gave the strategic review update alongside reporting a 49% sales jump to £520 million in 2022 and adjusted underlying profits of £118 million, ahead of the top end of analyst expectations.
The FTSE 250 firm is now proposing a series of actions which “better position each business to independently pursue and achieve their growth ambitions, while also realising the best near and long-term value for shareholders”.
The shares are up more than 21%, or 45.2p, at 253.2p.
Read the full story HERE.
Aviva guidance boosts shares, FTSE 100 higher
Wednesday 25 January 2023 10:20 , Graeme Evans
Aviva calmed the nerves of investors today after signalling that an expected £50 million hit from December’s cold snap is unlikely to have a bearing on its dividend.
Shares jumped 3% or 13.2p to 454.5p as Aviva’s general insurance arm stuck to its 2022 guidance, allaying worries that had been building in the insurance sector since Direct Line pulled the plug on its dividend due to a surge in weather claims.
Aviva’s resilience did little to help the mood towards Churchill owner Direct Line, which fell 3.1p to 172.6p as it also suffered from a downgrade by analysts at Berenberg.
FTSE 250-listed Direct Line said this month that weather claims were almost double initial expectations, adding to ongoing pressure from motor claims inflation.
Aviva disclosed today that support for its customers during and after December's freeze will cost it about £50 million but that its weather experience across 2022 was broadly in line with long-term averages.
The company’s guidance on its dividend and capital returns is unchanged, having said recently it expects to pay about 31p a share equivalent to £870 million for 2022.
Aviva’s share price recovery was accompanied by gains of 1% for Lloyds Banking Group and NatWest as the FTSE 100 index rose 7.84 points at 7765.20. Blue-chip stocks under pressure included BT Group, which slipped 1.85p to 129.2p.
The FTSE 250 index posted a stronger performance, lifting 64.98 points to 19,920.29 after sentiment was boosted by some encouraging trading updates.
They included electronics components supplier discoverIE, which rose 3% or 23p to 815p after record third quarter sales left it on track to beat full-year profits guidance. Broker Peel Hunt reiterated its 1,000 target price following the update.
Road safety barriers maker Hill & Smith also impressed investors, adding 14p to 1274p after a brief update revealed that 2022 profits should be at the top end of City forecasts.
On AIM, building supplies chain Lords Group Trading jumped 8.5p to 85.5p as it said its target to be a £500 million revenue business by 2024 had been boosted by its latest sales and profits coming in ahead of forecasts.
FTSE 100 higher, Ascential surges 24% in FTSE 250
Wednesday 25 January 2023 09:04 , Graeme Evans
Shares in British Airways owner IAG topped the FTSE 100 index today as the airline’s recovering valuation received another boost following easyJet’s improved profits guidance.
IAG’s shares were 4% or 5.9p higher at 172.2p, while easyJet jumped 9% or 42p to 510p and Wizz Air lifted 199p to 3089p in the FTSE 250 index.
The FTSE 100 index gained 10.81 points to 7768.17, with Aviva up 3% or 11.7p to 453p after its reassurance for investors ove the impact of cold weather claims. In contrast, under pressure shares in rival Direct Line weakened by another 1.5p to 174.4p.
The FTSE 250 index rose 89.30 points to 19,944.61, with Ascential up 24% or 50.8p to 258.8p after the events and data group announced plans to split up its portfolio.
Keywords gets a boost as it beats expectations for a second time
Wednesday 25 January 2023 09:00 , Simon Hunt
Irish videogame maker Keywords Studios has raised its forecasts above market expectations for a second time in the space of two months after seeing a surge in demand for services.
The Dublin-based business, which has studios in London’s Chinatown, Holborn and Shepherd’s Bush, said it expects full-year sales and profits to be 690 million and 112 million euros respectively, ahead of previous forecasts of 675 and 110 million euros in November, which were themselves above the top end of their original plans.
Keywords, which has worked on Minecraft, League of Legendes and Assasins Creed video games, added it benefitted from the increasing complexity of the newest games, as well as getting a boost from the weaker dollar .
The business’s boss, Bertrand Bodson, said: “Whilst we are mindful of some headwinds currently facing the industry, our business model, highly diversified client base and geographical reach means that we are less exposed to the "hit or miss" risk from individual games and more insulated from changes to the development cycle of new releases.”
Keywords shares climbed 1.8% to 2,652p.
Microsoft rally fades, FTSE 100 seen higher
Wednesday 25 January 2023 07:55 , Graeme Evans
Microsoft last night reported better-than-expected earnings as the strength of its cloud services business Azure offset pressure on its consumer-focused operations.
The shares initially rose by 4.5% in after-hours trading but later fell back as investors focused on the potential for Azure sales to slow in the first quarter of 2023.
Hargreaves Lansdown analyst Sophie Lund-Yates said: “The group’s overall revenue growth is a long way off the double-digit strides markets had become accustomed to.
“Microsoft is dealing with a marked slowdown in personal computing revenues, which reflects the incredibly challenging consumer environment.”
The Microsoft uncertainty means futures markets are predicting a modest decline for the S&P 500 index, having been broadly flat at last night’s closing bell.
The FTSE 100 index fell 0.3% yesterday, with CMC Markets forecasting the top flight will open five points higher at 7762 this morning.
Lords Group Trading builds up revenues
Wednesday 25 January 2023 07:54 , Joanna Bourke
Building supplies chain Lords today it is on track to become a £500 million revenue business, after its latest sales and profits came in ahead of forecasts.
Lords Group Trading, which sells bricks, timber and other goods to trade customers and the general public, expects to report 2022 sales of not less than £450 million, up 23.9%, and adjusted profit before tax of £16 million. The current consensus analyst forecasts are respectively £436.7 million and £15.7 million.
The company, which is led by Shanker Patel, was boosted by acquisitions and comparable sales growth in the second half.
It said: “Whilst mindful of the uncertain macro-economic environment and its impact on the sector in the short term, the continued delivery of the Lords organic and acquisitive led growth strategy gives the board confidence in Lords’ ability to fulfil its IPO objective to be a £500 million revenue business by 2024.”
Aviva reveals cold snap cost, sticks to guidance
Wednesday 25 January 2023 07:40 , Graeme Evans
Insurance giant Aviva today said support for its customers during and after December's freezing weather will cost it about £50 million.
However, the company reassured investors that its weather experience across 2022 has been broadly in line with long-term averages and only marginally above in the fourth quarter.
The guidance comes after rival Direct Line pulled its dividend in the wake of a big surge in weather claims.
In an update on its general insurance business, Aviva said its core measure of profitability was consistent with guidance given in November and that the outlook for its dividend and capital returns remains unchanged.
EasyJet ups guidance as winter loss narrows
Wednesday 25 January 2023 07:30 , Graeme Evans
Luton-based airline easyJet today reported a loss of £133 million for the first quarter of its financial year, an improvement of £80 million on a year earlier.
Passenger growth in the period was 47% higher year-on-year and revenues per seat up 36%, driven by a 10 percentage point jump in easyJet’s load factor to 87% and a 21% rise in ticket yields.
Chief executive Johan Lundgren said: "We have seen strong and sustained demand for travel over the first quarter, carrying almost 50% more customers compared with last year.
“Many returned to make bookings during the traditional turn of year sale where we filled five aircraft every minute in the peak hours, which culminated in three record-breaking weekends for sales revenue this month.”
He expects a significantly reduced winter loss over the first half and said the airline is on track to deliver a return to profit in the year to 30 September, with a performance stronger than current City forecasts.
Taxes “big threat” to pubs, warns ‘Spoons boss
Wednesday 25 January 2023 07:28 , Simon English
There is life in the pub trade yet, the latest sales figures from JD Wetherspoon suggest, though founder Tim Martin again called for a change in how they are taxed.
Sales in the 25 weeks to January 22 were up 13.1% on a year ago and only slightly lower than they were pre-pandemic.
Martin, the chairman and outspoken Brexiteer, noted that costs in the hospitality sector are far higher, especially for energy and labour.
Despite that, Wetherspoon managed to repay £100 million of Covid loans to the government and cut debt by £60 million.
Martin said: “The biggest threat to the hospitality industry is the vast disparity in tax treatment between pubs and restaurants and supermarkets. Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20%. This tax benefit allows supermarkets to subsidise the selling price of beer. We estimate that supermarkets have taken about half of the pub industry’s beer volumes since Wetherspoon started trading in 1979, a process that has likely accelerated following the pandemic.”
He added: “Unless the industry campaigns strongly for equality, it will inevitably shrink relative to supermarkets, which will not help high streets, tourism, the economy overall, or the ancient institution of the pub.”
