The FTSE 100 is called to open higher this morning following the overnight performance on Wall Street which has continued in Asia helped by comments by William Dudley, a Federal Reserve official who said that it could be too soon for the US Fed to begin lifting interest rates in light of this week's market activity and global economic backdrop. The economic diary today focuses on the US with the release of the second estimate of GDP for Q2 2015, the latest US weekly jobless claims and it is the start of the annual Jackson Hole symposium which will see central bankers, policy makers and economists from around the world in attendance. Commodity prices are firmer and on the foreign exchanges, the dollar is slightly weaker against the pound, euro and yen ahead of these data releases and start of Jackson.
Company Announcements
Grafton Group
Half Year Results from the builders merchant and DIY group sees revenue up 7% at £1.08bn (+10% in constant currency), operating profits ahead 21% at £61.2m with the operating margin increasing to 5.6% (5%) and PBT growing 26% to £57.9m. ROCE was up 2.2pts to 12.4% and the dividend is raised 20% to 4.5p with it noting that the UK merchanting business had a good performance with Selco strong and there being a significant contribution from UK acquisitions and new branches. It added that the overall outlook remains positive and despite current challenges, it is well placed to make further progress in H2 towards delivery of its medium term targets of a 7% operating margin and a ROCE of 15%.
Hays
Preliminary Results from the recruiter sees net fees up 5% or 9% lfl with operating profit ahead 17% at actual rates and 25% lfl at £164.1m. PBT rose 18% to £156.1m with the conversion rate going back above 20% for the first time since 2009 at 21.5%. The full year dividend is raised 5% to 2.76p. It added that it entered the new year in a position of strength and sees many clear opportunities to grow further and is focused on capturing these whilst simultaneously driving profits and cash generation.
Contributed by SVS Securities
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