The FTSE 100 is called to open higher this morning following the overnight performances on Wall Street and in Asia although the Chinese and Hong Kong markets are shut for a public holiday. In UK market news Berkeley Group will become the latest house builder to join the FTSE 100 following the quarterly reshuffle of the indices which will see it replace Weir. The changes will take effect from the start of trading on 21 September 2015. The economic diary today sees the release of domestic services PMI data, US trade balance figures, US ISM non-manufacturing PMI numbers and the latest US weekly jobless claims. However, taking centre stage will be Mario Draghi at lunchtime for his press conference comments following the ECB meeting in light of developments in China and the ECB's ongoing bond buying programme. Commodity prices are mixed and on the foreign exchanges, the pound is slightly weaker against both the dollar and the euro but all the key currencies are trading within narrow ranges ahead of these data releases and Mario Draghi's press conference.
Company Announcements
easyJet
Trading Update reports that the load factor in August was 94.4%, a new record for any month with passenger numbers in the month reaching 7.06m, another record and second successive month of over 7m passengers. It has also seen stronger than expected unit revenue performance in August and in its outlook for September, helped by ongoing digital and revenue initiatives, capacity growth and particular strength on UK beach routes. It notes that this revenue performance has more than offset the cost headwinds that the business faced this year with fuel and currency exchange rate movements remaining broadly within the previous guidance. However, full year PBT guidance to 30 September 2015 is now expected to be in a range of £675m-£700m, up from the previous £620m-£660m range.
Go-Ahead Group
Full Year Results sees revenue up 19% at £3.2bn with operating profits slightly ahead of its expectations at £114.7m, a rise of 11.1% and PBT +13.8% at £96.6m. The full year dividend is raised 6.5% to 90p, in line with its progressive policy. It noted record bus profits, up 6.6%, an improvement in rail profits although at historically low margins and now expects to deliver £100m of bus operating profit in 2016/17, a year later than originally anticipated. Its overall expectations for rail remain unchanged, with a stronger performance at Southeastern continuing to offset underperformance in GTR. It has submitted bids for the Northern and TransPennine Express rail franchises and is shortlisted for the London Overground contract whilst it continues to explore selective opportunities in overseas markets. It added that it remains in a good financial position with strong cash generation and a robust Balance Sheet.
Contributed by SVS Securities
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