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Reports UK

UK stock market morning note (April 02, 2014)

April 2, 2014, Wednesday, 08:40 GMT | 03:40 EST | 12:10 IST | 14:40 SGT
Contributed by SVS Securities

The FTSE 100 is called to open slightly higher this morning following the overnight performances on Wall Street and in Asia although the ongoing Ukraine situation remains on investors radars. Today's economic diary has already seen Nationwide report that its UK monthly house price index rose 0.4% on the month and by 9.5% on the year to March, taking the average house price to GBP180,264, its highest level since January 2008. We are also due the release of domestic construction PMI data and the US ADP non-farm employment change figures at lunchtime. Commodity prices are firmer and on the foreign exchanges, the pound and euro are slightly higher against the dollar which is itself better against the yen but all are within narrow trading ranges ahead of these data releases.


Company Announcements

ASOS

Interim Results reaffirm its recent update with revenues up 34% to GBP481.7m with retail sales also ahead 34% at GBP472.3m, split UK +32% and International +35%. The retail gross margin rose 60 bps to 49.5% and it grew its active customer base 36% to 8.2m as at 28 February 2014. Its increased pace of investment reduced PBT by 22% to GBP20.1m. It added that accelerating its long-term infrastructure investments and investment in China will see its EBIT margin for the year to August 2014 come in around 6.5%.

Domino's Pizza

IMS reports that it has made a strong start to the year with system sales up 14.8% to GBP188.5m, mainly on the back of strong lfl sales growth in the first part of the quarter. The proportion of sales via e-commerce continued to grow with 69.4% of all UK delivered sales now through the internet. Sales taken through online platforms rose 25% of which 34% was via mobile devices. It noted that lfl growth in Germany remains subdued and in Switzerland it is refreshing its estate. It added that the process for finding a new CEO is well advanced and it looks forward to updating the market in the near future.