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Reports UK

UK stock market morning note (August 26, 2014)

August 26, 2014, Tuesday, 18:53 GMT | 13:53 EST | 22:23 IST | 00:53 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning following the Bank Holiday as it looks to play catch up with other markets and after comments on Friday from the US Federal Reserve Chair and ECB President on indications that a US interest rate rise was still some way off and potential further monetary easing in the euro zone. The economic diary today focuses on the US with the release of core durable goods orders and consumer confidence data. Commodity prices are mixed and on the foreign exchanges, the dollar is weaker against the pound, euro and yen ahead of these data releases.

Company Announcements


Interim Results see reported revenues up 2.7% at GBP5.47bn and in constant currency ahead 11.3% with lfl revenue up 8.7% with PBT growing 15% to GBP491m and up 33.7% in constant currency. The dividend is raised 10% to 11.62p with its targeted dividend pay-out ratio of 45% likely to be achieved this year, well ahead of schedule. It noted that July net sales were up 2.8% lfl against a strong comparative growth rate of 4.1% in 2013. All regions and sectors were positive and cumulative lfl net saes growth for the first 7 months of the year is now 4%. For 2014 it now sees lfl net sales growth of over 3% and an operating margin to net sales improvement of 0.3% margin points on a constant currency basis in line with its full year margin target, and added that it was reaffirming its long-term targets.   


It has announced that its CEO, Michael Tobin is to step down and leave the company following a handover period on 31 October 2014, having led Telecity for over a decade. The Board will commence an immediate search for a successor with the Chairman, John Hughes assuming executive responsibilities for this transition period.