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Reports UK

UK stock market morning note (June 17, 2014)

June 17, 2014, Tuesday, 09:48 GMT | 04:48 EST | 13:18 IST | 15:48 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning although gains may be limited with the geo-political situations in Iraq and Ukraine being monitored by investors for the impact on oil prices, inflation and the global economic recovery. The economic diary today sees the release of domestic and US inflation data together with US building permit figures. Commodity prices are mixed and on the foreign exchanges, the dollar is slightly higher against the pound, euro and yen but all remain within narrow trading ranges ahead of these data releases.

Company Announcements


Q1 IMS reports that total sales growth in the 13 weeks to 29 May 2014 was 12.7% with lfl growth of 6.9%. Premier Inn saw total sales ahead 14.2% with lfl growth of 9.5%, driven by ongoing growth in London and recovery in the UK regions. Premier Inn grew total revpar by 8.8%, split 3.6% London and 9.9% UK regions with total occupancy rising by 4.2% pts to 80.7%. Costa saw total sales growth of 15.9% with lfl growth of 4.5%, against demanding comparatives from the prior year. Restaurants saw lfl sales growth of 4.4%, outperforming the industry benchmark, which was helped by soft comparatives in Q1 2013. It added that it was well positioned for another good year.  


Final Results see record PBT of GBP362.1m, up 50% at constant exchange rates with group rental revenue ahead 24% at GBP1.47bn. The total dividend is raised to 11.5p from 7.5p last year and maintained its debt leverage below 2 times EBITDA at 1.8x. It added that it was well positioned for future growth and looks forward to the medium term with continued confidence.

Crest Nicholson

Half Year Results see PBT up 37% at GBP38.4m on revenue ahead 26% at GBP241.1m. There is an interim dividend of 4.1p (nil) and noted that housing legal completions rose 35% to 1,091 with sales per outlet week ahead 8% at 0.83. Forward sales at mid-June stood at GBP347.3m, 5% ahead of the prior year. It added that with an improving economic backdrop underpinning the strength of the sector and the opportunities available to the business, it was confident in the outturn for the year.