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Reports UK

UK stock market morning note (June 19, 2014)

June 19, 2014, Thursday, 07:29 GMT | 02:29 EST | 10:59 IST | 13:29 SGT
Contributed by SVS Securities

The FTSE 100 is called to open higher this morning following the overnight performances on Wall Street and in part in Asia on dovish soundings on the US economy by the US Federal Reserve and its reiteration of keeping in place low interest rates into 2015, although the wider global backdrop of the Iraq situtaion remains ongoing. The economic diary today sees the release of domestic retail sales data and the CBI industrial trends survey followed at lunchtime in the US with the latest US weekly jobless claims and then the Philly Fed manufacturing index reading. Commodity prices are flat to lower and on the foreign exchanges, the major currencies are virtually unchanged in trading ahead of these data releases.

Company Announcements


The company has today committed to a GBP1bn share buyback subject to the completion of the sale of its Energy gas turbine and compressor business to Siemens. The sale which was announced on 6 May 2014 is expected to complete by the end of this year. Rolls-Royce is also holding an investor briefing where it will provide an update on strategy, capital allocation, its framework of financial guidance and TotalCare(R) accounting. It added that it was confirming group guidance for 2014 and 2015, capex to be driven towards 4% of underlying revenue over 3-5 years from the FY2013 figure of 4.9% with current expectations for Trent deliveries to exceed 4,000 engines by 2023.

Micro Focus

Final Results see group revenue marginally ahead of the top end of previous guidance, up 6.4% on a constant currency basis at USD433.1m with underlying adjusted EBITDA ahead 9.7% at USD196.4m. Cash generated from operations was USD206.8m, representing 107% of adjusted EBITDA. It is proposing the total dividend be raised 10% to 44 cents a share. It added that in the absence of a significant acquisition, share buyback opportunity or unforseen circumstances and subject to shareholder approval, the company intends to make a further return of value to shareholders in November 2014, noting that by continuing to execute its business strategy and financial model, it is positioned to provide shareholders with returns in the coming years.