UK pre-market update – Sainsbury’s, BT, Currys, Wizz Air, JD Sports, Aston Martin


© Reuters.

By Samuel Indyk – At 07:46BST, FTSE 100 futures are trading higher by 0.5% at 7256.

In FX markets, GBP/USD is trading at 1.3658, EUR/GBP is trading at 0.8474. The US Dollar Index is up 0.3%.

Today’s calendar highlights include the Bank of England interest rate decision, Eurozone Services and Composite PMI, UK Construction PMI, Eurozone PPI, US Jobless Claims, US Trade Balance, Canadian Trade Balance.

J Sainsbury (LON:SBRY) – H1 grocery sales up 0.8%. General Merchandise sales down 5.8% against strong lockdown and seasonal sales comparatives. Digital sales make up 39% of retail sales at £5.8 billion. Declares interim dividend of 3.2 pence per share. Continue to expect to report underlying profit before tax of at least £660 million in the financial year.

BT (LON:BT) – H1 revenue down 3% to £10.305 billion. Adjusted EBITDA up 1%, reported profit before tax down 5%. Declares interim dividend of 2.31 pence per share. Confirms FY22 and FY23 outlook. Brought forward FY25 target of £2 billion gross annualised savings to FY24 with further savings in FY25.

Smith & Nephew (LON:SN) – Q3 underlying revenue up 2.3% to $1.266 billion. Underlying orthopaedics revenue down 5.9%. Two out of three franchises, representing 60% of Group revenue, again delivered underlying revenue growth on pre-COVID 2019. On-track to deliver at the low end of full year guidance, reflecting impact of Delta variant and supply constraints.

Hikma Pharmaceuticals (LON:HIK) – Reiterate full year guidance to achieve another year of growth. Continue to expect full year Generics revenue to be in the range of $810-$830 million and now expect core operating margin to be closer to the top end of our guidance range of 22% to 24%.

Wizz Air (LON:WIZZ) – H1 revenue up 86.8% to €880.4 million. EBITDA €164.3 million. Carried 12.5 million passengers in H1. Reported operating profit of €57 million in Q2. Anticipate an operating loss in Q3 of around €200 million.

JD Sports (LON:JD) – UK Competition and Markets Authority has instructed JD Sports to sell Footasylum after investigation identified competition concerns.

Derwent London (LON:DLN) – Acquired 100-year leasehold interest in Conoco House and Quadrant House at 230 Blackfriars Road SE1 in Southwark for £55.0 million before costs.

Currys (LON:CURY) – H1 group sales down 1% compared to last year, up 15% compared to two years ago. On track to meet consensus expectations for full year 2021/22 PBT of £161 million. Intends to commence £75 million share buyback programme.

Boohoo (LON:BOOH) – Provides update on Californian class action claim. Parties have notified the District Court that they have agreed to the terms of a preliminary settlement relating to the Claim. The preliminary settlement will be covered in full by the existing provisions disclosed in the Group’s latest published accounts.

Virgin Money (LON:VM) – FY total operating income up 2% to £1.572 billion. Operating profit up 7% to £670 million. Net interest margin increased 6 basis points to 1.62%. Declared ordinary dividend of 1.0 pence per share. Launched new Digital First strategy.

Tate & Lyle (LON:TATE) – H1 revenue from continuing operations up 19%, profit before tax up 20%. Strategic transformation announced in July is “progressing well” and company remains on course to complete the sale of a controlling stake in Primary Products business in the Americas in the first quarter of 2022. Expect change in adjusted diluted EPS in constant currency to be mid-single digits percent lower due to the performance of discontinued operations and expected cost inflation.

TI Fluid Systems (LON:TIFS) – 9-month revenue up 11.7% at reported rates. Q3 global light vehicle production volumes were down 19.7%, with the Group’s revenue down 14.7% at constant currency. Expects to finish the year with continued outperformance of global light vehicle production and a high single digit Adjusted EBIT Margin at, or slightly above, 7%.

Draper Esprit (LON:GROW) – NAV per share is expected to be not less than 885p. Gross Portfolio increase in fair value is expected to be not less than £260 million (26%) for the six-month period to September 2021. Anticipate fair value growth in the region of 35% for the full year to 31 March 2022 subject to wider market conditions.

Electrocomponents (LON:ECM) – H1 revenue up 33% to £1.209 billion. Adjusted operating profit up 87% to £144.8 million. Increase dividend by 5% to 6.4 pence per share.

Superdry (LON:SDRY) – Group revenue in 8 weeks to 23rd October down 8.8% YoY. Stores revenue up 2.5%, ecommerce down 20.0%.

Smiths News (LON:SNWS) – FY revenue down 4.7% to £1.110 billion. Adjusted EBITDA u 9% to £42.6 million. Declared dividend of 1.5 pence per share. Trading in the year to date is in line with the Board’s expectations.

Purplebricks (LON:PURP) – Cost guidance provided with the Group’s update on 10 August 2021 remains unchanged, and therefore adjusted EBITDA is expected to be below previous guidance. Medium-term guidance remains unchanged, and the Board continues to expect Purplebricks to be able to deliver annual revenue growth in excess of 20% in the medium-term.

Derwent London (LON:DLN) – £5.5 million of new lettings achieved in H2 to date at an average 2.4% above December 2020 ERV. 97% of total September 2021 quarter day rents collected, up from 94% reported on 12 October.

IMI (LON:IMI) – Q3 revenue up 6% to £453 million. Now expect 2021 full year adjusted EPS to be in the range of 88p to 92p.

Ultra Electronics (LON:ULE) – Awarded circa £65 million multi-year development contract from U.K. Ministry of Defence.

NCC Group (LON:NCCG) – Group continues to trade ahead of the same period last year on a like for like revenue basis. Overall trading is in line with management’s expectations for the full year.

Lancashire Holdings (LON:LRE) – Gross premiums written increased by 46.9% year-on-year to $967.7 million. Loss experience from hurricane Ida and European floods, and political unrest in South Africa, in line with announcement on 21 October 2021.

Daily Mail and General Trust (BS:DMGTl) – Rothermere family has made an offer to take DMGT private for 255 pence per share in deal valued at £3.1 billion.  

Aston Martin Lagonda (LON:AML) – Q3 sales to dealers up 104% to 1,349 vehicles.

UK pre-market update – Sainsbury’s, BT, Currys, Wizz Air, JD Sports, Aston Martin


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