Advocacy group Babcock soared to the top of the FTSE 250 leaderboard as investors welcomed its upbeat outlook and the announcement that it will reinstate a dividend.
The company, whose Rosyth shipyard in Scotland has built aircraft carriers for the Royal Navy, aims to increase revenue by at least 5 percent over the next three to five years. Revenue rose 8 per cent to £4.4bn in the year to the end of March.
Babcock also reiterated its plan to pay dividends at the end of next year for the first time in three and a half years. The shares rose 14.6 percent, or 46 pence, to 361.6 pence.
However, there was less reason to rejoice about the contract it won from the Ministry of Defense (MoD) in 2019, to build five Type 31 frigates for the Navy, after it said it would take a one-time £100m hit due to rising costs.
In April, it started formal dispute proceedings with the Defense Ministry over such costs, warning that it might have to set aside between £50m and £100m. The hit meant profit for the year to the end of March fell to £6.2m from £182.3m.
Babcock, whose Rosyth shipyard in Scotland has built aircraft carriers for the Royal Navy, said it will try to increase its revenue by at least 5% over the next three to five years.
The FTSE 100 rose 0.8 percent, or 57.85 points, to 7,646.05, but the FTSE 250 fell 0.1 percent, or 10.79 points, to 19,311.73.
It was a mixed set of results for Vistry after the homebuilder warned of a slowdown in the market as higher mortgage rates made it harder for first-time buyers to climb the property ladder.
The group built 2,847 homes at the end of the first six months of 2023. This was 22 percent less than 3,219 in the same period a year earlier.
It reiterated its forecast that this year’s earnings will top £450m and shares fell 0.2 per cent, or 1.5p, to 789p. Dunelm enjoyed a strong end to its financial year as customers secured discounted products.
Fourth-quarter sales rose 6 percent to £381m in the 13 weeks to July 1.
Sales were also up 6 per cent to £1.6bn in the year to July 1.
He said full-year profit should top analysts’ forecast of 188 million pounds. The shares gained 1.5 per cent, or 17p, to 1130p.
Stock Clock – Portmeirion
Ceramics firm Portmeirion said sales and profits would take a hit as its North American retail clients remained cautious about orders amid the economic crisis.
Porcelain maker Royal Worcester said it expects to have made sales of £44m in the six months to the end of June, down 3 percent from the same period a year earlier.
It said results for 2023 would fall short of the £113m of sales and £9.3m of profit that analysts had expected. The shares fell 25.6 percent, or 101 pence, to 294 pence.
Scottish battery cell maker AMTE Power has warned it could go into administration and suspend the listing of its shares on AIM unless new funds are raised.
The company said its financial situation was becoming “increasingly critical” and a solution is required in the next few business days.
If more cash is not provided, shareholders could disappear, AMTE added. The shares fell 47 percent, or 3.87 pence, to 4.38 pence.
Traders rushed towards Hikma Pharmaceuticals after a tornado damaged a US facility owned by pharmaceutical rival Pfizer. The shares rose 5.7 percent, or 111.5 pence, to 2,063 pence.
Anglo American hailed the start-up of its new copper mine in Peru, as output in the three months to the end of June was 11% higher than the same period a year earlier.
Its results were in stark contrast to those of Antofagasta, which this week cut copper production targets following water shortages in drought-stricken Chile, while Rio Tinto said it missed iron ore targets.
Anglo American shares rose 3.3%, or 77p, to 2,380p, Antofagasta added 2.7%, or 39.5p, to 1,526p and Rio Tinto rose 1.5%, or 78p, to 5,174p.
Private equity firm 3i turned a profit after its net asset value rose 4.1 percent to 1,814 pence in the three months to the end of June.
All eyes were on Action, the discount retailer that makes up the bulk of his investment portfolio, as its sales soared 33 percent to £4.5bn in the six months to July.
But the shares, which have risen 45 percent so far this year, have fallen 0.2 percent, or 3 pence, to 1,950 pence.
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.