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- rises 14 points
- Anglo American (LON:) jumps on back of strong output
- easyJet (LON:) reports record quarterly profit
FTSE 100 starts on front foot
The FTSE 100 has extended its gains but not quite in the same rip-roaring form as yesterday, with a 19-point improvement in early deals, a rise of 0.25% to 7607.
Leading the pack is Anglo American PLC (LSE:AAL), up 3.3% after reporting a 42% ramp up in copper production in the first half, a key metal for the era, with demand from renewable energy to electric cars. Glencore (LON:) PLC is also higher.
After gangbusters gains for both the big-caps and the mid-caps, the more domestically focused has started in the red today.
Despite reporting record third-quarter results, easyJet shares are down 0.5%.
The budget airline said it also expects to deliver a record fourth-quarter profit, but warned guidance is subject to the operational environment, with constrained air space and air traffic control disruption increasing the number of strike days by 40% compared to pre-pandemic 2019.
Royal Mail (LON:) owner International Distributions Services PLC (LSE:IDS) is up 1% after announcing a new German CEO, Martin Seidenberg, and revenues that were just above flat for the first quarter.
Matt Britzman, equity analyst at Hargreaves Lansdown (LON:), says: “When you consider the turmoil that’s plagued Royal Mail over the past year or so, with persistent strikes and lacklustre performance, it’s still a little surprising to see updates with no major issues.”
Elsewhere, IG Group Holdings (LON:) PLC and Babcock International PLC (LSE:BAB) both climbed 5% on the back of their full-year results.
Revenues for IG were up 6% despite overall active client numbers falling 6% – though as analysts at broker Shore Capital note, this is still more than twice the pre-pandemic number, while earnings fell 2%.
Babcock reported earnings up 10% on revenues that rose 8%, with its outlook statement confirming expectations of delivering continuing cash-backed profitable growth and reintroducing a dividend.
easyJet could take off
Third-quarter numbers from easyJet have also landed, with the budget airline saying it delivered a “record” profit for the period, with good booking momentum heading into the winter.
A swing to a profit before tax of £203mln was reported for the three months to 30 June, compared to a loss last year, with a £317mln improvement on last year, according to a statement.
Additionally, easyJet said ticket yield per passenger improved by 22% year-on-year while ancillary yield per passenger grew by 20%, with a total revenue per seat (RPS) improvement of 23% to £81.80.
IDS maintains outlook as Royal Mail decline expected
More details on those numbers from Royal Mail owner International Distributions Services PLC.
Group revenues inched 0.3% higher in the three months from April to June as parcel volumes declined 10% at Royal Mail and grew 4% at overseas arm GLS.
Following the pay deal agreed by Royal Mail with its major union, chairman Keith Williams said the appointment of new group CEO Martin Seidenberg is being made at a “critical juncture” as the UK arm enters “a new phase of its transformation”.
He said planning is underway for new attempts to improve productivity and service at Royal Mail, with other new work conditions coming in from 1 August.
Seidenberg, who has been leading the group’s Amsterdam-based international parcel arm, GLS, for the past two years, will set strategy as leader of the IDS Group as a whole, and will appoint new CEOs for GLS and Royal Mail “in due course”.
The outlook for the full year was unchanged, targeting an adjusted operating profit at group level before voluntary redundancy costs in Royal Mail.
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