Diploma expecting 20pc rise in first half revenues, Imperial Brands remains on target

London open

The FTSE 100 is expected to open seven points higher on Thursday, after closing up 0.41% at 7,373.72 on Wednesday.

Stocks to watch

Diploma said it expected group first half revenues to be around 20% ahead of the comparable period, boosted by the impact of the “substantial depreciation” in UK sterling. The group said it continued to trade in line with expectations. At constant exchange rates, revenues are expected to increase by around 6% with acquisitions completed during the last 12 months contributing around 1% net. Diploma said it expected to report underlying organic growth of 5%.

Tobacco company Imperial Brands said it remained on target to hit first-half targets, with both revenues and earnings set to be up strongly at the reported level thanks to the weak pound. As it previously guided, a £300m investment being made in 2017 into its brands will be biased to the first half, resulting in lower revenue and profit on a constant currency basis, with a stronger second half performance.

Medical technology company ConvaTec expanded its insulin pump manufacturing partnership with Medtronic to meet growing demand. The FTSE 100 company’s subsidiary, Unomedical, strengthened its capabilities to produce a range of infusion sets and insulin pump therapy solutions offered by Medtronic’s Diabetes Group.

Betting and gaming company William Hill announced on Thursday that Ruth Prior will be appointed chief financial officer, effective later in the year. The FTSE 250 firm said Ruth was currently chief operating officer - and was previously deputy CFO - of Worldpay, a global leader in payments processing technology and solutions.

Newspaper round-up

Lloyd’s of London will announce on Thursday that it has picked Brussels as the base for its new EU subsidiary to secure a European foothold after the UK’s departure from the EU. The announcement by the world’s biggest insurance market will be made alongside its annual results, a day after Theresa May triggered article 50 to kickstart the process of leaving the EU. - Guardian

British businesses have cautiously welcomed the prime minister’s pledge to work for a “bold and ambitious free trade agreement” with the EU as part of the Brexit negotiations, but reiterated warnings that it would be disastrous for the UK to leave without a deal. Concerns have been rising among businesses in recent weeks that the UK could be heading towards a hard Brexit that would mean paying World Trade Organisation tariffs of about 5% on imports and exports with Europe. - Guardian

Heathrow’s overseas backers have flown in the face of any fears surrounding Britain’s triggering of its two-year divorce from the EU by pledging £650m in investments for major projects. The London airport, which deals with more than 75m passengers every year, said its consortium of investors would spend the cash in 2019 on projects likely to include the expansion of Terminal 2 and a new southern access tunnel for road traffic to the airport. – Telegraph

A controversial design contract for the £55bn High Speed 2 rail project has been abandoned by the US engineer which won the work following cronyism allegations. In February American engineering consultancy CH2M Hill was awarded the £170m Phase 2B deal to design parts of the high speed line running from Birmingham to Manchester and Leeds. – Telegraph

Housebuilders have been accused of showing a “worrying” focus on quantity over quality after a survey showed a growing number of complaints from customers. The Home Builders Federation revealed that 98 per cent of customers have reported snags or defects to their home since moving in a year ago, up from 93 per cent a year ago. – The Times

Gig economy companies such as Uber are deliberately misleading their workers in an attempt to strengthen the case against reform of employment rights, according to the head of a government review. Matthew Taylor, a former adviser to Tony Blair and chief executive of the Royal Society of Arts, said that Uber drivers and others were being led to believe there was a trade-off between flexibility and job protection. – The Times

US close

US equity markets were mixed on Wednesday as investors looked to speeches from Federal Reserve officials and kept abreast of events in Europe as Britain started divorce proceedings with the EU.

The Dow Jones Industrial Average was down 0.2% at 20,659.32, while the S&P 500 rose 0.11% to 2,361.13, and the Nasdaq 100 was 0.43% higher at 5,430.27.

Investors were eyeing speeches by Federal Reserve presidents to look for hints on another possible interest rate hike in June after dovish comments from central bank officials recently.

Chicago Fed president Charles Evans told a conference in Germany that he supported “another one or two increases this year” due to progress in full employment and stable inflation in the US.