DiscoverIE profits jump 70pc, GSK gets Europe approval for RSV vaccine

London open

The FTSE 100 is expected to open seven points lower on Wednesday, having closed up 0.37% on Thursday at 7,628.10.

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Niche electronics maker DiscoverIE Group reported a 70% rise in annual profits, driven by a strong order book. The company on Wednesday said pre-tax profit for the year to March 31 came in at £29.1m. Revenue was up 18% to £449m. It added that the current financial year had started well with continued organic sales growth and its order book remained at a higher-than-expected level, in line with last year, “providing good visibility of demand”.

GSK has received European Commission approval for Arexvy, an adjuvant respiratory syncytial virus (RSV) vaccine, to be used for active immunisation in adults aged 60 and above. The company said it marked the first authorisation of an RSV vaccine for older adults in Europe, with initial launches planned before the start of the 2023-2024 RSV season – typically in the autumn.

Newspaper round-up

International air fares are likely to keep climbing from their current highs over the next 10-15 years, with the cost of sustainable fuels expected to drive up ticket prices, according to the global airlines body Iata. Extraordinary demand for travel since the Covid pandemic has led to steep fare rises on many routes, and Iata said consumers could expect to pay more as airlines increase the usage of scarce “greener” jet fuels in response to government mandates to cut aviation’s carbon emissions. – Guardian

Companies at the centre of the cost of living crisis have paid millions to their chief executives as households struggle with soaring bills. Sainsbury’s and Marks & Spencer were joined by National Grid in handing huge pay packets to their bosses, according to annual reports released on Tuesday. – Guardian

Fears of a Labour tax raid after the next general election have prompted some business owners to accelerate plans to sell up, a new survey has found. Two thirds of UK owners of businesses with a turnover of at least £5m are preparing plans to exit their firm, according to research by wealth manager Evelyn Partners. – Telegraph

Lloyds Banking Group has threatened to put the owner of the Daily and Sunday Telegraph into administration after the breakdown of talks with the Barclay family, the owner of the newspapers. A restructuring and advisory group has been lined up as receivers. Sources indicated that insolvency practitioners from the firm could be appointed within days if talks are not resumed and an 11th-hour deal struck. – The Times

Suppliers to Asos have started to sever ties with the troubled retailer after credit insurers withdrew cover amid concerns over its falling profits. Asos — founded in 2000 under the name As Seen On Screen, selling imitations of clothes worn by television and film celebrities — was regarded as a trailblazer for fast-fashion thanks to its focus on twentysomething, smartphone-savvy shoppers and its swift service, which helped it to steam ahead of bricks-and-mortar rivals. – The Times

US close

Wall Street stocks closed modestly higher on Tuesday, with little in the way of domestic economic news to sway the markets.

At the close, the Dow Jones Industrial Average had managed gains of 0.03% to end the session at 33,573.28, while the S&P 500 added 0.24% to 4,283.85.

Leading the way among the major indices, the tech-heavy Nasdaq Composite increased 0.36% to close at 13,276.42.

An unexpected interest rate hike from Australia's central bank initially threw a shadow over the day's opening, although US equities eventually managed to find positive territory by the closing bell.

On the currency front, the dollar remained steady against sterling to last trade at 80.49p, while it dipped 0.01% to 93.51 euro cents on the common currency.