FTSE 100 movers: EasyJet flies lower; Compass gains on FY results
London's FTSE 100 was down 0.7% to 6,952.58 in afternoon trade on Tuesday amid ongoing worries about Brexit.
EasyJet flew lower even as it posted a 41% jump in profits in the past 12 months and said it sees potential for greater growth by expanding its holiday business. The budget airline reported headline profit before tax for year ending 30 September of £578m as revenues grew 17% to £5.9bn.
George Salmon, equity analyst at Hargreaves Lansdown, said: "While EasyJet has delivered a strong set of results, attention is likely to focus on what’s happening next. The tailwind from cheap fuel is fading fast, and revenue per seat is set to dip. That puts the emphasis on EasyJet to increase operating efficiency over the costs it can control, but the group hasn’t got a great recent record here and looking ahead underlying costs are expected to flatline rather than descend.
"Brexit remains a concern, and not just because of the impact a disorderly exit from the EU could have on customers’ wallets. As things stand only 47% of EasyJet shares are owned by non-UK EU nationals, and with EU law saying that must rise beyond 50% for European operations to continue post-Brexit, the group will need to persuade investors over the Channel to join the shareholder register."
Anglo American was also in the red after it said the value of rough diamond sales at De Beers slipped to $440m in the ninth sales cycle of the year from $482m in the eighth.
Contract caterer Compass Group was the standout gainer as it reported a rise in full-year operating profit and revenue thanks in part to strength in its North American business.
In the year to 30 September, underlying operating profit was up 7.1% to £1.74bn as revenue increased 5.5% to £23.24bn and the company lifted its annual dividend per share by 12.5% to 37.7p even as the operating margin was flat at 7.4%.
Compass saw "excellent" growth in North American, with organic revenue up 7.8%. In Europe, organic revenue was up 2.1%, driven by strong net new business nit he UK, while revenue in the rest of the world was up 2.9% thanks to good growth in Turkey and Spanish-speaking Latin America.
Halma was also a high riser as it posted record first-half results, with revenue and profit up amid good performances across its business sectors. In the six months to 30 September, adjusted pre-tax profit rose 19% to £112.9m on revenue of £585.5m up 16% from the same period a year ago.
The interim dividend was lifted by 7% to 6.11p a share and the company said it saw revenue growth in all major regions, with a very strong performance in the USA, good growth in the UK and continued progress in mainland Europe and Asia Pacific.
FTSE 100 - Risers
Compass Group (CPG) 1,681.50p 5.92%
Just Eat (JE.) 549.20p 2.88%
United Utilities Group (UU.) 763.40p 2.50%
Halma (HLMA) 1,342.00p 2.36%
National Grid (NG.) 843.90p 2.18%
Centrica (CNA) 145.05p 2.00%
Severn Trent (SVT) 1,889.00p 1.86%
Reckitt Benckiser Group (RB.) 6,581.00p 1.76%
Fresnillo (FRES) 909.40p 1.70%
3i Group (III) 822.00p 1.53%
FTSE 100 - Fallers
Evraz (EVR) 511.40p -6.75%
easyJet (EZJ) 1,108.00p -5.70%
Ashtead Group (AHT) 1,699.50p -5.48%
Smith (DS) (SMDS) 335.20p -4.45%
Johnson Matthey (JMAT) 2,755.00p -4.24%
Smurfit Kappa Group (SKG) 2,132.00p -4.22%
Scottish Mortgage Inv Trust (SMT) 455.04p -4.20%
Standard Chartered (STAN) 573.60p -3.98%
Anglo American (AAL) 1,656.20p -3.93%
Wood Group (John) (WG.) 619.00p -3.64%