Mediclinic revenue still rising, underlying profits improve at Royal Mail
London open
The FTSE 100 is expected to open 28 points higher on Thursday, having closed down 0.56% at 7,372.61 on Wednesday.
Stocks to watch
Mediclinic revenue grew 10% in the six months to 30 September, it announced in its interim results on Thursday, to £141bn. The FTSE 100 firm said underlying EBITDA was ahead 5% to £232m in the six months period to 30 September, although it dropped 5% at constant currencies. Its underlying operating profit was up 3% to £161m, while its reported operating profit fell 21% to £133m, which was impacted by exceptional items.
Private equity and venture capital firm 3i Group reported “continued progression” in its net asset value per share for its first half on Thursday, rising to 652p from 604p at the start of the period, after payment of the 18.5p FY2017 final dividend, and a total return of £655m or 11% of opening shareholders' funds. The FTSE 100 company said its private equity business performed “well” in the six month period to 30 September, with strong performances from Action, Scandlines, ATESTEO, Audley Travel, Basic-Fit, Q Holding and Aspen Pumps contributing to a gross investment return of £715m.
Underlying profits at Royal Mail improved in the first half of the year, though the costs of transforming the business saw reported operating profits plummet more than 80%. UK parcel volumes increased 6% and letter volumes declined 5% to leave the UKPIL business with flat revenues for the half-year, while the overseas focused GLS business grew volumes and revenues 9%.
GKN has parted company with Kevin Cummings, who was due to step up to be chief executive at the aircraft and vehicle parts maker. Cummings, who heads GKN's aerospace business, was due to take over from Nigel Stein, the current chief executive, when he retires at the end of December. But GKN said Cummings had left the company and that Anne Stevens, a non-executive director, would do the job until a replacement for Stein is found.
Newspaper round-up
Theresa May will signal that tackling the housing crisis will be a key theme of next week’s budget as pressure mounts on the chancellor, Philip Hammond, to release fresh resources to invest in building new homes. MPs and ministers have been urging the chancellor to spend more on housebuilding, since the general election campaign underscored younger voters’ concerns about the difficulties of getting on the property ladder. – Guardian
Technology firm Dyson is to sue its former chief executive for allegedly leaking its closely guarded secrets, in a claim his lawyers say is a “naked attempt” to distract from a wrongful dismissal suit against the company. The extraordinary row emerged after the company, founded by inventor Sir James Dyson, filed a high court claim against Max Conze, who led the company from 2011 to 2017. – Guardian
Commercial broadcasters have renewed their attacks on YouTube and Facebook with a new study highlighting the power of television advertising compared with the tech giants. Research commissioned by Thinkbox, an industry group backed by ITV, Channel 4, Sky and others, found that television advertising generates £4.20 in profit for every £1 spent. – Telegraph
Tensions between Asatsu-DK and its biggest shareholder WPP escalated on Tuesday night, after the UK-listed advertising giant said it is prepared to increase its shareholding in ASK instead of selling down its stake. It comes after Boston-based Bain Capital last month launched a $1.3bn (£990m) tender offer for ADK, prompting criticism from WPP, which holds a 24.7pc stake in the Japanese agency and has been a long-term partner of the group. It said the offer "significantly undervalues ADK, its assets and future opportunities". – Telegraph
The activist investor besieging the London Stock Exchange wants board members to be personally liable for any payoff handed to the chief executive Xavier Rolet — unless it is disclosed and approved by shareholders. The unusual move is the latest attack on the board by TCI Fund Management, one of largest shareholders in the exchange, which has accused Donald Brydon, the exchange’s chairman, of forcing Mr Rolet out of his job. The hedge fund wants Mr Brydon to be sacked at a forthcoming shareholders meeting and Mr Rolet, who is due to step down next year, reinstated. – The Times
Britain’s biggest energy users are calling on the government to address gas security after the closure of the country’s biggest storage facility. In a letter to Greg Clark, the energy secretary, a group of trade associations, unions and energy storage companies ask the government to look at the risk of a supply crunch leading to a severe price rise because of Britain’s dependence on imported gas and lack of storage capacity. – The Times
US close
Wall Street finished lower on Wednesday, following the release of stronger-than-expected consumer price inflation and retail sales data for October and amid lingering concerns about the progress being made by the White House on tax reforms.
The Dow Jones Industrial Average lost 0.59% to 23,271.28, the S&P 500 was off 0.55% at 2,564.62, and the Nasdaq 100 was 0.56% softer at 6,258.36.
“The deterioration in global stocks clearly has a footing in last week's Senate announcement that we may not see a US corporate tax cut until 2019,” said IG analyst Joshua Mahony.
“However, the worst may not be over yet. With Senate Majority leader Mitch McConnell hoping to add a repeal of the 'individual mandate' into the bill as a way to undermine Obamacare, the pathway to tax reform just got more complicated.”
On the data front, total US retail sales volumes increased by 0.2% month-on-month in October to reach $486.6bn, against consensus expectations for a 0.1% rise, alongside upwards revisions to data for the previous month.
In parallel, the Department of Labor said that 'core' consumer price gains accelerated to a 1.8% pace year-on-year last month from a 1.7% clip in September.