- FTSE 100 up 14 points
- Car production slumps
- THG unveil demerger plan
8.17am: Dr Martens soars despite swinging to loss
Dr Martens PLC (LSE:DOCS) jumped 14.2% as trading got underway on Thursday, despite unveiling a pre-tax loss and slump in sales for the first half.
Revenues declined 18% year-on-year to £325 million, in line with expectations, while a £29 million pre-tax loss was recorded, against last year’s £26 million profit.
Dr Martens also confirmed Ije Nwokorie would replace Kenny Wilson as chief executive in January, alongside laying out a plan to return its US business to growth… Read more
8.13am: FTSE 100 opens on front foot
London’s blue chip index kicked off the day in positive fashion, ticking up 13 points to 8,288 as trading got underway.
Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY), Admiral PLC and Spirax Group PLC were among the early risers, while Imperial Brands PLC (LSE:IMB) led fallers at the open.
8.07am: Ocado eyes capacity boost as partner Morrisons reshuffles distribution
Ocado Group PLC (LSE:OCDO) has laid out plans to boost capacity through a deal with Morrisons.
Morrisons, a partner since 2013, will no longer take deliveries from its Erith distribution centre.
Morrisons will rather build volumes from Ocado’s Dordon distribution site and expand use of the grocery technology firm’s artificial intelligence-powered online network.
“As Ocado Retail moves towards full utilisation of existing capacity, this decision enables a helpful option to provide it with further short-term growth, without an expectation for additional capex,” Ocado chief executive Tim Steiner commented in a statement… Read more
7.46am: THG firms up Ingenuity demerger plan
THG PLC (LSE:THG) has told investors of plans for the demerger of its Ingenuity digital and logistics arm.
Ingenuity would be separated into a private company under the move, leaving THG’s core business comprising of its beauty and nutrition wings, a statement said on Thursday.
“It is expected that [the remaining business] would be capable of optimising returns to its shareholders instead of reinvesting profits and cash flow into Ingenuity’s technology capital expenditure requirements,” THG said… Read more
7.19am: UK car production slumps
The number of cars produced in the UK last month dropped by 15.3% year on year as manufacturers grappled with requirements to make up sales with electrics.
Some 77,484 cars rolled off production lines in October, 14,037 fewer than the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
Export volumes dropped 17.6%, while the number of cars built for domestic use fell 4.7%.
Car makers are required to make up 22% of sales with electric vehicles this year, but have heavily criticised the mandate given lacklustre demand.
“These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” SMMT boss Mike Hawes said.
“Slowdowns in the global market – especially for EVs – are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.”
7.11am: Stocks seen higher
Futures had the FTSE 100 edging up by nine points to 8,303 ahead of Thursday’s open and building on a 16-point gain on Wednesday.
Following a calm day of trading, Thursday was set to bring another quieter day, with Dr Martens among the few big names reporting.
Overnight, Asian markets were mixed as Chinese stocks fell and Japan’s Nikkei saw the largest gain. Wall Street had faced declines beforehand.
Back in London, attention was on car production data from the Society of Motor Manufacturers and Traders, which showed an eighth successive monthly drop.
5.00am: Dr Martens’ results in focus
Thursday brings a quieter schedule on the company front, with Dr Martens’ interim results set to be in focus.
Dr Martens is expected to have fallen into loss-making territory… Read more
US stock markets will be closed as traders are given a Thanksgiving holiday, which will reduce market trading volumes in Europe too.
Announcements due:
Interims: Foresight Group Holdings Ltd, Theracryf PLC, TPXimpact Holdings PLC (AIM:TPX), Dr Martens PLC (LSE:DOCS)
Finals: Impax Asset Management Group
AGMs: Argent BioPharma Ltd, Castillo Copper Ltd, EnSilica PLC, Galliford Try Holdings PLC, London Finance & Investment Group PLC, SLF Realisation Fund Limited, Thor Energy PLC, Zentra Group
FTSE 100 ex-dividends to reduce index by: 13.5
Economic announcements: Car Production (UK), Economic Sentiment (EU), Consumer Confidence (EU), Consumer Inflation Expectations (EU), Industrial Sentiment (EU)