8.22am: Stocks well bid
The FTSE 100 opened in the green this Tuesday, with the blue-chip index currently trading 28 points higher at 8,137.
Top morning risers include Imperial Brands PLC (LSE:IMB), which is up 2.9% following its latest results; BT Group plc, which is up 2.2%; and Croda International PLC (LSE:CRDA), which is up 1.9%.
8.05am: Mulberry hints at job losses as revenues plummet at iconic British label
Mulberry plc has delivered a worrying set of half-year results that have highlighted the challenges the British label is facing in a time of plummeting global luxury spending.
Right off the bat from rejecting numerous takeover advances from Frasers Group PLC (LSE:FRAS), Mulberry has reported a year-on-year 19% decline in revenue to £56.1 million on a margin nearly 400 basis points smaller than last year.
The group posted a pre-tax loss of £15.7 million, widening from the £12.8 million loss recorded in the prior year.
Chief executive Andrea Baldo did not gloss over the challenges Mulbuerry is contending with.
“The first half results illustrate the clear need to reprioritise and rebuild the business,” he told shareholders, adding: “There is no question that our industry is facing a period of significant uncertainty, driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country.”
Baldo hinted at headcount reductions to help stem ongoing losses: “In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position.
“This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation.”
7.36am: Imperial Brands reduces non-cigarette losses
Tobacco giant Imperial Brands PLC (LSE:IMB)’s net revenue across all product lines fell 0.2% to £32.4 billion in 2024, mirroring the 0.2% decline reported in 2023.
Adjusted operating profit grew by 4.5% to £3.5 billion, compared to the 3.8% growth delivered in 2023.
Imperial’s next-generation products (NGPs) segment, which covers vapes, tobacco pouches and other non-cigarette products, continues to be unprofitable, but they are becoming a larger portion of sales.
In 2024, NGPs made up 8% of total sales while delivering a £79 million operating loss- this marks a 43% improvement in losses compared to the previous year.
Income investors will be pleased with the results regardless. Imperial Brands increased the dividend by 4.5% to 154.42p.
£2.8 billion worth of shareholder returns are scheduled for the current year via dividends and buybacks.
7.27am: FTSE 100 to surge
The FTSE 100 is expected to surge by 32 points when markets open today, bringing the blue-chip index up to 8,135.
It follows a positive trading session on Monday, when the FTSE 100 closed 45% higher.
All eyes will be on the reaction to Imperial Brands PLC (LSE:IMB)’s latest earnings.
Tuesday brings updates from the likes of Imperial Brands, Revolution Beauty and Mothercare in London, alongside Walmart from across the Atlantic.
Imperial Brands previously warned against an overarching vape ban, so any thoughts on the government’s move will be eyed… Read more
Announcements due:
Interims: Calnex Solutions PLC, CML Microsystems Plc, GB Group PLC, Gear4music Holdings PLC, Manolete Partners PLC, Mothercare PLC, Revolution Beauty Group PLC, Trifast PLC, Vianet Group PLC
Finals: Avon Technologies PLC, Imperial Brands PLC (LSE:IMB), Diploma PLC
US earnings: Xpeng Inc, Walmart Inc, Medtronic PLC
AGMs: Abingdon Health PLC, Bradda Head Lithium Ltd, Berkeley Energia Ltd, Fonix Mobile PLC, Mothercare PLC, Mulberry Group PLC, Physiomics PLC
Economic announcements: Consumer Price Index (EU)