FTSE 100 Live 27 June: Currys upbeat amid AI potential, Halfords in profit reverse

The retail sector is in focus after results by Halfords, Currys and Watches of Switzerland.

The City has also heard from outsourcing firm Serco, which upgraded its profit guidance.

Across the London market, the mood is cautious amid ongoing interest rate uncertainty.

FTSE 100 packaging firms advance, FTSE 250’s Serco higher

10:25 , Graeme Evans

Packaging firms have surged in the FTSE 100, with DS Smith up 6% or 23.4p to 391.8p after it emerged its American merger partner International Paper is no longer a takeover target for Brazil’s Suzano.

Mondi, which previously tabled a bid for DS Smith, rose 4% or 66p to 1544p.

Elsewhere in the top flight, distribution services firm Bunzl rose 54p to 3092p after upgrading its full-year guidance on the back of an improved margin performance.

It was joined on the risers board by safety technology conglomerate Halma, which lifted another 25p to a fresh two-year high of 2705p after announcing the acquisition of a Portugal-based fire detection company.

The FTSE 100 fell 9.76 points to 8215.57 as the handover from Wednesday’s strong showing by US technology stocks was offset by selling in Asia markets.

The read-across from H&M’s June sales figures also impacted sentiment, leading to a decline of 3% or 77p to 2477p for Primark owner Associated British Foods.

Burberry and British American Tobacco also fell 32.2p to 929.6p and 55p to 2456p respectively after their shares were marked ex-dividend.

The FTSE 250 index rose 10.64 points to 20,308.74, aided by the strong results-day performances of Watches of Switzerland and Moonpig.

They were joined by outsourcing firm Serco, which surged 11.8p to 184.6p after forecasting half-year earnings £10 million higher than City forecasts at £140 million. It credited productivity gains for the positive surprise.

Moonpig shares jump on profits boost

09:50 , Simon Hunt

Moonpig shares jumped as much 10% today after the greetings card maker wowed shareholders with a hike in profits.

Story continues

The Farringdon-based business posted a 6.6% rise in growth to £341 million for the year to end April, while pre-tax profits rocketed by a third to £46.4 million. The firm said it expected mid-high single digit growth in the year ahead.

CEO Nickyl Raithatha said Moonpig’s subscription scheme had exceeded expectations, passing the milestone of half a million members within one year, while investments in new AI technologies had created a more personalised experience for customers.

Retailers struggle in FTSE 100, Watches of Switzerland and Moonpig surge

08:32 , Graeme Evans

Retail stocks are under pressure in the FTSE 100 index after Europe’s H&M reported second quarter figures short of expectations.

The read-across to Primark owner Associated British Foods left its shares down 70p to 2454p with Next 54p cheaper at 9090p.

The FTSE 100 index dropped 8.47 points to 8216.86, with Burberry shares the biggest faller after a decline of 3% or 30.3p to 931.5p

Bunzl shares rose 22p to 3060p and FTSE 250-listed Serco added 5% or 8.5p to 181.6p after the outsourcing firms lifted their full-year guidance.

On the results front, Watches of Switzerland jumped 8% or 31.4p to 430.8p, Currys fell 5.25p to 70.8p, Halfords lost 0.6p to 135.4p and Moonpig rose 9% or 14.8p to 173.6p.

FTSE 100 seen higher but Asia markets struggle, Amazon hits $2 trillion

07:40 , Graeme Evans

Amazon provided the highlight of yesterday’s robust Wall Street session as the market value of the tech giant rose above $2 trillion for the first time.

The landmark followed a 4% rise for its shares as the S&P 500 index finished slightly higher and the Nasdaq rose another 0.5%.

In contrast, Asia markets have endured a tough session after yesterday’s Australian inflation reading prompted investors to revise expectations on interest rate cuts.

The Hang Seng index in Hong Kong lost 2%, while the Nikkei 225 declined 0.8%. The fall came as the yen closed at its lowest level since 1986.

London’s FTSE 100 index is forecast to open 13 points higher at 8239 after closing 0.3% lower in yesterday’s session.

Brent Crude is at $85.20 a barrel after a surprise rise in US crude stockpiles pushed the benchmark lower yesterday. The pound stands at $1.264.

Halfords annual profit down 8% as cycling and tyres markets ‘remain depressed’

07:30 , Michael Hunter

Cycling and car accessories retailer Halfords reported a drop in annual profit today, and said some of its markets were struggling to return to levels seen before the pandemic.

The 80-plus strong chain said a fall in volumes in cycling and consumer tyres markets was worse than expected, leaving them “depressed” prepared to pre-Covid levels.

And it warned that a fall in spending on “big ticket” items such as bike and touring meant it expected volumes to drop in 2025 after the trend went “even further” in the last financial year.

It meant “the Cycling Market consolidated at a faster rate than expected”, the firm said.

Overall, it reported a drop of nearly a fifth in underlying profit before tax of £36.1m for the year to 29 March.

It also said:

“Elevated cost inflation continued to be a significant headwind, increasing the cost base by approximately £37m in FY24 and bringing cumulative cost inflation to c. £120m in the last three years.”

Its Autocentres business fared better, with revenues up almost a fifth and earnings hitting £13.8 million, up by £10.7 million.

Graham Stapleton, CEO, called it a “year of strategic and operational progress”, adding: “While the short-term outlook remains challenging, we continue to build a unique, digitally-enabled, omni-channel business, which is well positioned for profitable growth”.

Currys profits up as it eyes AI boost

07:24 , Simon English

Electrical retailer Currys today said it is looking to AI as the most exciting new product cycle since the tablet in 2010.

Chief executive Alex Baldock added: “With our partnerships, scale and expert colleagues to demystify AI, we’re best-placed to benefit.”

The firm today reported signs of decent consumer confidence in year end profits of £188 million, up 10%.

It is gaining market share, albeit in a declining market.

Currys has recently disposed of its Greece business

Baldock added: “”Our performance continues to strengthen. We’ve kept up our encouraging momentum in the UK&I, our Nordics business is getting back on track, and we’re stronger financially.”

Sales in the UK and Ireland fell 2% to £4.97 billion.

Recap: Yesterday’s top headlines

06:38 , Simon Hunt

Good morning from the Standard City desk.

What’s the greater offence, placing a bet on when a general election will be held on the back of insider information, or betting on yourself to lose in that same election?

In the City, the view is clear. The first is very naughty, and if you get caught, you lose your job and go to prison.

The second is just business as normal, what’s the fuss?

Kevin Craig, suspended by Labour yesterday as its candidate for Central Suffolk and North Ipswich, says he placed the bet a few weeks ago when “I thought I would never win this seat”.

That’s not an insider information trade, that’s a financial and emotional hedge, like betting England will lose a football match even though you are desperate for them to win.

This is what City investors do all the time. Say they invest £10 million into Vodafone shares, convinced its shares will jump.

They might also place a smaller £1 million bet on Vodafone shares crashing. That way if bet number one is wrong, bet number two will cover off most of the losses; like an insurance policy.

That bet will be placed for the investor by a broker, Morgan Stanley, perhaps. In these instances we can see that the difference between Morgan Stanley and Paddy Power is operationally small. They do the same thing.