FTSE 100 Live 03 October: Tesco 'in good shape' amid profit upgrade, British Land raises £301m

By Graeme Evans

FTSE 100 Live 03 October: Tesco 'in good shape' amid profit upgrade, British Land raises £301m

Tesco shares are 3.7p higher at 358.6p after the supermarket chain lifted its estimate for full-year retail operating profit.

The 1% advance in the FTSE 100 follows a 31% rise for shares since February.

The FTSE 100 index is 23.19 points higher at 8314.05, with renewables firm SSE up 1.5% or 28.5p to 1902.5p after its half-year update.

SSE today said its wind farms, hydro schemes and solar sites delivered a 44% increase in renewables output in the first six months of its financial year.

The improvement, which reflected weather conditions as well as year-on-year capacity increases, was in line with company expectations.

Across the group, SSE expects to report interim adjusted earnings of more than 45p a share for its seasonally quieter half year.This is roughly a third of the City's full-year forecasts and compares with last year's 37p a share.

For thermal and gas storage, SSE continues to expect more than £200 million of earnings for the full year.

SSP, the owner of food-on-the-go brands Upper Crust and Millie's, has reported a "material improvement" in UK trading during the peak summer period.

High demand in airports and a lower level of disruption in rail compared to last year meant UK like-for-like sales rose 9% in the fourth quarter to 30 September.

It also reported a strong performance in Spain and other Mediterranean holiday destinations but the overall continental Europe growth figure of 3% was short of expectations.

Demand in France was negatively impacted by the Paris Olympics, while the company saw weak trading at Germany's motorway services.

Reiterating full-year guidance, SSP said annual revenues of about £3.5 billion are set to be 17% higher with operating profit likely to be between £210-220 million, up about 30% year-on-year.

Chief executive Patrick Coveney said: "We have had challenges in some parts of our continental European business, which we are addressing through a series of actions that will build margins.

"Overall, this year, we expect the group to deliver a significant increase in year-on-year profitability and margins."

British Land has raised £301 million after it launched a share placing in order to finance the £441 million acquisition of seven retail parks.

The placing, which was coordinated by Morgan Stanley and UBS, took place at a 3.6% discount of 422p and was open to retail investors as well as institutions.

The acquisition of the retail parks includes sites in Rugby, Waterlooville and Middlesbrough. The assets are 99% occupied and all benefit from a major superstore anchor.

Chief executive Simon Carter said last night: "These assets offer an attractive yield and strong rental growth prospects in line with our guidance of 3-5%."

Tesco "in good shape" after upgrading profit guidance

07:09 , Graeme Evans

Supermarket giant Tesco today upgraded profit guidance after volume growth exceeded its expectations in the first half of the financial year.

It now forecasts around £2.9 billion of retail adjusted operating profit for 2024/25, compared with its previous estimate of at least £2.8 billion.

Today's half-year results showed a 3.5% rise in revenues to £31.5 billion in the six months to 24 August, with retail adjusted operating profit up 9.7% to £1.55 billion.

Chief executive Ken Murphy said: "We are in good shape, with volume growth delivering strong financial performance."

Index seen flat after steady US session, Brent Crude near $75

07:01 , Graeme Evans

Tesla shares last night closed 3.5% lower as the car maker made one of the biggest moves in an otherwise lacklustre session for US traders.

The fallback, which follows a strong run for Tesla shares since early August, came on the back of third quarter delivery figures short of Wall Street expectations.

The Dow Jones Industrial Average and the Nasdaq Composite rose 0.1%, with the S&P 500 index broadly flat.

Against this backdrop, the FTSE 100 index is forecast to open two points lower at 8289 after closing 14 points higher in yesterday's session.

Brent Crude futures this morning traded just below $75 a barrel, with the pound down 0.6% at $1.318.

Previous articleNext article

POPULAR CATEGORY

corporate

12813

tech

11464

entertainment

15995

research

7394

misc

16829

wellness

12912

athletics

16929