(Alliance News) - Stock prices in London are seen opening higher on Friday, tracking a rise in US and Asian equities, as the conflict between Russia and Ukraine remains grim.
In early company news, pub chain JD Wetherspoon posted a narrowed interim loss as Covid restrictions eased. Plastic and fibre products maker Essentra raised its annual dividend after robust results. Fashion retailer Ted Baker is the object of private equity interest.
IG futures indicate the FTSE 100 index is to open 22.06 points higher at 7,407.40. The index closed up 93.66 points, or 1.3%, at 7,385.34 on Thursday.
JD Wetherspoon reported a narrowed loss as the pub chain hailed the ending of Covid-19 restrictions that have blighted the industry for two years.
For the 26 weeks that ended January 23, the pub chain posted a pretax loss of GBP21.3 million, narrowed from a loss of GBP46.2 million a year before on revenue of GBP807.4 million, almost doubled from GBP431.1 million.
Wetherspoon did not recommend an interim dividend.
Turning to current trading, pub operator said the ending of Covid restrictions brought a return to "more normal" trading patterns in recent weeks. However, it said there was pressure on input costs from food, drink and energy suppliers, mitigated, by a number of long-term contracts. Overall, the company expects the increase in input prices to be slightly less than the level of inflation.
"Draconian restrictions, which amount to a lockdown-by-stealth, are, of course, kryptonite for hospitality, travel, leisure and many other businesses. The company is confident of a strong future if restrictions are avoided. The readiness of the leaders of all the UK's main political parties to resort to lockdowns, and extreme restrictions, which were not contemplated in the UK's 2019 plans for pandemics, is the main threat to the future of the hospitality industry, but also to the economy," said Chair Tim Martin.
Essentra said that it delivered a strong annual performance and that its strategic reviews of the Filters and Packaging divisions are progressing in line with expectations.
For 2021, Essentra swung to a pretax profit of GBP33.2 million from a loss of GBP4.1 million in 2020 on revenue of GBP960 million, up 7% from GBP897 million.
Essentra declared a total dividend of 6.0 pence, almost doubled from 3.3p in 2020.
Looking ahead, Essentra said it has made a strong start to 2022 with all three divisions well-positioned for growth with strong order books.
Last year, Essentra had set out its strategic ambition to become a pure play Components business, with its Filters and Packaging divisions likely to be sold off.
The company explained: "Over the last few years, Essentra has simplified its portfolio into three global businesses, each with leading market positions and a clear purpose and strategy. These businesses all have strong prospects and the potential to deliver compelling returns for investors, but are at different stages of their development and have limited synergies.
"The strategic reviews of the Filters and Packaging divisions, previously announced by the board, are running in parallel and are progressing in line with expectations. The board remains focused on maximising shareholder value and will provide further updates as appropriate."
Sycamore Partners Management confirmed a press report that it was in early stages of considering making a possible cash offer for Ted Baker.
Sky News reported on Friday that the US private equity firm was mulling a takeover approach for London-listed fashion retailer.
Sycamore Partners said it was considering a possible cash offer for Ted Baker but noted there was no certainty any offer would be made. The private equity firm noted the put-up-or-shut-up date for it to give a firm intention to make an offer for Ted Baker will be on April 15.
In New York on Thursday, the Dow Jones Industrial Average closed up 1.2%, S&P 500 up 1.2% and Nasdaq Composite up 1.3%.
In Asia on Friday, the Japanese Nikkei 225 index closed up 0.7%. In China, the Shanghai Composite ended up 1.1%, while the Hang Seng index in Hong Kong was down 0.3%. The S&P/ASX 200 in Sydney closed up 0.6%.
Overnight, the Bank of Japan maintained its short-term rate target at -0.1% as widely expected.
Rescue workers searched desperately for any survivors buried beneath the rubble of Mariupol's bombed-out theatre Friday, as Russia's forces struck residential areas across Ukraine, stoking allegations of war crimes.
Twenty-four hours after Mariupol's once-gleaming whitewashed theatre was hollowed out by a Russian strike, the number of dead, injured or trapped is still unclear.
In a call later Friday US President Joe Biden is set to warn his counterpart Xi Jinping that Beijing will face "costs" for "any actions it takes to support Russia's aggression", according to US Secretary of State Antony Blinken.
In the wake of the theatre attack, Blinken also said it was "difficult to conclude" that Vladimir Putin's regime had not engaged in war crimes by targeting civilians.
As Russia's ground advance has stalled under fierce Ukrainian resistance, Moscow has increasingly turned to air and long-range strikes to gain the upper hand.
"Today's European open looks set to be a positive one despite there being little prospect of a ceasefire in the near term as we head into the weekend, with stocks looking to finish higher for the second week in succession," said CMC Markets analyst Michael Hewson.
"It's important to note that sentiment remains fragile, and that the risk of further escalation remains a real concern despite the gains of the last two weeks, as Russia continue to get bogged down by rugged Ukrainian resistance," Hewson added.
The pound was quoted at USD1.3146 early Friday, down from USD1.3155 at the London equities close Thursday.
The euro was priced at USD1.1077, lower against USD1.1113. Against the Japanese yen, the dollar was trading at JPY118.795 in London, up from JPY118.44.
Brent oil was quoted at USD108.93 barrel Friday morning, up from USD106.62 late Thursday. Gold stood at USD1,934.06 an ounce, lower against USD1,942.97.
Friday's economic calendar as EU trade data at 1000 GMT. On the UK political front, the Conservative Party spring conference begins, with Chancellor Rishi Sunak delivering a speech.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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