(Alliance News) - Stock prices in London are seen starting the new week on the back foot, after manufacturing data from China disappointed.
IG futures indicate the FTSE 100 index will open 15.0 points, 0.2%, lower at 7,408.43. The index closed up 78.18 points, or 1.1%, at 7,423.43 on Friday. It climbed 2.0% last week and 3.5% over the whole of July.
In early UK corporate news, education materials publisher Pearson reported an interim profit rise. Ascential said it benefited from an "events bounce-back" but opted against restoring its dividend for now. Engineering components Senior resumed its dividend though its first-half profit halved amid a swing in one-off items.
Away from earnings, JD Sports Fashion said it has struck a deal to dispose of Footasylum, a recent acquisition which the UK's competition watchdog had ordered it to sell.
The athleisure retailer has exchanged contracts to sell Footasylum to Aurelius Group for GBP37.5 million.
JD Sports purchased Footasylum back in March 2019 for GBP90.1 million, but the deal was immediately placed under investigation by the UK Competition & Markets Authority. In November last year, the CMA ordered JD Sports to sell the footwear retailer to address concerns about competition in the UK.
"JD has cooperated with the CMA throughout the divestment process, including ensuring that the purchaser was acceptable to the CMA and met certain key criteria set out within the final undertakings. The sale is anticipated to complete in the coming weeks with no conditionality," JD Sports said.
Pearson posted a rise in interim sales and profit.
"Pearson has delivered another encouraging financial performance in the first half of the year. We continue to make excellent strategic and operational progress, with momentum across the business. We are already seeing clear benefits from our increasingly diverse learning ecosystem, with Pearson serving more people across their lifelong learning journeys," Chief Executive Andy Bird said.
Revenue in the first half of 2022 increased 12% to GBP1.79 billion from GBP1.60 billion a year before. Pretax profit jumped to GBP179 million from just GBP4 million. Pearson had booked GBP85 million in restructuring costs a year earlier.
Adjusted operating profit was 26% higher year-on-year at GBP160 million from GBP127 million.
Pearson upped its payout by 4.8% to 6.6 pence per share from 6.3p.
Business-to-business publisher and events organiser Ascential said it traded in line with expectations in the first half of 2022.
"Both major events of the half performed extremely strongly, with Cannes Lions meeting and Money20/20 Europe exceeding 2019, pre-pandemic, levels of revenue and profit. Money20/20 USA, due to take place in October 2022, continues to trade very well," the company said.
Revenue jumped 59% year-on-year to GBP95.1 million from GBP59.7 million. However, Ascential's pretax loss stretched to GBP41.6 million from GBP13.6 million.
Ascential said it booked a GBP31.4 million impairment related to its Edge Digital Shelf e-commerce analytics platform. It did not book any impairments a year earlier.
Ascential, which did not declare a dividend in 2020 and 2021 due to Covid, decided against an interim payout again.
"The board will keep capital allocation priorities, including shareholder cash returns, continually under review," it said.
Cranswick said it has started its new financial year in decent health, as the meat producer bids to fight off inflationary pressures with price increases.
Revenue in the 13 weeks to June 25, its first quarter, was 7.6% higher year-on-year. On a like-for-like basis, excluding newer acquisitions, revenue was up 5.8%.
"UK revenue across all four food product categories was ahead year-on-year. Substantial and widespread cost inflation continues to be proactively managed and mitigated through tight cost control and ongoing recovery," Cranswick said.
In Asia, however, revenue performance was not as strong.
Cranswick explained: "Far east export sales were, as anticipated, lower than the same quarter last year due to market prices falling from the elevated levels experienced over the previous two years and the ongoing suspension of our Norfolk primary pork processing facility's China export licence. The China pig price has strengthened in recent weeks, albeit still below the highs of 2019 and 2020."
Cranswick expects annual results in line with board expectations.
Senior's interim profit fell on the absence of a chunky disposal gain it booked a year earlier.
In the first half of 2020, pretax profit halved to GBP11.1 million from GBP22.3 million a year earlier.
It reported GBP300,000 in costs related to the acquisition of Spencer Aerospace, a Valencia, California-based maker of high-pressure hydraulic fluid fittings. Senior announced the purchase in June; it will pay up to GBP100 million. Senior on Monday said its expects the acquisition to complete in the current quarter.
A year earlier, Senior had booked a GBP24.2 million gain on the disposal of Senior Aerospace Connecticut.
Half-year revenue rose 21% to GBP402.2 million from GBP332.8 million a year earlier.
Senior reinstated its dividend with a 0.3p per share payout.
"The board anticipates further good progress in 2022, in line with previous expectations, with performance in the second half of the year expected to be similar to the first half. Along with the strong cash performance and healthy balance sheet, this gives the board confidence to announce the reinstatement of a dividend for 2022," CEO David Squires said.
Monday's economic calendar has a series of manufacturing PMIs, including the eurozone at 0900 BST, the UK at 0930 BST, and the US at 1445 BST.
Already out, China's manufacturing sector saw momentum fade in July as Caixin's purchasing managers' index slipped dangerously close to the no-change mark of 50.0.
Caixin's PMI fell to 50.4 points in July from 51.7 in June, indicating just marginal growth was achieved last month.
The dollar, which has struggled in the wake of the US Federal Reserve's interest rate decision last week Wednesday, was on the back foot again.
The pound was quoted at USD1.2178 early Monday, up from USD1.2163 at the London equities close on Friday. The euro traded at USD1.0217, up from USD1.0196. Against the yen, the greenback faded to JPY132.51 from JPY133.45.
In Tokyo on Monday, the Nikkei 225 rose 0.7%. The S&P/ASX 200 in Sydney also climbed 0.7%. In China, the Shanghai Composite was up 0.1% in late trade, while the Hang Seng Index in Hong Kong was also 0.1% higher.
Brent oil was quoted at USD103.16 a barrel early Monday, down from USD105.24 late Friday. Gold stood at USD1,761.40 an ounce, down from USD1,763.38.
By Eric Cunha; ericcunha@alliancenews.com
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