Sector movers: FKI and Halma boost engineers
FKI leads the engineering sector higher this morning as the shares race ahead following strong interim results.
FKI said the strong fundamentals of its energy sector activity should support overall performance in the second half but warned the decline in the US retail and housing market remains a concern.
Pre-tax profit for the half-year rose to £27.4m from £25m before, on turnover that increased 7% to £655m, despite the decline in market demand in the US retail and housing sectors. The interim dividend remains at 1.5p per share.
"The group entered the second half of the year with strong order books in Energy Technology and FKI Logistex and continued buoyant market conditions for the Lifting Products and Services group," said the group.
Health and sensor group Halma said it has achieved record interim revenue and profits and added that it remains confident in its prospects for the full year.
For the half-year, pre-tax profit from continuing operations increased 10% to £33.6m on revenue that rose 12% to £187.9m, including 8% organic growth.
The group said double digit revenue growth was achieved in all major geographic regions with the exception of the US, where adverse currency movements reduced growth from 16% at constant currency to 7%.
Harvester and All Bar One pub group Mitchells & Butlers said movements in the fair value of derivative financial instruments pushed the company into the red in the year to 29 September.
The company has taken a £221m hit which more than wiped out the £207m pre-tax profit it would otherwise have recorded. Last year's pre-tax profit was £208m.
The board is giving serious consideration to a proposal from R20 in respect of a demerged Real Estate Investment Trust (REIT) structure, which entails R20 procuring a fixed price underwriting of around 25% of a wholly demerged REIT, thus releasing capital for possible distribution to shareholders.
Top performing sectors so far today
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Industrial Engineering 3,337.00 +1.57%
Electronic & Electrical Equipment 1,887.00 +1.04%
Mining 23,345.20 +0.99%
Oil & Gas Producers 7,989.20 +0.82%
Health Care Equipment & Services 3,778.60 +0.63%
Bottom performing sectors so far today
Forestry & Paper 4,171.20 -1.84%
General Retailers 2,009.60 -1.63%
Real Estate 3,496.20 -1.46%
Travel & Leisure 5,623.60 -1.34%
Banks 8,811.20 -1.32%
