Shares of British Airways owner IAG fell as investors appeared disappointed by the latest forecasts.
As part of its capital markets day, the FTSE 100 company reiterated its outlook for this year but said it would not comment on “current and future trading”.
IAG instead chose to focus its attention on the medium term, including pledging to restore its dividend for the first time since the pandemic.
It promised to do this once its “balance sheet and investment plans are secure,” although it did not give a date for when this will happen.
IAG also set an operating margin target of 12 to 15 percent.
Severe turbulence: As part of its capital markets day, British Airways owner IAG reiterated its outlook for this year but said it would not comment on ‘current and future trading’
Stephen Furlong, an analyst at asset manager Davy, told Bloomberg: “Perhaps the market expected more short-term commentary than medium-term commentary.”
IAG shares fell 5 percent, or 8.15p, to 155.45p.
The FTSE 100 fell 0.19 percent, or 14.37 points, to 7,481.99 and the FTSE 250 fell 1.35 percent, or 251.42 points, to 18,347.63.
Retailers are likely to enjoy a strong Christmas, but the holidays could mark the “final peak of the post-pandemic spending recovery,” according to Deutsche Bank Research. According to the report, the sector is ‘in good shape overall’ and a further recovery is expected next year.
However, the broker warned that growth is likely to be ‘anemic’.
Deutsche Bank Research urged customers to buy shares in three retailers that have undergone a dramatic change in their businesses or are in the process of transforming their businesses.
This included Marks & Spencer, which is reaping the benefits of five years of change, while B&M has its sights set on ‘ambitious’ store opening targets and fashion company Asos is a ‘work in progress’ whose online sales should recover lost ground.
But the investment bank issued a ‘hold’ rating on Next, Kingfisher and Dunelm amid concerns over how their businesses and clients would fare if the economy comes under further pressure.
Shares in M&S fell 0.1 per cent, or 0.2p, to 252.3p, B&M lost 0.4 per cent, or 2p, to 532.6p, Asos was unchanged at 387.6p, Next fell 0.05 percent, or 4p, to 7712p, Dunelm fell 3.5 percent, or 38 cents, to 1048 cents, and Kingfisher fell 0.7 percent, or 1.5 cents, to 230.6 cents.
Workspace hit a rough patch after its property valuation fell 6.6 per cent to £2.5 billion between the end of March and September.
As a result, the office space provider posted a loss of £147.9 million in the six months to the end of September, after making a profit of £35.8 million in the same period last year. Shares fell 7.2 percent, or 42.5p, to 547.5p.
Cranswick is gearing up for a busy Christmas, benefiting from rising demand within the UK food sector and further exposure to the pig farming sector.
The meat producer’s first-half turnover rose 12.3 percent to £1.25 billion, while profits rose 23.6 percent to £81.6 million.
As a result, Cranswick expects profits for the year to the end of March to be at the higher end of the analyst range of £153.2m and £160.8m. Shares rose 1.9 percent, or 68p, to 3712p.
Severfield, the structural steel group helping to build Everton football club’s new stadium, warned that business in Britain and Europe remains challenging as customers delay spending on projects. Shares were flat at 65p.
The co-CEO of utility company Telecom Plus is preparing for his departure. Andrew Lindsay has been boss since 2010 and has shared the role for the past two years with Stuart Burnett, who will become sole CEO next summer.
The update came as the group posted solid first-half results. Shares fell 7.1 percent, or 120p, to 1582p.