FTSE 100 movers: Melrose surges on results, HSBC in the black
By Michele Maatouk
Date: Monday 18 Nov 2024
(Sharecast News) - London's FTSE 100 was up 0.2% at 8,081.95 in afternoon trade on Monday.
Melrose surged as the aerospace company reported a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.
Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said.
The company, which last year hived off its auto and other businesses to focus on aerospace, held annual guidance and said it still expects adjusted operating profit of £550m to £570m, adding that it was on track to hit a £700m profit target in 2025.
Russ Mould, investment director at AJ Bell, said: "There will be genuine relief at a lack of further downgrades at aerospace business Melrose after its warning this summer.
"Supply chain issues remain in the background amid problems at the world's two major plane makers Airbus and Boeing, yet Melrose has felt able to stick with its current guidance.
"Historically Melrose bought up industrial businesses and executed a buy, improve, sell model - investors will hope the 'improve' bit has been retained now its entire focus is being brought to bear on the old GKN aerospace business. Next year will be a key test with the company promising a significant increase in cash flow as the bulk of the restructuring of the business concludes.
"For now, it is the company's engine division that is really powering things, with the bit of the business which builds the body and wings of planes trailing in its slipstream."
HSBC Holdings was among the gainers following a report that it has asked hundreds of managers to reapply for jobs in the firm's newly formed corporate and institutional banking division as chief executive Georges Elhedery continues his hunt for ways to make the bank run more efficiently.
Bloomberg cited people familiar with the matter as saying that interviews are already underway, essentially pitting senior staff who came from the commercial banking division against those from the global banking and markets unit to compete for the jobs available in the combined CIB division.
FTSE 100 - Risers
Melrose Industries (MRO) 524.80p 7.21%
DCC (CDI) (DCC) 5,510.00p 2.04%
Intermediate Capital Group (ICG) 2,036.00p 1.90%
Vodafone Group (VOD) 70.72p 1.70%
Imperial Brands (IMB) 2,395.00p 1.01%
HSBC Holdings (HSBA) 723.90p 0.99%
Entain (ENT) 747.40p 0.89%
Auto Trader Group (AUTO) 802.00p 0.88%
Rio Tinto (RIO) 4,842.50p 0.79%
International Consolidated Airlines Group SA (CDI) (IAG) 243.70p 0.74%
FTSE 100 - Fallers
B&M European Value Retail S.A. (DI) (BME) 347.60p -8.14%
Vistry Group (VTY) 665.50p -4.79%
Convatec Group (CTEC) 241.40p -2.97%
Land Securities Group (LAND) 589.50p -2.56%
Kingfisher (KGF) 286.70p -2.08%
Taylor Wimpey (TW.) 129.45p -1.63%
Scottish Mortgage Inv Trust (SMT) 910.00p -1.52%
JD Sports Fashion (JD.) 116.65p -1.48%
British Land Company (BLND) 374.60p -1.47%
easyJet (EZJ) 529.40p -1.38%
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