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RS Group reports full-year growth, SSP trades at upper end of forecasts

By Josh White

Date: Tuesday 23 May 2023

(Sharecast News) - London open

The FTSE 100 is expected to open 15 points lower on Tuesday, having closed up 0.18% on Monday at 7,770.99.
Stocks to watch

RS Group reported revenue growth of 17% in its final results on Tuesday, driven by a combination of 10% like-for-like growth, a 2% contribution from acquisitions, and a 5% currency benefit. Adjusted operating costs rose 18%, and the FTSE 100 firm's adjusted operating profit margin improved by one percentage point to reach 13.5%, with an adjusted operating profit conversion of 29.7%. The final dividend was raised to 13.7p, resulting in a full-year dividend of 20.9p.

Upper Crust owner SSP said FY 2023 sales and earnings before interest, tax, depreciation and amortisation are set to be at the upper end of its expectations, as it hailed a strong first half performance "in a recovering market". The company had guided to sales of £2.9bn to £3bn and EBITDA of £250m to £280m.

Newspaper round-up

Private renters are almost twice as likely to be struggling with problem levels of debt than the general population, with a sharp rise in the numbers in serious financial difficulty since January, research shows. The figures come against a backdrop of private rents in the UK hitting record highs, and days after the government announced a shake-up of the sector to tackle the "injustices" that many tenants are facing. - Guardian

TikTok has filed a federal lawsuit against Montana over the state's new law banning the short-video app. In the suit filed on Monday, the company argues the ban violates first amendment rights of both the company and its users. The suit also argues the ban is preempted by federal law because it intrudes upon matters of exclusive federal concern and violates the commerce clause of the US constitution, which limits the authority of states to enact legislation that unduly burdens interstate and foreign commerce. - Guardian

The sportswear entrepreneur Mike Ashley is mounting an incursion onto the board of the luxury handbag maker Mulberry, threatening to pit him against its majority owners in a boardroom battle of the billionaires. Frasers, the £3.6bn retailer controlled by Mr Ashley, owns 37pc of Mulberry's Aim-listed shares. However Mulberry is controlled by the Singapore-based billionaire hotelier Ong Beng Seng and his wife Christina, who hold sway over 56pc of the Somerset-based brand. - Telegraph

BP and Shell are "very excited" about investing in the EU after Brussels unveiled more favourable incentives for green projects, Michael O'Leary has claimed. The Ryanair chief said the two oil majors had indicated that a recently announced package of subsidies from Brussels had made investing in the Continent more attractive. - Telegraph

First Citizens, which acquired Silicon Valley Bank after its collapse, has sued HSBC over claims that the FTSE 100 lender illegally poached dozens of the collapsed American firm's employees. HSBC, which acquired the British arm of SVB following its abrupt failure in March, stands accused of "brazenly" seeking to "plunder" trade secrets. HSBC declined to comment. - The Times

US close

Wall Street's main stock gauges showed mixed results at the close of trading on Monday, as the Nasdaq Composite rose to its highest point in nine months.

At the close, the Dow Jones Industrial Average shed 0.42% to end at 33,286.58, while the S&P 500 index saw a marginal rise, inching up 0.02% to 4,192.63.

The tech-heavy Nasdaq Composite, meanwhile, added 0.5%, to end at 12,720.78 - its highest close in nine months.

Negotiations between Republicans and the White House on the federal debt ceiling were set to resume after the market closed, as investors looked for any signs of progress.

In currencies, the dollar was steady against sterling to last trade at 80.41p, while it slipped 0.01% from the common currency to 92.47 euro cents.


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