Tesco lifts annual profit guidance, SSP Group flags jump in profits
By Josh White
Date: Thursday 03 Oct 2024
(Sharecast News) - London open
The FTSE 100 is expected to open six points higher on Thursday, having closed up 0.17% on Wednesday at 8,290.86.
Stocks to watch
Tesco has lifted its annual profit guidance despite a slight slowdown in underlying sales growth in the second quarter. Due to stronger-than-expected volumes in the first half, which the grocer put down to its ongoing investments in "value, quality and service", retail adjusted operating profit for the year ending 24 February to £2.9bn, up from earlier guidance of at least £2.8bn and higher than last year's £2.76bn.
SSP Group said it expected to deliver a large jump in full-year profits, despite weaker trading in Continental Europe, especially in France where demand during the Olympics was lower than anticipated. The company, which operates food outlets at train stations and airports, on Thursday said core profits for the year to September would come in at £350-360m, up from the £280m reported a year earlier and lower than planning assumptions of £375m at the top end.
Telecom Plus reported strong growth for its first half on Thursday, with customer numbers increasing 67,000, and services supplied rising by 139,000 to 3.266 million. The FTSE 250 company, which trades as Utility Warehouse, said it had now maintained double-digit percentage customer growth for three consecutive years, despite fluctuating energy prices. It said it remained confident in meeting its full-year targets for customer growth of 12% to 14%, and adjusted pre-tax profits of £124m to £128m, with its half-year results expected in November.
Newspaper round-up
Sellafield will have to pay almost £400,000 after it pleaded guilty to criminal charges over years of cybersecurity failings at Britain's most hazardous nuclear site. The vast nuclear waste dump in Cumbria left information that could threaten national security exposed for four years, according to the industry regulator, which brought the charges. It was also found that 75% of its computer servers were vulnerable to cyber-attack. - Guardian
Bank payments can be delayed by an extra three days if lenders suspect consumers are being scammed, as part of a crackdown on booming levels of digital fraud in Britain. Under changes designed to protect consumers against online scams, high street banks are to be handed new powers by the Treasury to delay and investigate payments suspected of being fraudulent. - Guardian
GB News has launched a High Court challenge against Ofcom in a dramatic escalation of its row with the media regulator over impartiality. The High Court has allocated three hours on Thursday morning to an application by GB News against the regulator. Ahead of looming sanctions from Ofcom, it is understood that the broadcaster is applying for "interim relief", a form of short-term protection during legal proceedings, in a highly unusual move for a broadcaster. - Telegraph
A lack of clarity around Rachel Reeves's proposed tax rises is scaring off shoppers, the boss of Sainsbury's has warned. Simon Roberts said customers were holding off on buying big-ticket items amid uncertainty regarding the Budget, which the Chancellor has said will involve "difficult decisions" on tax. He said households needed more information on planned moves, saying they "inevitably are wanting to be clearer about what's going to happen next". - Telegraph
OpenAI has raised $6.6 billion in a fundraising round that values the ChatGPT maker at $157 billion, underscoring the scale of investor optimism around artificial intelligence technology. The company, based in San Francisco, said the investment will allow it to redouble its efforts on AI research, increase computing capacity and continue building problem-solving tools. It is one of the largest private investments on record. - The Times
US close
Major indices were in the green at the close of trading on Wednesday despite renewed fears of a full-scale ground war in the Middle East.
At the close, the Dow Jones Industrial Average was up 0.09% at 42,196.52, while the S&P 500 advanced 0.01% to 5,709.54 and the Nasdaq Composite saw out the session 0.08% firmer at 17,925.12.
The Dow closed 39.55 points higher on Wednesday, taking a modest bite out of losses recorded in the previous session.
Oil prices were in focus on Wednesday, continuing to climb as worries mounted that conflict was set to spread across the Middle East following Israel's ground invasion of Lebanon and Iran's missile attack on Israel led to renewed fears that the region was on course for full-scale regional conflict.
International benchmark Brent crude was up 1.48% at $74.65 a barrel, while West Texas Intermediate was trading 1.55% higher at $70.91.
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