IMI hit by cyber attack, Compass serves up strong start to year
By Josh White
Date: Thursday 06 Feb 2025
(Sharecast News) - London open
The FTSE 100 is expected to open 68 points higher on Thursday, having closed up 0.61% on Wednesday at 8,623.29.
Stocks to watch
UK engineering company IMI on Thursday said it had been hit by a cyber attack on its computer systems. In a short statement, it added that it "engaged external cyber security experts to investigate and contain the incident". "In parallel, the company is taking the necessary steps to comply with our regulatory obligations. An update will be provided as and when appropriate."
Catering giant Compass has delivered a strong start to its new financial year, with organic revenues rising by 9.2% in the first quarter ended 31 December, comfortably ahead of the full-year guidance for at least 7.5% growth. However, the company warned that, if current foreign exchange rates persist for the remainder of the year, they would have a $558m negative impact on revenues, compared with a hit of just $69m last year.
UK defence contractor Babcock upgraded full-year expectations on the back of double-digit organic growth in its nuclear operations and strong growth in the marine division. The company said it now expects revenue in the year to March 31 to come in at £4.9bn compared with forecasts of £4.51bn - £4.78bn and underlying operating profit to beat the top end of a £327.1m - £339.7m range.
Newspaper round-up
The appointment of the former boss of Amazon UK to lead the competition watchdog poses a threat to its independence and pledge to hold big tech to account, according to a group including tech companies and the former business secretary Vince Cable. The group - which includes the News Media Association, the Firefox developer Mozilla, the consumer group Which? and the Future of Technology Institute - has written to the chancellor, Rachel Reeves, to raise concerns about the appointment of Doug Gurr as the interim chair of the Competition and Markets Authority (CMA). - Guardian
Employees of Riverford will share in a payout of £1.3m after the organic vegetable box company more than doubled profits last year. More than 1,000 staff at the Devon-based group, which began making deliveries from an old Citroën in 1993, will receive about £1,000 each as the employee-owned company nearly tripled its annual payout to workers. - Guardian
Lloyds Banking Group has been hit with a £1bn tax bill after it lost a key legal battle against HMRC. A tribunal in London ruled against Lloyds after the bank attempted to claw back losses related to property loans from its business in Ireland in the wake of the financial crisis. - Telegraph
Ed Miliband risks destroying the UK's reputation if he blocks Britain's two biggest offshore oil and gas developments, the boss of energy giant Equinor has warned. Anders Opedal, chief executive, said the Energy Secretary had to issue new permits for the Rosebank and Jackdaw oil and gas fields to ensure the UK is a "predictable country for investors". - Telegraph
Arm Holdings, one of Britain's most successful technology companies, beat Wall Street sales expectations after reporting strong demand for its chip designs. The Cambridge company, which floated on the Nasdaq exchange in New York in September 2023, reported a 19 per cent rise in revenue to $983 million for the third fiscal quarter, well ahead of analyst estimates of $949.3 million. Net income rose to $252 million, from $87 million a year earlier. - The Times
US close
Major indices closed higher on Wednesday as market participants seemed to look past tariff concerns that rocked markets earlier in the week.
At the close, the Dow Jones Industrial Average was up 0.71% at 44,873.28, while the S&P 500 saw out the session 0.39% firmer at 6,061.48 and the Nasdaq Composite picked up 0.19% to 19,692.33.
The Dow closed 317.24 points higher on Wednesday, extending gains recorded in the previous session even as tensions between China and the US heated up after Donald Trump slapped a 10% levy on Chinese imports.
Google parent company Alphabet was in the red after posting a quarterly earnings miss due to weaker-than-expected cloud sales, while shares in AMD fell sharply after quarterly numbers from the chipmaker disappointed.
Elsewhere in the corporate space, Disney posted Q1 earnings that came in ahead of expectations but revealed it expected to see another "modest decline" in streaming subscribers in Q2, while shares in Harley-Davidson came under pressure after soft consumer confidence hit revenues at the US motorcycle manufacturer.
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