The FTSE100 rallied higher this morning gaining 1% along with other european markets, after being supported by decent results from both DCC (DCC.L) and Taylor Wimpey (TW.L), both shares jumped off of the back of positive statements.
DCC (DCC.L), the international sales, marketing, distribution and business support services group was up more than 6 percent at one point after news that it expects full year profit ahead of market expectations. DCC (DCC.L) has a wide ranging distribution business including oil, waste and food transport and says it will also take a big stake in French natural gas business Gaz European.
Commenting on the results, Tommy Breen, Chief Executive, said “I am very pleased to report that the first half of the year has been another very active and successful period for DCC. The results reflect continued execution of our strategy to grow the business organically, deliver a very strong cash flow performance and redeploy capital at attractive rates of return. The Group continues to have the ambition and capacity for further development and importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors. The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.”
Taylor Wimpey (TW.L), also on the move after saying it expects full year profit margins to be increased was up 3.4% and says that trading has remained good even after the UKs exit from the EU.
Pete Redfern, Chief Executive, commenting in their trading statement said “Trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products. While there remains some uncertainty following the UK’s vote to leave the European Union, we are encouraged to see that the housing market has remained robust and trading has remained resilient. We have a strong order book position for 2016 and going into 2017, and we will maintain our focus on delivering our medium term targets. Looking ahead, we continue to implement our disciplined strategy which ensures that we are well placed to perform well through all market conditions and deliver enhanced value through the cycle.”
Other movers include Marks and Spencer (MKS.L) buoyed by a broker upgrade. Citigroup saying in a note that investor concern appears overdone and that MKS appear to be making the necessary improvements and has upgraded the share to “BUY”.
HSBC has also upgraded Tesco (TSCO.L) to a “BUY” saying the firms recovery has gathered pace over the last few months. The target price has also been moved from 195p to 260p. Commenting in a note to investors HSBC says “Volumes, cash sales and market share are all improving. At the same time, the company is keeping a tight control on costs to ensure the high contribution margin of extra sales falls through to the bottom line, allowing further investment in price. This momentum gives Tesco firepower to defend against ASDA or to fund its own pricing initiatives. At this point, we expect the industry will be back to equilibrium, with Tesco (TSCO.L) having proved the long-term winner”
The FTSE100 rallied higher this morning gaining 1% along with other european markets, after being supported by decent results from both DCC (DCC.L) and Taylor Wimpey (TW.L), both shares jumped off of the back of positive statements.
DCC (DCC.L), the international sales, marketing, distribution and business support services group was up more than 6 percent at one point after news that it expects full year profit ahead of market expectations. DCC (DCC.L) has a wide ranging distribution business including oil, waste and food transport and says it will also take a big stake in French natural gas business Gaz European.
Commenting on the results, Tommy Breen, Chief Executive, said “I am very pleased to report that the first half of the year has been another very active and successful period for DCC. The results reflect continued execution of our strategy to grow the business organically, deliver a very strong cash flow performance and redeploy capital at attractive rates of return. The Group continues to have the ambition and capacity for further development and importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors. The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.”
Taylor Wimpey (TW.L), also on the move after saying it expects full year profit margins to be increased was up 3.4% and says that trading has remained good even after the UKs exit from the EU.
Pete Redfern, Chief Executive, commenting in their trading statement said “Trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products. While there remains some uncertainty following the UK’s vote to leave the European Union, we are encouraged to see that the housing market has remained robust and trading has remained resilient. We have a strong order book position for 2016 and going into 2017, and we will maintain our focus on delivering our medium term targets. Looking ahead, we continue to implement our disciplined strategy which ensures that we are well placed to perform well through all market conditions and deliver enhanced value through the cycle.”
Other movers include Marks and Spencer (MKS.L) buoyed by a broker upgrade. Citigroup saying in a note that investor concern appears overdone and that MKS appear to be making the necessary improvements and has upgraded the share to “BUY”.
HSBC has also upgraded Tesco (TSCO.L) to a “BUY” saying the firms recovery has gathered pace over the last few months. The target price has also been moved from 195p to 260p. Commenting in a note to investors HSBC says “Volumes, cash sales and market share are all improving. At the same time, the company is keeping a tight control on costs to ensure the high contribution margin of extra sales falls through to the bottom line, allowing further investment in price. This momentum gives Tesco firepower to defend against ASDA or to fund its own pricing initiatives. At this point, we expect the industry will be back to equilibrium, with Tesco (TSCO.L) having proved the long-term winner”
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