FTSE 100 Live October 14: QinetiQ crashes, Domino’s Pizza revenue, Dunelm optimistic, Markets stable after Fed minutes

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The stable week for the London market has continued as stronger mining and oil stocks keep the FTSE 100 index in positive territory.

September US inflation figures and Federal Reserve protocols show that decision-makers are ready to cut major financial aid before the end of the year failed to disrupt Wall Street overnight. However, there is no drop in the current inflationary pressure, with Brent crude oil and natural gas prices both creeping up.

In corporate news, Dunelm said recent sales growth had been encouraging as it stalled from the city’s recent rise in earnings forecasts, but shares of defense company Qinetiq fell 9% after U.S. sales hit the transition to the Biden presidency and the end of the counter-uprising in Afghanistan.

Live updates

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Boots continue to march

Boots has celebrated a “year of transformation” as the pharmacy highlights a recovery in sales after further relaxation of the locking measures.

Owner Walgreens Boots Alliance (WBA) said it exceeded expectations in the last quarter of the fiscal year to August 31 as a result.

The global pharmacy giant said similar sales increased by 12.8% to $ 34.3 billion (£ 25 billion) for the period.

The WBA emphasized that it benefited from a strong operational performance from Boots, with growth for both its retail and pharmacy groups.

Boots CEO Sebastian James said sales through his online store had doubled to pre-pandemic levels, while the company maintained this growth despite returning to major streets.

He added that the growth in both care and beauty meant that the retailer “was now ideally placed to take on new opportunities” during the new financial year.

Boots saw similar retail sales increase by 15% during the last quarter against the same period in 2020.

At the same time, sales of pharmacies increased by 11.4% compared with a year earlier.

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Domino’s business trip

Dominic Paul, CEO of Domino’s, said the pizza chain wants to employ 8,000 more people in the UK and Ireland, increasing its existing 35,000 people in total in these areas.

The new roles are largely delivery driver jobs, and most are permanent. The recruitment round comes amid high demand for deliveries and was announced when the company reported that sales from franchisees and stores it operates directly increased 9.8% to £ 375.8 million in the 13 weeks to 26 September.

Paul said: “Our supply chain continues to deliver outstanding results, despite well-publicized inflationary pressures and the challenging labor market … As we see this pressure continue into 2022, our success in managing them so far gives us confidence that our growth momentum will maintained. ”

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Casino opening increases the ranking of Grosvenor owners

The reopening of casinos and bingo halls has been a blessing for Grosvenor owner Rank Group.

Rank said today that revenues at the Grosvenor arenas increased by 209% to £ 79 million in the three months to the end of September. The rebound helped increase revenue in the group by 69% to £ 163 million. Rank also owns Mecca Bingo Halls and operates online gambling sites.

“We have seen an excellent response from our customers when they return to our premises, with our colleagues doing a great job of ensuring that they are properly maintained in a safe environment,” said John O’Reilly, CEO.

While revenue is recovering, revenue is still below pre-pandemic levels. Grosvenor’s income was 20% lower than during the same period in 2019.

“London continues to feel the effects of declining tourism,” the company said.

O’Reilly said: “Although forecasts are still difficult when we emerge from the pandemic, we are confident that trade will continue to improve for all our companies.”

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New CFO at Purplebricks

Online real estate agents Purplebricks has announced the surprising resignation of its CFO after a little more than a year in service.

The AIM-listed company gave no reason for Andy Botha’s resignation, who joined the company in May 2020, but thanked him for his “valuable contribution” in a brief statement to investors.

He will be succeeded by Steve Long, 36, during the first quarter of 2022. Long is currently CFO, Strategy and Transformation at the insurance company esure Group, where he has held a number of leading financial positions since 2012.

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Commodity increases increase FTSE 100

A well-known story of a sharp rise in copper prices and a multi-year high for oil ensured that heavy commodity stocks kept the recent recovery of the FTSE 100 index ticking over today.

The markets have shaken off thanks to a week without major economic shocks, with inflation rates in the US and China and guidance from the Federal Reserve on the potential start of November for tapering containing few surprises.

The FTSE 100 index rose 53.89 points to 7195.73, driven by miners as a weaker US dollar and economic resilience pushed up metal prices. Profits for copper and iron ore over the past week are now at 7%, while Brent oil added 1% overnight to over $ 84 a barrel.

The gains turn recent fears over the faltering pace of economic growth in China and the potential downturn if real estate giant Evergrande were to collapse.

AJ Bell’s chief investment officer Russ Mold said: “A slowdown in the global economic recovery could easily trigger a decline in commodity prices in the short term, but for today it seems that investors are very risky.”

Glencore, which has exposure to world carbon dioxide emissions through positions in copper, cobalt and zinc, rose 3% or 9.6p to 381.85p and has now increased by 14% over the past month. Zinc prices rose another 3% today and are rising 15% every week after one of the world’s largest smelters reduced production in Europe due to rising energy prices.

Anglo American shares led the FTSE 100 index, rising more than 3% or 94.5p to 2878.5p after a rise in the platinum price.

The FTSE 250 index continued its most recent rebound, improving 157.83 points to 22,791.5 on a busy trading day. The recruitment company Hays improved 4% or 6.2p to 168.5p, while the electronics company discoveryIE added 5% after its statement which was better than expected.

Saber Insurance, which sells insurance through brokers and its direct brands Go Girl and Insure 2 Drive, fell 2% or 4.8p to 190.2p in FTSE All-Share after saying that the recovery in car insurance prices has been somewhat slower than expected.

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Qinetiq Warning

Former MoD research arm Qinetiq sent its shares 9% lower today when it revealed that it is experiencing technical problems and supply chain problems on a large complex program.

The defense and security specialist, which generates a third of its revenue outside the UK, is now working with the unnamed customer and supply chain partners in an effort to reduce the risk to less than £ 15 million.

It has also been hit in the United States by the transition to the Biden presidency and the end of the country’s counter-insurgency mission in Afghanistan, plus Covid-related supply and supply chain challenges.

Hampshire-based Qinetiq, formed in 2001, now expects an underlying operating margin in the lower part of its expected range of 11-12%. It is also ready for a potential write-down to guidance on the large complex program.

However, CEO Steve Wadey is confident in the medium term, but after generating “excellent” order intake and a number of significant contract victories.

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The recruitment group Hays cheers on the hot job market

The permanent recruitment The market is the “hottest” it has been in the UK since 2007, with wage increases of up to 20% in some sought-after sectors, said head of finance for headhunters giant Hays.

Paul Venables told the Evening Standard: “For most companies, the scale and speed of post-pandemic recovery has been much better than they could have expected.”

Read the full story HERE.

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FTSE 100 higher, Qinetiq images

The FTSE 100 index is 37.86 higher at 7,179.68 in the middle of a strong session for mining stocks, where Anglo American and Glencore set the fastest pace after gains of more than 2%.

The domestic-focused FTSE 250 index improved 150.18 points to 22,785.45, led by former Premier Oil company Harbor Energy after rising oil prices overnight.

The electronics company discoveryIE was also 5% higher after a better update than expected.

Shares of defense specialist Qinetiq fell 9%, however, as it revealed that its performance in US Global Products has been affected by the transition to the Biden presidency and the priorities from counter-insurgency in Afghanistan to threats in the Indo-Pacific.

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Slow recovery for the motor insurance company

Saber Insurance, which sells insurance through brokers and its direct brands Go Girl and Insure 2 Drive, says that the recovery in car insurance prices has been somewhat slower than expected when Covid-related restrictions relax.

Its operations are strongly focused on new companies and new drivers, so the backlog of driving tests and significant delays in new car registrations have not helped.

Saber said: “We have chosen not to make inappropriate price rebates to chase volume during this period, instead maintaining price discipline to maintain the company’s strength in the medium term.”

It is expected that prices will rise in the coming year as Covid rebates are applied to policies for periods of reduced traffic and when industry responds to a significant period of cost inflation. Sabers shares fell 2p to 193p in the FTSE All-Share.

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Stelrad confirms float plan

A difficult start to trading with the Czech trucking service company Eurowag and the decision by the roofing company Marley to launch its float due to market volatility have shaken the prospects for IPOs in recent days.

The radiator company Stelrad defied these shakes today to confirm that the £ 350 million fleet will continue next month, saying that “the interest we have received from potential investors has been significant”.

Rubix, whose products help keep factories and facilities in some of Europe’s largest industrial companies up and running, also announced that it is considering a listing on London’s main market.

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