Shares in London were flat in mid morning trading despite a fall back on Wall Street overnight and softer Chinese economic growth figures. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
KEY STORIES:
Shares in motor retailer Pendragon (PDG) fell close to 10 per cent in early trading as news of further disruption to new cars sales in September and October continues to blight the sector. The introduction of a new emissions test - WLTP - in September for all cars sold into the European Union (EU) caused a 20 per cent drop in industry-wide new vehicle sales, which Pendragon admits will “clearly have an impact on the group”. Continued investment in used car factories will also bear down on profitability this year, resulting in a bottom line around £50m - a material decline on 2017’s £60m result - which amounts to a second profit warning, the last one being this time a year ago.
InterContinental Hotel Group (IHG) reported a 5.1 per cent year-on-year increase in net system size growth during the third quarter, or 4.6 per cent excluding the Regent Hotels & Resorts and the UK portfolio deal. During the quarter revenue per available room globally increased by 1 per cent, but year-to-date this figure is up 2.7 per cent. IHG opened 19,000 rooms during the period, the strongest pace in a decade. The company’s weaker spot was the Americas, where revenue per available room was flat. Shares fell 6 per cent in early trading.
Ryanair (RYA) has signed an agreement with Portuguese pilot union SPAC, which will provide for seniority and base transfer agreements covering all directly employed pilots based in Portugal. Earlier this week the airline signed similar agreements with BALPA in the UK and ANPAC in Italy covering all of Ryanair's directly employed UK and Italian pilots, and a similar agreement in Spain Is expected to complete soon. Chief people officer Eddie Wilson said the deals demonstrate “considerable progress” Ryanair has made in concluding union agreements.
OTHER COMPANY NEWS:
Funding Circle (FCH) – the SME loans company that floated on the main market on 3rd October – has given a third-quarter update to 30 September. Loans under management, excluding property, grew by 61 per cent year-on-year to £2.8bn as at 30 September. Originations, excluding property, grew by 45 per cent to £564m. Management confirmed that its growth expectations remain unchanged for the full year. The group’s shares were up by around 6 per cent this morning, at 434p at the time of writing – slightly below their 440p IPO price.
