Wizz Air flags full-year net profit, FirstGroup posts strong year

London open

The FTSE 100 is expected to open four points higher on Thursday, having closed down 0.05% on Wednesday at 7,624.34.

Stocks to watch

Budget airline Wizz Air said it expected to post a net profit this year after posting a net annual loss due to higher fuel prices and the war in Ukraine. The company on Thursday reported an operating loss of €535m, narrower than the €642m a year earlier. Revenue more than doubled to €3.9bn, while passenger numbers were up 88% to 51 million. Wizz said it expects a net profit of €350 - 450 million in the current financial year, subject to the absence of adverse events such as an incremental impact from the war in Ukraine or delivery delays.

FirstGroup reported a strong full-year performance on Thursday, with growth in bus and rail open access operations driving a more-than-doubling of adjusted attributable profit to £82.1m, surpassing expectations. The company said its strategy going forward included a focus on improving operational delivery, investing in growth opportunities, delivering value to shareholders, and taking a leading role in the decarbonisation of UK public transport.

Newspaper round-up

Crypto firms must warn customers they should not expect protection if their investment goes wrong and introduce a “cooling off” period for first-time investors, under new rules imposed by the UK financial watchdog. The Financial Conduct Authority said that from 8 October firms promoting crypto products or services would need to carry a clear risk warning in their adverts. – Guardian

Sadiq Khan has vowed to block plans to house hundreds of asylum seekers on a barge on the docks next to London City Airport’s runway. The London mayor and Metropolitan Police are understood to be among a coalition of public and private sector organisations opposing the Home Secretary’s plans on safety grounds, The Telegraph can disclose. – Telegraph

High taxes are deterring Britain from working, the boss of one of the UK’s biggest recruitment agencies has said. James Reed, the chairman of Reed, said Jeremy Hunt should cut taxes to encourage more people back to the labour market following an exodus of workers during the pandemic. – Telegraph

The UK’s red-hot labour market is showing signs of cooling, with falling vacancies and higher availability of candidates reported last month. A closely watched survey of the jobs market, carried out for KPMG and the Recruitment and Employment Confederation, found that wage inflation slowed and there was a drop in permanent staff employment in May. – The Times

Dame Sharon White has pledged to get the John Lewis Partnership back to “sustainable” profit before 2026, although this may require outside investment. White said that she had “a clear plan” for the partnership, which reported a loss of £234 million and scrapped its annual bonus this year. The five-year plan aims for “a broadly based business with brilliant retail at the core, built on excellent customer service, quality and ethics”, she said. – The Times

US close

Wall Street closed in a mixed state on Wednesday, as market indicators reacted to the Bank of Canada's unexpected decision to increase interest rates.

At the close, the Dow Jones Industrial Average was up 0.27% at 33,665.02, while the S&P 500 slipped 0.38% to finish at 4,267.52.

The tech-heavy Nasdaq Composite took a more significant hit, dropping 1.29% to settle at 13,104.89.

Canada’s surprise decision echoed the unexpected move by the Reserve Bank of Australia earlier in the week, making Ottawa the second central bank to increase rates against market expectations.

In the currency market, the dollar was last down 0.02% on sterling to trade at 80.38p, while it slipped 0.01% against the common currency to 93.46 euro cents.