Frasers Group profits fall, John Laing hikes interim dividend

London open

The FTSE 100 is expected to open 68 points lower on Thursday, having closed up 0.58% at 6,111.98 on Wednesday.

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Frasers Group said it planned to spend £100m on its digital elevation strategy and forecast a 10-30% improvement in underlying core earnings next year as 2020 profits fell by a fifth due to the Covid-19 pandemic. Reported profit before tax fell to £143.5m from £179.2m as the company formerly known as Sports Direct scrapped a final dividend. Group revenue increased by 6.9% to £3.9bn, driven by rises in its UK and European retail and premium lifestyle divisions, which offset falls in the rest of the world and wholesale & licensing units.

John Laing Group reported a net asset value of £1.53bn at the end of its first half on Thursday, down from £1.6bn year-on-year, as its net asset value per share slid to 309 p from 325p. The FTSE 250 company said that made for a negative total return of 6% for the six months ended 30 June, swinging from a positive 3% return in the first half of last year. Its board still declared a dividend of 1.88p per share, up from 1.84p a year ago.

Newspaper round-up

The number of consumers in the UK who do a weekly grocery shop online has doubled since the coronavirus lockdown, in a trend that is now “irreversible”, according to a supermarket report. One in four consumers now buy food and essentials at least once a week online, while more than three-quarters order at least some of their regular household goods from supermarket websites – up from 61% last year, the research from Waitrose reveals. - Guardian

The coronavirus pandemic has driven Australia’s flagship carrier, Qantas, to declare its worst financial result for a century – a $2bn loss – amid widespread devastation in the travel and tourism industries. Despite concerns in the market that the airline is bleeding cash as much of its fleet remains grounded, the company declared on Thursday that it remains a going concern and its chief executive, Alan Joyce, took a swipe at stricken rival Virgin Australia by declaring that after the crisis Qantas would be “the only Australian airline that can fly long haul”. - Guardian

Thousands of boiler repair staff could walk out from British Gas this winter after workers voted overwhelmingly in favour of strike action. Members of the GMB union gave 95pc backing to industrial action after British Gas owner Centrica threatened to fire its entire 21,000-strong workforce unless they accepted new, less generous contracts. – Telegraph

A leading shareholder in Britain’s biggest estate agency has called on the group to slash branch numbers, consolidate brands and overhaul its leadership to unlock value. Catalist Partners, a vehicle controlled by property industry veterans including Robin Paterson, 65, the former co-owner and chief executive of Hamptons International, has written to Countrywide to demand a series of “bold steps”. If Countrywide is unable to reach an agreement the shareholder has threatened to “pursue all options available” to it. Mr Paterson, in a letter seen by The Times, warned Peter Long, 68, chairman of Countrywide, that “time is of the essence”. – The Times

Claims against individuals in the alleged fraud at NMC Health, the former FTSE 100 private hospitals company, could take more than five years, its administrator has warned. Alvarez & Marsal, which was appointed in April after an accounting scandal at NMC, said that a decision on claims was expected to take more than two years, and beyond the mid-2020s “in some areas”. – The Times

US close

Wall Street stocks closed lower on Wednesday as minutes from the Federal Reserve's latest minutes weighed on sentiment.

At the close, the Dow Jones Industrial Average was down 0.31% at 27,692.88, while the S&P 500 was 0.44% lower at 3,374.85 and the Nasdaq Composite saw out the session 0.57% weaker at 11,146.46.

The Dow closed 85.19 points higher on Wednesday, carrying on yesterday's losses.

Minutes from the Federal Reserve's July meeting had investors spooked on Thursday after the central bank cut its economic growth forecast for the remainder of 2020 and stressed the need for more financial aid to vulnerable families and the broader economy due to the Covid-19 pandemic.

Also in focus, the ongoing stalemate between Republican and Democratic lawmakers regarding another round of coronavirus stimulus payments to Americans after Treasury Secretary Steven Mnuchin slammed Democratic leaders for being unwilling to discuss a smaller relief package and delayed trade talks between the US and China amid heightened tensions between the two economic superpowers.