Kainos doubles first-half profits, Vodafone leaves interim dividend unchanged
London open
The FTSE 100 is expected to open 48 points higher on Monday, having closed down 0.36% on Friday, at 6,316.39.
Stocks to watch
IT provider Kainos doubled half-year profits and lifted its dividend driven by a strong rise in revenue at its healthcare unit which has been helping the NHS with its Covid-19 test and trace programme. The company on Monday said pre-tax profits came in at £24m from £12m on revenue up 23% to £107.2m. The interim dividend was lifted 83% to 6.4p a share.
Softcat said it performed “well” during its first quarter on Monday, delivering year-on-year growth in revenue, gross profit and operating profit, while also achieving recruitment targets. The FTSE 250 company said cash generation remained in line with normal trends, with its board noting “further positive momentum” heading into the second quarter.
Vodafone announced an unchanged interim dividend as the company forecast a drop of up to 3.2% in annual earnings. The FTSE 100 company kept its dividend at 4.5 cents a share as it posted a $1.6bn (£1.4bn) net profit compared with a €1.9bn loss a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) fell 1.9% to €7bn. Vodafone reinstated financial guidance and said it expected annual Ebitda to fall to between €14.4bn and 14.6bn from €14.9bn a year earlier.
Newspaper round-up
Eight months since the UK coronavirus lockdown forced the temporary closures of restaurants, bars, shops, hairdressers and other small businesses, thousands who are still awaiting payouts from their insurers to cover lost income will hope a supreme court hearing will result in a ruling that favours about 200,000 policyholders. Most have not received a penny despite having business interruption insurance, a key part of commercial policies which is supposed to pay out if a firm cannot trade as usual owing to an unexpected event. - Guardian
Boris Johnson is understood to be planning to ban the sale of new petrol and diesel cars within a decade, with reports that the ban will be brought forward by five years. It follows the prime minister moving the cut-off date from 2040 to 2035 in February. - Guardian
Billionaire Fred Done is backing a £2.9bn takeover bid for William Hill by Las Vegas casino operator Caesars Entertainment. The betting tycoon, William Hill’s biggest investor, will back the swoop when it is put to a shareholder vote on Thursday, according to sources close to the businessman. Caesars struck a deal with the William Hill board in September after US private equity fund Apollo tabled a competing bid. - Telegraph
The historic, centuries-long link between the Royal Mail and the nation’s network of post offices is set to come to an end as negotiations begin that could lead to the state-owned Post Office handling the packages of rival delivery firms such as Amazon. The Post Office is understood to be going through the process of freeing itself from exclusive obligations to handle Royal Mail post and parcels. - The Times
Britain’s valuers have come under fire in recent years for valuing stores and shopping centres too optimistically. Warning signs of rising numbers of empty shops, retailer insolvencies and online competition were there for years before some landlords reported sharp valuation declines. - The Times
US close
Stocks closed in positive territory on Wall Street on Friday, with the Dow Jones Industrial Average up 1.37% at 24,479.81.
The S&P 500 added 1.36% to 3,585.15, and the Nasdaq Composite advanced 1.02% to 11,829.28.