Centrica business electricity demand down 15pc, Greggs likely to beat board expectations

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The FTSE 100 is expected to open 27 points higher on Monday, having closed up 0.76% on Friday at 7,129.71.

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British Gas owner Centrica said it continued to expect year-on-year operating cost savings of more than £100m this year as part of its restructure plans. The company on Monday said first-quarter electricity demand from its UK business customers was negatively impacted by around 15%, residential boiler installations were down 11% and non-essential service visits were postponed due to Covid-19.

Greggs said annual profit could be similar to 2019 and was likely to materially beat board expectations after like-for-like sales returned to growth following the relaxation of Covid-19 restrictions. The food-on-the-go group said like-for-like sales fell 3.9% in the eight weeks to 8 May from two years earlier but that sales rose after non-essential retailers reopened on 12 April.

Safestore reported an 11.2% improvement in group revenue for the second quarter at consta\nt exchange rates on Monday, to £43.7m, as it revised its earnings guidance upwards. The FTSE 250 self storage company said like-for-like occupancy was 10.8 percentage points higher year-on-year at 82.3% for the period, with the UK up 11.8 points at 82.4% and Paris rising 6.6 points to 81.7%. It said full year adjusted diluted EPRA earnings per share were now expected to be in the range of 37p to 38p.

Newspaper round-up

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Royal Mail is to trial using a drone to send PPE, Covid-19 test kits and other items of mail from the UK mainland to the Scilly Isles. The company said it would be the first parcel carrier in the country to deliver mail to a UK island using an autonomous flight, which would fly out of sight of any operator during the 70-mile journey. - Guardian

Still reeling from the uncertainty surrounding Brexit, bankers and investors in Scotland are now facing the prospect of ‘Scexit’ – a split from the UK – following the Scottish National Party’s fourth victory in the Holyrood elections. In a dramatic weekend for UK politics, Nicola Sturgeon said there is “no democratic justification whatsoever for Boris Johnson or anyone else seeking to block the right of the people of Scotland to choose our future”, leaving financiers asking themselves if they are ready for a break-up that could make Brexit feel like an appetiser. - Telegraph

Elon Musk’s enthusiastic public claims about Tesla’s self-driving technology have been privately contradicted by the car company’s own employees, who told authorities that the billionaire’s comments do not “match engineering reality”. Documents from California’s Department of Motor Vehicles appear to show that a Tesla director told the regulator that the company was some way away from being fully autonomous. - Telegraph

One of the most influential investor groups in the City has intervened in the dispute over plans by AstraZeneca to raise the bonuses on offer to its boss, Pascal Soriot. The Investment Association has issued an amber-top warning, its second highest level of alert, about pay at the pharmaceutical giant that could lead to Soriot earning almost £18 million. - The Times

US close

Stocks finished in positive territory on Wall Street on Friday, with the Dow Jones Industrial Average closing up 0.66% at 34,777.76.

The S&P 500 added 0.74% to 4,232.60, and the Nasdaq Composite was 0.88% firmer at 13,752.24.