UK Home Builders Suffer from Brexit Woes, Sports Direct Reaffirms Outlook

Sarla Buch
06 Sep, 2017
New York City

U.K. based home builder Berkeley said fiscal profit is in line with market expectation. Barratt reported strong results. Sports Direct reaffirmed fiscal 2018 profit forecast. Vectura net loss widened.

[R]4:00 PM Frankfurt – U.K. based home builder Berkeley said fiscal profit is in line with market expectation. Barratt reported strong results. Sports Direct reaffirmed fiscal 2018 profit forecast. Vectura net loss widened.[/R]

In London trading, FTSE 100 index fell 32.88 or 0.5% to 7,340.04 and in Frankfurt the DAX index advanced 121.13 or 1% to 12,245.72.

In Paris, CAC 40 index edged up 2.28 to 5,088.83.

Berkeley Group Holdings Plc declined 3.1% to 3,636 pence after the U.K.-based homebuilder said profit in the current fiscal year is estimated to match results in the previous year.

The home builder is set to deliver at least 10% more new homes compared to a year ago despite new construction in London remain 30% lower than 2015 level due to the Brexit uncertainty.

Barratt Developments Plc dropped 4% to 600.50 pence after the U.K.-based residential property developer reported revenues in the year ending in June soared 9.8% from a year ago to £4.7 billion.

Net profit in the year soared 11.9% to £615.8 million from £550.3 million in a year ago period and diluted earnings per share advanced to 60.7 pence from 54.3 pence.

The home builder said it will return £175 million to shareholders as special dividend after strong financial results of fiscal 2017.

Daimler AG jumped 3.5% to €64.62 on report that the Mercedes car-maker plans to change its corporate structure and likely to spin-off of its €31 billion truck and bus business.

On August 24, Germany-based weekly Manager Magazin said that the Stuttgart-based vehicle maker may create three separate legal entities; automobiles, vans, trucks and busses and financial services.

Jyske Bank A/S slumped 5.1% to 351.90 Danish kronor after Denmark-based BRFholding A/S reduced its stake in the commercial bank 5.33% through the sale of 4.8 million shares and reduce its stake to 18.1 million shares or 20.25%.

Sports Direct International Plc gained 1.1% to 391.50 pence after the U.K.-based sporting goods retailer reaffirmed fiscal 2018 operating profit increase forecast in the range of 5% to 15% which was announced on July 20.

Separately, the retailer today confirmed its plan to acquire 100% stake in the luxury and designer fashion chain Flannels.

Vectura Group Plc tumbled 10.1% to 98.25 pence after the U.K.-based respiratory drug device maker said revenues in the first-half ending in June jumped 6.6% from a year ago to £78.8 million.

Net loss in the year widened to £38.1 million from £18.6 million in a year ago six-month period and diluted loss per share increased to 5.6 pence from 3.2 pence.