The FTSE 100 has hit another record high as global sentiment continues to rise. China has agreed to cut tariffs on US imported cars from 25% to 15%, and this is seen as a sign of improved trading relations. Thanks to the latest updates from Beijing, investors are even less fearful of a trade war between the US and China.
Halfords (LON:HFD) confirmed that full-year revenue increased by 3.7%, but profit fell by 5%. The decline in profit was down to increased selling costs on account of weakness in the pound against the US dollar. The cycling division outperformed the motor department, as revenue jumped by 2.9% and 1.9% respectively. The company doesn’t anticipate an increase in bike prices this year, and therefore it will continue to focus on customer services to derive revenue. Halfords, like many other retailers, are embracing e-commerce, and online revenue jumped by 11.8%. The company had a substantial increase in cashflow, and the final dividend jumped by 3%. Yesterday the share price hit a 17-month high, so traders clearly had high hopes for today’s update. Halfords stated that next-year’s profits will be largely unchanged from this year’s, and this prompted traders to exit their long positions.
Shares in Galliford Try (LON:GFRD) are higher this morning after the company stated it is on track to achieve its full-year target. Net debt has been reduced, and the company foresees exceptional charges of £25 million – which is lower than previously predicted. Peter Truscott, the CEO, confirmed that all three business are still on track deliver growth this year.
GBP/USD has enjoyed a boost on the back of profit-taking on the greenback. The pound slipped after the UK posted a jump in public sector net borrowing. In April, the deficit was £6.2 billion, and that compared with a surplus of £262 million in March.
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