JD Sports profits fall | Scotgold ‘encouraged’ – Daily Business


4:30 p.m.: Stocks subdued after rate hike

Blue chip stocks fell sharply towards the close, despite a slight rally earlier as the Bank of England announced a lower-than-expected rate hike.

The 50 basis point rise to 2.25% – the seventh straight rise – was the low end of expectations.

That FTSE100 closed 78.12 points lower at 7159.52 after the bank said the UK is likely already in recession but expects more rate hikes.

The FTSE 100 fell sharply in afternoon trade

Sterling was up 0.287% against the dollar at $1.1286.

In the stock market JD sports fashion fell 6.66% as its results disappointed investors Hargreaves Lansdown fell 6.3% as its shares went ex-dividend.

JD sports fashion

JD Sports in St James

JD Sports said profit before tax and special items fell to £383.5m for the half-year from £439.5m last time.

The numbers were at the high end of management expectations after a period of management upheaval.

An interim dividend of 0.13p per common share was declared (2021: nil), with the return to more normalized trading justifying the return to a more normalized phase of dividend payments

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The Board maintains its view that total income before taxes and exceptional items for the year ended January 28, 2023 will match the record performance for the year ended January 29, 2022.

Andrew Higginson, Chairman, said: “While this has been a transitional period for the Board, it is reassuring that this has not impacted the financial performance of the Group which continues to deliver strong results.”


Russ Mold, Investment Director at AJ Bell said: “Life could get a lot harder for JD Sports given the significant headwinds retailers are facing.

“With interest rates set to continue to rise for the foreseeable future and consumers becoming less confident about job security amid dark clouds over the economy, JD will need some highly desirable products on its shelves or its second-half results don’t win a patch in the first.” be half.

“Interestingly, JD appears to be keeping an eye on longer-term opportunities rather than pulling back on short-term headwinds. It invests in businesses to make them look smarter.

“That should do the company good in the long term.”

Scottgold Resources

Scotgold, which operates a gold mine near Loch Lomond, said it reached commercial production in July and continues to generate cash.

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Underground power and ventilation upgrades to improve access, operations and increase mining rate and ore extraction were completed in late August.

CEO Phil Day said, “We achieved commercial production in July 2022 and continue to operate as a cash-generating company.

“I am very encouraged by the progress to date completing most of the optimization initiatives, positioning us strongly for Q4 2022 and Q1 2023, moving production ramp-up towards Phase 2 and indeed balancing margins, cash generation and profitability our stated strategy.

“Despite the reduction in gold production in late August/early September and the consequent reduction in guidance for the third quarter of 2022 to approximately 2,000 ounces of gold due to the successful but delayed implementation of the power and ventilation upgrades, I look forward to it.

“The delayed production of ore from the mine is offset by the recent power supply and ventilation upgrades and Q4 2022/Q1 2023 are expected to be very robust quarters in line with our mine plan and forecast a significant increase into Q2 and Q3 2022 production.”

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Murray Income Trust

Murray Income Trust, which invests primarily in UK equities, said total dividends per share rose 4.3% to 36 pence, its 49th straight rise.

It said it “outperformed slightly” in the first and second quarters of the year, followed by underperforming in the third and final quarters.

Neil Rogan, Chairman, said: “We are in a scarcely credible era of uncertainty and without strong political, economic or social leadership. domestic politics, geopolitical tensions and war, inflation, labor shortages, recession, strikes, energy shortages; All of these factors can significantly affect the prospects for the companies in which we invest.

“Each of them is impossible to predict with confidence at this time. So what’s the view like? In truth, we cannot be sure.”

Full story here

Global Markets

London stocks were expected to open lower after sharp falls in the US, after the Federal Reserve cut economic growth forecasts and hiked interest rates another 75 basis points.

Investors will be eagerly awaiting the Bank of England’s decision, which was announced at midday.

That Dow Jones fell by 1.7%, the S&P500 shed 1.7% and the Nasdaq Composite fell 1.8%.

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