CVS Group Share News (CVSG)

LONDON (Alliance News) - The FTSE 100 rallied on Tuesday, driven by tobacco stocks and packaging firm DS Smith, while the pound softened ahead of this evening's Brexit vote in parliament. The FTSE 250 was also posting strong gains, boosted by UDG Healthcare and Crest Nicholson, despite double-digit share price declines for PZ Cussons and Royal Mail. The large-cap FTSE 100 index was up 86.92 points, or 1.3%, at 6,834.02. The FTSE 250 was 149.28 points higher, or 0.8%, at 18,683.96. The AIM All-Share was down 0.2% at 910.27.The Cboe UK 100 was up 1.3% at 11,609.22, while the Cboe UK 250 was 0.7% higher at 16,678.55 and the Cboe UK Small Companies flat at 11,208.71.In mainland Europe, the CAC 40 in Paris was up 0.5% while the DAX 30 in Frankfurt was flat. "UK stocks are outperforming their European counterparts today, with the uncertainty that looms large over the Brexit picture doing little to stifle the bulls. The wider picture for stocks is understandably more downbeat, with US-China trade relations taking a hit," said IG market analyst Joshua Mahony.The US Department of Justice on Monday charged Chinese telecommunications giant Huawei with violating US sanctions against Iran in an indictment that alleges the company's chief financial officer, who was arrested last month in Canada, committed numerous crimes.Canadian officials arrested Meng on a US warrant last month, and US authorities on Monday filed documents seeking her extradition from Vancouver.The case has further damaged ties between China and the US, which already embroiled in a trade war.In response to Monday's developments, China's Foreign Ministry urged the US to stop the "unreasonable suppression" of Chinese companies.Wall Street is pointed to a mild open, with the Dow Jones and S&P 500 both seen flat while the tech-heavy Nasdaq is called down 0.1% as investors await earnings from iPhone maker Apple after the market close. At the start of 2019, Apple warned investors on its first quarter revenue following a slowdown in China. The maker of iPads and Apple Watches expected first-quarter revenue of around USD84 billion, down from its prior estimate of between USD89 billion to USD93 billion.Earnings are also due from telecommunications firm Verizon, drugmaker Pfizer, and aerospace firm Lockheed Martin before the open. Online auction platform eBay joins Apple in reporting after the close. In the economic calendar is the US Redbook index at 1355 GMT followed by the S&P/Case-Shiller home price index at 1400 GMT. In the UK, parliament this evening will debate a range of rival amendments to UK Prime Minister Theresa May's withdrawal plan, including calls to block a no-deal departure or delay Brexit from its scheduled date of March 29.Amid an ongoing revolt among backbenchers and her DUP allies, May has swung behind a motion amendment that would allow her to go back to Brussels and seek changes to the Irish border backstop.She will whip members of Parliament to support the amendment tabled by 1922 Committee chairman Graham Brady, which states Parliament would be willing to support the Withdrawal Agreement reached with the EU if "alternative arrangements" were found to avoid a hard border.The dramatic move is far from guaranteed to deliver a majority for the plan after it failed to win the support of the influential European Research Group of Conservative eurosceptics, who have not ruled out voting against it.The pound was quoted at USD1.3152 at midday, down from USD1.3161 late Monday.In London at midday, there were broad-based gains in the FTSE 100. "The index is being powered by heavyweight tobacco stocks British American Tobacco and Imperial Brands which have relatively little exposure to the UK's looming exit from the EU," said Russ Mould, investment director at AJ Bell.British American Tobacco was the top gainer, up 4.3%, while Imperial Brands rose 3.4%.DS Smith was up 3.4% after JPMorgan resumed the stock with an Overweight rating.Providing a minor drag was fund supermarket Hargreaves Lansdown, down 4.8% after reporting a fall in assets as noted Brexit uncertainty.As of the end of December, the FTSE 100-listed company's assets under administration fell 6% to GBP85.9 billion from June 30. On a year-on-year basis, assets under administration declined 0.2%.However, Hargreaves Lansdown did achieve growth in client numbers, by 45,000 to 1.1 million, and net new business inflows were GBP2.5 billion, but this was down 24% year-on-year."External market conditions have impacted investor confidence and driven industry-wide net outflows over this short reporting period," said Chief Executive Chris Hill.The second half is traditionally stronger than the first, Hargreaves Lansdown added, but it said Brexit uncertainty "is clearly not helpful". UDG Healthcare and Crest Nicholson were helping to power the FTSE 250 higher, despite the mid-cap index seeing substantial falls for Royal Mail, PZ Cussons, and Domino's Pizza.Healthcare services provider UDG Healthcare was up 8.2% after it said its performance in its first quarter saw profit "well ahead" of the year prior, with the firm expecting growth for the full-year. For the three months ended December, constant currency pretax profit is expected to be "well ahead" of the same period the year prior, without providing specific figures.The stronger performance was driven by a operating profit at its Sharp clinical services business which was "significantly" ahead of the year prior. This followed continued "strong momentum" in the US as well as a "weak" comparative period the year before.Housebuilder Crest Nicholson was up 6.7% despite reporting a fall in annual profit. Pretax profit for the 12 months to October 31 fell to GBP176.4 million from GBP207.0 million the year before, but sales including joint ventures did increase 7% to GBP1.13 billion.Crest Nicholson's volumes for the year rose to 3,020 homes, up 3%, while forward sales were 11% ahead year-on-year in mid-January at GBP639.4 million.Meanwhile, Imperial Leather soap maker PZ Cussons was down 11%, at the bottom of the FTSE 250 as the firm looks to limit its exposure to Nigeria after "extremely challenging" trading.PZ Cussons registered a 23% fall in revenue to GBP111.3 million in Africa for the six months to November. Group revenue fell by 10%, or 4.6% constant currency, to GBP335.1 million. Like-for-like revenue also slid 4.6%. To help streamline its activities and focus on Personal Care and Beauty operations in Europe and Asia, the company has begun some strategic initiatives, it said, which include "limiting exposure to Nigerian volatility".Royal Mail shares were also shedding 11%, as it narrowed its annual profit guidance amid a weaker-than-expected performance in its letters business.For the nine months ended December 23, revenue for the UK Parcels, International & Letters business fell 1% on an underlying basis. This was after revenue from letter delivery fell 6%, offsetting a 6% rise in parcel revenue. Letter volumes fell 8% with parcel volumes up 6%.Royal Mail now expects full-year operating profit before transformation costs of between GBP500 million and GBP530 million, narrowed from the range of GBP500 million to GBP550 million given previously. Domino's Pizza was down 9.2% after the delivery chain reduced its annual profit expectations following weak performances in Norway and Switzerland. Domino's now expects underlying pretax profit to be at the lower end of the consensus range of GBP93.9 million and GBP98.2 million.This new guidance came after fourth quarter like-for-like sales in the UK rose 4.5%, though Norway's comparable sales were down 6.4% and Switzerland down 7.7%.On AIM, shares in CVS Group slumped 28% after the veterinary services provider issued a profit warning and said it will be re-evaluating its acquisition strategy. Over the past two years, CVS said, it has moved into the Farm and Equine markets, but early performance of these new divisions has been "disappointing", with results falling short of board expectations. Further, CVS had to pay much higher employment costs in its half-year ended January due to shortages of vets, meaning the company is still "heavily reliant" on locum cover. "Given the financial performance in first half 2019, CVS now expects full-year Ebitda to be materially below current market expectations," warned CVS.