Dairy Crest Share News (DCG)

LONDON (Alliance News) - The FTSE 100 was giving back some of its recent gains on Wednesday, as markets in the US and Asia closed lower overnight after US President Donald Trump cautioned that a summit with North Korea may not happen in June.At the top of London's blue-chip index early Wednesday was high street retailer M&S, as it promised to work on its "structural issues" amid a fall in annual profit, while International Consolidated Airlines fell following a downgrade from HSBC.The economic focus in the UK in the day ahead lies on April's inflation data, due at 0930 BST.The FTSE 100 index was down 0.5%, or 37.21 points, at 7,840.24 early Wednesday. The mid-cap FTSE 250 index was down 0.3%, or 71.57 points, at 21,119.87. The AIM All-Share index was down 0.3% at 1,092.03.The Cboe UK 100 index was down 0.7% at 13,301.14. The Cboe UK 250 was down 0.3% at 19,367.87, and the Cboe UK Small Companies down 0.2% at 12,901.90.In mainland Europe early Wednesday, the CAC 40 in Paris was down 0.6% while the DAX 30 in Frankfurt was 0.4% lower.The lower open in Europe comes "as the vagaries of US-China trade talks turned once again, President Trump saying he was not happy with how the talks were proceeding," said Michael van Dulken, head of research at Accendo Markets."To make matters worse, he added to the pessimism by suggesting delays to the 12 June US-NK summit in Singapore," the Accendo analyst added.Trump on Tuesday said arrangements for the US-North Korea summit in Singapore are "moving along", but it could happen later than the proposed date."If it doesn't happen, maybe it will happen later," Trump told reporters at a photo opportunity with South Korean President Moon Jae In at the White House.Sterling was quoted at USD1.3385 early Wednesday, down compared to USD1.3437 at the London equities close on Tuesday.April's CPI reading for the UK is seen keeping steady at 2.5% year-on-year, while month-on-month it is expected to gain 0.5%, accelerating from last month's 0.1%."Today's UK CPI data could see inflation fall back to 2.4% in April," noted Irish broker Davy, "due to the early timing of Easter and the volatile airfares component. This will reinforce doubts regarding the likelihood of an August rate hike, now being priced in with less than a 50/50 probability."At the top of the FTSE 100 early Wednesday was Marks & Spencer, up 6.1% as the retailer looked to work on issues identified in its online offerings and struggling fulfilment centres amid a drop in annual profit.Revenue rose 0.7% to GBP10.70 billion for the year to March 31, up from GBP10.62 billion last year, but pretax profit dropped 62% to GBP66.8 million from GBP176.4 million.One-off costs came in at GBP514.1 million for the year, up from GBP437.4 million last year. This includes GBP321.1 million related to the UK store estate, up from GBP51.6 million the year before - as it accelerated its "transformation plans" - with a GBP15.5 million cost related to its IT restructure.Adjusted pretax profit still fell 5.4% to GBP580.9 million, hit by a decrease in its Food gross margin, which fell "more than expected" by 140 basis points during the year. M&S said that although online sales are growing, its online capability is "behind the best of our competitors and our website is too slow".Under a section of its statement titled "Facing Facts", the retailer continued: "Our fulfilment centre at Castle Donington has struggled to cope with peak demand and some of our systems are dated. In both businesses we need to revitalise our ranges and reassert our reputation for value for money."Standard Chartered was 2.3% higher after the Financial Times reported that Barclays has been seeking a combination with the emerging markets-focused bank.The newspaper, citing "people close to the situation", said directors were already in "private" talks, but no formal or informal approach has been made. Barclays was up 0.4%.International Consolidated Airlines was the worst blue-chip performer, down 2.2%, after HSBC cut the British Airways owner to Reduce from Hold.At the top of the FTSE 250 was Softcat, 5.9% higher after it said it continued to trade well across all segments during its third quarter. As a result, the IT infrastructure firm said it is confident in delivering full-year results ahead of expectations."We continue to hit our goals across the business. We've achieved this through our high energy focus on winning new customers and selling more of our technology and services portfolio to existing customers," said Chief Executive Graeme Watt.Babock International was up 4.7%. The defence outsourcer said revenue for its year to the end of March rose 2.5% to GBP4.66 billion, as pretax profit climbed 8.0% to GBP391.1 million. The firm lifted its full-year dividend by 4.8% to 29.5p from 28.15p."The revenue visibility provided by around GBP31 billion of secured orders and near term opportunities offers continued prospects for growth in line with previous expectations for this year and over the medium term," Babcock said."The board is confident that the group will achieve low mid-single digit organic revenue growth with broadly stable margins in 2018/19, despite the scheduled step downs in the Aircraft Carrier and Magnox decommissioning programmes," the FTSE 250-listed firm added.Dairy Crest was 6.4% lower at 502.13p per share after it said revenue and profit rose in its recently-ended financial year, and launched a discounted share placing to pursue growth opportunities for its Cathedral City cheese brand. Revenue for the year to March 31 rose 10% to GBP456.8 million, as pretax profit multiplied to GBP179.2 million from just GBP40.3 million last year. Adjusted pretax profit was up 3% to GBP62.3 million from GBP60.6 million.Additionally, the dairy products maker said it intends to place up to 14.1 million shares, representing just under 10% of its current share capital, at a price of 495p, in order to pursue "a number of attractive opportunities" for its cheese brand, Cathedral City.The placing is being conducted via an accelerated bookbuild run by Peel Hunt and Shore Capital Stockbrokers.In Asia on Wednesday, the Japanese Nikkei 225 index closed down 1.2%. In China, the Shanghai Composite closed down 1.4%, while the Hang Seng index in Hong Kong is down 1.3%.In the economic events calendar, there are manufacturing PMI readings from the eurozone and US at 0900 BST and 1445 BST respectively. Later, minutes from the last Federal Open Market Committee are released at 1900 BST."Markets are pricing for a potential fourth hike in 2018 (one more than the dots). The May FOMC statement downplayed inflation risks, but the minutes should offer further insights on that discussion and the likely rate path," said analysts at Societe Generale.