UK market update – Smiths Group gets more for Medical unit, Dunelm boosts dividend

At 08:37BST, the FTSE 100 is trading lower by 0.8% at 7,089. The midcap FTSE 250 is trading lower by 0.5% at 23,971.

In FX markets, GBP/USD is trading at 1.3767, EUR/GBP is trading at 0.8600. The US Dollar Index is up 0.1%.

Today’s calendar highlights include the Bank of Canada’s latest interest rate decision, US JOLTs, and Bank of England members testify at the Treasury Select Committee on the August Monetary Policy Report and Financial Stability Report.

Stocks
Smiths Group (LON:SMIN) – Agreed to sell Smiths Medical to ICU Medical on terms superior to previously announced transaction entered with TA Associates. ICU transaction values Smiths Medical at an enterprise value of $2.7 billion, plus an additional $0.1 billion contingent on the future share price performance of ICU Medical.The Board has withdrawn its recommendation of the TA Transaction.

Morrisons (LON:MRW) – Shareholder meetings to approve the CD&R and Fortress takeover offers will be convened for a date in or around the week commencing 18 October 2021. Any Auction Procedure will take place prior to these shareholder meetings, on a date that will be announced by the Panel Executive in due course.

Anglo American (LON:AAL) – Value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers’ seventh sales cycle of 2021, amounts to $515 million.

Avon Protection (LON:AVON) – Awarded contract worth up to $87.6 million over two years from the US Army to develop and supply ballistic helmets .

Biffa (LON:BIFF) – H1 trading has continued in line with revised expectations set out in July this year. Group net revenues for the five months to August 2021 were 12% higher than the comparable period in 2019, and 3% excluding acquisitions. Outlook for the full year remains positive and in line with the Board’s expectations.

Dunelm (LON:DNLM) – FY 2021 revenue up 26.3% to £1.336 billion. Profit before tax up 44.6% to £157.8 million. Declares final dividend of 23.0p, taking the full year ordinary dividend to 35.0p. Declares a special dividend of 65.0p in line with published capital policy. Strong start to the year has been better than anticipated. Board expects that FY22 PBT will be modestly ahead of the top of the range of analysts’ expectations.

ICG (LON:ICGT) – Updating asset classes for the purpose of reporting. The reorganised asset classes within the Fund Management Company will be Structured and Private Equity; Private Debt; Real Assets; and Credit.

Bakkavor (LON:BAKK) – H1 group revenue up 4.0% to £915.7 million. Operating profit up 243.1% to £47.0 million. A strong H1 performance and continued recovery in volumes at the start of H2 gives confidence in delivering a full year performance in line with the Board’s expectations.

Halfords (LON:HFD) – Total sales growth of +18.7% (+16.8% LFL) over two years. Continue to target full year profit before tax, post-IFRS 16 adjustments, of above £75 million.

S4 Capital (LON:SFOR) – Announces merger between Cashmere and Media.Monks, which significantly expands the capabilities of both its content practice in the USA and global cultural strategy.

IAG (LON:ICAG) – British Airways could sell some short-haul landing slots at Gatwick Airport if unions do not agree to the lower cost subsidiary.

Fruugo – Announces intention to seek admission of its shares to trading on AIM. Admission is expected to occur in early October 2021.

ASOS PLC (LON:ASOS) – Downgraded to neutral from outperform at Exane BNP.