AG Barr FY profit seen at top end of market views, Severn Trent divi to track CPIH

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The FTSE 100 was called to open 23 points higher at 7,437.

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Irn-Bru maker AG BARR said full year adjusted profit before tax was expected to be at the top end of current market expectations, just ahead of £37m.

Revenue for the period was expected to be around £255m, down from £279m a year earlier.

The company said it had faced a “combination of challenging trading conditions during the year, particularly across the summer period”, and had adjusted its promotional and pricing position to align more closely with the market.

“While this had an expected impact on volume, it has delivered an increase in average realised price, re-establishing our consumer pricing position,” it added.

Severn Trent said its dividend would rise at least in line with consumer prices over the next five years as the water company posted a performance and outlook in line with guidance.

Newspaper round-up

The coronavirus outbreak will have a “significant” impact on Chinese growth, economists have warned, with the “wildcard” of still unknown infections posing potentially serious risks for the global economy. Shares in Asia Pacific continued to fall on Tuesday in the wake of heavy losses at the start of the week which has seen the death toll from the outbreak in China almost double in two days to 105. – Guardian

Sainsbury’s has pledged to spend £1bn to become a carbon-neutral business by 2040, 10 years ahead of the government’s target for a net-zero economy. The supermarket chain said the 20-year programme would include cutting its carbon emissions, food waste, plastic packaging and water usage, while increasing recycling, promoting healthy and sustainable eating, and ensuring that its operations are net positive for biodiversity. - Guardian

The crisis on the high street could result in a fifth of all retail space disappearing, one of Britain’s biggest landlords has warned. British Land chief executive Chris Grigg predicted that the troubles facing bricks-and-mortar retailers were far from over, with the rise of online shopping putting much of the industry under existential threat. - Telegraph

US close

US stocks closed sharply lower on Monday as confirmed worldwide cases of the Wuhan coronavirus hit 2,862 and were continuing to rise.

At the close, the Dow Jones Industrial Average and S&P 500 were both down 1.57% at 28,535.80 and 3,243.63, respectively, while the Nasdaq Composite saw out the session 1.89% softer at 9,139.31.