B&M earnings at top end of guidance, Centrica trading in line

London open

The FTSE 100 was called to open around 50 points higher.

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British Gas owner Centrica said current year trading was in line with expectations against the backdrop of a more “normalised” environment, with all retail supply and optimisation businesses to be within their medium-term sustainable adjusted operating profit ranges in 2024 - two years ahead of schedule.

In a trading statement ahead of the company’s annual general meeting, Centrica reaffirmed earnings forecasts for British Gas residential energy supply of £150m-£250m, British Gas services & solutions £100m-£200m, Centrica Energy £250m-£350m and Bord Gáis and Business Energy Supply £100m-£200m.

Annual operating profits and sales at discount retailer B&M European Value Retail grew in the double digits, helped by the opening of 78 gross new stores across the group, with earnings at the top end of guidance.

Adjusted EBITDA totalled £629m in the year to 25 March, up 10.9% on the year before, helped by higher volumes and strong cost control. This was at the top end of the company’s forecast of £620m to £630m. Group revenues rose by 10.1% to £5.5bn, with 19.2% growth in B&M France, 15.3% in Heron Foods and 8.5% in B&M UK.

Newspaper round-up

Britain’s next government will need to fill a shortfall of up to £33bn in the public finances unless it is prepared to push through a fresh round of severe austerity measures, a thinktank has warned. The Resolution Foundation said the debate between Labour and the Conservatives over the funding of specific pledges was “detached from reality”, with election promises based on cuts that would be hard to deliver. – Guardian

UK exports of clothing and footwear to the EU have dived since Brexit, according to a new study that shows the extent to which complex regulations and red tape at the border have deterred firms from sending goods across the Channel. Exports of clothing and footwear sold to EU countries have fallen from £7.4bn in 2019 to £2.7bn in 2023, helping fuel an 18% slump in sales of all non-food goods exports to countries covered by the EU single market, according to the consultancy Retail Economics and online marketplace Tradebyte. – Guardian

Airbus has unveiled a new unmanned combat jet that will be capable of acting as a “loyal wingman” for RAF pilots flying Eurofighter Typhoon aircraft. The European aerospace giant unveiled the sleek-looking concept drone at the Berlin International Airshow, where defence companies are this week showing off their latest wares. – Telegraph

Tesco has rolled out a digital “marketplace” to sell products ranging from office furniture to giant chess sets, as the supermarket giant seeks to challenge Amazon online. Around 9,000 new products have been added to Tesco’s website, as the retailer seeks to attract shoppers with third-party brands, such as Hornby jigsaws and Beko air fryers. It comes as Tesco seeks to turn itself into a “one-stop shop for everything customers need”. – Telegraph

The right-hand man of the Czech tycoon seeking to pull off the £3.6 billion takeover of Royal Mail’s parent company has met union bosses in an attempt to convince them of the merits of the deal. Roman Silha, who heads mergers and acquisitions for EP Group’s investments, sought to reassure the Communication Workers Union, which has called for a new ownership model for the postal services company, including giving all its employees a stake in its future. – The Times

Closing arguments in the California fraud case against Mike Lynch concluded on Tuesday and the jury retired for deliberation. Lynch’s lawyers have portrayed the British businessman as a savvy entrepreneur in the trial relating to Hewlett-Packard’s $11 billion acquisition of Autonomy, his software company, in 2011. – The Times

US close

Wall Street stocks closed higher on Tuesday as traders shrugged off disappointing manufacturing data from the previous session and cheered falling bond yields.

At the close, the Dow Jones Industrial Average was up 0.36% at 38,711.29, while the S&P 500 advanced 0.15% to 5,291.34 and the Nasdaq Composite saw out the session 0.17% firmer at 16,857.05.

The Dow closed 140.26 points higher on Tuesday, reversing yesterday's losses.