SSP expects return to pre-Covid LFL revenue growth, DCC acquires PVO International

London pre-open

The FTSE 100 was being called to open 39.2 points higher ahead of the bell on Tuesday after closing out the previous session just 0.03% firmer at 7,020.95p.

Stocks to watch

Travel food outlet operator SSP Group said it still expects a return to pre-Covid levels of like-for-like revenue and core earnings by 2024.

"As we look ahead to the 2023 financial year, whilst there remains considerable uncertainty in the macroeconomic environment, we are confident that our flexible and resilient business model will enable us to continue to offset cost inflation, manage supply chain and labour volatility, and optimise profitability and returns," the company said on Tuesday.

Sales and marketing firm DCC has agreed to acquire PVO International, a distributor of solar panels, invertors, batteries and accessories used in the commercial, industrial and domestic energy sectors across continental Europe.

DCC said on Tuesday that the acquisition of PVO was "an excellent strategic fit" for the group, leveraging its market position in the fast-growing solar PV marked. Financial terms of the deal were not disclosed.

Newspaper round-up

Bankers could rake in bumper bonuses from a "wave of bids" by overseas buyers for UK businesses made temptingly cheaper as a result of the plunge in the pound against the dollar. A fresh frenzy of merger and acquisition activity would mean a ramp-up in payouts for City dealmakers. Sterling fell by nearly 5% at one point on Monday to $1.0327, its lowest since Britain went decimal in 1971. The currency has fallen by more than a fifth against the dollar this year. – Guardian

Elon Musk is scheduled to spend the next few days with lawyers for Twitter, answering questions ahead of an October trial that will determine whether he must follow through on his $44.0bn agreement to acquire the social platform after attempting to back out of the deal. The deposition, planned for Monday, Tuesday and a possible extension on Wednesday, will not be public. As of Sunday evening, it was not clear whether Musk would appear in person or by video. Reuters reported the deposition did not happen Monday nor was a reason given for the delay, citing sources with knowledge of the situation. – Guardian

As the pound continued its dramatic slide on Monday morning, there were the usual attempts in some quarters to paint this as a victory for Britain's exporters. Similar protests were made when investor confidence frayed following the EU referendum. Yet, even the FTSE-100 dipped 50 points at one stage this time around, below the psychologically important 7,000 level, underlining the extent to which government supporters are clutching at straws again. – Telegraph

An AIM-listed esports franchise backed by David Beckham has signed its largest ever sponsorship deal with Sky, helping to send its shares up by more than 58%. No financial details were disclosed by Guild Esports, which runs teams competing in video game tournaments, including Fifa and Rocket League, but it called the three-year deal "one of the largest ever sponsorships signed in Europe." – The Times

Matalan has named the former New Look boss Nigel Oddy as its interim chief executive with the retailer putting itself up for sale. In another boardroom change yesterday, John Hargreaves, Matalan's founder, who only rejoined the business in July as chairman, is also stepping down in order to take part in a bid. – The Times

US close

Wall Street stocks closed lower on Monday as a surging dollar and heightened bond yields took centre stage.

At the close, the Dow Jones Industrial Average was down 1.11% at 29,260.81, while the S&P 500 was 1.03% weaker at 3,655.04 and the Nasdaq Composite saw out the session 0.60% softer at 10,802.92.

Reporting by Iain Gilbert at Sharecast.com