Halma buys FirePro, AG Barr profits rise

London open

The FTSE 100 is expected to open 33 points higher on Tuesday, having closed up 0.9% on Monday at 7,471.77.

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Halma said it had bought FirePro, a manufacturer of aerosol-based fire suppression systems, for €150m (£132m) on a cash- and debt-free basis. FirePro's unaudited revenue for the 12 months to December 31 was €23.3m, with return on sales more than double Halma's target range of 18-22%. The Cyprus-based company, will operate as a standalone company within Halma's Safety sector and continue to be led by its current management team.

Irn-Bru maker AG Barr posted a rise in full-year profit and revenue on Tuesday as it hailed a strong performance across its soft drinks portfolio. In the year to 29 January 2023, adjusted pre-tax profit rose 13.3% to £43.5m, with reported pre-tax profit up 5.2% at £44.4m. Revenues were ahead 18.2% at £317.6m.

Newspaper round-up

Long-running talks between Royal Mail and the Communication Workers Union are on the brink of collapse, with the company’s board thought to have threatened to put the loss-making postal service – the regulated UK entity that delivers to every address in the country – into a form of administration if a deal cannot be agreed. A politically explosive move to declare the postal service insolvent is regarded by Royal Mail’s board as a last resort but has been raised with the union already. – Guardian

Private renters face paying an additional £1bn in gas and electricity bills because of delays in the introduction of new standards forcing landlords to make their properties more energy efficient. The government has been criticised for dragging its feet on enacting new proposals that would require landlords to improve properties to at least a C rating under the energy performance certificate (EPC) scheme. – Guardian

Andrew Bailey has blamed a wave of early retirement for forcing up interest rates and inflation as Britain battles the steepest price rises of any large rich country. The Governor of the Bank of England said that a sharp decline in the number of people in the workforce was “part of the reason why we have had to raise Bank Rate by as much as we have”. – Telegraph

A combined OneWeb and Eutelsat is set to list on the London Stock Exchange this year in a boost to the government’s attempts to secure more large tech listings. Sunil Bharti Mittal, the Indian billionaire telecoms tycoon and executive chairman of OneWeb, whose conglomerate rescued the satellites company three years ago alongside the British government, said a secondary listing was a commitment negotiated by ministers, as part of plans for OneWeb to merge with Eutelsat of France, that “we will deliver”. – The Times

Revenue at Inmarsat rose by 9 per cent last year to $1.47 billion, propelled by the satellite communications company’s aviation business as the travel industry opened up after the pandemic. Its earnings before interest, tax and other charges jumped by 15 per cent to $850 million in 2022, despite component shortages hitting the availability of satellite phones. – The Times

US close

Major indices delivered a mixed performance on Monday as both the Dow Jones and S&P 500 built on last week's gains and put banking sector fears in the rear view mirror.

At the close, the Dow Jones Industrial Average was up 0.60% at 32,432.08, while the S&P 500 advanced 0.16% to 3,977.53 and the Nasdaq Composite saw out the session 0.47% weaker at 11,768.84.

The Dow closed 194.55 points higher on Monday, extending gains recorded in what was a winning week that came despite heightened volatility as a result of the Federal Reserve's latest interest rate hike and ongoing uncertainty in the banking sector both at home and abroad.

America's banking system remained in focus on Tuesday, with news that deposit outflows from small banks to industry giants like JPMorgan Chase and Wells Fargo had slowed in recent days drew an amount of investor attention and seemingly boosted sentiment somewhat.