IAG profits more than double, GSK settles another Zantac case

London open

The FTSE 100 is expected to open 15 points higher on Thursday, having closed down 0.76% on Thursday at 7,624.98.

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British Airways owner IAG on Thursday more than doubled annual profit as demand continued to rebound from the effects of the Covid pandemic. Operating profit before exceptional items for the year to December 31 came in at €3.5bn compared with 2022’s €1.24bn and the pre-pandemic figure of €3.25bn. “Demand continues to be robust, with particular strength in leisure travel. We are currently 92% booked for Q1 2024 and 62% booked for H1 2024, ahead of our position last year,” IAG said.

GSK announced on Thursday that it has reached a confidential settlement in another lawsuit over its discontinued heartburn drug Zantac, concluding the case filed in a California state court that was scheduled for trial on 2 April. The FTSE 100 pharmaceuticals giant said the settlement aimed to mitigate the distractions associated with prolonged litigation. GSK maintained its position of not admitting liability in this settlement, committing to vigorously defending itself in other Zantac cases.

Weir Group managed to deliver an 18% increase in adjusted profits in 2023 after beefing up margins more than expected as it pointed to further growth across the board this year. Full-year adjusted pre-tax profit totalled £411m last year, up from £348m in 2022, with the adjusted operating margin rising 140 basis points to 17.4%, ahead of the 17.0% target, which it said was down to operational efficiency, the initial benefits from its Performance Excellence cost-savings programme and a year-on-year reduction in adverse transactional FX movements.

Newspaper round-up

Jeremy Hunt is considering scrapping Britain’s non-domiciled tax rules in next week’s budget, it has been reported, in a move that would see him poach one of Labour’s key fiscal policies. The decision is understood to be on a list of revenue-generating options drawn up for the chancellor and Rishi Sunak after economic estimates left them with less money than expected for tax cuts or spending pledges. – Guardian

Immigration restrictions imposed on international students threaten to damage the UK economy, according to university leaders, with the number enrolling from overseas falling by a third. Universities UK (UUK), which represents mainstream universities and colleges, said the government’s new curbs, coupled with steep visa fee increases and threats to cut back on graduate work entitlements, are having a negative impact on the UK as a study destination. – Guardian

Dyson spent a record £468m on researching advanced household robots and artificial intelligence last year, as its annual revenues surged to more than £7bn. Profits at the company rose by 9pc to £1.4bn in 2023 following a drop in the previous year. The engineering company, best known for its vacuum cleaners, increased its spending on developing new products to £9m per week, up 40pc on the previous year. – Telegraph

A pioneering mortgage product that does not require any deposit from borrowers attracted applications adding up to £62 million in its first nine months, Skipton Building Society has said. Stuart Haire, 49, the former HSBC banker who joined Skipton Group as its chief executive in December 2022, launched the Track Record product in May as a way of helping renters with good rental payment records but little cash savings. So far 484 borrowers have signed up. – The Times

FirstGroup is in talks to extend its open-access rail services from Edinburgh to Glasgow. Its Lumo brand runs services between Edinburgh, above, and London on the east coast main line. It wants to expand this route so that some services would begin or end in Glasgow. Discussions are taking place between FirstGroup, Transport Scotland, the government body, and Network Rail, which manages the railway infrastructure. – The Times

US close

Wall Street stocks closed Wednesday in negative territory, as investors braced for upcoming inflation reports.

The Dow Jones Industrial Average dipped 0.06%, settling at 38,949.02 points by the closing bell, while the S&P 500 declined 0.17% to 5,069.76 points, and the Nasdaq Composite saw a downturn of 0.55% to 15,947.74 points.

In currency markets, the dollar was last unchanged against sterling at 78.98p, while it experienced a marginal decline of 0.01% on the euro, trading at 92.26 euro cents, and weakened 0.05% against the yen to change hands at JPY 150.62.

In economic news, the Department of Commerce reported that the American economy expanded at a slightly slower pace than initially estimated in the final quarter of 2023.

Gross domestic product (GDP) grew at a quarterly annualised rate of 3.2% over the three months ending in December, slightly below the preliminary estimate of 3.3%.