AB Foods flags strong trading from Primark, Dechra raises full-year dividend

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The FTSE 100 is expected to open 38 points higher on Monday, having closed down 0.88% at 5,799.08 on Friday.

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Associated British Foods said Primark's annual profit would at least be at the top of guidance after strong trading at the clothes chain in the fourth quarter. Primark's operating profit excluding exceptional charges for the year to 12 September will be at the top end or better of the stated £300m-£350m range compared with £913m a year earlier. ABF said trading at Primark and its food businesses exceeded expectations in the fourth quarter.

Veterinary drugs firm Dechra Pharmaceuticals reported higher full year profits and raised its dividend as it made an “encouraging” start to the new fiscal year. The company on Monday said pre-tax profits rose 47.1% to £47.3m as revenue rose 7% to £502m. The total dividend was increased by 8.5% to 34.29p a share.

Specialist media company Future updated its guidance on the integration of TI Media on Monday, saying £10m in synergies had already been secured, of which at least £3m would benefit the 2020 financial year. The FTSE 250 firm said that as a result, it now expected cost synergies of £20m per annum by the end of 2021, ahead of earlier forecasts of £15m.

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Boris Johnson is drawing up legislation that will override the Brexit withdrawal agreement on Northern Ireland, a move that threatens the collapse of crunch talks which the prime minister has said must be completed within five weeks. Johnson will put an ultimatum to negotiators this week, saying the UK and Europe must agree a post-Brexit trade deal by 15 October or Britain will walk away for good. – Guardian

The government’s furlough scheme must be extended for critical sectors of British industry or the country risks losing key skills as it recovers from the pandemic, according to the UK’s foremost manufacturing group. Make UK is joining calls for the government to change its mind about ending the coronavirus job retention scheme in the autumn, after a survey of its members showed almost two-thirds (62%) of companies agreed with the proposal that the scheme be extended. – Guardian

Boris Johnson has been warned by the bosses of the UK’s 20 biggest airports he risks “irreparable damage” to the economy unless he moves to replace quarantine with Covid-19 testing in the next week. – Telegraph

Visa is being investigated by the European Commission over its rules on electronic money providers, after allegations that the giant payments group has behaved in an anti-competitive way. There are also concerns among regulators that some financial technology start-ups are pushing the rules too far through a desire to offer ultra-speedy payments to customers, making it difficult for Visa to check for money laundering and fraud, according to industry insiders. – The Times

The boss of one of the world’s most powerful investment firms has stoked speculation in the City that he is eyeing private equity deals for British companies by flying into the UK. Bruce Flatt, 55, chief executive of Brookfield Asset Management, is understood to have held meetings in the City with Ralf Rank, his head of European private equity. – The Times

US close

Equities on Wall Street closed weaker on Friday, with the Dow Jones Industrial Average finishing down 0.56% at 28,133.31.

At the same time, the S&P 500 lost 0.81% to 3,426.96, and the Nasdaq Composite was off 1.27% at 11,313.14.