United Utilities profits fizzle lower, Tate & Lyle's look sweeter

London open

The FTSE 100 is expected to slip two points lower on Thursday after a brace of strong sessions.

Stocks to watch

United Utilities saw underlying profits drop 9% over the twelve months ending on 31 March to reach £604.1m, even as revenues edged up to £1.73bn from £1.72bn. The company declared a final dividend of 25.64p per share, taking the total for the year to 38.45p, for an increase of 2% - in line with its payout policy.

Full year pre-tax profits at Tate & Lyle soared to £126m from £25m as revenues rose 1% to £2.35bn. Adjusted profit before tax were markedly higher at £193m largely as a result of net exceptional costs in the year of £50m, including costs relating to the restructuring of the Splenda Sucralose and European businesses totaling, US litigation costs and a net gain in the Tate & Lyle Ventures fund.

Pets at Home reported an increase in pre-tax profit for the year as revenue grew and the company expressed confidence over its outlook. For the 53 weeks to the end of March, statutory pre-tax profit edged up to £92.1m from £90.2m on revenue of £793.1m, up from £777.8m. Meanwhile, group like-for-like revenue grew 2.1% compared with 4.2% growth in the same period last year.

Newspaper round-up

The sale of Tata Steel’s UK assets has been thrown into confusion after speculation that the business secretary has offered Tata a deal so attractive that it may yet keep Port Talbot and a dozen other facilities around the country. - The Times

A pair of BHS suppliers have toppled into administration, resulting in 350 job losses, as the pain caused from the collapse of the retailer spreads through the sector. CUK Clothing and Courtaulds, makers of the Pretty Polly tights brand, have appointed RSM after the “administration of BHS added to the challenge of operating within a fiercely competitive market for seasonal products”. - The Daily Telegraph

Boris Johnson is painting an unreal picture of the EU for the British public and should return to Brussels to see whether his claims chime with “reality”, the president of the European Commission has claimed. Jean Claude Juncker also hinted that if Britain’s highest profile campaigner were to become prime minister then his discussions with European partners may be strained. - The Guardian

US close

Wall Street drove higher for a second day as big bank stocks and rising oil and house prices overrode a slowdown in the service sector.

The Dow Jones Industrial Average closed up 0.82% at 17,851.51, the S&P 500 and the Nasdaq Composite both added 0.70% to finish at 2,090.54 and 4,894.89, their highest closes in around a fortnight and not too far from their three-month peaks.

The dollar was down against the euro and sterling, but up on the yen, with analysts saying the greenback appeared to be "taking a bit of a breather" after its recent gains, as traders readjust their expectations on the timing of a possible rate rise in June.