Debenhams sales slide, Elementis warns on lower earnings

Stocks to watch

Department store group Debenhams saw like-for-like sales shrink in recent weeks and, while it warned that gross profit margins may be flatter than previously thought, full year profit is still on track to hit its target range. Group like-for-like sales for the third quarter ending 11 June fell 0.2% and at constant currencies declined 1.6%.

Speciality chemicals company Elementis issued a profit warning ahead of its interim results on Wednesday, with sales in the chromium division failing to fire. The FTSE 250 firm said that, as previously indicated, sales and contribution margins from the division in North America for the first six months of the year are expected to be similar to the prior year.

Safestore said it had satisfied conditions needed to buy fellow storage outfit Space Maker Stores Limited and completion of the acquisition is expected by 29 July 2016. “The acquisition is expected to be immediately accretive to group earnings per share from completion and will support the group's future dividend capacity,” the FTSE 250 storage group said.

Newspaper round-up

Convenience store chain My Local is on the verge of collapse after filing a notice of intention to appoint administrators, putting 1,700 jobs at risk. Accountancy firm KPMG, which has been working with My Local’s management on considering options for the future of the 120-store chain, was lined up on Tuesday afternoon to handle an administration, which could mean a possible liability of up to £20m for Morrisons, which sold the convenience store chain for £25m in September 2015. - The Guardian

Whitehall is preparing for the biggest bureaucratic upheaval for a generation in the event of a Leave vote, as the engine of British government is reconfigured and centralised to cope with an EU exit. While informal planning is kept to a tight circle, officials at the top of the civil service are looking at options to create either a Brexit super-ministry or a dedicated trade department to manage an EU divorce and its consequences, according to aides familiar with the discussions. – Financial Times

The UK agency in charge of deciding which drugs the NHS will pay for has approved five different treatments, including medications for lung cancer and melanoma, in a coup for some of Europe’s biggest pharmaceutical companies. The National Institute for Health and Care Excellence (NICE) has recommended that drugs to treat lung cancer, high cholesterol, melanoma and a condition called hidradenitis, where sweat glands, in areas such as armpits and groin, become inflamed, leading to abscesses, boils and lesions, should be routinely funded across the NHS - albeit at heavily discounted prices. – Telegraph

US close

US shares closed higher after a slightly choppy session saw early gains scaled back as Federal Reserve Chair Janet Yellen said a potential UK exit from the European Union could have “significant economic repercussions” and opinion polls showed a lead for the 'Remain' camp.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices all finished the session higher for the second day in a row.

After a positive start to the session Yellen's concerns resonated with investors who were also looking for a steer on the next rise in US interest rates. She said the Fed would take a cautious approach, closely monitoring financial developments.