JD Sports flags 'challenging' year, Keysight agrees £1.16bn Spirent acquisition

Stocks to watch

UK retailer JD Sports Fashion said it expected full-year profits to be within guidance of £915-935m and said the current year would be “challenging” due to less product innovation and more discounting, but forecast this to moderate with the Paris Olympics and European football finals in the summer.

Keysight Technologies has reached a deal to buy Spirent Communications for £1.16bn, outbidding US peer Viavi Solutions which had already agreed to buy the UK telecoms group earlier this month. Spirent said on Thursday it is now recommending a 201.5p-per-share offer from Keysight, which represents a 26.5p or 15% premium to Viavi's offer. "Accordingly, the Spirent directors have unanimously withdrawn their recommendation of the Viavi offer and intend to adjourn the Viavi offer shareholder meetings," the company said in a statement.

Capricorn Energy announced revenue of $201m in its full-year results for 2023 on Thursday, with a net cash inflow of $32m from Egypt operations. Despite an operating loss of $87m, strategic measures such as shareholder returns totaling $568m in 2023 as well s ongoing share buyback programmes and an organisational restructuring were undertaken, with Randy Neely appointed as chief executive officer. Looking to 2024, the company aimed for stabilised production levels of 20,000 to 24,000 barrels per day, emphasising cost reduction initiatives and seeking deferrals on exploration expenditures while pursuing strategic partnerships and concessions in Egypt and the UK North Sea.

Newspaper round-up

Millions of households are being urged to submit meter readings to their energy supplier this weekend to ensure they do not overpay when cheaper prices come in on Monday. The consumer champion Martin Lewis is among those urging people to get their phones, pens and notepads out so that they benefit fully from the 12.3% cut to the Ofgem energy price cap, which is altered quarterly. – Guardian

The world’s fossil-fuel producers are on track to nearly quadruple the amount of extracted oil and gas from newly approved projects by the end of this decade, with the US leading the way in a surge of activity that threatens to blow apart agreed climate goals, a new report has found. There can be no new oil and gas infrastructure if the planet is to avoid careering past 1.5C (2.7F) of global heating, above pre-industrial times, the International Energy Agency (IEA) has previously stated. Breaching this warming threshold, agreed to by governments in the Paris climate agreement, will see ever worsening effects such as heatwaves, floods, drought and more, scientists have warned. – Guardian

Pensioners will be just £20 better off in real terms this year after their triple lock increase was all but wiped out by Jeremy Hunt’s stealth tax raid, a leading think tank has said. An 8.5pc rise in the state pension will leave retirees £190 better off in the next tax year after adjusting for higher prices, the Resolution Foundation said. – Telegraph

The national living wage should be paid to all over-18s instead of starting at 21, the independent body behind the policy has said, in a move that would cost businesses tens of millions of pounds. According to the Low Pay Commission (LPC), at almost £3 an hour, the gap between the amount paid to 18-20-year-olds and older adults has widened to an unfair level. – Telegraph

The directors of Thames Water were locked in crisis talks on Wednesday night ahead of an investors’ meeting to discuss plans to inject funds into the company to secure its survival. The board of Britain’s biggest water company were debating its financial future after months of talks involving debt and equity investors, lenders, regulators and government officials, according to Sky News. An announcement is expected as early as Thursday. – The Times

US close

Shares on Wall Street showed signs of recovery on Wednesday, with all major indices edging higher amidst low trading volumes following three consecutive down sessions.

The Dow Jones Industrial Average increased 1.22%, closing at 39,760.08 points, while the S&P 500 rose 0.86% to reach 5,248.49 points, and the Nasdaq Composite climbed 0.51% to settle at 16,399.52 points.

In currency markets, the dollar was last up 0.19% on sterling to trade at 79.26p, while it managed gains of 0.13% against the euro to 92.48 euro cents.

However, the greenback weakened slightly against the yen, decreasing 0.03% to change hands at JPY 151.29.

In economic news, Chinese president Xi Jinping engaged in talks with US business leaders on Wednesday, a push to enhance bilateral relations.