Micro Focus revenues flat ahead of final HPE merger approval, Grafton nails rise in turnover

The FTSE 100 is expected to open up 13 points on Tuesday, after closing up 0.05% at 7,300.86 on Monday.

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Micro Focus International updated the market on both its and HP Enterprise Software’s trading for the year to 30 April on Tuesday, together with an update on the merger between the two businesses as first announced on 7 September last year. The FTSE 100 company reiterated its expectations for revenues to fall within the range of flat to -2% for the year on a proforma constant currency basis, adding that HPE Software’s revenue was down 10% year-on-year in the quarter to 30 April. It confirmed all required regulatory approvals had now been received for the merger, and a circular convening a general meeting of Micro Focus shareholders to request approval for the merger would be posted shortly.

Builders merchant Grafton said revenue for the first four months of the year was up 7.7% to £851m as favourable conditions from the end of 2016 continued combined with the benefits of exposure to multiple markets. "The group has had a good start to the year and the outlook is positive. We expect a continuation of the favourable trends in the Irish and Netherlands businesses. In view of recent economic and political developments, we are more cautious about the prospects for the UK however we have a good portfolio of businesses with strong market positions and we look to the future with confidence,” Grafton said.

William Hill cleared the first quarterly fence, with growth in wagering and revenue across all four of the bookmaker's divisions, although margins tightened. As a group, net revenue in the 17 weeks to 25 April rose 9%, which was in line with market expectations.

Newspaper round-up

The number of candidates available for jobs has hit a 16-month low, prompting fears that Brexit has triggered a skills shortage in areas ranging from IT to engineering to nursing. There was the steepest fall in availability for permanent and temporary roles in April since December 2015, according to a report from the Recruitment and Employment Confederation. - The Times

Shoppers are increasing spending once more, defying fears of an economic slowdown to ramp up their purchases last month. Total sales were up 6.3pc in April compared with the same month a year ago, according to the British Retail Consortium, bouncing back from a fall of 0.2pc in March. - Telegraph

The Co-operative Bank is set to admit that a sale of its business has faltered, increasing the chances that its American hedge fund owners will have to plough more capital into the bank. An announcement expected in the next few days is set to move the loss-making bank into a new phase of trying to thrash out a deal with the hedge funds, which own 80 per cent after a previous restructuring in 2013. - The Times

Big banks in the City could shift at least 9,000 roles out of the UK as a result of Brexit, according to a tally of job warnings since the EU referendum. Deutsche Bank is leading the threatened exodus, according to research by Reuters, while the two financial centres making the most gains from London’s loss are Frankfurt and Dublin. - Guardian

Campaigners have attacked Lloyds for buying a credit card business that targets consumers aggressively with long-term offers. The bank is set to acquire MBNA for £1.9 billion in what will be its first takeover since it was rescued by taxpayers at the height of the financial crisis. But although bosses see it as a major milestone, consumer groups warned the deal could mark a return to sharp practices used to saddle shoppers with debt. - Mail

US close

US stocks ended flat on Monday as investors mulled centrist Emmanuel Macron's victory in the French election - a result that was largely expected - although the S&P 500 and the Nasdaq did hit intraday records.

Pro-European Macron defeated far-right rival Marine Le Pen with 66.1% of the vote to 33.9%.

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq ended unchanged at 21,012.28, 2,399.38 and 6,102.66, respectively.

Stocks may not have put in a particularly impressive performance, but Wall Street's ‘fear gauge - the CBOE Volatility Index - fell to its lowest level in more than two decades.

IG analyst Chris Beauchamp said: “On the face of it, Macron’s victory should provide a tonic for risk appetite, but it was so widely anticipated that the impact has been almost negligible.”

Market commentators also noted the challenges that lie ahead for Macron.