London pre-open: Stocks to edge up as investors mull borrowing figures
London stocks were set to edge up at the open on Tuesday following a positive session in Asia.
The FTSE 100 was called to open 10 points higher at 7,452.
Ahead of the Spring statement on Wednesday, investors were digesting the latest UK public sector net borrowing figures.
Data out earlier from the Office for National Statistics showed that government borrowing rose more than expected in February. The gap between spending and income came in at £13.1bn, marking the second-highest borrowing figure for February since records began. This was above expectations of £8.5bn and the Office for Budget Responsibility’s forecast of £8.0bn.
Capital Economics said: "That might give the Chancellor pause for thought ahead of the Spring Statement on Wednesday, though we had already expected hopes of a big handout for households to be dashed."
In corporate news, computer support and services provider Softcat said that its full-year outturn was now expected to be ahead of previous estimates after interim profits grew ahead of expectations in the six months ended 31 January.
Softcat stated first-half gross profits were up 11.7% at £150.2m, while operating profits were 12.4% higher at £64.1m. Earnings per share were up 12.4% at 26.2p each. Interim revenues grew 22.6% to £770.9m and gross invoiced income shot up 33% to £1.15bn.
B&Q owner Kingfisher said current-year first-quarter sales were down 8.1% as it reported 2021/22 profits up by a third.
The company posted pre-tax profit of £1bn on sales of £13.1bn, up 6.8% and said it was “comfortable” with the current consensus of sell-side analyst expectations for 2022/23 adjusted profit before tax of £769m.