The Morning Call - Wizz Air reports record profits for the year to the end of March - Collins Sarri Statham Investments

Today's Closing Update

U.S. shares climbed in early trading looking as though they were going to post gains for the sixth day in a row as strong quarterly results from retailers including Best Buy, Williams-Sonoma and PVH give consumer-focused companies a lift. The U.S. markets were trading at all-time highs. Stocks are stretching for their longest winning streak in three months.

European and U.K. shares struggled to keep gains in choppy trade as falls in commodity-facing firms weighed, with investors hunting for fresh direction in the aftermath of Europe’s blistering first quarter earnings season.

President Donald Trump said he is ordering the Justice Department and other agencies to launch “a complete review” of alleged leaks coming out of U.S. government agencies. Trump’s statement comes as British officials are outraged over alleged U.S. leaks of investigative material related to the Manchester bombing. Trump said there is “no relationship we cherish more” than that of the U.S.-U.K relationship. Trump is due to meet U.K. Prime Minister Theresa May at a NATO summit in Brussels.

The UK’s economy grew more slowly than first estimated in the first three months of the year, as the key services sector lost momentum. Economic growth slowed to 0.2% in the quarter, the Office for National Statisticssaid, down from the original estimate of 0.3%. The ONS said there had been a slowdown “in consumer-focused industries, such as retail sales and accommodation”.

One of the co-founders of upmarket mixer drinks maker Fever-Tree has netted £73m after selling a 3.9% stake in the company. Deputy chairman Charles Rolls almost doubled the number of shares he intended to sell following “significant” demand from investors. He sold 4.5 million shares at £16.25 each, but retains an 11.2% stake. The tonic water group has seen its share price rise more than 900% since it floated in late 2014.

Central and Eastern European-focused low-cost airline Wizz Air reported record profits for the year to the end of March despite “challenging” conditions including low fares and increasing fuel prices. Full-year profit rose 28% to €246m on revenue of €1.57bn, up 10% from the year before, as passenger numbers jumped 19% to 23.8m. Meanwhile, the load factor – which gauges how full the planes are – pushed up to 90.1% from 88.2%.

Intermediate Capital surged after it reported a jump in full-year profit and assets under management. In the year to the end of March, pre-tax profit rose to £252.4m from £158.8m in 2016, with adjusted group pre-tax profit coming in at £237.5m from £175.6m. Total assets under management increased 10% to €23.8bn, with €4bn of new money raised.

GVC Holdings recorded 13% growth in daily revenues in the first quarter of 2017, driven by strong growth in net gaming revenues from its sports and gaming brands, the company announced in a trading update this morning. Sports NGR was up 12% on the prior year off a gross win margin of 9.6%, the latter compared to 8.5% for the equivalent period in 2016, achieved despite a run of punter-friendly results at the end of March, said the group.

QinetiQ has announced a partnership with U.S. industrial giant Rockwell Collins to develop military navigation systems that the boss of the company said shows its growth strategy is taking hold. Under the deal QinetiQ’s advanced research capabilities will be paired with Rockwell’s production and marketing to produce satellite navigation receivers. The agreement delivers on one of the targets set by QinetiQ chief executive Steve Wadey, who joined the business two years ago with a remit that included growing its international presence.

Oil Prices fell delegates said OPEC had agreed to extend output cuts for nine months to fight a global glut. The cuts are likely to be shared by a dozen non-OPEC states. Some in the market had been expecting deeper cuts or a 12-month extension.

Gold held steady as the dollar weakened after minutes from a U.S. Federal Reserve meeting suggested that the central bank could take a more cautious approach to interest rate increases.

Market Close

Market	Index	Change	% Change
UK 100	7,517.7	+2.8	+0.0%
UK 250	19,967.6	+17.1	+0.1%
GER 30	12,621.7	-21.2	-0.2%
FRA 40	5,337	-4.3	-0.1%
U.S. 30	21,069.7	+57.29	+0.3%
U.S. 500	2,413.4	+9.0	+0.4%
OIL (BRENT)	53.57	-0.39	-0.7%
GOLD	1,256.35	-2.38	-0.2%

UK Risers & Fallers

Company	Price	Change	% Change
Intermediate Capital Group	919.75	+113	+14%
3i Group	871.5	+31	+3.7%
Easyjet	1380	+36	+2.7%
Petrofac	430.65	-184.2	-30%
Anglo American	1057.5	-26.5	-2.4%
DCC	7410	-110	-1.5%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
8:30am: GBP Second Estimate GDP q/q	0.3%	0.3%	0.2%
8:30am: GBP Prelim Business Investment q/q	-0.9%	0.3%	0.6%
12:30pm: U.S. Unemployment Claims	232k	238k	234K