London’s FTSE indexes climbed on Thursday morning as investors digested a slew of results from the capital’s largest firms.
The FTSE 100 was up around 0.1 per cent at 7,633.13 while the FTSE 250, which is more aligned with the health of the domestic economy, climbed 0.2 per cent to 19,151.19.
British American Tobacco rose to the top of the FTSE 100 even after it reported a £15.7bn loss in 2023.
The big loss stemmed from impairments on its American business, but investors were impressed that the firm managed to hit profitability in its ‘new categories’ division, which includes its vaping products, two years ahead of schedule.
Its shares were up 5.4 per cent.
Unilever shares also rose strongly after the firm announced a €1.5bn buyback. Its shares were up 2.9 per cent.
Underlying operating profit at Unilever increased 2.6 per cent in the year with the firm expecting sales growth of between 3-5 per cent in 2024.
But Matt Britzman, equity analyst at Hargreaves Lansdown, said “there’s still a long way to go before Unilever’s refreshed leadership team can call mission complete on the turnaround”.
The firm warned that less than four in ten of its brands were currently claiming market share with cheif Hein Schumacher flagging “disappointing” competitiveness.
Shares in Astrazeneca, the biggest company listed on London Stock Exchange, dipped two per cent even after reporting a six per cent increase in revenue in 2023.
Derren Nathan, head of equity research, Hargreaves Lansdown said: “There may be frustration in some camps that dividends havn’t been given higher priority, but Pascal Soriot is laying strong foundations for sustainable long-term growth.”
“There have been some disappointments in clinical results but given the quality of the pipeline, and solid outlook, the mid-teen earnings multiple doesn’t look too demanding,” he continued.