Market Report: Heatwave goes down well at Wetherspoon

Thirsty traders were diving into the pubs group JD Wetherspoon as the heatwave helped to sell more pints and glasses of Pimm's. Wetherspoon raised its profit guidance for the year and the chairman and founder, Tim Martin, said he was "more bullish" after the positive period.

Its better-than-expected fourth quarter included a 3.5 per cent jump in sales for the 11 weeks to 14 July.

Traders were betting that the heatwave would further boost the business and the shares soared more than 12 per cent.

HSBC's analysts said they "expect a period of strong trading" for pubs groups and raised their target price for Wetherspoon to 700p, up from 520p.

Analysts at Numis raised their rating to add, and James Hollins at Investec said: "This is a very strong performance and we take further encouragement from the margin, given historic criticism of the group chasing revenue at the expense of margin." He raised his full-year pre-tax profit forecast by 4 per cent to £76.3m.

Wetherspoon, which has 800 pubs and plans to open 30 more in the next financial year, was 82p better at 750p.

Across the wider market, better-than-expected manufacturing data in Europe and good corporate updates helped the FTSE 100 index to advance 22.9 points to 6,620.43. The market remained reasonably quiet, and although the blue-chip index hit its highest levels since the end of May it has struggled to get past this.

Michael Hewson, an analyst at the spread betting group CMC Markets, said: "It continues to struggle to overcome the 6,660 area which has acted as a cap for the last few days, and given this lack of follow-through we've seen markets slowly drift back and the gains melt away in the afternoon sessions."

EasyJet soared 49p to 1,385p after it said third-quarter sales were strong and it raised its full-year profit guidance to between £450m and £480m. Fears that it had been hit by a slowdown in last-minute bookings due to the hot weather at home were allayed for now. Airline peer IAG also gained, up 5.5p to 291.4p.

Tate & Lyle was 29.5p sweeter at 853p after a first-quarter update that was in line with expectations.

Compass, the world's largest catering business and a key Wimbledon supplier, reported a 4 per cent rise in third quarter sales and was 9.5p healthier at 885.5p.

On the mid-cap index, a snub by the hi-tech manufacturer Renishaw left City analysts cross. Renishaw, which makes measuring devices for the healthcare and industrial sectors, said that after a review it had decided it would no longer see investors or analysts for one-to-one meetings.

The cold shoulder left the City slighted, and Investec said the decision would "do a disservice to the company and its external shareholders".

Renishaw, which announced the change at its full-year results yesterday, did reassure investors that it would still allow "shareholder meetings" with senior management, which could be "arranged where a shareholder wishes to communicate their views". It reported a 12 per cent drop in fourth-quarter sales growth and the shares fell 40p to 1,527p.

The department store chain Debenhams "is the cheapest stock" in UBS's European retail coverage, and it raised its price target to 125p and rated it a buy. The chain, which recently added the London Fashion Week designer Todd Lynn to its roster of brands, added 2.7p to 107.9p.

Ocado fell out of favour with analysts at Exane BNP Paribas who were concerned that there was no "imminent catalyst" for the shares to rise further. They rated it neutral and the shares lost 5p to 320p.

Exane does not rule out M&A activity, however, and said "Ocado's unique technology makes it a buyout target". But they expect others businesses to continue to develop their own technology first.

The price of gold soared for a third day to reach a one-month high, and the west African gold producer Avocet Mining felt the benefit with a 3p rise to 11p.

The Aim-listed "clean" energy expert Greenko Group released full-year results with sales up 10.4 per cent and it swept up 3.63p to 117.5p.

Suggested Topics
Alan Bennett has criticised the “repellent” reality shows which dominate our screens
tvBut he does like Stewart Lee
Life and Style
The Google Doodle celebrating the start of the first day of autumn, 2014.
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
David Moyes and Louis van Gaal
Life and Style
Vote with your wallet: the app can help shoppers feel more informed about items on sale
lifeNew app reveals political leanings of food companies
Former Governor of Alaska Sarah Palin, left, with her daughter, Bristol
newsShe's 'proud' of eldest daughter, who 'punched host in the face'
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
Arts and Entertainment
Salmond told a Scottish television chat show in 2001that he would also sit in front of a mirror and say things like,
tvCelebrity Trekkies from Alex Salmond to Barack Obama
Life and Style
Carol O'Brien, whose son Rob suffered many years of depression
healthOne mother's story of how London charity Maytree helped her son with his depression
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
The cover of Dark Side of the Moon
musicCan 'The Endless River' carry on the tradition? See for yourself
Life and Style
food + drink
Rob Merrick's Lobby Journalists were playing Ed Balls' Labour Party MPs. The match is an annual event which takes place ahead of the opening of the party conference
newsRob Merrick insistes 'Ed will be hurting much more than me'
A cabin crew member photographed the devastation after one flight
A new app has been launched that enables people to have a cuddle from a stranger
voicesMaybe the new app will make it more normal to reach out to strangers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits