Market Report: Pre-tax profits rise boosts Arm Holdings

 

Don’t write off Arm Holdings just yet. The microchip designer that helped power the smartphone revolution climbed 47.5p to 881p yesterday after revealing pre-tax profits rose 9 per cent in the first half.

A 42 per cent jump in licensing revenues helped offset a slowdown in royalties, easing investor fears that a slowdown in smartphone sales would prove a nasty shot for Arm. The Cambridge-based company has always insisted growth areas such as “smart” home appliances would make up for the slump. So far it seems to be right.

Arm led the FTSE 100 higher, with investors largely ignoring on-going tensions in Russia, Ukraine and Gaza. The bluechip index added 66.90 points to 6,795.34.

The fickle nature of current trading was illustrated by the performance of Barratt Developments and Persimmon. Out of favour just a day earlier after news of the first dip in house prices this year, the pair were among the index’s best performers for no other reason than their price had fallen. Barratt added 14.3p to 368.5p; Persimmon was 56p better at 1,302p.

Anglo American improved 55p to 1,600.5p after its South African subsidiary Kumba Iron Ore reported solid half-year figures.

Investors and analysts alike cheered the online retailer Boohoo’s launch of a German language website. Boohoo improved 1p to 38.5p but still sits below the 50p level it was first offered at in March.

Spread better IG Group floated to the top of the mid-cap index, 44.5p better at 619.5p, after pledging to hand more cash back to investors. IG is raising its dividend payout ratio from 60 per cent to 70 per cent.

Recruiter Hays also enjoyed a bounce as a string of brokers took the view that the recent sell-off has been overdone. Hays put on 7.5p to 127.6p.

Tailor Bagir fell 2p to 10p on AIM after admitting conditions have not improved since May’s profit warning, triggered by a major customer, thought to be Marks & Spencer, cutting an order. Bagir said earnings are now likely to be at the lower end of the already lowered $4-$6m range.

A profit warning sent corporate services group Hogg Robinson spiralling down 7p to 65p on the small-cap index. It blamed strong sterling, the trend for self-booking of business travel and higher than expected costs on a contract with the Canadian Government.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

Where the spooks get their coffee fix: The busiest Starbucks in the US is also the most secretive

The secret CIA Starbucks

The coffee shop is deep inside the agency's forested Virginia compound
Revealed: How the Establishment closed ranks over fallout from Loch Ness Monster 'sighting'

How the Establishment closed ranks over fallout from Nessie 'sighting'

The Natural History Museum's chief scientist was dismissed for declaring he had found the monster
One million Britons using food banks, according to Trussell Trust

One million Britons using food banks

Huge surge in number of families dependent on emergency food aid
Excavation at Italian cafe to fix rising damp unearths 2,500 years of history in 3,000 amazing objects

2,500 years of history in 3,000 amazing objects

Excavation at Italian cafe to fix rising damp unearths trove
The Hubble Space Telescope's amazing journey, 25 years on

The Hubble Space Telescope's amazing journey 25 years on

The space telescope was seen as a costly flop on its first release
Did Conservative peer Lord Ashcroft quit the House of Lords to become a non-dom?

Did Lord Ashcroft quit the House of Lords to become a non-dom?

A document seen by The Independent shows that a week after he resigned from the Lords he sold 350,000 shares in an American company - netting him $11.2m
Apple's ethnic emojis are being used to make racist comments on social media

Ethnic emojis used in racist comments

They were intended to promote harmony, but have achieved the opposite
Sir Kenneth Branagh interview: 'My bones are in the theatre'

Sir Kenneth Branagh: 'My bones are in the theatre'

The actor-turned-director’s new company will stage five plays from October – including works by Shakespeare and John Osborne
The sloth is now the face (and furry body) of three big advertising campaigns

The sloth is the face of three ad campaigns

Priya Elan discovers why slow and sleepy wins the race for brands in need of a new image
How to run a restaurant: As two newbies discovered, there's more to it than good food

How to run a restaurant

As two newbies discovered, there's more to it than good food
Record Store Day: Remembering an era when buying and selling discs were labours of love

Record Store Day: The vinyl countdown

For Lois Pryce, working in a record shop was a dream job - until the bean counters ruined it
Usher, Mary J Blige and Will.i.am to give free concert as part of the Global Poverty Project

Mary J Blige and Will.i.am to give free concert

The concert in Washington is part of the Global Citizen project, which aims to encourage young people to donate to charity
10 best tote bags

Accessorise with a stylish shopper this spring: 10 best tote bags

We find carriers with room for all your essentials (and a bit more)
Paul Scholes column: I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England

Paul Scholes column

I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England
Jessica Ennis-Hill: 'I just want to give it my best shot'

Jessica Ennis-Hill: 'I just want to give it my best shot'

The heptathlete has gone from the toast of the nation to being a sleep-deprived mum - but she’s ready to compete again. She just doesn't know how well she'll do...