Informa/UBM, Burberry and Pearson

“The FTSE 100 opened on the back foot following downward trends in the US and Asia, signalling a shift in global sentiment as traders opt to lock in profits following the latest rally,” says AJ Bell Investment Director Russ Mould.

“Informa and UBM fared very differently in early trading after agreeing to combine. Informa propped up the blue-chip index while UBM topped the FTSE 250 board. Informa has offered a cash and shares deal for the events organiser. The combined group will be two-thirds owned by Informa shareholders. The rationale behind the deal is to create a group that will have the reach and capabilities to take advantage of trends within a B2B market which is demanding ever greater operating scale and industry specialisation. Informa’s shares were down by more than 8.3% while UBM’s were up by over 13.2%.

“Fashion group Burberry’s share fell despite an increase in overall like-for-like sales in the three months to the end of December. But like-for-like revenues in the UK sales fell against tough comparatives. Burberry has maintained full year operating profit guidance with continued margin improvement at constant exchange rates. Burberry’s shares were down by more than 4.9%.

“Publisher Pearson was an early faller as total underlying revenues fell by 2%. The group saw a fall of 4% in North America but this was partly offset by stabilisation in the group's ‘core’ and ‘growth’ businesses. Pearson’s restructuring programme is on track and while the group’s 2017 is expected to come in at the upper end of its guidance it has indicated that adjusted profits would fall this year. Pearson’s shares were down by over 5.8%.”

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