FTSE 100 hoisted by Brexit-bruised Land Securities, easyJet and Vodafone

Added 15th November 2016

The FTSE 100 Index mirrored Monday morning’s rally and was up 0.8% at 6807 even after constituents Land Securities and Vodafone reported H1 losses and easyJet delivered lower profits Tuesday morning.

FTSE 100 hoisted by Brexit-bruised Land Securities, easyJet and Vodafone

Tuesday’s weaker than anticipated UK inflation numbers also spurred morning trading. The pound softened to $1.24 against the dollar and fell by 1% to €1.15 relative to the euro, following the unexpectedly low inflation data and revelation that Prime Minister Theresa May's cabinet has no Brexit strategy in place.

This was welcome news to Land Securities, EasyJet and Vodafone, who saw their share prices rise by 2.2%, 3.3% and 0.81%, respectively, despite returning Brexit-battered profits.

Both Land Securities and Vodafone swung to a loss over the first half of the year.

The UK’s largest commercial property developer lost £95m, bogged down by the post-Brexit overhang, which the group said has had “a tangible effect on the commercial property market,” particularly in London. Brexit uncertainties exacerbated both demand for office spaces in the City and real estate pricing generally. Land Securities said it has experienced asset mark downs of 1.8% since 31 March.

Despite still currently standing in “uncharted territory,” Land Securities chief executive Robert Noel said the group remained “resilient” with “strong leasing performance and lower interest costs” contributing to a 4.5% rise in revenue profit to £192.5m.   

Meanwhile, Vodafone endured a blistering loss of €5bn (£5.8bn), more than double the loss reported last year, as greater competition in India took its toll on revenue growth and profitability.

Although the telecoms giant experienced organic growth in Europe, led by Germany and Italy, that was “modestly ahead” of its expectations, group revenue was down 3.9% (€27bn). Earnings before interest, taxes, depreciation and amortization sunk 1.7% to €7.9bn but were up 4.3% on an organic basis.

EasyJet did not declare any losses by the end of the financial year, but nonetheless saw pre-tax profit nosedive by 28% (£495m). This figure was still well within the scope of its estimated full year profits, however.

Total revenue for the period was roughly £4.7bn, down slightly from last year’s figure by 0.4%.

Chief executive Carolyn McCall highlighted the group’s “resiliency” navigating a turbulent post-Brexit climate by transporting a record 73.1 million passengers during the year, a 6.6% improvement, and expanding capacity by 6.5% to 80 million seats.  

And the budget airliner confirmed plans to continue to grow capacity in 2017 to 9% and predicted half of its growth would come from the UK.

"Looking ahead, the easyJet model remains strong as does the demand environment and we continue to see opportunities in the medium term to grow revenue, profit and shareholder returns,” McCall said. “In a tougher operating environment strong airlines like easyJet will get stronger and we will build on our already well-established network.” 

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Kristen McGachey

Senior Reporter

Kristen joined Last Word Media and the world of financial journalism in April 2016, leaving behind a career in a legal publishing firm as a senior researcher turned assistant editor.

This native Angelino initially moved to the UK in 2008 to complete her undergraduate studies at the University of Nottingham. She subsequently obtained a Masters degree in Philosophy with Literature from the University of Warwick.



Investment Strategy




PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

PA Channel Islands November 2017
PA Channel Islands November 2017

Tuesday 14 November
Royal Yacht Hotel, Jersey

PA Alternative Ucits November 2017
PA Alternative Ucits November 2017

Tuesday 7 November 
Furniture Makers' Hall

Sponsored Content