Window manufacturer Safestyle UK saw shares tumble nearly 20 percent on Wednesday morning, after warning that it would be likely to report an underlying loss for the full year. The group, who manufacturer PVCu replacement windows and doors to the UK homeowner market, said gross margins had been impacted by higher digital marketing costs and sales commissions. In an update to the markets the Board and Executive Team laid out three key priorities – the stabilisation of Safestyle’s organisation, the previously announced legal action against NIAMIC Developments Ltd (trading as SafeGlaze UK) and a comprehensive review of the Group’s current trading and outlook. Despite an increased order intake over the last few weeks, “albeit at a lower level than the previous management team had expected”, gross margins had been impacted over the recent period. After assessing the market and operational outlook for the remainder of the year the group said: “Providing there is no further material deterioration in market conditions, we expect Group revenues to be below market expectations and for the Group to report a small underlying loss before tax for the full year”. “Over the medium and longer term, the Board remains confident of the Group’s prospects. The Board expects exit momentum from the current year to benefit from the programme of costs and margin improvement actions now in train which are expected to result in material annualised savings benefiting future financial years.” Shares in Safestyle (LON:SFE) are currently trading down 17.86 percent at 40.82 (1041GMT).  

Shares in the UK’s largest software group Micro Focus (LON:MCRO) fell nearly 10 percent in morning trading on Wednesday, after reporting a loss for the first half of the financial year. The group disclosed a $68.5 million pre-tax loss for the six months to April, a significant fall from the $83.2 million profit recorded over the previous period. Despite this, revenues increased to $1.9 billion from $696 million previously, but on a constant currency basis fell 8 percent year-on-year. Net debt hit $4.34 billion at the end of April, up from $1.41 billion the year before, but this is set to be boosted by the sale of its Linux business, SUSE, for $2.54 billiom in cash. Micro Focus had previously struggled to integrate Hewlett-Packard Enterprise, but executive chairman Kevin Loosemore said: “I am pleased to report that since March there has been an improved momentum in the HPE Software integration process and a slowdown in the rate of revenue decline. This has led to revenues for the period being at the better end of management guidance.” Micro Focus (LON:MCRO) shares are currently trading down 9.36 percent at 1,181.50 (1031GMT).

21st Century Fox increased their takeover bid offer for Sky (LON:SKY) on Wednesday, upping their offer to £14 per share and beating a rival offer from Comcast. The new offer values Sky at £24.5 billion, representing a 12 percent premium to Comcast’s £22 billion bid pitched at £12.50 per share. 21st Century Fox already owns 39 percent of Sky and is widely expected to receive regulatory approval from the UK this week after initially reaching a deal in December 2016. The increased offer this morning was up from £10.75 per share. Rupert Murdoch, the owner of Fox, has been trying to increase his share in Sky for some time but has been held up by fears that it could give him too much power over UK media. Fox has been trying to address those concerns through the disposal of certain parts of the business, including selling Sky News to Disney once the deal is complete. Shares in Sky are currently trading down 0.97 percent at 1,487.00 (1005GMT).

Recruitment company PageGroup (LON:PAGE) raised its 2018 guidance on Wednesday, after reporting a record quarterly gross profit. In a trading update, the group said full-year operating profit was likely to be slightly ahead of market consensus after a 12.5 percent rise in earnings in the first half. Gross profit for the six months through June rose to £396 million, growing by 14.2 percent on a constant currency basis. This came despite UK figures being impacted by Brexit uncertainty, sending profits down 4.5 percent. This fall was largely offset by growth of 11.3 percent, 20.2 percent and 14.1 percent in Asia Pacific, Europe and the Americas. “We are pleased with the group’s strong performance in the first half,” chief executive Steve Ingham said. “However, there remain challenges in a number of our markets, including Brexit in the UK, trading in Catalonia and forthcoming elections in Latin America. “We will continue to focus on driving profitable growth as we progress towards our vision of 10,000 headcount, £1bn of gross profit and £200m – £250m of operating profit, while being able to respond quickly to any changes in market conditions. “In 2018 we now expect operating profit to be slightly ahead of the consensus of current market forecasts.” Shares in PageGroup (LON:PAGE) are currently trading down 0.76 percent at 587.00 (0947GMT).

Pub chain JD Wetherspoon (LON:JDW) shares shot up on Wednesday morning, after saying full-year performance was likely to be in line with expectations after a significant rise in sales. In the year to date, like-for-like sales increased by 5.2 percent and total sales by 4.2 percent. For the 10 weeks to 8 July 2018, like-for-like sales increased by 5.2 percent and total sales by 5.6 percent, benefitting from a period of hot weather and the World Cup. “As in the current year, we anticipate considerable cost increases next year, in areas including business rates, the sugar tax, utility taxes and wages. In addition, as a result of an increase in our ‘swaps’, our interest rates will rise by around £7 million,” the company said. As usual, Wetherspoon chairman Tim Martin took the opportunity to promulgate the benefits of Brexit: “We are frequently asked about the effect of Brexit on the Company and the economy. The main advantage of Brexit is that the EU is a protectionist system that imposes high tariffs on non-EU imports such as wine, rice, coffee, oranges, children’s shoes and clothes, and over 12,000 other products. “Leaving the EU allows the UK to adopt the approach of countries like Singapore, Hong Kong, Switzerland and Australia by dismantling these tariff walls, which improves general living standards. “Huge progress has been made in leaving the EU: the referendum has taken place; the manifestos of the main parties, respecting the result, were endorsed in the general election; Article 50 was triggered and the sensible decision was taken to allow legal EU migrants to stay post-Brexit. “Unsurprisingly, the prime minister has run into difficulties by making the mistake of prioritising a “deal” with the unelected EU representatives, which they have little incentive to accommodate, rather than a sensible implementation of Brexit in areas under the control of parliament. “99 percent of the benefits of leaving the EU, including the avoidance of vast financial contributions, the elimination of tariffs and the reacquisition of fishing rights, need no agreement from any third party. The prime minister can avoid most current problems by prioritising these areas.” Shares in JD Wetherspoon are currently trading up 5.10 percent at 1,307.00 (0922GMT).

Housebuilder Barrett Developments (LON:BDEV) reported record pre-tax profits on Wednesday, sending shares up in early morning trading. The group reported pre-tax profits of around £835 million, boosted by strong performance in its regional business, and completions soaring to their highest figure in a decade. The average selling price of Barratt’s homes rose by 5.1 percent to £329,000, while the value of its order book rose 5.6 percent to £2 billion. Year-end net cash was expected to be ahead of guidance at £790 million, up from £723.7 million the previous year. The group confirmed that it would be proposing a special dividend of £175 million in November 2018 and November 2019. “The board is confident in the future progress of the group and we enter our new financial year with good momentum supported by a strong forward order book,” Barrett said. Barratt Developments have become the latest housebuilder to report good news in what has otherwise been seen as a slightly gloomy market. Last week Persimmon reported another half of steady growth on Thursday, on the back of “resilient” consumer confidence, with revenues up 5 percent to £1.84 billion over the first half of 2018. Barrett Developments (LON:BDEV) shares are currently trading up 1.18 percent at 488.70 (0900GMT).

Shares in fashion brand Burberry sunk over 4 percent on Wednesday, after launching a £150 million share buyback programme and reporting a rise in revenue. Sales rose 3 percent in the quarter to June, hitting £479 million, up from £478 million in the same period last year the same period a year ago. Softer demand from tourists was offset by a growth in sales from local and ‘top’ customers, according to the company, with performance in the Middle East hindered by ongoing stability. Sales growth in Americas grew by a high single digit percentage amid positive footfall in the US. Burberry confirmed its Farfetch collaboration was performing ahead of expectations. The fashion brand’s chief creative director Riccardo Tisci is slated to debut his collection in September. The company is eight months into a strategic plan orchestrated by CEO Marco Gobbetti to boost its upmarket presence and increase its production of leather goods, where it has traditionally lagged behind. It has recently taken over one of its leather goods suppliers in Italy to fulfill that objective. Burberry maintained its guidance at constant currency for fiscal 2019 and said it remained on track to deliver cost savings of £100 million. Shares in Burberry (LON:BRBY) fell 4.09 percent to 2,015.00 (0848GMT).