Press Association
ARGOS owner Home Retail Group saw its shares slump by nearly a fifth after it warned over profits amid concerns over Black Friday trading in the run-up to Christmas and the costs of a new same-day delivery service.
The FTSE 250 firm flagged up concerns over "uncertain trading" ahead of the sales surge expected on the so-called Black Friday discount shopping day, which falls on November 27.
But the top tier clawed back from early session losses thanks to well-received updates from the likes of pay TV giant Sky and chip maker ARM Holdings, with the FTSE 100 Index edging 3.3 points higher to 6348.4.
Germany's DAX was 0.8% up, while France's Cac 40 was 0.5% higher. In New York the Dow Jones Industrial Average also edged ahead in early trading.
The pound was slightly higher against the US dollar at just under 1.55, after official data showed that UK public borrowing at £9.4 billion in September was £1.6 billion lower than a year ago. Sterling was also just up against the euro at 1.36.
Home Retail's profit alert saw its shares dive by 18% at one stage, and they closed down 23.7p to 126p.
It said Argos profits nearly halved to £6.4 million in the six months to August 29, although better trading at DIY chain Homebase helped overall half-year group earnings rise 10% to £34.1 million.
Home Retail hopes for a pick-up in sales at Argos over the second half, but cautioned the "challenging" trading, costs of its Fast Track delivery service and an unpredictable Christmas were likely to see annual group profits fall "slightly" short of City expectations.
Pearson was the biggest faller in the FTSE 100 Index after it cut its full-year guidance and warned of challenging conditions.
The education specialist dropped by 16%, or 189.5p at 998.5p after it said earnings per share would be lower than previously expected following the sale of the Financial Times newspaper group and The Economist, as well as a currency hit.
But pay TV giant Sky was more than 2%, or 27p, higher at 1096p after posting a better-than-expected 10% leap in overall group earnings to £375 million.
It shrugged off the increasing threat from rival BT as it notched up its best first quarter UK customer growth for four years, helping profits in the UK and Ireland leap by a fifth to £358 million.
Apple chip maker ARM was the biggest FTSE 100 riser after reporting a 30% increase in third quarter underlying pre-tax profits to £102.9 million.
Shares lifted 63p to 1026p, a gain of more than 6%.
The biggest risers in the FTSE 100 Index were ARM Holdings up 63p at 1026p, Merlin Entertainments up 17.4p at 389p, CRH up 65p at 1791p and Reckitt Benckiser up 156p at 6300p.
The biggest fallers in the FTSE 100 Index were Pearson down 189.5p at 998.5p, Anglo American down 18.4p at 604.6p, Shire down 124p at 4462p and Glencore down 3p at 110.6p.
ends
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