FTSE 100 risers and sliders: Compass flies straight as TUI tumbles

British foodservice company Compass Group manged to reach new heights this week, while TUI considers selling its airline business to get growth strategy off the ground.

Compass Group had great news for shareholders on Thursday, with the foodservice company upping its full year guidance after starting the new year with a bang.

The company saw its organic revenue increase by 6.9% year-on-year in the three months to December, which has helped its share price increase more than 8% this week.

‘Compass is doing what they do best, grinding out market share gains and squeezing a bit of extra margin from an efficiency drive, at a time when many others will be struggling to hold margins flat,’ Head of Equity Funds Steve Clayton said.

‘With the bulk of the global contract catering market still undertaken in-house, Compass’s outsourcing service offer still has plenty of scope to grow for years to come,’ he added.

Other notable performers on the Footsie were GlaxoSmithKline (GSK) and BP.

The British pharmaceutical company saw its share price climb more than 13p after its earnings exceeded analysts expectations earlier this week and GSK announced that it is partnering with its North American counterpart Merck to work on immunotherapy treatment.

Meanwhile, oil and gas major BP is on course to finish the week on a high, with its share price up by around 4% after announcing it had doubled its profits for 2018, with its output soaring, especially in US shale following its acquisition of BHP.

FTSE 100 sliders

At the other end of the market, travel group TUI had a tough week, reflected in its share price tumbling more than 21% after the company was forced to slash its earnings guidance.

In a bid to improve investor sentiment, the company announced that it will conduct a strategic review of its airline business with its management considering selling the unit and using the cash from the sale to fund investment in holiday experiences at hotels, cruises and excursions.

WPP has also had a difficult week in the market, with the company’s share price falling more than 9% over the last five days, with the stock taking a beating after its rival Publicis earnings came in below analysts’ forecasts.

The advertising industry as a whole is likely to continue to see stock market losses, with consumer goods heavy weights like Unilever and Procter & Gamble tightening their ad budgets and shifting their focus away from traditional forms of distribution channels in favour of digital platforms.

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