Why Man Group PLC, International Consolidated Airlines Grp And Inmarsat Plc Should Beat The FTSE 100 Today

The FTSE 100 (FTSEINDICES: ^FTSE) is slipping back a bit today after several days of modest gains, 17 points down on 6,666 as I write. But over the week it’s up 111 points, and unless the afternoon goes especially badly the index of top UK shares looks set to return to the bullish run that was interrupted by last week’s loss.

But which shares look like beating the FTSE today? Here are three from the various indices responding well to news:

Man Group

First-half results gave Man Group (LSE: EMG) shares a boost, sending them up 4.3p (5.1%) to 87.8p, despite the investment manager seeing a net outflow of $5bn during the half, which it described as disappointing. Funds under management totaled $52bn at 30 June, down from $57bn at the end of December. The firm’s net revenues did, however, grow by 2.9% to $568m, adjusted pre-tax profit was up 9.8% to $134m, and adjusted earnings per share rose 19% to 5.7 cents. There will be an interim dividend of 2.6 cents per share.

Man Group shares had staged a remarkable recovery by mid-May, up around 60% on the year to 136p, but we’ve seen a collapse since then to today’s levels — the price is now only around 10% up, with the FTSE having gained twice that.

International Consolidates Airlines

International Consolidates Airlines, formed from the merger of British Airways and Iberia, saw its shares 14.3p (4.8%) to 311p today, after the firm reported a second-quarter pre-exceptional operating profit of €245m — the same period last year brought in a loss of €4m. The airline operator did still record an operating loss for the half, but at €33m it was a lot better than the €253m operating loss made in the first half of 2012.

Contributions to the quarterly profit came from rises in per-passenger revenue and higher capacity, and a 3.7% fall in fuel costs. With current trading in line with expectations, the firm said its expects to grow capacity by 5.2% by the end of the year.


Inmarsat shares also got a first-half boost today, putting on 49p (7.2%) to 725p, after the company reported a 6% rise in adjusted pre-tax profit to $183.5m for the six months to 30 June. The mobile satellite communications provider told us of “strong subscriber growth”, especially for its maritime services offerings, although adjusted total revenue did only gain 1% to $635.2m. There will be an interim dividend of 17.79 cents per share, up 5%.

Inmarsat shares are now up 50% over the past 12 months, with current forecasts putting them on a pretty lofty P/E of over 20 with a couple of years earnings falls expected. Forecasts might now be revised, but Inmarsat is clearly priced with future growth in mind.

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> Alan does not own any shares mentioned in this article.