FTSE 100 movers: Next surges on results; 3i slumps

(Sharecast News) - London's FTSE 100 was down 0.9% at 10,017.77 in afternoon trade on Thursday. High street stalwart Next surged as it posted above-forecast earnings following an "exceptional" year and lifted its profit outlook.

The retailer saw total group sales jump 10.8% in the 52 weeks to January end, to £7bn, while pre-tax profits were 14.5% stronger at £1.16bn, ahead of analyst expectations for £1.15bn.

Looking to the current year, Next maintained its guidance for full-price sales growth of 4.5% but nudged its profit outlook upwards. It now expects annual pre-tax profits of £1.21m, around £8m more than guidance provided in January.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "While some caution is wise, Next has developed a track record of under-promising and over-delivering in recent years. And as a leader in the UK market, it's well-positioned to navigate challenging conditions better than many of its peers.

"Alongside overseas growth potential, strong cash flows and impressive shareholder returns, it remains a good long-term pick for investors looking for exposure to the retail sector."

BP was also in the black as oil prices firmed.

On the downside, 3i Group slumped after it gave an update on the performance of its largest portfolio holding, Dutch discount retailer Action.

Precious metals miner Fresnillo lost its shine as gold and silver prices retreated, while Aviva, Segro and St James's Place all fell as they traded without entitlement to the dividend.