Business

FTSE 100 higher but Royal Mail shares fall

Market trader (file picture) Image copyright PA

The London market ended higher on Thursday, but shares in Royal Mail fell 7% after its latest results.

The FTSE 100 share index finished 45 points higher at 6,794.7 points.

Royal Mail shares dropped 35.6p to 463.2p after it reported a dip in half-year profits and raised its target for cost savings.

The company saw revenues from letter deliveries fall, although parcel revenues increased.

Royal Mail said income from advertising mail had fallen because of uncertainty surrounding the UK's referendum on EU membership in June.

Shares in Barratt Developments rebounded 3.5%. Its shares had fallen sharply on Wednesday when the housebuilder said it was cutting the price of some of its London properties by up to 10% because of the weakening market.

In the FTSE 250, shares in Virgin Money fell 5.5% after US billionaire Wilbur Ross sold his remaining stake in the lender.

Mr Ross's private equity firm WL Ross & Co sold 53.6 million shares in the bank, raising £171.5m.

On the currency markets, the pound rose 0.1% against the dollar to $1.2456, and added 0.16% against the euro to €1.1658.