Ashtead, Imagination Technologies and Wolseley

“The FTSE100 was in negative territory in early trading after failing to track positive sessions on Wall Street and in Asia with traders continuing to focus on Italy's referendum result and the UK Government’s legal challenge over whether MPs should have a final say over Brexit,” says AJ Bell Investment Director Russ Mould.

“Tool hire giant Ashtead was one of the biggest blue-chip risers in early trading following strong first half results and a bullish full-year forecast. The group’s underlying performance continues to benefit from a clear and consistent strategy of organic growth supplemented by bolt-on acquisitions. Ashtead’s figures were also buoyed by the weaker pound which is putting the group on course to post full-year figures ahead of previous forecasts.

“Multimedia, processor and communications technology group Imagination Technologies topped the FTSE All-Share Index after returning to profitability in the first half. The turnaround in the group’s fortunes follows the successful implementation of a restructuring programme which has delivered £27.5m of cost savings. Imagination is now in a much better position to exploit its leading technologies across a range of increasing opportunities and execute its refreshed strategy. Imagination’s shares were up by more than 20.2% in early trading.

“Plumbing and heating products group Wolseley’s trading profits rose by 21.2% in the first quarter. US like-for-like revenue growth was 4.2% with commercial and residential markets continuing to grow well and industrial markets steadying. But good volume growth was partly offset by the ongoing impact of commodity price deflation which reduced the US revenue growth rate by 2.4%. Elsewhere it is more challenging for Wolseley with the UK heating market weak and a deterioration in Nordic construction markets.”

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