Pearson, Premier Foods and Burberry

“The FTSE100 opened in positive territory as sterling weakened against the US dollar having strengthened yesterday following Prime Minister Theresa May's Brexit speech,” says AJ Bell Investment Director Russ Mould.

“Pearson was the biggest blue-chip faller with its shares plummeting following an unprecedented decline in its North American higher education courseware business. The group is on track to meet operating profit forecasts for 2016 but it has lowered its guidance for this year and no longer expects to reach its operating profit goal for 2018. Pearson had anticipated a broadly stable North American higher education courseware market this year but now assumes that many of the downward pressures it saw in the fourth quarter of 2016 will continue. Pearson’s shares were down by more than 22.9% in early trading.

“Premier Foods’ shares plunged after it cut full-year trading profit forecasts by 10%. The group’s third quarter sales were weaker than expected despite a strong December. The group behind major brands such as Bisto and Mr Kipling is being hit by input cost inflation, notably in commodities such as sugar, chocolate, dairy, wheat and palm oil. These costs have also been driven up by currency devaluation. Premier Foods’ shares were down by over 14.3%.

“Iconic fashion group Burberry’s third quarter revenues rose with Asia Pacific returning to growth following an acceleration in mainland China and improvement in Hong Kong. The group has also seen a continued exceptional performance in the UK and improvement in France. Burberry’s festive film had a record number of views and there is strong demand for new products in its collections.”

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