Bonmarché, Character Group and Elecosoft

“The FTSE100 slipped back in early trading as all eyes look across the Atlantic to the inauguration of Donald Trump as the next US president while Brexit, sterling and the US dollar remain closely watched,” says AJ Bell Investment Director Russ Mould.

“Women’s fashion retailer Bonmarché was an early riser after it reiterated its full-year profit forecasts. The group’s third quarter sales rose by 3.3% despite delaying the start of its winter sale which began in earnest on Boxing Day rather than before Christmas for the first time in several years. One cause for concern, though, is the group’s poor online performance at a time when most other retailers are seeing significant increases in their web traffic. Bonmarché’s shares were up by more than 8.2%.

“Toy group Character’s shares plunged after it warned that first half results will be lower than a year ago. Sales in the run-up to Christmas were marginally lower than last time and gross margins in the UK were hit by the weaker pound. Character expects its international and domestic sales to grow in the remainder of the financial year and is confident it will achieve full-year forecasts. Reaction to its new product ranges has been excellent while the ongoing performance of its cornerstone brands, which include Peppa Pig, Teletubbies and Fireman Sam, remains strong. Character’s shares were down by 12.5% in early trading.

“Software group Elecosoft’s shares soared after record sales mean full-year results will be significantly above market forecasts. Elecosoft has seen substantial growth in sales of its Asta Powerproject software applications and Bidcon estimating software along with increases in training and consultancy revenues. Sales have also benefited from the fall in the pound since the Brexit vote. Elecosoft’s shares were up by more than 23.3.”

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