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“The FTSE100 was virtually flat in early trading despite a surge in mining stocks. These were led by Rio Tinto following its return to profit with Glencore and Anglo American also making gains,” says AJ Bell Investment Director Russ Mould.
“Homewares retailer Dunelm was the FTSE250’s biggest faller in early trading after first half pre-tax profits fell by 26%. The group increased its market share in the six months to the end of December but trading was softer than expected and it also faced some short-term disruption in its supply chain. The group’s home delivery channel continues to perform well and the acquisition of Worldstores will accelerate its online capabilities and growth potential. Dunelm has significant opportunities to improve performance through various initiatives and its strong balance sheet supports growth plans in tough markets. Dunelm increased its interim dividend by 8.3% but its shares were down by more than 3.6% in early trading.
“Rio Tinto topped the blue-chip board after it returned to profit on the back of resurgent commodity prices. Rio Tinto’s full year net profit of $4.6bn is a massive turnaround from the $866m loss it incurred last time. The group has kept its commitment to maximise cash and productivity from its world-class assets, delivering $3.6bn in shareholder returns while maintaining a robust balance sheet. It has also strengthened its portfolio and advanced its high-value growth projects. Rio Tinton’s shares were up by over 3.3%.
“AA has reversed the long-standing decline in its membership and is confident of further progress. The number of paid personal memberships rose to 3,335,000 at the end of January, a rise of 0.4% since the end of July. This has been driven by a 19% growth in new business volumes in the second half and an improved annual retention rate of 82%.The group’s IT transformation programme continues to make good progress and sales through its digital channel have grown significantly while the new customer relationship management system has enabled the AA to undertake better targeted marketing campaigns.”
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