Centrica, RSA and Purplebricks

“The FTSE 100 shook off early ex-dividend woes in afternoon trading, despite one of its major constituents suffering a share price hit,” says AJ Bell Investment Director Russ Mould.

“Energy prices remain in the crosshairs of politicians, with British Gas recently announcing it would freeze rates until August 2016. The firm’s owner, Centrica, saw its share price soften 3.7% as it reported a skinny 4% increase in operating profit to £1.5bn and a 3% drop in revenues. The full-year dividend has been held at 12p and further debt reductions will be needed before increases can be paid to shareholders. Income remains a priority for many investors, which might explain why some decided to ditch the company today.

“General insurer RSA improved 5.7% to 610p as the Stephen Hester-led group announced forecast busting 2016 results driven by record underwriting profits. A final dividend of 11p per share has been proposed, which would mean investors in the firm are rewarded with a total 2016 dividend of 16p, up 52% on the previous year.

“But the big winner today is Purplebricks, the estate agent which has been busy disrupting the UK market. The shares are on a tear following news it has completed a “materially” oversubscribed £50m placing of new shares to fund its US expansion, rising over 17%. The potential could be very substantial, with Purplebricks estimating the US market is worth $70bn in annual estate agent commission.”

These articles are for information purposes only and are not a personal recommendation or advice.