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“The UK’s blue chip index clocked a marginal drop in afternoon trading as the future of Scotland and the imminent invoking of Article 50 continue to dominate the headlines,” says AJ Bell Investment Director Russ Mould.
“Global insurer Prudential gained 3.5% as it answered questions about its full year dividend with a 12% hike to 43.5p.The increased generosity to shareholders accompanies an excellent set of 2016 results, with operating profit up 7% to £4.3bn with a capital surplus of £12.5bn. Consensus had pencilled in operating profit of £4.1bn. Strong growth in Asian markets help support the numbers and it is notable that Prudential’s peers failed to enjoy any read-across from the results. However, the UK division faces a stormy immediate future as it sets aside £175m for potential redress relating to annuity misselling, pushing down profits 31% to £828m.
“Building products distributor SIG endured a torrid 2016 as supplier inflation and competition hammered its share price. And despite recording a disappointing set of full year results for 2016, with underlying pre-tax profits substantially down, the firm’s share price has rocketed over 10% on news turnaround specialist Meinie Oldersma has been appointed as group chief executive. Meinie has a track record of reversing the fortunes of struggling businesses and driving sales, a prospect that has clearly excited investors.
“Low-cost gym operator The Gym Group gained 4.2% on full year results showing a swing into profit. Investors also like news of an encouraging start to 2017, January and February showing record membership levels, with 2017 new gym openings expected to be ‘towards the top end’ of the 15-20 site guidance.”
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