AG Barr, Wolseley and Card Factory

“The FTSE100 opened on the front foot with investors looking ahead to a raft of data this afternoon from the US, including the goods trade balance and consumer confidence,” says AJ Bell Investment Director Russ Mould.

“Soft drinks group AG Barr edged up in early trading after it hiked its full year dividend following an increase in profits and operating margins in 2016. The group has already announced that its brands, which include Irn-Bru and Rubicon, will contain less than 5g of total sugars per 100ml by the autumn, ahead of the government’s proposed levy on sugary drinks in April next year. AG Barr delivered a solid performance in 2016 in volatile and uncertain markets, conditions which look set to continue for the immediate future.

“Wolseley led the blue-chip index despite a fall in first half profits. The group, which saw a good performance from its US arm, Ferguson Enterprises, increased its interim dividend and forecast further progress in the second half. Like-for-like revenue growth since the end of the first half has been about 4.5% for the group and 5.5% in the US. Wolseley’s shares were up by over 7.6%.

“Card Factory had another record year with revenues up by 4.3% and the total dividend up 7.1%. The group’s store like-for-like sales remained positive and the business continued to deliver best-in-class margins while remaining highly cash generative. But business efficiency initiatives are under way to help mitigate margin headwinds, particularly from foreign exchange and the national living wage. Card Factory’s shares were down by more than 2.4%.”

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