Associated British Foods, Burberry and Rentokil

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“The FTSE100 was in negative territory after suffering its worst day since the EU referendum vote with MPs today expected to endorse Prime Minister Theresa May’s call for a snap general election on 8 June,” says AJ Bell Investment Director Russ Mould.

Associated British Foods topped the blue-chip board in early trading after making excellent progress in the first half. The group has been heavily reliant on its Primark business in recent years but its margins have been squeezed due to the impact of a stronger US dollar on its input costs and it was the AB Sugar arm which sweetened the group’s interims with revenues up 16% at constant currencies. ABF’s shares were up by more than 3.3%.

Burberry’s shares fell by more than 6% in early trading after total underlying revenues were down by 1% in the six months to the end of March. Burberry's retail revenues rose but the group continues to bear the cost of implementing its strategic priorities to improve brand positioning, notably in the US and in its beauty division. The group, though, will be heartened by the outperformance of fashion, the strong customer response to new products and its exceptional performance in the UK.

“Pest control and hygiene group Rentokil’s shares were down despite reported ongoing revenue increasing by 10% in the first quarter, the majority of the rise coming from acquisitions. Organic sale growth was 3.1% in the quarter. Rentokil has acquired 12 businesses this year, ten in pest control, one in hygiene and one in property care, principally in emerging and growth markets. Rentokil’s shares were down by over 1.4%.”

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