Whitbread, Carpetright and Botswana Diamonds

“The FTSE100 edged higher in early trading following gains on Wall Street and in Asia as investors continue to assess the implications of the upcoming second round of France's presidential election,” says AJ Bell Investment Director Russ Mould.

“Costa Coffee and Premier Inn group Whitbread was the blue-chips’ biggest faller in early trading despite improved full-year figures. Pre-tax profits were up by 5.7% at £515.4m but investors focused on the cost headwinds that lie ahead. The National Living Wage, business rates, commodity price inflation and foreign exchange rates are set to outweigh the benefits from the group’s cost efficiency programme and continue to squeeze margins at both its Costa Coffee and Premier Inn arms. Whitbread’s shares were down by more than 5.3%.

“Carpetright was at the bottom of the FTSE All-Share Index after it warned that full year profits were likely to be towards the lower end of current forecasts. Like-for-like sales in the UK are up by 1.4%, despite tougher market conditions and its performance in the rest of Europe has been in line with expectations and underpinned by a continuing recovery in economic confidence, particularly in the Netherlands. But the level of sales growth in the final quarter has prompted the group to warn that full-year profits will be at the lower end of market forecasts. Carpetright’s shares were down by over 7.6% in early trading.

“Botswana Diamonds' shares sparkled in early trading after Sunland Minerals, its joint venture company with Alrosa, was awarded six new prospecting licenses in Botswana. Four of the licences are in the Central Kalahari Game Reserve and cover 3,135 square kilometres and two are in the Orapa kimberlite province and cover 482 square kilometres. Botswana Diamonds' shares were up by 8.3%.”

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