Capita, Merlin Entertainments and Ted Baker

“The FTSE100 opened on the front foot as investors prepared for a string of UK inflation-related data out mid-morning, with sterling advancing on both the dollar and euro as prices for gold, silver and copper slipped,” says AJ Bell Investment Director Russ Mould.

“Outsourcing group Capita’s shares jumped in early trading on a bullish update ahead of its annual general meeting. Capita is making good progress on the strategic initiatives it laid out at the end of last year which aim to create a simpler business. The new divisional management and market-facing organisation structure has created greater renewed focus on sales, consistent operational performance and customer service. Investors will be encouraged that the group is also on track for sustainable profitable growth in 2018 and beyond. Capita’s shares were up by more than 14.6%.

“Merlin Entertainments’ shares fell after it warned that terrorist attacks in Manchester and London had led to a drop in visitors to its attractions. Trading in the year to date has been broadly in line with forecasts but it saw a softer domestic, day-trip market after the Westminster attack in March and a further deterioration in domestic demand since the attacks in Manchester and London Bridge. Merlin’s shares were down by over 3%.

“Fashion brand Ted Baker is on track to meet its full-year forecasts despite an uncertain macro environment. Revenues for the 19 weeks to 10 June were up 14.2% with the e-commerce business continuing to perform well with sales up by 35.9%. The global expansion of the brand has continued with successful openings in Los Angeles, Paris, and Shanghai, its first Dutch outlet in Roermond and further concession openings in premium department stores in France, Germany, Japan, South Korea, the Netherlands and the UK. The group’s shares were up by over 1.9% in early trading.”

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