Bonmarché, InnovaDerma and Filtronic
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“Blue-chips started the week on the front foot despite notable spikes in the value of sterling against both the dollar and euro although markets remain sensitive to any political or economic developments concerning both Brexit and the hung parliament,” says AJ Bell Investment Director Russ Mould.

“Fashion group Bonmarché’s shares were down in early trading after full-year pre-tax profits fell to £5.8m from £9.6m in 2016. The group, which is targeted at the 50-plus women's value clothing market, saw a 4.3% fall in like-for-like sales at its stores but online revenues were up 2.2%. Total revenues rose to £190.1m from £188.0m and it maintained its total dividend at 7.14p per share. The market, though, was tougher than the group expected with price and wage inflation, uncertainty following the EU referendum and unseasonal weather patterns all having an impact on performance. Bonmarché’s shares were down by more than 2.5%.

“InnovaDerma’s shares jumped after it cheered investors with a bullish pre-close update. The group expects revenue and profits for the year to the end of June to be well ahead of expectations. This follows an exceptional performance of its Skinny Tan self-tanning lotion through its fast-expanding direct to consumer platform and retail channels. Underlying pre-tax profit is expected to increase by 355% to approximately £1.28m, excluding one-off costs. InnovaDerma’s shares were up by over 7.6% in early trading.

“Filtronic’s shares made strong early gains after fourth quarter trading remained on track. The group expects full-year revenues to increase from £13.6m in 2016 to around £35.4m and turn an operating loss of £6.8m into a profit of £1.7m. The group has seen tremendous progress throughout its financial year to the end of May is working hard to broaden its customer base and product range so that the business is more robust. Filtronic’s shares were up by more than 7.3%.”

These articles are for information purposes only and are not a personal recommendation or advice.

The daily market update is written by Russ Mould, AJ Bell’s Investment Director and his team. The article highlights the movement in the main index, winners and losers on the day and any macro-economic announcements.