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“The FTSE100 opened in negative territory with investors awaiting the Queen's Speech late this morning which is expected to cover a two-year period instead of one and to be laden with Brexit content,” says AJ Bell Investment Director Russ Mould.
“Whitbread topped the blue-chip board in early trading after a 2.9% rise in like-for-like sales in the 13 weeks to the start of June. Premier Inn was the group’s stand-out performer with like-for-like sales up 4.7% and total sales up 9.2% as it continued to win overall market share. The hotel chain increased UK occupancy to 79.2% in the first quarter despite increased capacity. Costa’s growth has been more modest but it is making good progress in China and Whitbread will be looking to accelerate the development of its international businesses in attractive markets. Whitbread’s shares were up by more than 4.7%.
“House-builder Berkeley was one of the biggest FTSE250 risers after pre-tax profits rose by 53% to £812.4m in the year to the end of April. The housing market in London stabilised following a blip either side of the EU referendum and reservations for this year are now back to 2015 levels. Berkeley has now delivered £1.3bn of the £2.0bn pre-tax earnings target for the three financial years ending 30 April 2018 that it set in June 2015. The group has good visibility with total cash due on forward sales over the next three years of £2.74bn. Berkeley’s shares were up by over 2.3% in early trading.
“Toy train maker Hornby’s shares were down in early trading after underlying pre-tax losses rose to £6.3m from £5.7m and revenues fell to £47.4m from £55.8m. Hornby maintains its turnaround plan is on track but there is no light at the end of the tunnel for investors as the dividend has, once again, been shunted into the sidings. Hornby’s shares were down by more than 1.1%.
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