Pets at Home, Paddy Power Betfair and Bellway
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“The FTSE100 drifted lower following a mixed session on Asian markets as investors reacted to lower-than-expected trade numbers out of China,” says AJ Bell Investment Director Russ Mould.

“The British reputation as a nation of animal lovers has been borne out with Pets at Home’s latest figures showing increased revenues despite a more general squeeze on consumer spending. The lion’s share of the 5% increase, though, came through its joint venture vet practice where income increased by 19.7%. Merchandise revenue growth was a more modest 2.8% but the group has reduced its reliance on short term promotional discounts and continued its ‘everyday lower price’ repositioning. Pets at Home topped the FTSE250 board in early trading with its shares up by more than 4.4%.

“Paddy Power Betfair was the biggest blue-chip faller despite a 9% rise in revenues and a 21% jump in earnings in the first half. The group had a strong first quarter driven by more favourable Cheltenham results but the second quarter was affected by the absence of a major football tournament and adverse sports results. The increase in revenues was due to good stakes growth and foreign exchange, partly offset by increased investment in pricing and promotions. The group’s shares were down by over 4.1%.

“Housebuilder Bellway is set to beat last year’s record figures with the number of housing completions up 10.6% at 9,644. Revenues for the year to the end of July are expected to be more than 13% higher at £2.5bn and there is no sign of any slowdown with the forward order book up 16% at £1.3bn. The demand for new homes is supported by the ongoing availability of cost effective mortgages and the continued provision of the Help to Buy scheme. Demand since the general election has remained strong, with customers’ appetite to purchase a new home unaffected by any uncertainty in the wider economy. Bellway’s shares were up by more than 0.6%.”

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.