Admiral, Balfour Beatty and Hochschild Mining

“The FTSE 100 index opened on the front foot ahead of UK unemployment figures and following uninspiring performances on Wall Street overnight and in Asia this morning,” says AJ Bell Investment Director Russ Mould.

“Insurance group Admiral was the biggest blue-chip faller in early trading after posting a marginal increase in first half profits. Admiral has boosted customer numbers and turnover rose by 15% but the group had to absorb a hit from the change to compensation rates which came into effect last year. While most of the impact from the increase in the costs of large injury claims was taken in 2016’s second half results, some extra costs were carried over. Admiral’s shares were down by more than 6%.

“Balfour Beatty topped the FTSE250 board following a strong first half which puts it on track to meet full-year forecasts. The group, which two and half years ago was issuing its eighth profit warning and under threat of a takeover, saw underlying operating profits jump to £39m from £11m and increased its dividend by 33% and its the businesses are now booking new orders at improved margins and reduced risk. Balfour Beatty’s shares were up by over 5.2%.

“Hochschild Mining was a double-digit faller after first half profits and earnings fell. Production and prices were broadly similar to a year ago and revenues of $340.8m were marginally up from $339.3m last time. But the company’s increased investment in exploration-led growth contributed to an increase in overall costs and a fall in adjusted earnings. Hochschild’s shares were down by more than 14.7%.”

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