Hotel Chocolat, Grainger and FairFX

“Blue-chips opened on the front foot despite mixed signals from overseas markets although sentiment remains subdued following the German election result and the ongoing verbal conflict between the US and North Korea,” says AJ Bell Investment Director Russ Mould.

“Hotel Chocolat’s shares were up in early trading after the group declared a maiden dividend following another year of growth. Pre-tax profits doubled as the brand continued to strengthen and it made excellent progress on its three strategic priorities of investing further in its British chocolate manufacturing operations, growing its store estate and developing its digital offering. The group’s new shop+cafe format is proving popular and the new website has improved conversion on mobile devices. Hotel Chocolat’s shares were up by more than 2.7%.

“Residential landlord Grainger’s shares edged higher following a bullish pre-close update. Grainger expects adjusted earnings for the year to the end of September of £70m, up from £53.1m. Sales of vacant properties have been achieved at around 2% ahead of the September 2016 year-end vacant possession value, and robust residential sales have been supported by development activity as the group works through its strategic land sites. Grainger’s were up by over 0.9%.

“E-banking and international payments group FairFX was an early riser after posting a maiden half year profit of £0.2m. This has been achieved against a backdrop of weak sterling, which is historically a headwind for the business. Top line turnover growth has continued and with the group operationally geared, revenue is increasingly flowing through to profit. This trend is expected to continue in the second half as the group continues to grow and rationalise the supply chain. FairFX’s shares were up by more than 3.6%.”

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