Merlin Entertainments, Hornby and Bellway

“The FTSE100 edged lower ahead of today's inflation figures which could potentially trigger the widely expected underlying base rate rise from the Bank of England in November,” says AJ Bell Investment Director Russ Mould.

“Entertainment group Merlin propped up the FTSE100 board in early trading after revenue growth slowed in the wake of terror attacks and wet weather. Total revenues were boosted by favourable exchange rates and the opening of new facilities but like-for-like growth was flat and the outlook for next year is similarly cautious. Merlin has a diversified business model and more than 70% of its profits come from outside the UK. But its markets continue to be beset by external shocks, not least terrorism which remains at record levels of intensity in Europe. Merlin’s shares were down by more than 18.7%.

“Model and collectibles group Hornby was an early faller following a new profit warning. The group had warned shareholders at the annual general meeting last month that performance had been below forecasts but the board has now decided that it would no longer offer for sale large quantities of stock at a discount, which will have a material impact on this year’s profits. The decision follows an initial review of the business by chief executive Lyndon Davies and other measures are likely when the group announces its interim results.

“House-builder Bellway’s shares were up after strong full-year results. Revenues were up by over 14% at £2,558.6m and the outlook remains positive with increases expected in both volume and average selling prices. The order book at the start of October has grown by more than 17% to £1,361.5m. Bellway’s shares were up by 1.3% in early trading.”

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