IAG, H&T and Smith & Nephew

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

“The FTSE100 opened on the front foot and continued yesterday's rally, despite political turmoil in the UK and Europe, Brexit uncertainty and a mixed performance in the US overnight,” says AJ Bell Investment Director Russ Mould.

“British Airways owner International Consolidated Airlines Group was one of the biggest blue-chip risers in early trading after it lifted its profit targets for the next four years. IAG, which also owns Aer Lingus, Iberia and Vueling, is aiming to increase earnings before interest, tax, depreciation, amortisation and rent to €6.5bn a year for 2018-2020 compared with its previous goal of €5.3bn for 2016-2020. Its target for average earnings per share growth, though, is unchanged at over 12% per year and annual operating margins of between 12-15% are also unchanged. IAG’s shares were up by more than 1.2%.

“Pawnbroker H&T’s shares rose on better-than-forecast full-year profits. The group has maintained the strong trading performance seen at the interim stage and has benefited from the price of gold which has remained broadly in line with the first half. H&T’s shares were up by over 6.2%.

“Medical equipment maker Smith & Nephew’s shares edged up despite a warning that full-year revenues and margins would be at the lower end of previous guidance. The 3% rise in third quarter revenues was largely driven by growth in emerging markets and underlying revenue growth for the full year is now expected to be at the lower end of the guided range of 3-4%.”

These articles are for information purposes only and are not a personal recommendation or advice.