BAE Systems, Marston's and Aviva

“The FTSE 100 extended yesterday's losses in early trading after the rally in global equities cooled somewhat following mixed performances on markets in the US and Asia overnight,” says AJ Bell Investment Director Russ Mould.

“BAE Systems topped the blue-chip board in early trading after it reached agreement deficit recovery plans with the trustee boards of its UK defined benefit pension schemes. The schemes had an aggregate deficit of £2.1bn at the valuation at the end of March, which was broadly similar to the position at the previous valuation in 2014. BAE will increase its annual deficit recovery payments by £15m to £220m next year and these will increase in line with any percentage growth in dividends. The payments, though, will fall by £50m in 2022 and end in 2026. BAE’s shares were up by more than 2.8%.

“Pub and restaurant group Marston's led the FTSE 250 following a rise in full year underlying pre-tax profits. The acquisition of the Charles Wells Beer Business, the contribution from new openings and acquisitions and positive like-for-like sales in its pubs contributed to a 9.5% rise in underlying revenue. The start of its new financial year is going to plan with pub like-for-like sales up on the back of a growth in beer volumes. The group’s shares were up by over 9.6% in early trading.

“Insurance giant Aviva was an early riser after it upgraded its earnings growth, cash and dividend targets. The streamlined group’s financial and strategic position has been transformed over the past four years and the capital surplus has tripled. Aviva is now focused on markets where it has high quality franchises and it is gaining market share. Aviva’s shares were up by more than 2.6%.”

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