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 FTSE 100 has made an impressive comeback since hitting a year-to-date low of 6,888 on 26 March. The blue chip index has risen by nearly 7% since that low and now trades at 7,365. This week alone it has risen by approximately 2.5%, meaning investors should have a reason to smile in addition to the April heatwave,” says Russ Mould, investment director at AJ Bell.
Royal Mail
“Moya Greene from Royal Mail is the twelfth FTSE 100 CEO to be replaced so far in 2018.
“Greene has been at top of the delivery group for nearly eight years, a period in which the business was privatised, expanded its interests outside of the UK and faced a sharp increase in competition on the parcels delivery side.
“She will retire in September and will be replaced by Rico Back who is the CEO of Royal Mail’s European subsidiary GLS.
“Greene leaves at an interesting time for the business. Having reached a deal in February with the Communication Workers Union over pay and pensions, Royal Mail is arguably now able to focus its efforts more on transformational changes to enhance profitability such as the use of technology to efficiently deliver parcels.
“Productivity improvement is paramount for Royal Mail if it is to drive up earnings and cope with competitive challenges.”
Reckitt Benckiser
“Consumer goods giant Reckitt Benckiser is struggling to bounce back after serving up its worst ever annual performance in 2017.
“First quarter sales are up 23% but not all growth is equal, and this figure is inflated by acquisitions and currency movements. Like-for-like sales, stripping out the impact of acquired assets, advanced just 2%, short of analysts’ consensus expectations for 2.6%.
“In part this is due to pricing pressure, something which raises uncomfortable questions about the strength of the company’s brand portfolio.
“Having endured a damaging cyber attack and messed up a new product introduction last year, chief executive Rakesh Kapoor has made a great play of prioritising organic growth; little wonder then that the shares have been marked lower today.”
These articles are for information purposes only and are not a personal recommendation or advice.