Halfords and Entertainment One

“We’re nearly two months into one of the strongest rallies in the FTSE 100 for a long time, rising 14% since 26 March to 7,859.99 on Tuesday,” says AJ Bell Investment Director Russ Mould.

Halfords

“News that Halfords’ 2018 underlying pre-tax profit is down on the previous year, plus guidance for no profit growth in the new financial year, would suggest the chain has fallen off Halfords’ bike and it is just peddling without moving forward.

“The cycling-to-car accessories retailer is in a tricky position. It is on the ball with all the latest trendy products such as electric bikes and dash-cams and is trying to be even more helpful to customers by fitting products on site or undertaking more cycle repairs.

“However, it has been fighting the effects of unfavourable exchange rates and future profit will be held back by a need for increased investment in customer service, training and marketing.

“At some point you would hope these efforts result in greater earnings, however at the moment it is clear that patience is required while it gets its house in order and sharpens its proposition.”

Entertainment One

“Peppa Pig continues to bring home the bacon for Entertainment One with the brand playing a key role in helping to drive up revenue for its Family & Brands division by 56% in the past financial year.

“The popular character generated $1.3bn of retail sales in the 12-month period and shows no sign of fading.

“In fact, the more Entertainment One reports figures of this stature, the more it can lay claim to Peppa Pig having the hallmarks of an evergreen brand that could remain popular for generations to come.

“Importantly, you have to remember that Entertainment One isn’t only about Peppa. Its TV business is also thriving with broadcasters and online streaming services hungry for content, and children’s brand PJ Masks continues to grow very fast in terms of retail sales.”

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