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“The FTSE 100 springs to life following the Bank Holiday with a 0.7% gain to 7,629. Driving the index is strong showing from miners, transport groups, chemicals and financial sectors,” says Russ Mould, Investment Director at AJ Bell.
Bunzl
“Bunzl has delivered another business-as-usual performance with revenue, profit and the dividend all going up. The FTSE 100 support services group continues to make new acquisitions including its first foray into Norway and management are upbeat about future prospects.
“If one were to pick holes in its performance, it would be the slight reduction in operating margin for the North America and UK/Ireland operations. Yet these have been offset by improved margins in Continental Europe and its ‘rest of the world’ category, meaning overall group operating margin has remained unchanged.
“Bunzl is a business that has found its niche and it just gets on with the day job without any glamourous manoeuvres. Increased competitive threats from the likes of Amazon have yet to show any major impact on its trading and Bunzl is managing to adapt to its customers’ evolving business models.
“It is an incredibly simply business to understand. It supplies things that companies need in order to do business; but not items they would sell to their customers. In conjunction, it buys rival companies and makes them better, leading to increased profitability and cash flow.”
NMC Health
“Big strategic moves can generate headlines and market excitement but often it is best for a company’s management to stick to the knitting, focusing on what they are good at rather than operating outside of their realm of expertise.
“Today’s update from healthcare provider NMC Health, responding to press speculation linking it with expansion in India, commits the business to principally focusing on the Middle East. The only exceptions being the fertility division and its operations and management arm, which manages assets on behalf of third parties.
“Recent first half results demonstrated the ongoing organic growth potential in the Middle East with earnings up more than 30%.
“The company is busily getting more patients into its medical facilities as well as increasing the number of operational beds. It is also benefiting from the introduction of mandatory health insurance in Dubai earlier this year.”
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