Bunzl, Dewhurst and Braemar Shipping Services

“Blue-chips were virtually flat in early trading following the bank holiday break,” says AJ Bell Investment Director Russ Mould.

Distribution giant Bunzl had a strong first half and continues to expand with acquisitions in Canada and Hungary. Bunzl has seen little impact from the Brexit vote apart from the weakening of sterling which will have a significant positive effect on its results for the remainder of the year if exchange rates remain at their current levels.  As more than 85% of Bunzl’s business is based outside the UK, the overall impact of Brexit on its operations is not expected to be significant.

The fall in sterling following the Brexit vote has been a fillip for Dewhurst which supplies quality components to the lift, keypad and transport industries. Its full year results are now expected to be significantly higher than current forecasts due to the fall in the pound as a large proportion of its sales and earnings are generated in foreign currencies.  The EU referendum decision has not, as yet, affected Dewhurst's underlying level of business.

Braemar Shipping Services is putting a cost-saving programme in place to counter the slump in freight rates. Overcapacity continues to suppress freight rates in the dry cargo markets to historically low levels despite healthy demand and good transaction volumes. The tanker markets have seen both lower activity levels and freight rates but this was expected after the high levels experienced during 2015.

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