888, Punch Taverns and The Gym Group

“Equities were virtually flat in early trading following the softer sentiment on Wall Street and with traders awaiting a raft of Eurozone consumer price inflation data and unemployment figures for the economic bloc,” says AJ Bell Investment Director Russ Mould.

Online gambling group 888 drew a veil over its aborted attempt to buy bookmaker William Hill and focused instead on a first half which saw record revenues and a 39% jump in pre-tax profits. 888 and Rank received short shrift when they made their approach to William Hill but the quest for expansion is undimmed. 888 has a clear organic growth strategy and remains focused on expanding its presence in regulated markets while also appraising strategic merger and acquisition opportunities.

Punch Taverns is on course to hit its full-year targets following continued growth from a higher quality pub estate. The average profit per pub has increased by around 4% and the roll-out of its retail division is being accelerated to around 150 pubs per year.

The Gym Group has bounded into the black and rewarded investors with a maiden dividend. Six new gyms were opened in the first half and the group remains on track to hit its target of 15-20 for the year with a strong pipeline for 2017. The group’s existing sites are performing well which has contributed to the strong growth in profitability.

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