Just Eat, Grafton and Intertek

“The blue-chip index opened on the front foot following falls on Wall Street and a mixed performance in Asia, with the market continuing to focus on Chancellor Phillip Hammond's Brexit-inspired Budget tomorrow,” says AJ Bell Director Russ Mould.

“Just Eat’s shares rose in early trading after strong full-year results. The appetite for takeaways shows no sign of abating and Just Eat has maintained momentum at the start of the current year. Orders placed via mobile devices continues to grow and accounted for 73% in 2016 compared with 66% in the previous year. Just Eat’s markets remain relatively under-penetrated, so there is considerable runway to generate sustainable profitable growth across the business. Just Eat’s shares were up by more than 4.4%.

“Builders’ merchanting and DIY group Grafton topped the FTSE250 list after it increased its dividend by 10% on the back of record revenues in 2016. Grafton’s cash generative operations and strong balance sheet leave it well positioned to invest in areas where it sees good opportunities. Trading conditions in the traditional UK merchanting market were challenging in 2016 but while uncertainties about the UK economy remain, the recovery in the Irish and Netherlands markets is forecast to continue. Grafton’s shares were up by over 7.5%.

“Intertek led the blue-chip board in early trading following a strong revenue, earnings and cash performance in 2016. The total quality assurance provider increased its dividend by 19.3% and has attractive structural growth prospects driven by an increased focus of corporations on risk management and increased consumer demand for higher quality and more sustainable products. Intertek’s shares were up by 2.2%.”

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