Legal & General, G4S and Admiral

“Blue-chips edged marginally lower in early trading as investors generally kept their powder dry ahead of Chancellor Philip Hammond's Budget,” says AJ Bell Investment Director Russ Mould.

“Legal & General’s shares were up in early trading after it increased its dividend following a strong performance in 2016. Pre-tax profits were up 17% and its market share is increasing. L&G’s balance sheet is strong and it has positive cash and earnings momentum.

“Security services group G4S led the FTSE250 board after revenues and earnings from continuing business rose in the 2016. G4S launched a transformation strategy in 2013 and since then it has increased sales by 15% and earnings per share by 45%. G4S now has much stronger foundations, growing competitive capabilities and an attractive array of market opportunities while the transformation strategy is expected to produce further performance improvements. G4S’s shares were up by more than 9%.

“Insurance group Admiral’s pre-tax profits tumbled following the change in the Ogden rate which is used to calculate payments for people who are seriously injured. Profits before using the new discount rate, though, were 3% up and Admiral has continued to grow its business in the UK and overseas.”

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