CRH and Playtech

“The FTSE 100 has ignored the latest tit-for-tat tariffs between the US and China to forge slightly higher in early trading,” says AJ Bell investment director Russ Mould.

CRH

“Weather disruption has not prevented building materials business CRH from chalking up a solid first half, with revenue nudging higher and profit up 5%, there’s also a 2% hike in the dividend.

“What there isn’t any sign of yet is a separate listing for part of its US business – a move mooted by chief executive Albert Manifold in April when the share price was in the doldrums.

“The period encompassed the completion of the Ash Grove takeover which gave the company its first footprint in the US cement market and the company also completed numerous smaller bolt-on deals.

“The Dublin-headquartered company’s business model involves continually looking to see how existing businesses can be improved and making select acquisitions.

“By doing so CRH aims to be diversified across different products, geographies and end-uses to mitigate fluctuating demand at different points of the business cycle.

“The major disappointment in the results is the lack of organic growth and investors will be hoping this is a blip relating to the cold temperatures at the start of the year rather than a more widespread cooling off of the firm’s end markets.”

Playtech

“First half results from online gambling firm Playtech suggest the company may be starting to move past the problems in its Asian businesses which have dogged the share price in 2018.

“The problems in Asia haven’t gone away – profit is showing double-digit declines whatever way you slice it. The company has been a victim here of heightened competition and industry-led pricing pressure.

“However, putting these problems to one side, the rest of the business is performing well with revenue outside of Asia up 35% year-on-year. And the acquisition of Italian firm Snaitech is at least helping to reduce the reliance on Asia and increases exposure to regulated markets.

“Strong cash flow performance means the company is able to maintain its dividend at the same level as a year ago, and if the same was true for the year-end payment, this would imply a forward yield of nearly 6%.”

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