Pubs, pits and pets

The headline index handed back yesterday's strong gains after equities in Asia were rattled by a further oil price slump, while US markets were little changed overnight.

“Pub group JD Wetherspoon (LSE:JDW) had a good Christmas and New Year with like-for-like sales up but its shares nose-dived after it warned that full year profits are likely to be at the lower end of forecasts,” says AJ Bell Investment Director Russ Mould.

“The problem is rising staff costs where the group has little room for manoeuvre. Operating margins have fallen to around 6.3% following increases in the starting rates for hourly paid staff, offsetting improvements in second quarter sales.

“BHP Billiton’s (LSE:BLT) shares slumped after it cut its iron ore production guidance following the dam collapse in Brazil although its petroleum, copper and coal targets are being maintained. The group will continue to cut costs amid falling commodity prices. 

“Pets At Home’s (LSE:PETS) like for like sales rose by 2.2% in the third quarter and the group is set for further growth and expansion this year. The acquisition of Anderson Moores, one of the UK's leading specialist hospitals, has boosted its presence in this important strategic segment of the veterinary market.”

Wednesday 20 January 2016

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