Agility, bookies and collectors

The headline index drifted into negative territory in early trading with sentiment dented by London Mayor Boris Johnson putting his weight behind a Brexit. Elsewhere, Wall Street was higher overnight but Asian markets were a tad lower.

“Mining giant BHP Billiton has unveiled a new streamlined structure in a bid to respond more quickly to the challenges and opportunities in a rapidly changing marketplace,” says AJ Bell Investment Director Russ Mould.

“There is no question that the company had to respond after posting a statutory loss of $5.7bn in the first half and slashing its dividend by 75%. Investors, though, will be concerned that in the short term, at least, there are likely to be far more challenges than opportunities for the more agile BHP to face.

“Bookmaker Ladbrokes was up in early trading despite a full year loss of over £43m. Betting tax changes, shop closures and a write-down on some shops and software were the principal reasons for the red figures. But the group saw some encouraging customer metrics in the second half and good progress on strategy and its financial objectives.

“Stamp group Stanley Gibbons has warned of an adjusted pre-tax loss of £1m-£2m for the year to the end of March as sales of rare collectibles to high net worth clients have been lower than expected. The integration of recent acquisitions has not achieved the cost savings required and there has been continued investment in the online platform. The group is now planning to raise £10m through a placing and will use the proceeds to support a rationalisation exercise.”

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