Beers, break-ups and retirement

London stocks were on the front foot in early trading, taking their cue from positive turns on Wall Street and in Asia overnight.

“JD Wetherspoon’s first half pre-tax profits came in ahead of analysts’ forecasts but the results and its calls for a more level tax playing field for pubs will be overshadowed by chairman Tim Martin’s backing for a withdrawal from the EU,” says AJ Bell Investment Director Russ Mould.

“Martin was a spokesman for the ‘No’ campaign 15 years ago which argued against the UK’s entry into the euro. He’s now pinned his colours to the Brexit mast and argues that leaving the EU and returning power to the national parliament will increase the level of democracy and accountability. Wetherspoon’s revenues rose but its pre-tax profits fell as operating margins were hit due to increases in pay.

“Old Mutual’s shares were up in early trading after it unveiled plans to split itself into four separate companies following a strategic review. The Anglo-South African financial services group admitted the current structure was too costly and inefficient. The new strategy aims to unlock value currently trapped within the group structure.

“Just Retirement was another early riser after the group’s total new business sales rose by 50% in the first half driven by increases in defined benefit de-risking and guaranteed income for life sales. Its merger with Partnership Assurance is due to complete in early April and is expected to bring cost savings of at least £40m, with the full run-rate being achieved in 2018.”

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