Cakes, mergers and printing

The headline index opened in positive territory ahead of Chancellor George Osborne’s Budget. 

“Finsbury Food investors continue to enjoy the sweet life with the cake and bakery group increasing its interim dividend following a very robust first half performance,” says AJ Bell Investment Director Russ Mould.

“Profits were up 84% driven by strong organic and acquisition growth. Finsbury’s purchase of Johnstone’s Just Desserts from administrators and the takeover of Fletchers have given the group a broader spread of customers across the food retail and foodservice channels.

“London Stock Exchange and Deutsche Boerse have agreed terms for a recommended all-share ‘merger of equals’. Deutsche Boerse’s shareholders will own 54.4% of the new holding company, UK TopCo, which will be based in London. But Intercontinental Exchange, which owns the New York Stock Exchange, may still attempt to disrupt the proposed nuptials having revealed that it is considering making a bid for LSE.

“Inkjet printing technology group Xaar’s shares slumped in early trading after its pre-tax profits fell from £23.1m to £13.6m in 2015 following a reduction from sales into the ceramic tile market. The group has set out a strategy to increase revenues to £220m by 2020 but this year it expects them to be broadly similar to the £93.5m achieved in 2015, down from £109.2m in the previous year. ”

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