Fashion, drilling and banking

The blue chip index opened on the front foot as traders continued to weigh the impact of the Budget, while Wall Street ended higher overnight following the latest Federal Reserve interest rate decision.

“Fashion group Ted Baker continues to outperform many of its rivals with full-year profits up by nearly a fifth,” says AJ Bell Investment Director Russ Mould.

“Investors have been rewarded with an 18.6% rise in the total dividend and will be encouraged by the group’s bullish outlook following the positive initial reaction to the spring and summer and collections. The group has been developing its brand globally with new store openings in Amsterdam, Azerbaijan, Hawaii, Mexico and Qatar and plans additional worldwide stores this year.

“Capital Drilling was up in early trading after the group highlighted that it had strengthened its balance sheet and generated positive free cash flow in 2015 despite a significant softening of commodity prices and headwinds in the mining industry. The company has clinched a number of long term contracts and is confident it will return to revenue growth and profitability this year.

“Arbuthnot Banking Group saw early gains after reporting record pre-tax profits of £34.2m in 2015. The private banking arm, Arbuthnot Latham, and the retail bank, Secure Trust Bank, performed well. The group agreed the sale of Everyday Loans in early December and proposes a special dividend of 25p when this completes which should be before the end of April.”

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