Wolseley, Halfords and Lamprell

“The FTSE 100 opened lower as traders followed negative moves on Wall Street and in Asia. Stalling oil prices, the ongoing Brexit debate and global economic growth concerns continue to dampen sentiment,” says AJ Bell Investment Director Russ Mould.

“Plumbing supplies group Wolseley’s share price has slipped a long way from its highs and its latest update failed to arrest the downward trajectory.

“Chief executive Ian Meakins steps down at the end of August after seven years at the helm and he will want to go out on a high but while Wolseley generated decent revenue growth in the third quarter, investors remain wary about the ongoing impact of commodity price deflation. The US is around 60% of the group’s business and while housing activity in the States is picking up, this was partly offset by weaker Industrial markets and price deflation which reduced the US growth rate by 2.3%.

“Halfords was another early faller. Its full-year sales edged up despite a blip in is bike business. Like-for-like sales in cycling were down 0.9% with weather conditions taking the blame. But its car, motorbike and cycle repair services performed well.

“Lamprell was an early riser after its subsidiary, Maritime Offshore, signed a joint development agreement with the Saudi Arabian Oil Co, the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries. The partners are looking at establishing a maritime yard at Ras Al Khair in eastern Saudi Arabia which will deliver projects to world class standards.”

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