Ashtead, Go-Ahead and Premier Farnell

“Equities were firmly down as concerns over Brexit intensified as support for ‘Leave’ ahead of the EU referendum continued to gather momentum and UK inflation remained depressed in May and came in short of expectations,” says AJ Bell Investment Director Russ Mould.

Plant hire group Ashtead Group topped a subdued blue-chip board after pre-tax profits rose by 24%. The group cheered investors with a proposed final dividend of 18.5p which takes the total to 22.5p, 48% up on a year ago. Ashtead has broadened its geographic footprint and the markets it serves and is seeing the benefits of this diversification in both its financial performance and market share gains.

Bus and train operator Go-Ahead Group’s shares plunged after warning that margins on the Govia Thameslink Railway franchise will be about 50% down on previous expectations. Disruption caused by upgrading work and strikes are depressing margins in the current year and the impact will continue to be felt next year. Bus revenues in London and the regions continue to grow and the group is on track to meet full-year forecasts. Go-Ahead’s shares were down by more than 16% in lunchtime trading.

Electronics distributor Premier Farnell was the FTSE All-Share’s standout performer after it agreed a 165p per share takeover by Datwyler Technical Components, a UK subsidiary of Swiss electro-mechanical engineering group Daetwyler. Premier Farnell and Datwyler both have long and successful histories in high-service distribution for electronic components and expect combining will increase their competitiveness significantly. Premier Farnell’s shares were up by more than 50%.

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