Tesco, DS Smith and James Latham

“The FTSE 100 opened in positive territory as voting in the EU referendum got under way. Wall Street closed lower overnight and crude oil prices were hovering around the $50 a barrel mark,” says AJ Bell Investment Director Russ Mould.

Investors were impressed by Tesco’s first quarter figures which showed that the supermarket giant has increased its like-for-like sales while simultaneously introducing some of the biggest price cuts for many years. Tesco will be particularly encouraged by the 2.2% increase in volumes which indicates it is starting to win back shoppers.

New boss Dave Lewis, who is striving to turn the grocer around with the sale of its Turkish business and Giraffe restaurant arm, will be pleased with the group’s international performance. Like-for-like sales grew by 3.0%, with a positive result in both Asia and Europe for the fourth consecutive quarter. Tesco’s shares were up by more than 2.6% in early trading.

Packaging group DS Smith had another strong year underpinned by 10% organic growth in its adjusted operating profit supplemented by 6% from acquisitions. The group has strengthened its offering to pan-European customers, who increasingly require an international partner which can work collaboratively with them to manage their supply chains and drive sales in a multi-channel retail environment.

James Latham's revenues rose despite a slight fall in timber and panel prices. Its high quality, certified sustainable hardwood and its brand of engineered timber for the joinery sector, showed good growth.

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