BP, Fevertree Drinks, BT

“The FTSE 100 nudged ahead 12 points to 6.722 in early trading despite the pound falling to $1.30 and Asian markets heading south,” says AJ Bell Investment Director Russ Mould.

The oil price rally may have run out of steam but BP is trying its hardest to stay on track. Underlying profit before interest and tax of $1.3 billion was below forecasts but it produced strong cash flow and the dividend is maintained. The ongoing focus on cost cuts and operational stability may sound a bit boring but steady as you go is a perfect scenario for BP when you consider it has had to quickly adapt to a sharp fall in oil prices over the past few years.

The growth never stops at tonic water specialist Fevertree Drinks. It seems as if analysts upgrade earnings forecasts every time the company updates on trading and the situation is no different today after reporting a very good first half period. The extent of the upgrades is clearly evident: its house broker in January 2015 had forecast Fevertree to make £13.9 million pre-tax profit in 2016. That estimate now stands at an astonishing £26.5 million. The shares are up 500% in value since floating in November 2014 which proves that not all companies on AIM are a basket case.

The market liked the news that BT won’t have to sell its Openreach broadband division, sending its shares up 3%. Openreach had long been criticised for poor service, particularly the time it took to install or fix broadband lines. Media regulator Ofcom today gave BT a telling off, saying it had to make big improvements. If it can’t get its act together, Ofcom warned it may force BT and Openreach to split into separate companies under different ownership. That would be extremely embarrassing for BT.

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