Burberry, Intertek and Real Good Food

“Equities were up in early deals following a broadly positive session in Asia overnight, and Friday’s mixed turn by Wall Street. The market is already looking ahead to the Bank of England's interest-rate decision on Thursday when a 25 basis point cut is expected,” says AJ Bell Investment Director Russ Mould.

Iconic fashion group Burberry was up in early trading after it took full control of its retail business in China. Burberry has bought the final 15% it did not own from Sparkle Roll Holdings for £54m. Burberry first acquired retail operations in mainland China in 2010 which now accounts for about half the retail spend of the group’s Chinese retail customers. And while Hong Kong saw a double-digit fall in the group’s latest figures, comparable sales in mainland China were broadly unchanged.

Testing company Intertek’s shares were down in early trading despite double digit revenue growth in the first half driven by organic growth and acquisitions. Intertek’s interim dividend is up by 14.1% and the group is on target to meet its full year targets.

Real Good Food’s shares slumped with the group’s return to profit due to the sale of Napier Brown. The ingredients and bakery group swung to a pre-tax profit of £12.9m, from a loss of £3.5m while revenue fell to £113.7m, from £232.9m. The Napier Brown sale has transformed the group’s balance sheet and enabled it to begin a strategy of investing in its core markets. Its aim is to build scale and strategic positions in each of its three pillar markets - cake decoration, food ingredients and premium bakery.

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