Wednesday’s Master Investor Market Report

– The FTSE 100 closed the day at 6,098.05, an increase of 39.51 points.
– The FTSE 250 grew by 70.03 points to finish at 16,910.39.
– The FTSE All Share climbed by 20.08 points to 3,361.91.
– The FTSE AIM All Share finished at 730.46, down by 0.21 points.

Equipment rental outfit Ashtead (AHT) has recorded a 26% year on year improvement in first quarter revenues to £618.6 million in the three months ended 31st July. Profits before taxation for the period also grew to £155.4 million, despite a sizeable increase in capital expenditure. Barclays maintained an “overweight” rating on the shares and was surprised by the improvement in margins given general market conditions. Shares in the firm rose 7.74% to 988p.

Shares in retail chain Halfords (HFD) plummeted by 8.6% to 466.2p after the company announced that bike sales dropped by 11% during the eight weeks ended 28th August due to discounting and poor weather discouraging casual buyers. Overall like-for-like sales were down by 1.3% despite growth in other departments. Analysts at Investec said that the update showed there was still potential for growth, but those elsewhere were concerned about what this means for company’s planned rollout of specialist bike shops.

Technical services provider Diploma (DPLM) said it expects revenues for the year ending 30th September to improve by roughly 9% on the back of recent acquisitions, while its existing business continues to struggle with adverse currency movements. Operating margins have been hit by soft trading in the US and Europe. The company has also announced that its chief operating officer will step down in January and will not be replaced. The shares fell by 55.50p to 660p.

Temporary power provider Aggreko (AGK) has agreed to buy the majority of Canadian competitor ICS’s assets for an £18 million consideration. The deal will strengthen Aggreko’s position in North America, particularly in temperature control and certain geographic markets where it previously had little presence. Aggreko shares grew by 15p to 1,041p.

Tomorrow’s news today

Redde (REDD) and Go-Ahead Head (GOG) will publish final results tomorrow. Fairpoint (FRP) and Forbidden Technologies (FBT) will post interims.

Quote of the day

“Through perseverance many people win success out of what seemed destined to be certain failure.”
– Benjamin Disraeli