Capita, Travis Perkins and Jimmy Choo

“The FTSE100 edged higher in early trading after yesterday’s record close with traders looking to UK construction data out later this morning,” says AJ Bell Director Russ Mould.

“Outsourcing group Capita’s demotion from the blue-chip index has been followed by disappointing full-year results and the impending departure of chief executive Andy Parker. He has pledged quick and decisive action to simplify the business, strengthen the balance sheet, and return the group to profitable growth but the structural changes will ultimately be overseen by a new CEO. Capita’s underlying pre-tax profits fell by 19% and were down by 33% on a reported basis but the group maintained its total dividend.

“Builders’ merchant Travis Perkins was the FTSE250’s biggest faller in early trading. The group had a solid performance in 2016 despite a difficult year for its plumbing and heating division. But the sharp drop in the pound since EU referendum has created cost pressures on imported goods and materials. The group’s shares were down by more than 6.5%.

“Shoes and accessories group Jimmy Choo continues to build its brand with record revenues and profitability in 2016. The group built its reputation on its range of women’s shoes but its fastest growing category is its range for men, which now accounts for 9% of revenues.”

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