Debenhams, Carpetright and BCA Marketplace

“The FTSE100 opened in negative territory despite a strong showing by heavyweight miners. Anglo American, Rio Tinto, Antofagasta, BHP Billiton and Glencore locked out the top positions on the blue-chip board in early trading,” says AJ Bell Investment Director Russ Mould.

“Department store Debenhams was down in early trading after it warned that full-year profits could be towards the lower end of forecasts if current market volatility continued. Debenhams is seen as a bellwether for the health of the high street and recent trading has been tough although the decline in the group’s clothing sales has been offset by its ‘targeted destination categories’ of beauty, accessories and food & drink. Debenhams has also seen growth in its digital sales which were up by 7.9% in the 15 weeks to 17 June. The group’s shares were down by more than 1.9%.

“Carpetright led the FTSE All-Share Index after the group saw significant strategic progress in the 52 weeks to 29 April. Revenues increased to £457.6m from £456.8m and while underlying pre-tax profits of £14.4m were down from £18.3m a year ago, they were in line with forecasts. Net debts increased to £9.8m from £1.1m but this reflected investment in the accelerated store refurbishment programme. The group re-established a positive trading momentum in the second half and has made an encouraging start to its new financial year. Carpetright’s shares were up by over 8.4% in early trading.

“Used car dealer BCA Marketplace was an early riser after reporting growth in all divisions and results above market forecast in the 12 months to 2 April. The group’s result was driven by a combination of organic volume growth, increasing penetration of new and existing services, improved efficiency and the early benefits of operating synergies from the acquired businesses. Revenues topped £2bn for the year and adjusted earnings increased by 37.7% to £135.6m as the group continued to cement its market-leading position. BCA’s shares were up by more than 2.7%.”

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