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2 March 2017
Rentokil Initial and the Scottish Mortgage Investment Trust have entered the FTSE 100 in the index’s latest quarterly reshuffle.
The pest control and hygiene company announced in February that it had exceeded its expectations, with full-year pre-tax profit up 3.1 per cent to £208.5m and revenue up just over 24 per cent to £2.16bn. Shareholders saw a 15 per cent dividend increase following the results.
The pest control division in particular saw a successful period, with organic revenue growth of 5.7 per cent compared to 4.6 per cent the previous year.
Meanwhile, the Scottish Mortgage Investment Trust has become the first investment trust to enter the FTSE 100 since the Alliance Trust was demoted from the index in 2011. The company is believed to have benefitted from the result of the EU Referendum last June, due to the recent weakness in Sterling. The trust has the majority of its holdings in overseas investments.
In contrast, the vote for Brexit was less positive for Dixons Carphone, which has left the top-flight index to join the FTSE 250. The company was hit by higher import costs due to the fall in the Pound.
Outsourcing firm Capita joins Dixons in the demotion to the FTSE 250. The organisation has also been impacted by the uncertainty in the wake of the referendum result, with clients delaying decisions around investments and contracts. The organisation downgraded its profit forecasts twice in three months towards the end of last year.
Also joining the FTSE 250 is Syncona, a life sciences investment trust which changed its name from BACIT Limited (formerly Battle Against Cancer investment trust) in December. It is joined by administration services provider Sanne Group and van hire firm Northgate. They replace CMC Markets and International Personal Finance.
Please remember that investments and income arising from them can fall in value and you may lose some or all of the amount you have invested. Past performance and forecasts are not reliable indicators of future results or performance.
This article is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned.
Notes to the Editor
Established in 1875, Redmayne-Bentley is one the UK’s largest independently owned investment management and private client stockbroking firms, with 37 regional offices throughout the UK and in the Republic of Ireland.
Redmayne-Bentley has experienced commentators available for comment on personal finance and stock market issues.
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