Although the momentum of the blue-chip benchmark has stalled since it hit new record highs in late May, London’s FTSE 100 recovers some of yesterday’s losses early on, ticking 39 points higher to 7,615.

In corporate news, Royal Bank of Scotland (RBS) rises 3.1% to 257.8p as half year results not only reveal adjusted profitability comfortably ahead of consensus forecasts, but the bank also announces a resumption of dividend payments for the first time since the financial crisis, with further capital distributions to follow.

Pets at Home (PETS) rallies 9.6% to 123.9p on a positive first quarter trading statement, the pet care specialist having generated good like-for-like growth in both its retail and veterinary services operations in the 16 weeks to 19 July. There is also relief as Pets at Home reiterates full year guidance for low single digit growth in adjusted profit before tax (PBT).

Also catching a bid is packaging group Mondi (MNDI), marked up 6.5% to £22.06 on strong first half results showing 17% growth in underlying earnings before interest, taxation, depreciation and amortisation (EBITDA), as well as a pretty confident outlook statement from CEO Peter Oswald.

Elsewhere, British Airways' owner International Consolidated Airlines (IAG) softens 4.1% to 657.2p. A rise in second quarter operating profit from €790m to €835m is not enough for investors, IAG’s earnings impacted by disruption due to French Air Traffic control strikes.

The positive news is CEO Willie Walsh insists that at current fuel prices and exchange rates, IAG’s full year operating profit should still show an increase year-on-year, with both passenger unit revenue and non-fuel unit costs expected to improve at constant currency.

Bookie William Hill (WMH) slips 9.4p to 282.9p after swinging to a half year loss after writing down the value of its assets to account for a looming UK regulatory crackdown. Investors are also disappointed by the gambling group’s UK retail and online performances, which fell short of forecasts, although encouragingly, momentum is building in William Hill’s US operations.

Global diamond producer Gem Diamonds (GEMD) is full of sparkle, the shares improving 5.2% to 121.5p on a positive first half trading update. During the six months to 30 June, Gem Diamonds recovered a record ten diamonds greater than 100 carats and this trend continued into the third quarter with the eleventh diamond greater than 100 carats recovered in July, now equalling the highest number of these recoveries in a single year. CEO Clifford Elphick also flags positive progress with Gem's cost saving and productivity initiatives.

Animal vaccines-to-pharmaceuticals play Animalcare (ANCR:AIM) cheapens 3.1% to 158.5p on the news several new product launches that were due to take place in the first half have been delayed by distribution partners. Investors are also unsettled by a change of leadership at the top. Chris Cardon is stepping down as CEO to be replaced by seasoned big pharma mover and shaker Jenny Winter from October.

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Issue Date: 03 Aug 2018