Ex Dividend



Ex Div knocked off a fair chunk today and a bit more than expected!


Most likely down due to the TPK IMS today, indicating weak housing RMI performance.

Osborne/Carney flat lined the housing market mid 2014 onwards in terms of asp & transactions to neutralise house price inflation by the time of the election. Since then transactions & asp are starting to rise, so RMI activity will follow suit on a lagged basis.

For HJ the key question is whether you believe buying a new kitchen is functional RMI or (in the era of the GBBO & general food porn) is a consumer (aspiration) franchise. I suspect predominantly the latter (which is certainly the case in furniture). If so, then HJ will operationally be doing extremely well & accelerating away. We shall know soon enough.


malj1…well covered and your view appreciated!


In the red, Travis Perkins was the worst blue-chip performer, down 6.0%, after it said its 2015 earnings are set to come in at the low end of market expectations due to continued challenges in its key markets in the third quarter

The builders’ merchant and home improvement retailer said that despite planning for a reduction in repair, maintenance and improvement markets over the summer months, the actual slowdown in the market was worse than had originally been expected.

Despite continuing to outperform a weak UK market, the tougher-than-expected conditions mean the group now anticipates its full-year 2015 earnings before interest and taxation will be at the low end of market expectations.

Fellow building-products company SIG ended as the biggest decliner in the FTSE 250, down 21%. It said its sales performance had diverged in the first nine months between its UK and European operations and said continued weakness in the latter, plus some softness in the UK repair, maintenance and improvement market, mean it now expects its underlying pretax profit to fall year-on-year.

SIG said it now expects its underlying pretax profit for the year to the end of December to be GBP85 million to GBP90 million, compared to GBP98.1 million in 2014. The underlying figures strip out any exceptional items and the effects of acquisitions and disposals.

Other building materials companies were hit by the comments by their two peers. Kingfisher ended down 3.7%, Wolseley down 2.3%, Grafton Group down 4.2%, and Howden Joinery Group down 5.5%.



If you’re interested take a look at the last DFS analyst presentation on their web site showing what drives purchases of furniture - I doubt kitchens are that far apart.