Bunzl raises profit target againCapita and Serco orders growDriver the day?s star turnOn a good day for markets in general, UK business services firms were feeling the love after posting positive trading updates.Half a dozen firms, from FTSE 100 distributor Bunzl (BNZL) to FTSE 250 outsourcer Serco (SRP) and staffing firm SThree (STEM) all the way down to tiddlers Capita (CPI), Driver (DRV) and RM

Valuations for the small-cap asset class have returned to levels last seen during the Global Financial Crisis, and history shows that when valuations have plunged to similarly low levels in the past, stellar returns have ensued for small caps over the subsequent five years.A savvy way to gain differentiated exposure to this structurally-inefficient part of the market is through value-focused inves

We would hesitate to call it a wave of consolidation - maybe a ripple would be more appropriate - but this year has seen a number of mergers among investment trusts.There is a long tail of sub-scale funds and trusts in the UK all desperate to attract more investors, but with the average discount to net asset value hitting 18% at the end of October, according to research from Winterflood Securities

According to data from the AIC, the average investment trust discount to net asset value has widened from 12.2% at the end of 2022 to 14.5% as of 8 September 2023, while sector averages have generally widened. The exception is private equity, which narrowed from 25.1% to 4.5%, skewed by 3i's (III) dramatic swing from discount to premium.While this presents an opportunity to buy into parts of the m

Infrastructure trusts to mergeDeal continues trend towards consolidationAsset manager Abrdn leads the wayAgainst a backdrop of falling NAVs (net asset values) due to higher UK interest rates, and with the average discount across the investment trust sector hitting its widest level since 2008 in the second quarter, it seems more managers are biting the bullet and agreeing to merge.After consolidati

Stocks in London were largely lower on Friday, with rate-sensitive stocks on the back foot, as decent UK economic growth opened the way for more Bank of England hikes.'The UK economy continues to confound predictions of a recession for now. However, the words 'for now' are doing plenty of heavy lifting,' AJ Bell analyst Russ Mould commented.'The durability of the economy is a double-edged sword, a

Second profit warning in two months sends shares down 30%Shares hit eight year lowCEO stands down with immediate effectA second profit warning in two months and the exit of the CEO is not a good luck and for records management and life-cycle services company Restore (RST) it has sent the shares to an eight-month low after falling 30% to 161.5p.The shares have lost 61% of their value over the last

NAV gain of 21.4% compared with 16% loss in FTSE Small Cap indexValue investing mindset with concentrated portfolio approachUK small caps trading at deep discountSmall cap investing hasn't been easy of late with the FTSE Small Cap (ex investment trusts) index down 15.7% over the year to 31 March 2023.But small cap investment specialist Rockwood Strategic (RKW) delivered an increase in total NAV (n

The equity market tone improved substantially on Wednesday, with the risk of a global banking crisis seeming to recede and a rally in Chinese technology stocks providing an additional boost.In London, insurance and banking stocks, as well as a share price recovery for grocer Ocado, bolstered the FTSE 100. Next suffered a share price decline, however, as investors were disappointed the retailer fai

- Shares plunge by more than a third after disappointing first-half results- Dividend cancelled- Analysts cut their earnings' forecastsShares in education technology group RM plc (RM.) slumped by 34% to 65.1p following the announcement of disappointing first half 2022 results that have prompted analysts' to downgrade their earnings' forecasts.Profit was impacted by freight costs, inflation and hig

Stock prices started lower in London and elsewhere in Europe on Tuesday, though less alarmingly so than in New York overnight, as the dollar soared to historic highs against the pound and euro.The FTSE 100 index was down 33.43 points, or 0.4%, at 7,500.36 early Tuesday. The mid-cap FTSE 250 index was down 15.57 points, or 0.1%, at 19,483.77. The AIM All-Share index was down 1.39 points, or 0.2%, a

UK stocks pushed unconvincingly into positive territory at lunch time on Thursday while European bourses remained in the red.With Brexit negotiations front and centre, France warned that it could use its veto vote to block a deal if it doesn't like the terms, heaping more pressure on the talks as they approach their climax.At 12:00 the FTSE 100 was a smidge higher at 6,471 points. NEWS ROUND-UPSup

Education technology group RM (RM.) continued its stunning run after telling the market that it will beat current forecasts for the year just closed to 30 November.UK schools staying open during the latest lockdown has helped a lot, with RM explaining that the improved trading in the third quarter continued during Q4.While RM resisted any temptation to give more detail, it was able to say that net

There is a growing trend for companies to report better than expected earnings and this is something that investors should follow. Earnings growth is one of the strongest catalysts for share price growth, so it pays to watch the companies doing well operationally and financially.Beating estimates in the current environment could be down to several reasons including management being too cautious fo

Conversion shares or C shares are issued by investment trusts to raise money and allow investors to subscribe for new shares without negatively affecting existing shareholders.It will take time for the manager of a trust to deploy fresh capital and during that period, the cash element would likely generate limited returns, thereby depressing performance. This is known as 'cash drag'.By raising mon

The UK votes today as millions of Brits hit polling stations up and down the country to select their next government. Latest polls predict a Conservative win, but the margin of victory is very much unknown. Read on for Shares in-depth coverage (initially published on 1 June) of how today's election result could affect UK plc, its companies, financial markets and the pound.Election countdown: what

London's high-flying FTSE 100 opens on a positive note, up 28.4 points to 7,548.4 helped by sterling weakness against the dollar and euro.In reverse however is bus and coach operator FirstGroup (FGP), marked down 6.1% to 140.7p. Although full year results show an improvement in pre-tax profit and cash generation, FirstGroup's outlook statement is cautious, management flagging 'opportunities for st

The UK is now a week away from voting in the general election. At the time of writing, the Conservative Party held the lead in the polls although the gap against Labour has narrowed.The current market rally, as represented by the domestically-focused FTSE 250 index, implies a Tory victory. There wouldn't be any radical changes to how the country is run and Theresa May could concentrate on getting

Of all the long-term consequences of the financial crisis of 2008, one of the most serious is the partial withdrawal of the banks from some of their traditional lending activities.Tougher capital adequacy requirements have made it more expensive for them to provide loans, which has left key areas of the economy short of funding and created a lucrative gap in the market.Part of the shortfall has be

Education technology group RM (RM.) has caught our attention after reporting better than expect profit and finally making an acquisition that could change the dynamics of the business.The accompanying table from stockbroker FinnCap shows how the company has made big strides with profit generation in 2016.I've annotated how sales are falling faster than expected in two of its three divisions.I've a