Lloyds share price (LON:LLOY) has hit a 6-week high following Theresa May’s devastating defeat in the house of commons. Lloyds share price was up over 1% on Wednesday touching 56.5p. Lloyds had fallen as low as 50p during December as uncertainty over Brexit negotiations hit UK assets. Theresa May’s crushing defeat on the Brexit deal moves the country closer towards a number of scenarios that will soften the impact of Brexit. The first of these options, as requested, by Jeremy Corbyn is a general election. Although this is unlikely in the short term, a general election could see Jeremy Corbyn, a proponent of a softer Brexit and staying in the customs union, as prime minister. Staying in the customs union would reduce any negative impact on trade and have less of an impact on the economy which would be a positive for Lloyds share price. Despite being rubbished initially, there is growing momentum for a second referendum, the question on the paper is anyone’s guess, but again such a scenario is likely to avoid the no deal or hard Brexit damaging to the UK economy and Lloyds share price. The third scenario, and one that would avoid the UK going to the polls again, is the revoking or extending of Article 50. A revocation would provide the government more time to formulate a plan that can actually make it through parliament, a would an extension. It may also stop Brexit altogether. In any of these scenarios the forecast devastation of the UK economy would be avoided and provide the potential for plenty of upside in the Lloyds share price. Lloyds reported a 18% increase in profit after tax in the nine months to 30th September reflecting the reduction in litigation and PPI costs. Lloyds is set to report full year results 20th February.

City Pub Group (LON: CPC) has reported a positive start to the year, revealing strong Christmas trading. In the 52 weeks to the end of December, the group reported a 1.6% increase in like-for-like sales. Sales were particularly strong over the Christmas period, where the six weeks to January 6, like-for-like sales were up by 7%. City Pub Group opened 11 new sites over 2018, including its £2.2 million acquisition of Chapel 1877 in Cardiff. The deal was brokered by GVA’s Cardiff hotels and leisure team. John Coggins, associate director at GVA, said about the deal: “On behalf of the vendor, Bevan Holdings we received multiple expressions of interest for the business, a reflection of Chapel 1877’s appeal within the city.” “The Chapel is an ideal fit for the City Pub Company’s growing portfolio of 42 pubs across the south of England and Wales and we’re delighted to have completed on the confidential sale in a matter of weeks with excellent assistance from Gordon Dadds Solicitors.” Turnover for the group increased by 22% to £45.6 million, thanks to increased volume. The pub chain said that it would benefit from the higher prices introduced at the end of the year in 2019. “Trading was very encouraging over the festive period and throughout 2018, particularly post-Easter. We have grown very rapidly over the last two years, performed well and our new sites are showing their potential,” said Clive Watson, the group’s chief executive. “Our low gearing puts us in an enviable position to take advantage of attractive acquisition opportunities that present themselves. If we enter a period of uncertainty caused by Brexit, there is much we can continue to achieve organically,” he added. Shares rose 4% on Wednesday morning. They are currently trading +4.31% at 205,50 (1225GMT) In other news, Wednesday also saw a strong trading update released by Bovis Homes, despite Brexit uncertainty.

Sativa Investments (LON:SATI) have made an exciting start to 2019 with the release of a trading update and the announcement of plans for new wellness centres. Sativa Investments listed on NEX Exchange in March 2018 and was the first London listed cannabis investment vehicle available to UK investors. In early January the company released a trading update that outlined the progress of their investments. Geremy Thomas, Sativa Investments Founder & Chief Executive Officer commented on the progress: “The Company has made significant progress since its admission to the NEX Exchange Growth Market in March last year. The Company’s operations now cover seed growing, in so far as the Company has already successfully grown a hemp crop under the CEO’s own growers’ licence, and along with great strides in developing its medical cannabis business, and has researched, tested, marketed and sold CBD products. “Sativa now has a solid base on which to build its seed-to-consumer model and this next round of fund raising will allow institutions and other investors to participate in what is expected to be a major UK industry.”

Wellness Centres

Sativa’s trading updates was closely followed by the announcement of plans for Wellness Centres named Goodbody & Blunt. The centres will consist of drop in centres where individuals will be able purchase a range of CBD (cannabidiol) products. CBD products such as oil do not contain psychoactive THC and have long been available for sale in the UK and can be purchased in many supplement stores. While the distribution of CBD is not amazingly groundbreaking it does provide Sativa Investments time to build the Goodbody & Blunt brand in anticipation of recreational legalisation of cannabis with THC in the UK. The UK fired the starting gun on potential recreational legalisation when last year medicinal cannabis was very publicly legalised. Taking the examples of the United States, Canada and a number of countries in Europe, it takes around 3-5 years from medicinal legalisation to recreational legalisation. Sativa Investments have appointed Chris Jones to head up the unit who brings experience from the vaping and mobile phone markets.

Dignity reported a “stronger than expected” fourth quarter on Tuesday. Operating profit for the funeral provider expects to be £79 million, which is ahead of market expectation. In their trading update, Dignity said the stronger than expected profit was due to a comparable market share remaining robust and showing small growth year on year; the funeral average income remaining higher than anticipated; and overheads being lower than expected, partly due to the timing of some marketing spend which will now occur in 2019. “Good progress continues to be made on the Transformation Plan. Following the price reductions introduced in 2018, the Board continues to expect average funeral incomes to be lower in 2019 than in 2018 and there are therefore no changes to the Board’s expectations for 2019,” said the group in a statement. The funeral provider has struggled over the past year, due to increased competition from rival Co-op funeral group. The price war between providers has hit profits for Dignity. In the three weeks to September 29, profits for the group took a 27% hit to £11.1 million. In addition, the Competition and Markets Authority said in November that they would launch an investigation into the UK funeral market, which caused shares to slide. “The scale of these price rises does not currently appear to be justified by cost increases or quality improvements,” said the CMA at the time of the news. Analysts at broker Peel Hunt said on the trading update that it was “a pleasing surprise”. Shares in the group (LON: DTY) are trading +0.49% at 723,50 (1440GMT).