Can maker Rexam (REX) is down 4.9% at 498.7p – recovering from an earlier 9% fall – after 2013 results underwhelm the market. Sales of just over £3.9 billion were 6% below consensus and earnings per share at 35.3p around 3% short. However the group says it met its 15% return on capital employed target and increases the dividend by 14% to 17.4p.
US spending cuts prompt defence giant BAE Systems (BA.) to guide for a 5% to 10% year-on-year fall in earnings per share alongside disappointing 2013 numbers and the shares fall 9% to 397.6p. We take a closer look at the news here.
Gas and electricity supplier Centrica (CNA) reignites the energy row despite posting a disappointing drop in 2013 profits to £571 million after a swathe of customers switched away. The British Gas-owner sees its shares stay flat at 315p but investors are clearly getting nervous over the increased threat of government intervention, as we discuss.
Oil services firm Petrofac (PFC) gushes up 3.1% to £13.70 as it is awarded a $1.2 billion contract on BP's (BP.) Khazzan tight gas project in Oman. Petrofac will build the central processing facility for the $16 billion development.
Cigarette filters-to-healthcare packaging group Essentra (ESNT) dips 2.7% to 869.5p despite reporting a 23% rise in both operating profit and the dividend. With the shares in the £2.1 billion cap having rallied in the run up to the full-year results, we'd put today's share price movement down to profit taking. The investment case remains the same: net debt is rising as Essentra is spending money on acquisitions where it hopes to lift operating margins to the high levels it enjoys. Having previously aimed for the FTSE 250, where it now resides, chief executive officer Colin Day now has aspirations for the FTSE 100.
Regional airline Flybe (FLYB) hopes to raise £150 million through a placing and open offer at 110p per share. This is nearly twice the value of the company so pricing the new shares at a mere 7.2% discount looks impressive. Qualifying shareholders will be able to buy 2 new shares for every three they already own. The money will help strengthen Flybe's balance sheet and help with business expansion. Having previously encountered lots of financial problems, Flybe's recovery has been very impressive with the shares having trebled in price since July 2013. Today's news sees the shares dip 2.1% to 116p.
Train and bus operator Go-Ahead (GOG) retreats 1.6% to £20.77, again another stock to have rallied in the months preceding financial results. Today sees interim figures with a 30.8% rise in pre-tax profit to £40.3 million, in line with expectations. There's no growth in the dividend.
Office, retail, hotel and industrial property investor Redefine International (RDI) falls 4.4% after raising £54.7 million through placing UK and South Africa-listed shares at 47.5p and R8.75 respectively. Strong demand saw Redefine increase the allocation from 7.5% to 9.9% of its existing share capital. The real estate investment trust will use the money to extend its 2016 debt maturities and expand its portfolio in the UK and Germany.
Cancer-therapy and diagnostic specialist ValiRx (VAL:AIM) rises 3.3% to 0.3p as it patents its cancer screening test gene biomarker NAV3 in Europe. NAV3 identifies patients who are likely to respond to a particular therapy as well as highlight tumour growth.
Gadgets supplier to schools Promethean World (PRW) leaps 12% to 38p as investors sniff out early signs of capital spending recovery. The £76 million cap wins a major contract in the US to supply interactive displays kit to 10,000 classrooms.