We're not surprised that a negative trading update sends Tate & Lyle (TATE) up 1.7% to 751.5p. The bad news was already priced into the shares which have already been heavily sold off in the past few months amid fears of competition from Chinese manufacturers. There's a market glut of artificial sweetener, sucralose, which has triggered a sharp fall in prices. Analysts note that sucralose accounts for 6% of group sales but provides a quarter of its earnings thanks to its high margin and low tax manufacturing base in Singapore. Tate & Lyle today says adjusted operating profit for its first-half period will be slightly lower than the comparative period. It blames softness in the US beverage sector and flags lower selling prices for its SPLENDA sucralose product.
A major profit warning has rocked Carpetright (CPR) which also announces the surprise departure of chief executive officer Darren Shapland. He’s only been in the top job for 17 months and was generally considered very close to chairman Lord Harris of Peckham. The latter will now run the business in an executive role. The shares fall 10% to 605.75p. We've flagged the risks on several occasions this year, as we discuss in this news analysis.
Running Shares Play of the Week, Dixons Retail (DXNS) rises 2.9% to 46.99p after UBS upgraded the stock to 'buy'.
After flatlining for most of the summer, Capital Drilling (CAPD:AIM) gets a new lease of life after winning new contracts. The shares jump 9.4% to 21.75p as the mining services group gets to work on projects with AngloGold Ashanti and St Barbara, the latter being two assets owned by Allied Gold which used to trade in London before last year's takeover.
Mozambique coal miner Beacon Hill Resources (BHR:AIM) drops 8.2% to 1.91p after agreeing to issue convertible loan notes to raise up to $19.2 million. As with most fund raisings these days with junior miners, the terms for the loan notes are complex. Yet getting money will help the company build up production.
One of the stocks featured in the new issue of Shares (out 3 Oct), Condor Gold (CNR:AIM) rises 9.5% to 126.5p. We highlighted its takeover potential and that's no doubt got investors reappraising the story.
The power of director dealing is thrust into the spotlight today as 3D converter DDD (DDD:AIM) rockets 26% to 7.25p after non-exec chairman Nicholas Brigstocke buys 200,000 shares. Nevermind that the value of the deal is just over £11,000, hardly hocking the family silver to the company's performance, but the market is willing to overlook such details. We looked at DDD's many challenges in August.
Cambridge-based bluetooth and wireless connectivity microprocessor designer CSR (CSR) fails to react to the 900p price target slapped on the stock by the chartist at Westhouse Securities. The shares drift 6.5p to 523.5p, although that's 37% up since Shares flagged the company last month.
Arbuthnot Banking Group (ARBB:AIM) rises 2.6% to 930p as management declare an 18p a share special dividend to celebrate its 180th birthday. Secure Trust Bank’s (STB: AIM) parent group also receives £26.2 million from selling one of its London properties, which it has leased-back for 16-years on an initial £1.7 million a year rent.
Engineer Tricorn (TCN:AIM) falls 8.5% to 36.1p - as it warns pre-tax profits for the first half of its financial year running to 30 September 2013 will be below expectations. Despite the profit warning - which is attributed to soft markets in the UK and investment in the US and China - house broker Westhouse Securities reiterates its 'buy' rating and ups its price target from 44p to 50p.
FTSE 250 oil services firm Wood (WG.) is largely unchanged - up 0.1% to 794p - as it confirms 2013 results will be in-line with expectations. The group flags improved operating cashflow in the second half and says its balance sheet 'provides a good platform for growth'.