Three revenue warnings from large companies bring the short week to a gloomy end with retailer Next (NXT) dominating the headlines with its gloomy outlook for 2016. Its shares are marked down 8.4% to £61.03.
Support services group Mitie (MTO) sinks 8.6% to 242p as it flags weaker-than-expected revenue for the year to 31 March 2016. Full-year profit will be in-line with expectations, a pre-close trading update adds, as the business managed to cut costs. The statement also highlights longer term pressures on its cost base from higher wage costs and additional employment legislation.
Precision engineer Renishaw (RSW) falls 12.4% to £17.94 as it says profit won’t hit previous expectations and reminds investors that big contracts from the Far East in 2015 won’t be repeated this year. Investec believes costs are going up fast but says the trading update doesn’t actually reveal anything new about the business.
Fuel cell systems group Intelligent Energy (IEH) dives 90% to 4.5p as it says a funding plan is off target and therefore may not happen at all. It had previously got an offer from a sovereign wealth fund to invest in its Indian energy management business, as well as talks to get upfront money for a licence agreement.
Mr. Kipling cakes-to-Bisto gravy maker Premier Foods (PFD) reverses 10.7% to 48p following yesterday's bid-inspired spike. News Japan's Nissin Foods (2897:T) has agreed to acquired a 17.27% stake lessens the chances of a rival bid to the rejected offer for Premier from McCormick & Co (MKC:NYSE).
A bigger than expected build in US stocks of crude puts pressure on oil prices and leads to weakness in the oil and gas sector. BP (BP.) is down 1.7% to 350.2p and Royal Dutch Shell (RDSB) slumps 1.8% to £16.65.
Junior miner Asiamet Resources (ARS:AIM) continues its spectacular rally, up a further 12.3% to 3.88p. The shares have tripled in value in the past two weeks as investors speculate about the contents of a forthcoming feasibility study on its Indonesian copper prospect. We’ve flagged the potential upside for the stock since last year where it has been a Play of the Week trade in SHARES. We now take profit on that trade.
Distribution specialist Diploma (DPLM) expects to report minimal organic revenue growth in the six months to 31 March and a contraction in operating margins, according to a trading statement. Contributions from acquired businesses mean total revenue growth and profit should be around 9% higher than a year earlier. Shares trade 2.3% lower at 713p.
Home shopping and education supplies leader Findel (FDL) falls 4.6% to 176.75p as it flags margin pressure at Express Gifts, caused by sterling weakness and competitive pricing, as well as a £10 million provision to cover potential financial services redress.
Contract researcher Venn Life Sciences (VENN:AIM) rises 10.6% to 20.7p on 2015’s revenues set to be 15% higher than the market had previously expected taking the figure to more than double the €4.5 million recorded in 2014. This is the result of expanding its geographic reach and adding new services to its offering.