The FTSE 100 declines 0.6% to 6,800 at the start of the new trading week. There are notable declines in banks and oil producers, more than offsetting positive returns from miners and utilities.
Aberdeen Asset Management (ADN) jumps 3.6% to 296.45p as full year results are ahead of expectation, despite reporting a 39% decline in pre-tax profit to £352.7m. Pre-tax profit and earnings per share beat consensus forecasts by circa 7%, aided by currency benefits and positive market performance. Net outflows were £32.8bn. The company predicts ongoing volatility in global markets in the short term.
A near 1% rise in the gold price to $1,193 per ounce puts a shine on gold mining sector. Fresnillo (FRES), Polymetal (POLY), Centamin (CEY) and Randgold Resources (RRS) all see their share prices rise by approximately 2%.
Aerial platform group Lavendon (LVD) has received a rival takeover approach following interest from TVH revealed last week. European group Loxam has made a possible cash offer but details on price have yet to be announced. Lavendon trades 6.6% up at 217.65p.
Mining investor Metal Tiger (MTR:AIM) has rejected a takeover approach from metals miner BMR (BMR:AIM). The two companies have the same chief executive officer.
Haydale Graphene Industries (HAYD:AIM) has secured a long-awaited supply agreement with $4.59bn Araldite maker Huntsman Advanced Materials, sending its shares up 4.5% to 187p. The latter gets the exclusive worldwide rights to market, distribute and sell a range of resins enhanced using Haydale’s process. We explained Haydale’s business model earlier this month.
Miner Berkeley Energia (BKY:AIM) has signed a new offtake agreement with Interalloys for the sale of uranium produced from its Salamanca mine in Spain. The deal has an average price of $43.78 per pound which is more than double the current spot market price of circa $18 per pound. Berkeley Energia’s share price rises 6.7% to 47.2p.
Software group Cerillion (CER:AIM) has won a $2.8m contract from an existing customer in the Americas region, triggering a 3.2% rise in its share price to 130.02p. We highlighted the company’s appeal from an investment perspective in last week’s issue of Shares.
Kainos (KNOS) falls 7.6% to 218p as it reports no growth in adjusted earnings per share at 4.8p. The company insists it has seen increasing levels of demand for its digital services and platforms.
Mongolian property developer Asia Pacific Investment Partners is to float on AIM in December.
JD Sports Fashion (JD.) has bought camping equipment-to-bikes retailer Go Outdoors for £112.3m. It will enhance the group’s outdoors business which includes Blacks and Millets.
Dunelm (DNLM) is paying £8.5m for assets from WS Group including members-only online furniture store Achica. The deal also includes Kiddicare which was sold by WM Morrison Supermarkets (MRW) to private equity firm Endless, which subsequently flipped it two months later to WS-owned Worldstores.
Trakm8 (TRAK:AIM) falls 15.7% to 156p after reporting a 77% decline in pre-tax profit to £282,000 for the six months to 30 September. It warns that exchange rate movements will push up costs. There is uncertainty over the outcome for the full year given timing and quantum of contract opportunities.
