The FTSE 100 gains 0.4% to 7,460.39, clawing back some of Friday’s losses, as news of a possible vote of no confidence in prime minister Theresa May puts sterling under pressure.
FTSE 250 defence business Ultra Electronics (ULE) crashes 23.3% to £11.71 as it confirms the immediate departure of chief executive Rakesh Sharma and warns mounting pressure on UK defence spending will mean full year revenue and profit for 2017 will come in lower than previously guided. Sector peers BAE Systems (BA.) and QinetiQ (QQ.) also suffer, down 1.7% to 546.5p and 3.1% to 221.8p respectively.
Housebuilder Taylor Wimpey (TW.) is flat at 193p as it reports slowing sales in the second half as investors also take on board in line guidance for full year results and a reference to a ‘positive’ UK housing market. Last week the sector suffered widespread weakness after a mixed update from Persimmon (PSN).
Pest control business Rentokil Initial (RTO) acquires Vector Disease Acquisition for an undisclosed sum. North America’s largest provider of mosquito control services could be the first of several deals as Rentokil points to an M&A pipeline for the second half of its financial year of $100m and says the prospect of further purchases remains ‘very strong’. Shares in the FTSE 100 firm tick up 0.4% to 322p.
Funerals specialist Dignity (DTY) slumps 2.3% to £24.01 as a third quarter update references little movement in the number of deaths and significant competition. In the 39 week period to 29 September operating profit was up 5% to £79.4m.
Strong growth in online gambling helps bookmaker Ladbrokes Coral (LCL) post a 2% increase in group revenue in the four-month period to 29 October up from growth of 1% across the rest of the year. The shares fall 1.1% to 135.4p amid continuing focus on a crack down on Fixed Odds Betting Terminals.
Specialist retailer Fishing Republic (FISH:AIM) dives 46.7% to 20.25p as it warns on profit amid a ‘significant deterioration’ in trading. A change at the top is also announced as former SuperGroup (SGP) e-commerce chief Chris Griffin steps in as acting CEO, replacing Steve Gross. Griffin will lead a strategic review as the business looks to step up its online presence.
