London’s FTSE 100 falls back 69.8 points to 7,660.5 as investors return to their desks after the Bank Holiday, political chaos in Italy weighing on sentiment in early dealings.

Electricals-to-telecommunications retailer Dixons Carphone (DC.) crashes 27.2% to 170p as new CEO Alex Baldock issues a nasty profit warning alongside a fourth quarter trading update highlighting 4% like-for-like sales growth.

While headline profit before tax of around £382m for the year to April will meet market expectations, the result will be well down on last year and flattered by a £25m one-off credit. Worryingly, profits for the new financial year are expected to fall back to roughly £300m amid ongoing problems in the mobile phone business and ‘further contraction’ combined with margin pressure in the UK electricals market.

Digital services and platforms provider Kainos (KNOS) climbs 11p or 2.8% higher to 398p as full year results mark an eighth year of sales and profits growth on the spin, adjusted profit before tax up 7% to £15.3m on sales up 16% to £96.7m. Investors are also heartened by notably strong end of year orders of £130.7m, up 38% from £94.8m a year ago and providing strong visibility.

Also in demand is Renold (RNO), the industrial chains-to-power transmission products supplier rising 9.7% to 25p after reporting a return to organic sales growth ‘for the first time in a number of years’ and order books ‘meaningfully ahead’ year on year. Rising input costs and factory disruption hit profits in the first half, but profitability increased in the second half as Renold successfully put up prices and put aforementioned disruption behind it.

Engineering conglomerate Smiths Group (SMIN) skips 3.9% higher to £17.87 after confirming it is in ‘very early stage’ talks about a possible sale of its medical division to NASDAQ-listed ICU Medical.

Rolls-Royce (RR.) cheapens 18p or 2.1% to 825.4p, despite saying it will launch a new engine family for Bombardier’s latest business jets.

Elsewhere, restaurant owner Richoux (RIC:AIM) slumps 21% to 6.75p as it warns mounting losses have put pressure on its balance sheet and it plans to raise more capital.

Gaming Realms (GMR:AIM) gains 2.2% to trade at 8p after inking a licensing deal with Sony Pictures Television. The developer and licensor of mobile real money and social games will create and host the new gaming site on its platform following the successful return of ‘Who Wants To Be A Millionaire?’ to UK television screens.

Amryt Pharma (AMYT:AIM), focused on rare and orphan diseases, advances 0.44% to 16.9p after signing four additional distribution deals for its rare cholesterol disorder drug Lojuxta in the Middle East.

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Issue Date: 29 May 2018