Energy generator Drax (DRX) falls almost 3% to 658.5p after warning on profits. The £2.6 billion company tells investors that it would see a fall in earnings due to renewable energy subsidy prices and weak power. This is the second energy market profits alert this weak, following yesterday's earnings cut by British Gas-owner Centrica (CNA).
Also in the profit warning camp is oil services group Petrofac (PFC) which downgrades earnings expectations for the second time in less than six months prompting a 16.7% fall to £11.56. Among the contributing factors is a delay to its Greater Stella Area project and this hits its partner on the development Ithaca Energy (IAE:AIM) too – down 8.7% to 138.5p. First output from the field is now expected by the middle of 2015 against previous hopes of an end of year start up. Westhouse Securities puts the incremental cost of the delay to Ithaca at $5 to $10 million, equivalent to 1p to 2p a share.
British Airways-owner International Consolidated Airlines (IAG) ascends 1.6% to 411p after saying that first quarter operating losses narrowed to €150 million from €278 million in the same quarter last year. Revenue rose 6.7% in the three months to €4.2 billion.
Inter-dealer broker Tullett Prebon (TLPR) falls 7.7% to 291.25p on a weak trading update that flags the need to cut costs. It says legal action continues to be pursued against BGC which poached numerous top staff from its North American business. Tullet also announces the acquisition of oil instruments broker PVM.
Bank of Georgia (BGEO) jumps 4.3% to £27.89 on first quarter results that show 27.8% rise in profit to GEL53.7 million, despite its lending and deposit growth retrenching slightly. The bank’s balance sheet continues to strengthen with its core tier I ratio improving to 23.8% from 23.2% a year earlier. Bank of Georgia is a running Shares Play of the Week.
Computer game translation specialist Keywords Studios (KWS:AIM) is buying audio specialist Binari Sonori in a deal capped at €13 million. Stockbroker Northland Capital says the deal looks 'reasonable' on 1.3 times historic revenue but 'fuller' on more than 20 times profit after tax. Coinciding with the deal is a fund raise where Keywords is seeking £6 million through placing new shares at 150p. We've looked at Keywords several times since it floated last year, including this 'Griller' interview and a news story looking at its Asian opportunities. The shares today rise 1.6% to 163p.
Investors continue to sell down shares in loss-making cloud business Outsourcery (OUT:AIM) despite recent contract wins in April and again earlier this month. The stock is 6.5% off today at 73p. Outsourcery floated on Aim almost exactly a year ago at 110p but the shares have come under intense selling pressure over the past month, falling 34% to leave its market value standing at just over £25 million.
Small cap exploration and production (E&P) play San Leon Energy (SLE:AIM) slumps 7.9% to 2.57p as prospective partner TransAtlantic Petroleum (TAT:NYSE) says it does not plan to proceed with a farm-out deal proposed on 27 March. The deal would have seen TransAtlantic take a 50% stake in nine of San Leon's concessions in Poland in return for funding the cost of six wells. San Leon says talks are continuing with TransAtlantic.