London's FTSE 100 opens 21.4 points higher at 6,797.2 on Monday, recovering from last Friday’s declines thanks to overnight gains by Asian stocks as oil prices bounced higher, with all eyes this week on the Autumn Statement and Federal Reserve meeting minutes.
Industrial distributor Essentra (ESNT) extends year-to-date losses to above 50%, losing 20% of its market value this morning, as operating profit expectations are downgraded by around £20m to between £137m and £142m. Broad-based weakness across the business as well as lower-than-expected benefits from the acquisition of $455m (£302m at 2015 exchange rates) Clondalkin, completed in 2015, means like-for-like revenue is expected to be down 7% for the full year. Shares trade at 394p.
Outsourcer Mitie (MTO) sinks 9.5% to 190.1p after swinging from a £45.1m profit to a £100.4m first half loss, struck after a £117.2m hit following its decision to quit the domiciliary homecare market. Mitie, which warned on profits in September, has been hit by rising labour costs and economic uncertainty and now warns underlying earnings for 2017 will be below management's previous expectations.
Munitions and countermeasures business Chemring (CHG) clips ahead 2.6% to 160.5p on a soothing trading statement, flagging 51% growth in fourth quarter sales and assuring results for the year to October will meet downgraded expectations 'with a slight upside' resulting from sterling's weakness versus the dollar.
Bombed-out women's value fashion retailer Bonmarche (BON) cheapens another 3.1% to 84.75p on poor interims showing a decline in taxable profits from £6.4m to £2.5m on an 8.6% slump in like-for-like sales. The retailer, which has issued three profit warnings of late, says it is on track to achieve heavily downgraded forecasts after a pick-up in sales from September.
Georgia Healthcare (GHG) gains 3.5% at 370p on news of a leap in third quarter profits and the acquisition of pharmacy business ABC, a deal which turns the company into the biggest pharmaceutical retailer in Georgia.
Pharmaceuticals and life sciences R&D minnow Instem (INS:AIM) crashes 22.6% to 222.5p after warning full year results will disappoint due to a slowdown in the early phase clinical market served by its Instem Clinical unit.
