Renewed concerns about the strength of the Eurozone leave investors nervous, reflected in a 30 point decline in the FTSE 100 to 6,667. But there are a few bright spots including Merlin Entertainments (MERL) which makes a good impression on its stockmarket debut. The Alton Towers owner rises 10% on its IPO. We take a closer look at the news here.
International Consolidated Airlines (IAG) soars 5.2% to 367.1p after positive results from the British Airways owner. Third quarter results reveal an airline on track to deliver strong full-year profits following successful restructuring of Iberia. Read our news analysis on today's numbers.
Aircraft engine manufacturer Rolls-Royce (RR.) gains 3.4% to £12.09 on a broadly in-line trading update which sees guidance on the marine and defence aerospace businesses upgraded. The company reiterates it will break-even on a cashflow basis for 2013, addressing an area which had prompted concern at the interim stage.
Interdealer broker Tullet Prebon (TLPR) falls 5.2% to 301p as Numis Securities warns ‘we still do not know when the downgrades will end’ in the wake of this morning’s cautious third quarter trading update. Numis says while may be cheap negative earnings momentum means it could get cheaper.
Troubled coal miner Bumi (BUMI) rises 3.2% to 231.5p after saying its proposal to sell a stake in Jakarta-listed Bumi Resources would be at a 166% premium to the current market value, giving $501 million in cash and a new majority ownership. It promises to return 103p per share cash to shareholders, but we'd heed caution until the cash is in the bank. The Bumi story is wrought with unfilled promises.
Rentokil (RTO) slips 1.2% to 103.5p after its third quarter trading update showed pre-tax profit 3% below consensus. Europe remains difficult which is not good news. Stockbroker Panmure Gordon says there is less scope for cost savings from 2014 versus previous years so a turnaround in Europe is required to make 'meaningful earnings momentum' from here.
Resources-focussed Arden Partners (ARDN:AIM) soars 14.7% to 62.5p, and interestingly Cenkos Securities (CNKS) rises 6.6% to 113p, all on zero newsflow. A takeover of the former by the latter collapsed in 2008.
Rig refurbishment and construction play Lamprell (LAM) slips 1.3% to 59.1p despite announcing the completion and delivery of the Jindal Star jack-up rig which is set to operate in the Caspian sea. The company indicates the rig was delivered on budget. This is significant given a spate of profit warnings in 2012 were heavily linked to cost overruns on contracts.
Fast-growing insurance outsourcing business Quindell Portfolio (QPP:AIM) accelerates telematics wins in Canada, securing a five-year kit, software and support deal with autos association CAA. A volumes-based agreement similar to its recent win with the Insurance Broker Association of Ontario, the shares edge 3% higher to 16p.
IT testing specialist SQS (SQS:AIM) extends its managed contracts capability offshore with the £14.5 million acquisition of India's Thinksoft. This looks like a neat fit, and investors are clearly optimistic, with SQS getting its £11.4 million placing away at almost no discount, and the shares turning sharply higher today, up 5.5% to 450p.
Mobile business developer Globo (GBO:AIM) is in demand as retail investors continue to see the recent bear raid on the stock as a buying opportunity. The shares rise more than 6% to 56p with Globo the recipient of positive press coverage following Shares' own positive steer on the company and its shares back in January at 21p, and updated last week.