London’s FTSE 100 bounces back on Tuesday, the blue-chip benchmark taking on 41.5 points at 7419.2 with investors hunting down bargain trades.
One of the day's big stories involves luxury shoe retailer Jimmy Choo (CHOO), which jumps 33.5p (17.2%) to 228.5p after agreeing an £896m all cash takeover by US retailer Michael Kors. The takeover is pitched at 230p per share, a 36.5% premium to the share price before Jimmy Choo put itself up for sale in April.
CEO Tim Warrillow says the posh tonic water-to-ginger beer supplier ‘achieved growth in all our regions’ in the half and given this continued strong performance, expects full year profits will come in ‘materially ahead’ of expectations.
Heading in the opposite direction is Domino's Pizza’s (DOM), which sours 7% to 259.7p despite an increase in first half revenues and underlying pre-tax profits. The group continues to take market share but it is also aware that UK consumers are more cautious about the economic outlook.
Informa (INF) firms 5.9% to 715p on news it generated continued growth in revenue, profit and earnings in its seasonally stronger first half of the year. The group has continued to make steady operational and financial progress in the fourth year of its acceleration programme while also effectively integrating US-based Penton Information Services ahead of schedule.
Innovative floor coverings maker Victoria (VCP:AIM) weaves 10.5p higher to 497.5p as forecast-busting full year results, driven by a combination of strong organic growth and earnings enhancing acquisitions, trigger earnings upgrades. Broker Cantor Fitzgerald Europe is suitably impressed, reiterating its ‘buy’ rating and upgrading its Victoria price target from 525p to 550p.
Also sparking higher is LED lighting specialist Luceco (LUCE), bid up 12p to 244.75p on a positive first half trading update flagging market share gains in the UK and a strong performance in the Americas and continental Europe.