London’s FTSE 100 weakens a further 73 points to 7,089 on Monday as the exchange of trade threats between Washington and Beijing stirs fears of a recession and German chipmaker Infineon’s deal to buy US peer Cypress Semiconductors weighs on the technology sector.
Construction and infrastructure firm Kier (KIE) crumbles 29.4% to 196.4p on a warning full year 2019 underlying operating profit will be around £25m lower than previous expectations, and on flat revenue to boot.
Also expecting to report a year-end net debt position, troubled Kier blames the damaging warning on continuing volume pressures within its highways, utilities and housing maintenance operations, a revenue shortfall in the buildings business as well as the higher than expected costs associated with its ‘Future Proofing Kier’ programme.
Bonding products and adhesive components supplier Scapa (SCPA:AIM) slumps 43% to 169p on the news wound management specialist ConvaTec (CTEC) has terminated a ‘material’ contract worth a minimum $30m of revenue a year.
Elsewhere, information technology and communications services provider KCOM (KCOM) advances 14.4% to 111p after withdrawing its support for a takeover from Universities Superannuation Scheme in favour of a ‘superior offer’ – pitched at 108p – from a fund managed by Macquarie Infrastructure and Real Assets.
Funeral services firm Dignity (DTY) cheapens 4.3% to 660p, investors unsettled as the UK government regulates the pre-paid funeral plan sector in order to protect consumers. However Dignity welcomes the announcement from HM Treasury, stressing it has ‘long led the industry in best practice’ and insisting it will ‘continue to deliver the high standards of selling and administration of pre-arranged funeral plans that we already provide’ during the transition period.
Legal services firm DWF (DWF) edges 0.65p higher to 119.25p on a positive trading statement flagging strong top line growth and ‘good profit growth’ for the year to April 2019, as well as a ‘solid start to the new financial year’.
Tatton Asset Management (TAM:AIM) ticks 7.5% higher to 214p after posting a jump in annual profit on a 25% rise in assets under management to £6.1bn and announcing the securing of investment mandates with Frenkel Topping (FEN:AIM) and financial adviser Tenet.
Sheffield-based Fulcrum Utility Services (FCRM:AIM) falls 16.7% to 25p after spooking investors by delaying the release of results for the year to March. The company says this is the result of ‘an increasing scope and complexity’ of the enlarged group and also reflects ongoing work on ‘certain non-cash items’.