Oil-related stocks rally as oil producers’ cartel Opec agrees a preliminary deal to cut production for the first time in eight years. Brent crude initially jumped almost 6% to circa $49 per barrel. Oil services groups Hunting (HTG) and Amec Foster Wheeler (AMFW) jump 11% and 8.2% respectively. Oil and gas firms Tullow (TLW), Royal Dutch Shell (RDSB), Petrofac (PFC) and BP (BP.) all increase in value by 4% to 9%.
Capita (CPI) has downgraded its full year pre-tax profit forecast to £535m-£555m versus previous market forecasts of £614m. It flags a slowdown in some trading businesses and continued delay in client decision making. The outsourcing giant warns of potential litigation in relation to a contractual dispute with the Co-Op Bank. It also flags £20m to £25m one-off costs as a result of delays to launching new systems for the London congestion charging scheme. The shares fall 19.5% to 765.5p.
A market leading fluid handling systems for the automotive industry is to float on London’s Main Market. TI Fluid Systems generated €1.6 billion revenue in the first half of 2016 and €185.6 million earnings before interest and tax.
Alton Towers and Legoland operator Merlin Entertainments (MERL) has achieved 1.3% like for like growth in the 38 weeks to 17 September. However, it flags challenging conditions in Florida – news of which sends its share price down 4.3% to 449.6p. It is piloting a new brand called Little Big City which is a new on miniature world attractions. The first attraction will launch next year in Berlin.
Agricultural and distribution business NWF (NWF:AIM) slumps 9.3% to 141.5p after warning that first quarter trading has been very tough. Margins have been squeezed in its fuel division and its feeds division has been hit by farmers having less money due to low milk prices.
Retailer Majestic Wine (WINE:AIM) sours 1.5p to 312.5p as Canaccord Genuity puts the boot in following last week's profit warning, blamed on disappointing performances from the commercial business and Naked Wines US. The broker reiterates its 'sell' rating with a sharply downgraded price target of 290p (previously 350p) 'given added uncertainty and risk on the shape and rate of recovery'.
Butcher Crawshaw (CRAW:AIM) cheapens another 5% to 33.75p on disappointing half year results. Like-for-like sales are negative, the loss before tax has widened and the dividend has been shelved. It also issues a warning this year's profit could fall 'materially' short of previous expectations.