London’s fabulous FTSE 100 firms 12.2 points to 7,678 on Monday, as engineer GKN (GKN) edges ahead 0.1p to 436.1p. The planes-to-car parts giant issues a new salvo against Melrose Industries' (MRO) hostile bid, warning that raising the company’s debt ratio could reduce the strength of its covenants and thus increase the cash needed to fund its pension.
Diamond producer Petra Diamonds (PDL) crashes 11.1% to 70p after lowering full year production guidance for its Cullinan mine in South Africa. There’s also disappointment as Petra says full year earnings will miss market estimates by 10-15%, primarily due to the recent strengthening of the rand against the US dollar.
Drinks wholesaler and distributor Conviviality (CVR:AIM) cheapens 7.8% to 330p despite half year results revealing 9.2% top line growth to £836.3m. Investors are unnerved by a drop in profits that reflects the phasing of some synergies into the second half of the year as Conviviality invests to maintain service levels during a period of rapid growth.
Elsewhere, independent gas and electricity supplier Yu (YU.) jumps 8.3% higher to £11.10 following a major upgrade to profit guidance. Continued strong performance in the second half means group sales for 2017 will be significantly ahead of current market forecasts, while 2018 and 2019 guidance has also been upgraded.
Energy procurement consultant Inspired Energy (INSE:AIM) sparks up 2.4% to 21.5p as it assures 2017 results will be in line with estimates upgraded twice during the year. Trading ‘on all fronts’ remained strong throughout 2017, a busy year with three acquisitions completed, and this trend has continued into 2018.
Self-styled ‘global enabler of the Internet of Things’ Telit Communications (TCM:AIM) ticks up 3.8p to 161.2p as it confirms it has received ‘a range of proposals’ from interested buyers of its automotive division.
University intellectual property commercialisation specialist Frontier IP (FIPP:AIM) fizzes 9.4% higher to 93p. The catalyst is the news portfolio company Molendotech, a University of Plymouth spin-out, has inked a collaboration deal with an arm of Halma (HLMA) to develop and licence its water testing products.
In-store music content provider Immedia (IME:AIM) slumps 25.4% to 23.5p on a warning contract delays and a disappointing performance from its AVC Immedia operations will result in a widened loss for the year to December 2017.