London midday: Renishaw and M&B in late morning dive
Stocks have moved further into the red with a couple of announcements that came after the early morning rush sending stocks lower.
Shares of precision tool maker Renishaw took a dive after the firm admitted that revenue growth in the three months ended 30September was lower than planned and Mitchells & Butlers falls after the its biggest shareholder, billionaire Joe Lewis’s investment group, withdrew its offer for the pub group behind O’ Neills and All Bar One.
Rolls-Royce has motored higher following news that the aero-engineer is to be bought out of a joint venture to build engines for Airbus, by partner Pratt & Whitney for $1.5bn. The deal resolves disagreements between the partners over the direction of the venture.
Ashmore Group the asset management firm, falls after saying total assets under management (AuM) decreased 10.5% to $58.9 billion in the third quarter of 2011. The firm said a $7.1bn decline in AuM was largely due to “adverse investment performance” that was only partially offset by net inflows to the group of $0.2bn.
Investors are stocking up on cash and carry outfit Booker after it saw total sales rise 8.5% from a year earlier in the 23 weeks to September 8th. Like-for-like sales (LFL) were up 6.5% from the year before, with LFL tobacco sales up 8.8% and LFL non-tobacco sales up 5.1%. Profit before tax jumped 22.0% to £45.0m from £36.9m the year before.
Ladbrokes is attracting punters. The bookmaker saw net revenue rise 2.5% in the three months to the end of September. Group profits, however, shrank 2.7% compared to the same quarter last year.
Ophir Energy takes a tumble after saying it is to snap up smaller rival Dominion for about £120m as it seeks to beef up its East African operations. The two companies have agreed an offer valuing each Dominion share at 5.9p. Dominion’s shares have jumped.
The market shake-out in August had a predictable effect on assets under management (AuM) at Hargreaves Lansdown in the third quarter of 2011. The wealth manager saw AuM slide to £22.3bn from £24.6bn at the end of June, but was pleased to report net new business inflows of £0.68bn, up 24% on the corresponding quarter of last year, in what is traditionally the firm's quietest period of the year.
Revenue was up 27% on a year earlier to £57.2m. The number of clients using the firm's Vantage service rose by 8,000 to 388,000. The number of active accounts held by these clients increased from 585,000 to 597,000.
Newsagents WH Smith reported a record profit performance from its Travel segment in the year to the end of August. Profit before tax rose 4% to £93m from £89m the year before. Total group sales were £1,273m (2010: £1,312m) with like-for-like (LFL) sales down 5%. Travel sales grew by 1% to £455m, down 3% on a LFL basis. High Street sales were down 5% at £818m and down 6% on a LFL basis (excluding entertainment, LFL sales were down 3%).
FTSE 100 - Risers
Rolls-Royce Group (RR.) 671.00p +7.19%
Hargreaves Lansdown (HL.) 489.50p +1.75%
SABMiller (SAB) 2,301.50p +1.16%
British American Tobacco (BATS) 2,777.00p +0.95%
Kingfisher (KGF) 262.30p +0.73%
Tate & Lyle (TATE) 629.00p +0.72%
Associated British Foods (ABF) 1,082.00p +0.65%
Shire Plc (SHP) 2,001.00p +0.60%
Unilever (ULVR) 2,049.00p +0.59%
Imperial Tobacco Group (IMT) 2,162.00p +0.56%
FTSE 100 - Fallers
Man Group (EMG) 146.00p -6.59%
Kazakhmys (KAZ) 879.00p -5.69%
Antofagasta (ANTO) 1,087.00p -5.56%
Ashmore Group (ASHM) 313.00p -5.55%
Vedanta Resources (VED) 1,199.00p -5.07%
Anglo American (AAL) 2,302.00p -4.88%
Weir Group (WEIR) 1,644.00p -4.86%
Barclays (BARC) 177.95p -4.84%
Xstrata (XTA) 934.80p -4.73%
Schroders (SDR) 1,334.00p -4.44%
FTSE 250 - Risers
Premier Foods (PFD) 3.98p +5.31%
Oxford Instruments (OXIG) 840.00p +4.74%
Booker Group (BOK) 76.50p +4.08%
Sports Direct International (SPD) 230.10p +3.84%
Regus (RGU) 68.95p +2.91%
Domino Printing Sciences (DNO) 487.00p +2.66%
Ladbrokes (LAD) 131.10p +2.42%
SDL (SDL) 668.00p +2.14%
Home Retail Group (HOME) 134.30p +2.05%
Thomas Cook Group (TCG) 48.37p +1.90%
FTSE 250 - Fallers
Renishaw (RSW) 852.00p -17.12%
Mitchells & Butlers (MAB) 217.50p -13.86%
Aquarius Platinum Ltd. (AQP) 193.50p -5.56%
Ferrexpo (FXPO) 312.10p -5.42%
F&C Asset Management (FCAM) 62.30p -4.23%
Exillon Energy (EXI) 255.00p -3.77%
Morgan Crucible Co (MGCR) 266.10p -3.66%
Barratt Developments (BDEV) 90.30p -3.63%
Bwin.party Digital Entertainment (BPTY) 110.00p -3.51%
Spectris (SXS) 1,171.00p -3.30%