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The FTSE100 started the week in negative territory as sterling rose to its highest level in over a month,” says AJ Bell Investment Director Russ Mould.
“Braemar Shipping Services’ shares tumbled after it lowered underlying operating profit forecasts. The lower forecast is largely due to the under-performance of the technical division and, to a much lesser extent, the freight forwarding element of the logistics business. The shipbroking division, which generates over 40% of revenue, continued to trade well. Braemar’s shares were down by more than 13.4% in early trading.
“Paddy Power Betfair’s shares slipped after it forecast that underlying earnings would be around the mid-point of its guided range of £390m to £405m. This is despite worse-than-expected gross win margins in November and December. The impact on revenue from the customer-friendly results, before any benefit from the re-cycling of winnings, was about £40m in the quarter. But the impact on profitability was partially offset by lower-than-expected marketing and staff costs. Paddy Power Betfair’s shares were down by 1.9% in early trading.
“Essential components and solutions provider Essentra was the FTSE250’s biggest faller in early trading after warning that full-year results would be at or below its guidance. The problems have been in its health and personal care packaging unit which saw a further fall in both revenue and profitability during the last two months of 2016. The unit will be receiving specific short-term focus and remedial action from chief executive Paul Forman, who recently began a strategic review of the entire company. Essentra’s shares were down by more than 10.9%.”
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