“The FTSE 100 is firmly lower this morning after weak trading in the US and Asia overnight. Just when you think the index is regaining some momentum it suffers another setback. Since achieving a record level in late May, the FTSE has been stuck in a pretty tight range,” says AJ Bell Investment Director Russ Mould.
“Investors in ventilation products supplier Volution may be in for a nasty surprise this autumn. In a year end trading update the company, which designs, assembles and markets ventilation fans, systems and ducting for domestic and commercial buildings, says it has incurred some extra costs due to delays in getting a new factory in Reading on line.
“However, investors will have to wait until the company reports its result for the 12 months to 31 July in full for these costs to be quantified.
“This is a useful reminder that growth initiatives are not just a case of management clicking their figures but in fact require careful execution.
“Putting this issue to one side, these are a pretty robust set of results. Many companies would give their right arm for revenue growth of 11%, even if a big proportion of this is accounted for by acquisitions.
“Organic growth is roughly in line with the typical 3% to 5% level, although is at the lower end of this range.”
“Micro cap LED illumination systems maker Prophotonix picked a bad day to put out negative news, with the first half results season drawing to a close there are not too many other corporate announcements to distract from a pretty hefty profit warning.
“The company is a victim of tough competition, higher expenses and order delays. Smaller manufacturing companies without large diversified customer bases can be prone to these sorts of issues.
“Management are making all the right noises about 2019 and beyond but for now the market appears to have little patience to wait for jam tomorrow.”
These articles are for information purposes only and are not a personal recommendation or advice