DMGT, Westminster and Hostelworld

“Blue-chips recovered from a bumpy opening after Brent crude oil hit a six-month high as it surpassed $50 per barrel and despite data confirming the UK economy lost steam in the second quarter,” says AJ Bell Investment Director Russ Mould.

“Weak print advertising took its toll on Daily Mail and General Trust in the first half with adjusted pre-tax profits falling by 11% to £129m. The group saw continued growth in its digital revenues and this partly offset the decline in both print advertising and circulation revenues. This sea-change will gather momentum when BCG digital media consultant Paul Zwillenberg takes the helm from Martin Morgan who retires as chief executive at the end of the month. DMGT’s shares were down by more than 10.5% in early afternoon trading.

“Westminster Group’s shares soared after the security services provider moved a step closing clinching a Middle East airport deal that would generate revenues of more than £30m a year. Westminster has continued to expand its international presence during a challenging period for the group with a particular focus on airport security, which has the potential to transform the business. Its shares were up by over 138%.

“Terrorist attacks have taken their toll on Hostelworld with second quarter trading below forecasts. The group is seeing robust growth in Asia Pacific but bookings into higher priced European destinations have been weaker. Uncertainty over a recovery in European bookings and exchange rate concerns prompted an exodus by investors with the group’s shares down by more than 27%.”

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