Profit warnings offset FTSE progress, upgrade lifts Wizz shares
A robust performance by the FTSE 100 index today masked troubling signs elsewhere after profit warnings in the recruitment and industrial sectors.
Today’s downgrade to guidance by professional staffing firm Robert Walters left shares in FTSE 250-listed rivals Page Group and Hays lower by 9% and 7% respectively.
And days after a warning by speciality chemicals firm Croda International, the former ICI polymers business Victrex cut expectations for the year to September.
The Lancashire-based company, whose high-performance solutions are found in smartphones, aeroplanes, cars and medical devices, said industrial headwinds meant that volumes are running more than a fifth lower on last year’s record.
The mid-point of its new guidance for annual profits of between £80 million and £85 million is about 11% short of City expectations, sending the stock down 9% or 144p to 1393p in the FTSE 250 index. It had been above 1900p in February.
The latest economic storm clouds failed to derail the FTSE 100 index, which improved 5.71 points to 7600.49 amid optimism that the US Federal Reserve will tonight pause a run of rate rises going back to early 2022.
The US-focused plant hire firm Ashtead led the top flight with a gain of 3% or 136p to 5548p, while miners Anglo American and Rio Tinto were 1% higher.
Ladbrokes gambling group Entain provided the biggest fall after it tapped investors for £600 million by issuing new shares at a 6.9% discount to last night’s closing price.
The proceeds will go towards the planned acquisition of a leading sports betting firm in Poland. Entain shares fell 132p to 1189.5p, compared with the placing at 1230p. Paddy Power and FanDuel rival Flutter Entertainment also fell, down 1% or 160p to 15,615p.
The FTSE 250 index added 18.27 points to 19,206.77, with Wizz Air among the best performers after UBS raised the low-cost airline to a “buy” recommendation with a target price of 4300p. Shares lifted 90p to 2920p.
Aston Martin Lagonda also improved 7.6p to 286.4p as analysts at US bank Jefferies removed their “underperform” stance on the luxury car maker.
