FTSE 100-listed engineer Smiths Group was wounded as its medical devices arm fell foul of new European rules.
Smiths’ share price bled out 7per cent, or 122.5p, to end at 1627p after warning that revenue for the medical branch would slip 2per cent over the full year.
It said Smiths Medical, which makes catheters and machines that monitors vital signs, had to temporarily suspend selling certain products on the continent as one of the external companies which approves its equipment for sale was decertified.
FTSE 100-listed engineer Smiths Group was wounded as its medical devices arm fell foul of new European rules
Smiths brushed off these problems, and the loss of two US contracts, as ‘one-off disruptions’.
But Artjom Hatsaturjants, an analyst at Accendo Markets, said: ‘With the post-Brexit landscape still unclear for UK businesses, the company’s certainty that it can avoid similar disruptions in the future should be taken with a pinch of salt.’
Six months ago, at its half-year point, Smiths Medical was 29.1per cent of the full group’s revenues and 33.2per cent of operating profits.
Its troubles failed to drag down the FTSE 100, which ended the day up 0.7per cent, or 49.95 points, at 7676.28.
Mining giant BHP Billiton released a strong operational review, saying it met or exceeded full-year production guidance for petroleum, copper, iron ore and coal used in energy generation.
Boss Andrew Mackenzie said that ‘good prices and our culture of continuous improvement give us positive momentum’. BHP ended the day up 2.8per cent, or 44.6p, at 1668.6p, while a little of its positivity rubbed off on to the rest of the FTSE’s mining sector.
Investors were less impressed with Ladbrokes Coral owner GVC, despite reporting the effects of a World Cup boost
Investors were less impressed with Ladbrokes Coral owner GVC, despite reporting the effects of a World Cup boost.
Group gaming revenue was up 8per cent, while online revenue was up a hefty 18per cent – most attributable to the football.
In the period leading up to the World Cup, GVC said online gaming revenue climbed 15per cent.
STOCK WATCH: Bagir
Tailoring company Bagir was looking sharp after an investment from Chinese brands giant Shandong Ruyi.
Shandong said it would pay £12.6million for 54per cent of Bagir and bag 360million new shares for 3.5p each, worth an extra £12.6million.
Bagir licenses brands including Austin Reed’s AR Red and Jay Godfrey. Its shares shot up 89.7per cent, or 1.3p, to 2.75p.
Eran Itzhak, the company’s chief executive, said Shandong’s involvement ‘fundamentally changes the future prospects of Bagir’.
Brokers were generally positive on GVC’s prospects, but investors seemed unsure as to how the group would fare once major sporting events were over. Shares fell 1.5per cent, or 17p, to 1090p.
An increase in profit guidance at EasyJet went down a bit easier. After a flying third quarter, the budget airline said full-year profit should now be between £550million and £590million, above the analyst consensus of £536million.
It did also reveal it had suffered a £25million hit from air traffic control strikes, and chief executive Johan Lundgren said it would join rivals in launching a legal complaint to the European Commission.
The strikes, mainly in France, may breach Europeans’ freedom of movement, Lundgren believes. Easyjet’s shared climbed by 2.2per cent, or 35.5p, to 1688.5p.
Meanwhile packaging group RPC ran into difficulties, as shares folded 3.6per cent, or 27.6p, to 747.4p.
Chairman Jamie Pike said he was ‘working to resolve’ a dispute between the company and certain investors over how much debt it took on to fund acquisitions.
RPC’s headline sales grew by 5.8per cent year-on-year in the first quarter, boosted by the acquisition last year. But underlying sales growth was actually only 2per cent – a concern for shareholders.
It was a grey day for the sector all round, as AIM-listed speed-packaging company Mpac Group plummeted by 35.5per cent, or 77.5p, to 141p.
The company, which wraps up products such as tablets and drinks, said its ‘business climate has softened considerably’, which it blamed on general economic and Brexit-related uncertainty.
It added that profits would be £1.2million lower than expected.