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Market Report: James Fisher & Sons Sees The Stock Crash

James Fisher & Sons saw the stock plunge to a nine-year low after the company warned of profits.

The FTSE250 Group, which provides support services to the offshore energy, defense and shipping sectors, plummeted from 35.5% (278p) to 506p after forecasting annual profits of £ 27m to £ 32m, down from £ 40.5m last year. bottom. That year, there were many warning signs throughout the business.

Among these was a “deadlock” in the company’s negotiations of over £ 2m for long-term projects, which was not expected to be resolved this year.

Crash: The FTSE250 Group, which provides support services to the offshore energy, defense and shipping sectors, plummeted 35.5%.

The situation for one of the financially distressed customers also deteriorated, increasing the risk of bad debt by about £ 2 million.

Meanwhile, the company’s marine contracts, decommissioning, and projects from its customers in the nuclear business have been postponed due to “the ongoing challenges posed by the pandemic.” The company’s tankship business also experienced a “poor month” in September. As a result of this situation, the Group is reviewing its balance sheet to “correct or terminate” some of its non-core, poorly performing businesses.

Despite a series of problems, revenues for the three months to October increased 7.6% year-on-year, but year-to-date figures were still down 3.9%.

The FTSE 100 rose 0.25% (18.27 points) to 7,222.82 and the FTSE 250 rose 0.04% (10.12 points) to 22,941.78.

Corporate earnings in both the UK and the US, and the imminent budget from Prime Minister Rishi Sunak, seemed to distract the market from inflation concerns.

Resource stock contributed to the rise in the FTSE 100, the miner BHP group rose 2.8% (55p) at 1996p, the sector peer Rio Tinto rose 2% (94p) to 4766.5p, and Antofagasta 3% (43.5). p) It rose to 1481p. Glencore rose 1.3% (4.9p) to 371.9p. Oil inventories are also increasing, with shells up 1.2% (20.6p) at 1788.2pp and BP up 1.6% (5.65p) to 360.65p. Of crude oil.

Darktrace fell 20.7% (195.5p) to 750p after being savagely evaluated by Peel Hunt analysts. In one note, the broker launched coverage of the FTSE250 Cyber ​​Security Specialist with a “sell” rating and a target price of 473p, 50% lower than last Friday’s closing price of 946p.

Analysts said there was a “break” between Darktrace’s market value and the “ultimate revenue opportunity” of the business. In particular, he said he had “low barriers to entry” into the network detection and response (NDR) market operated by Darktrace.

Peelhunt added that the company’s customer review score is low compared to its peers and could lose the competition “both in product and talent.” [research and development]’.

The equity trading platform Plus500 rose 2.7% at 1430p, or 37p, after upgrading its full-year forecast.

Revenues for the three months to October were £ 154m, down 2% year-on-year, “well above pre-pandemic levels.” The company also saw fewer new customers play in the market with savings due to the relaxation of blockage restrictions, reducing new customers by 43% to 26,169.

Take-out app Just Eat was down 2.1% (122p) to 5619p after activist investor Cat Rock Capital asked the company to sell its US business Grubhub by the end of the year.

In a letter to the board, Cat Rock, which owns about 5.1% of Just Eat, said its £ 5.3 billion acquisition of Grubhub, which was completed just four months ago, was “incredible.” It led to “underestimation”. Leaves vulnerable to takeover bids.

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Market Report: James Fisher & Sons Sees The Stock Crash

Source link Market Report: James Fisher & Sons Sees The Stock Crash

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