Investors get jittery after science chief walks away
SHARES in life science firm Allied Minds tumbled as its co-founder resigned with immediate effect.
Chris Silva has stepped down as chief executive at the business, where he has been at the helm since 2006.
Allied said the decision had been mutual. Stepping up as interim replacement is non- executive director Jill Smith, who joined the board in January 2016 and has 25 years’ experience in the industry.
Most recently Smith, who has a master’s degree in Business Administration, was chairman and chief executive at satellite imagery service provider Digital-Globe, which she brought to IPO in 2009. Numis said its rating on the stock was under review after the announcement.
The broker said 59- year- old Smith’s experience and skills seemed ideally matched to the next stage of progress at Allied Minds. Among the largest shareholders in Allied Minds is star fund manager Neil Woodford, who holds a 28.1pc stake through his funds, and Invesco Perpetual, which holds 27pc. Silva, 54, holds 2.84m shares in the company, giving him a 1.2pc stake.
He said: ‘I believe now is the right time in the company’s development for new leadership. In the near term I look forward to spending more time with my family. Long-term I will continue to be an Allied Minds shareholder.’
Shares in the company dipped 1.4pc, or 5.4p, to 388p. Takeover talk pushed the
FTSE 100 higher on the first day of the week, with housebuilder
Bovis (up 10pc or 82.5p to 910.5p) in the middle of a tug of war between two rivals, and Amec
Foster Wheeler (up 11.6pc or 56.8p to 546p) looking like it will be bought by Wood Group (up 1.4p or 10.5p to 762.5p). The market closed up 0.33pc, or 24 points, to 7367.1. Home emergency outfit
Homeserve was among the greatest fallers of the day after Jefferies downgraded the stock.
The stock broker said it was worried about the momentum in the UK over the next 12 to 18 months with issues to the industry such as insurance premium tax and new insurance renewal policies.
Jefferies said new rules which mean insurance policies – which will include Homeserve’s home cover service – have to display renewal price increases could hit customer retention and impact income per customer. Shares plunged 6.6pc, or 37p, to 523p.
Shipping services firm Clarkson leapt as pre-tax profit climbed from £31.8m to £47.3m in 2016.
The business has hiked its dividend 5pc to 65p a share. Clarkson said increasing transaction numbers, an increased market share
and a strong US dollar had offset lower freight rates in the year. It had been a challenging year with oversupply and rates at historic lows. It said trading would continue to be challenging but demand looked to be improving.
Shares advanced 3.3pc, or 83p, to 2583p.
Augean advanced as two major shareholders upped their stake in the firm. Investment firm Henderson has increased its holding in the business from 6.43pc to 14.16pc.
Oryx International Growth fund, meanwhile, now has a 6.33pc stake in the firm, increasing its holding from 1.5m to 6.5m shares. Augean, which provides hazardous waste disposal services, is due to report full year earnings next week. Shares gained 4.2pc, or 2.25p, to 55.5p.
H&T Group said a higher gold price had helped performance in its pawn broking business. The firm said pre-tax profit had climbed 42.6pc to £9.7m in 2016. But H&T said High Street pawn broking was still challenging. Shares leapt 4.2pc, or 11.5p, to 284p.