Video game seller dives 35pc after stock runs out
SHARES in video game retail chain Game Digital fell to an alltime low yesterday after the company scared investors with a profit warning.
The firm, which was rescued from administration in 2012, saw £20.5m wiped off its value after it warned that it has not been able to supply enough Nintendo Switch game consoles to keep up with demand.
Game said it has also been hit by weak sales of Xboxes and PlayStations, although it said demand for Microsoft’s new Xbox One console is growing.
as a result, the firm said full-year profits are now likely to come in ‘substantially below’ expectations. Despite this, the firm said it still expects to deliver positive sales growth of around 5pc and 6pc in the second half of its financial year.
‘Looking forward, we continue to be encouraged by the positive consumer reception of Nintendo Switch,’ it said. ‘Furthermore we expect to see growth returning to the UK and Spanish software markets in our next financial year, benefiting from a stronger line up of new releases on Xbox, PlayStation and Nintendo.’ Shares fell 34.9pc, or 11.5p, to 21.5p, down 64.4pc for the year.
Tech firm Nanoco shot up after it secured a supply deal with a Taiwan-based consumer giant. Nanoco manufactures so- called ‘nanomaterials’ which are used to produce high quality flat- screen TVs. The firm has booked a commercial order with the Wah hong Industrial Corporation, who will use its technology in its TVs and computer monitors. Shares rose 34.6pc, or 11.25p, to 43.75p.
The FTSE 100 suffered another day in the red, falling 0.51pc, or 37.60 points, to 7312.72.
It fell 3pc during June, securing its biggest monthly loss since September 2015 and first negative quarter in more than a year.
The index was weighed down by losses at water company United Utilities, which was hit by a double downgrade from Credit Suisse.
The broker gave UU an ‘underperform’ rating and cut its price target to 850p from 1000p on worries it could face a tough interrogation from regulator Ofwat. Shares fell 3.5pc, or 31p, to 867.5p. In the mid-cap index, airline Wizz
Air closed in on all-time highs after announcing plans to add aircraft to its romanian fleet. Wizz air said the aircraft will allow the firm to increase the number of weekly flights on a number of its most popular routes. The firm also said it will launch two routes from Bucharest, romania to Gothenburg in Sweden and to Nice in France from april next year. Shares rose 2.3pc, or 55p, to 2421p.
Shares in pub chain Greene King fell further following a string of broker downgrades on the back of poor results earlier in the week.
Morgan Stanley cut the price target to 670p from 700p, while JP Morgan cut the stock to ‘neutral’ from ‘overweight’ and slashed its price target to 750p from 810p.
On Thursday, the firm reported rising sales and profits but warned that political and economic uncertainty and competition from takeaway websites could hit future profits. all was not lost, however; Barclays raised the firm’s price target to 780p from 770p. Shares fell 2.2pc, or 15p, to 673.5p. recent success story Oxford
Biomedica curtailed this week’s gains after spending a day in the red. The firm, which has risen 37.1pc this week after brokers pointed out that it looks set to benefit from its part in the production of a new leukaemia drug, sank 2.7pc, or 0.21p, to 7.45p.
The company fell after announcing it had taken out a £42.3m loan – which must be paid by June 2020 – to redeem existing debt.