888 sinks as it says Auf Wiedersehen to Germany

Online gambling company 888 may cash in its chips in Germany following a clampdown on internet betting firms.

A German court dealt 888 and rivals a blow last week when it ruled it was illegal for online gambling sites to operate in the state of Baden-Wurttemberg.

The FTSE 250 company has an opportunity to appeal the decision but it says it may pull out of Germany altogether.

Analysts say the decision to leave could cost 888 up to 10pc of its earnings, although they believe that money could be made up in other markets.

A number of 888’s rivals, as well as the firms providing the payment technology to betting companies, have already stopped operating in Germany.

The betting firm’s annual results reveal it has also set aside £32.3m to settle a potential German VAT bill as well as £3.9m to cover fines from the UK gambling watchdog, which cut its profits by 68pc. The announcement knocked 6.6pc, or 19.6p, off 888’s share price, which ended the day at 276.2p. Brian Mattingley, 888’s chairman, said: ‘The company is highly disappointed by this far reaching ruling and is considering potential courses of action, which may include a petition to the German Federal Constitutional Court, and is assessing the status and breadth of its offerings in the German market.’

Broker Peel Hunt argued 888 ‘always seems to find a way out’ no matter how tight a corner it’s in. in a note to investors, it added: ‘if 888 exits Germany in 2018, the revenue loss should be offset by strong growth in regulated markets.’

The FTSE 100 edged up 0.26pc, or 18.34 points, to 7601.27 while the FTSE 250 rose 0.15pc, or 28.79 points, to 19,723.56. Michelin’s £1.2bn deal to buy

Fenner pushed the engineering firm to the top of the FTSe 350.

Yorkshire-based Fenner agreed the deal with the French tyre maker after markets closed on Monday. At closing yesterday, Fenner’s shares had jumped 24.9pc, or 121.9p, to 612.5p.

investors cashed out of the firm that prints Britain’s bank notes following a downbeat profits forecast and the sudden resignation of its finance chief.

Basingstoke-based De La Rue warned investors that its profits would be on the lower end of analyst’s estimates, which range from £71m to £73.4m, for the year ending March 31.

Jitesh Sodha, its chief financial officer, is stepping down to ‘pursue his career outside the company’, although he will stay in his position until September.

The announcements caused De la Rue’s share price to plunge by 13.8pc, or 83p, to 519p. However, analysts at investec said the share price fall was an ‘over-reaction’.

Meanwhile, the success of Tom Kerridge’s best-selling book lose Weight For Good prompted publisher Bloomsbury to raise its profit forecast.

The book has been top of the charts for four weeks and drove ‘excellent’ sales in January and February, Bloomsbury said.

As a result, the publisher says profits will be ‘ well ahead’ of expectations when it reports its results for the year on May 22.

investec raised Bloomsbury’s target price from 210p to 215p on the back of the announcement.

The publisher’s shares jumped 5.9pc, or 10p, to 178p.

A painful broker cut sent shares in estate agent Foxtons spiralling.

Analysts at Barclays slashed the target price by more than a fifth to 52p due to a slowdown in london’s property market. Barclays said Foxtons faces the ‘most challenging market conditions’ of the companies it covers. Foxtons’ shares were off 0.9pc, or 0.8p, to 81.6p at closing.