Burberry sinks 6pc as its biggest investor sells out

SHARES in Burberry fell after the biggest shareholder sold its stake for nearly £500m.

Belgian billionaire Albert Frere’s Groupe Bruxelles Lambert (GBL) got rid of its 6.6pc stake in the British luxury brand, claiming it was rebalancing its investments.

The deal netted the firm an £83m profit and comes less than a year after Frere, 92, had increased his investment in Burberry.

It follows a strategic overhaul at the luxury fashion brand, known for its trench coats and tartan hats, which is spending millions of pounds making its range even more upmarket.

In a statement, GBL said the share sale would allow it to pursue other investments, adding: ‘The divestment of this take is part of Groupe Bruxelles Lambert’s dynamic strategy in terms of portfolio diversification and allows it to realise a capital gain.’

Frere, Belgium’s richest man, made much of his £4.4bn fortune in the 1970s, when he began investing in steel companies. Burberry shares slid 6.1pc, or 114.5p, to 1770p. It was the biggest faller on the

FTSE 100, which motored 1.28pc, or 96.77 points, to 7662.52, boosted by a rally in oil shares, while the

FTSE 250 ticked up 0.42pc, or 87.23 points, to 20,681.95. Elsewhere, caterer Compass

Group was the FTSE 100’s second-biggest faller after disappointing half-year results.

Revenue was down 0.8pc to £11.4bn in the six months ending March 31, while operating profit slipped 2.7pc to £853m.

The world’s largest catering firm said trading in Europe, its biggest market, was mixed, with UK growth offset by subdued trading in continental Europe. It is still getting back on its feet following the death of Richard Cousins, the 58-year- old chief executive who died in a plane crash in Australia on New Year’s Eve.

Dominic Blakemore, who took over as Compass chief executive, said: ‘I am excited about the significant structural growth opportunities globally and the long-term potential for further revenue growth.’

Shares slumped 4.8pc, or 75.5p, to 1508p.

Shares in Renishaw boomed after the FTSE 250-listed engineering firm raised its full-year guidance. It expects a profit of between £135m and £150m, off revenues of £585m to £610m.

Numis upgraded the firm from ‘ hold’ to ‘ add’ while Morgan Stanley increased its target price by 200p to 5160p. Shares leapt 14.5pc, or 688p, to 5440p.

Onesavings Bank notched up gains after predicting rapid growth of its loan book this year.

Andy Golding, the bank’s chief executive, said: ‘We are confident that we can deliver at least midteens loan book growth this year.’ Shares rose 2.2pc, or 9p, to 418p.

The Beast from the East hit the sales of builders’ merchant and DIY group Grafton, the owner of Plumbase and Selco. But it is confident it will meet full-year guidance. Despite that, shares slipped 2.3pc, or 18p, to 781.5p. On AIM, pharmaceutical firm

Abcam said it will not be making another bid for Horizon Discovery

Group, a gene-editing firm, after it had its £270m offer rejected earlier this month. Shares in Horizon plunged 16.7pc, or 31p, to 155p while Abcam’s edged up 0.6pc, or 8p, to 1250p.

Engineering firm Renew raised £45m from investors to help fund the £80m purchase of QTS Group, a Scottish rail contractor. Shares dipped 8pc, or 33p, to 380p. Bargain hunters sent Faron

Pharmaceuticals through the roof a day after its value fell more than 85pc when its flagship drug for acute respiratory distress syndrome failed clinical trials. Shares soared 36.5pc, or 38p, to 142p.