Jet2 shares take off after Thomas Cook collapse
IT HAS been just 19 days since Thomas Cook dramatically collapsed, with the airline’s demise costing thousands of jobs and leaving travellers around the world stranded.
This might be a problem if you had a holiday booking.
But for the company’s rivals it is a prize opportunity to hoover up extra business.
Jet2 owner Dart Group wasted no time in crowing to investors yesterday, saying the chaos had spurred ‘ increased levels of customer demand’ for flights and packaged holidays.
The firm also reported ‘encouraging levels’ of late-season bookings, prompting it to predict its profits would be higher than expected. It put wind beneath the wings of Dart Group’s shares, helping to lift them 16.5pc, or 154.5p, to 1090p.
However, the company also cautioned that sterling, which has been weak in recent months against the dollar amid Brexit concerns, could still dent its earnings. That concern may have lessened as of yesterday, however, thanks to Boris Johnson’s lastminute Brexit breakthrough.
Dare investors hope? Analysts were unusually upbeat, with JP Morgan declaring ‘this changes everything’ following the Prime Minister’s promising talks with Irish premier Leo Varadkar.
And with reports that British and EU negotiators will now enter ‘the tunnel’ – intense talks to hammer out an accord – Morgan Stanley went so far as to say the chances of a deal are more than 50pc.
The cheer swept through the stock market, lifting shares in retailers, housebuilders and other firms that have fortunes tied largely to the highs and lows of the economy. It sent the international focused FT SE 100 up 0.8 pc, or 60.72 points to 7247.08, but the FTSE 250 index of mid- sized companies proved to be the star, surging 4.2pc, or 805.99 points, to 20,041.71, its highest level in three weeks.
Unfortunately for some, however, it wasn’t just the UK heading for the exit. Fund managers Jupiter Fund Management and Man Group revealed investors pulled more than £2bn out in the three months to September, sending shares in the firms tumbling.
Jupiter fell 5.4pc, or 17.2p, to 335.2p after reporting net outflows of £1.3bn. The exodus came after one of its star stock pickers, Alexander Darwall, announced he was leaving to set up his own outfit.
And Man Group also admitted investors had pulled about £870m, with shares falling 2.6pc, or 4.2p, to 157.95p after its trading update.
Gloom also struck advertising giant WPP. Shares in the firm, which is in the middle of a turnaround, were dragged down after French rival Publicis issued its second profit warning, triggering fears about the wider industry. Analysts suggested some of the problems were actually specific to Publicis but the warning still triggered a sell- off of WPP’s shares, causing them to fall 3.4pc, or 32.8p, to 931p.
Investors seemed less miffed by an update from Peppa Pig owner
Entertainment One, however, despite the media company admitting its first quarter losses had widened from £6.8m to £43.9m.
In an update on the three months to June, the firm blamed rising debts, its takeover of Audio Network and lower sales in its film, television and music division.
The embarrassing performance comes less than a week before game maker Hasbro puts its £3.3bn takeover of the company to a shareholder vote. Shares remained static at 562.5p.
Having endured a brutal month after it pulled a £394.8m bond sale in September, potash miner Sirius
Minerals’ shares rallied 5.8pc, or 0.2p to 3.63p after it sealed a supply and distribution deal with stateowned Qatari firm, Muntajat.