Animal breeding group hit by Chinese slowdown
NEARLY £230m was wiped off the value of an animal genetics company after it warned that turmoil in the Chinese pig and dairy markets will hit profits.
Ahead of its interim results next week, FTSE 250 group Genus said it could make as little as £58m in profit for the 12 months to the end of June.
Just three months ago, it said it was on course to meet the £73m pencilled in by analysts.
Shares tumbled 16.2pc, or 344p, to 1780p in response. That reduced the value of Genus by £227m, leaving it worth £1.2bn.
Genus sells genetically enhanced semen, embryos and breeding cattle and pigs to help farmers produce high-quality meat and milk.
Business has been disrupted in China, home to the world’s largest pork market, which has been affected by outbreaks of disease.
London’s main markets held firm even as the UK fell into recession last year.
The FTSE 100 rose 0.4pc, or 29.13 points, to 7597.53 and the FTSE 250 was up 0.5pc, or 95.73 points, to 19,099.62.
Coca-Cola HBC, the drinks bottler and seller of Fanta, Costa Coffee and Monster energy, extended its gains yesterday following two broker upgrades.
It came a day after the company reported record profits for the third year in a row amid soaring demand. Shares, which gained 8pc on Wednesday, increased 2.4pc, or 58p, to 2440p.
another riser was Ithaca Energy – up by 5.3pc, or 6.8p, to 136.2p – after the North Sea producer reported solid results for 2023 with production in line with forecasts and business costs slightly lower than expected. Data analytics firm Relx hiked its annual dividend following a strong year.
The payment will rise 8pc to 58.8p a share after revenues rose 7pc to £9.2bn in 2023 while profits were up 9pc to £2.3bn.
relx, which runs more than 400 events around the world, including the london Book Fair and MCM Comic Con, added that it wants to buy back £1bn of shares in 2024.
However, the stock slid 0.7pc, or 22p, to 3314p.
GSK completed its takeover of a clinical-stage biopharmaceutical company which is developing treatments for adult patients with severe asthma.
The blue- chip firm last month agreed to buy aiolos in a deal worth up to £1.1bn.
The company’s shares dropped 0.3pc, or 5p, to 1663p.
The City was divided when it came to Kingfisher.
Analysts at Jefferies downgraded their rating on the B&Q and Screwfix owner, saying that continuing challenges in France are likely to hinder growth.
But their counterparts at Citigroup were much more optimistic, urging its clients to buy the stock, given that the retailer should benefit from a recovery in the UK housing market.
That sent Kingfisher up 3pc, or 6.6p, to 225.1p.
Following a tough first half, housebuilder MJ Gleeson – flat at 500p – said that there were positive signs of a recovery in demand alongside improving mortgage rates.
The group sold 125 fewer homes in the six months to the end of December, while revenues fell 11.4pc to £151.5m and profits by 55.3pc to £7.2m.
airline and package holiday company Jet2 said that it is expecting higher annual profits as holidaymakers jet off for city breaks, take advantage of an earlier easter and enjoy some sunshine this summer.
The group is forecasting profits of between £510m and £525m for the year to the end of March – up from £480m and £520m.
Its shares flew up 2.6pc, or 34p, to 1360p.