Not even a sales boost at Fair FX stops travel blues
IT appears to be proving difficult for any company related to the travel sector to assuage investors’ fears about terror, Brexit and a whole lot else.
Fair FX Group fell back despite a positive trading update yesterday. Holidaymakers were queuing around the block for their currency in the lead-up to the EU referendum and they were vindicated when the pound fell the next day.
Business boomed for the currency firms and Fair FX said turnover was up 9pc year-on-year in the first six months of 2016, led by prepaid cards and international payments.
A website overhaul and new mobile phone app have helped too. The firm recorded a record week around the referendum, which has continued after a brief pause as holidaymakers get used to a lower sterling rate.
But investors still think staycations are going to rule this summer, thanks to a weak pound and terror fears. Shares fell 5.6pc, or 1.75p to 29.3p.
The outlook is still affecting airlines, too. Easyjet was the biggest faller on the FTSE 100 (down 0.43pc, or 29.10 points to 6699.89) yesterday, losing 5.3pc, or 60p to 1067p. International Consolidated Airlines was down 3.6pc, or 15.1p to 406.6p and Tui fell 2pc, or 19p to 930.5p.
William Hill soared 10.6pc, or 29.2p to 304.3p after the firm’s chief executive stepped down. James Henderson had been with the business for 31 years. The company, which was the highest riser on the FTSE 350 in the day, was keen to reassure investors that expectations for the year were unchanged despite the news. online electrical retailer
AO World marched forward comforted with news that there had been no material impact on sales since the referendum result. Branded sales increased 29pc in the first quarter of the year, with total UK revenue up 25pc. At its AGM some 84pc of shareholders approved the directors’ remuneration. Shares climbed 9.8pc, or 13.2p to 147.6p.
Bisto gravy and Loyd Grossman sauces gave Premier Foods a boost in the 13 weeks to July 2. Group sales were up 1.9pc while branded sales climbed 0.8pc. International sales climbed 5pc, led by a strong performance in Australia.
Sales of rice pudding brand Ambrosia grew in the first quarter of the year, led by a new deluxe custard range, and Premier says it will be making a significant investment into its Batchelors line in the second half of the year, launching high-protein pots to tap into current consumer preferences.
The group is to increase its total marketing spend from £36m to between £42m and £44m this year. Shares gained 0.5pc, or 0.25p to close at 46.75p.
Meanwhile Nichols, the company which makes Vimto, Sunkist and Levi Roots drinks, said revenues in the first half of the year were up 3.3pc compared with 12 months earlier.
The firm, which sells soft drinks in more than 70 countries, said pre-tax profit had increased 9.2pc to £11.9m. Nichols is planning a relaunch of Feel Good, a brand of 100pc natural drinks it acquired last autumn ready for Christmas trading. Berenberg has a ‘buy’ rating on the stock. The broker likes that the firm is putting its substantial cash reserves to work, not least with the purchase of the Noisy Drinks Co in January.
Nichols had already bought a 49pc stake in the milkshake and slushie business last year. The firm will pay an interim dividend of 9p a share on August 26, an increase of 12.5pc from last year. Yet despite the positive outlook, shares fell 1.1pc, or 16p to 1429p. A trio of announcements sent
Tristel shares 11.6pc, or 13p higher to 125.5p. The firm, which makes infection prevention and contamination control products, started by declaring a special dividend and announced the acquisition of Ashmed, a company which has distributed some of its products in Australia since 2011, for around £770,000.
The group also provided a trading update, reporting turnover of £17m for the year to June 30 and a pre-tax profit of £3.1m, up from £2.6m a year ago.
OSIRIUM Technologies is a cyber-security software provider which listed on AIM in April. It raised £5.1m which enabled the firm to hire more staff, increase sales and marketing activity and invest in new software.
In interim results for the six months to April 30, the company said revenue had slipped to £162,000 from £175,000 in the same period a year ago. It made an operating loss of £513,000, up from £373,000 last year, but said the share placing had strengthened its balance sheet. Shares slipped 7.2pc, or 13.5p to 174p.