Currency firm soars 23pc after the fall in sterling
THE pound rallied as Prime Minister Theresa May took a hard line on Brexit, sending the stock market to its sharpest fall since June.
The FTSE 100 dropped 1.46pc, or 106.8 points, to 7220.4.
The last time the stock market fell by more was the Monday after Brexit, when it plunged 2.5pc. But the pound leapt 2.8pc against the greenback to $1.237 and to €1.16.
Rolls-Royce was the highest riser on the day after it reached a settlement over bribery and corruption claims. Shares advanced 4.4pc, or 29.5p, to 694.5p. Also among the top flight, Hargreaves Lansdown leapt 3.9pc, or 50p, to 1329p after an upgrade from JP Morgan.
FairFX Group flew as it revealed turnover had climbed 27pc in 2016 past £795m.
The foreign exchange firm, which provides currency cards, travel cash and money transfers, said performance for the year was ahead of expectations.
It follows months of misery for British tourists going overseas, who have seen the value of the pound slump as much as 18pc against the dollar and euro. Fair FX said international payments were up 49pc in the year while prepaid cards climbed 25pc as consumers tried to lock in exchange rates before going abroad in case they fell further.
The firm also said new customers had been focused on cards rather than its lower margin cash-in-thepost business.
Fair FX said it had now reached a size where it could start to bring processes back in-house rather than outsource them, which should improve efficiency and bring cost savings. Shares rocketed 23.5pc, or 8p, to 42p. E-learning outfit Learning Technologies lifted as it revealed profit for the year was ahead of expectations. The AIM-listed firm exceeded its target of margins of 20pc and said recurring revenues climbed to 27pc from 10pc a year ago.
Learning Tech now generates around 36pc of its revenue from outside the UK, up from just 12pc. But UK revenue will grow this year after the firm redesigned a curriculum for 400,000 civil servants after winning a tender process with the UK civil service. Other customers include the BBC, Fujitsu and Vodafone. Investment in the business saw net debt rise to £8.5m from £7.3m but Learning Tech said it would continue to pursue acquisition opportunities. Numis, which has a ‘buy’ rating on the stock, upgraded its forecasts for the firm after what it called an ‘encouraging’ update. Shares surged 18.7pc, or 7p, to 44.5p. Standard Life Investments Property Income Trust has sold an office block in Cheltenham for £11.1m. The trust was one of several which suspended trading in the summer amid fears about the impact of Brexit on the property market. Many have since sold some of their assets to build up a cash buffer in case investors want to take their cash out of the trust. Standard Life yesterday said it had offloaded the 58,900 square foot Quadrangle site, which it bought in December 2015 for £10m. Shares edged up 0.3pc, or 025p, to 86.5p.
Strong investor appetite saw assets grow at investment firm
Miton. The AIM-listed fund group saw assets grow to £2.9bn in the year, up from £2.78bn. Investors poured £91m into the group’s range of 14 funds in the second half the year, after uncertainty in the lead up to Brexit saw savers pull money out of investments in the first six months.
The firm said pre-tax profit for the year will be in line with expectations. It will start a share buyback programme this month. Shares gained 0.7pc, or 0.25p, to 34.5p.
Crossrider climbed as it completed the cost cutting and restructuring of the business which started in June. The digital advertising firm said it had found around £1.6m of annual savings. Revenue for the year is set to be around £45.7m with earnings of £5.2m.
Crossrider said DriverAgent, the PC maintenance software product it acquired in October, should also boost earnings. Shares soared 13.9pc, or 5.5p, to 45p.