Profit warning knocks 50pc off Russell Hobbs
THE owner of kitchen brands such as Russell Hobbs and Salter went off the boil yesterday after warning that it is unlikely to grow revenues in its 2018 financial year – despite only being six weeks into the period.
Trading as UP Global Sourcing Holdings, Ultimate Products – whose bosses banked more than £50m when it floated in March – said punters are spending less on non-food items due to falling confidence, while prices have increased due to the weak pound.
As a result of the caution, Ultimate Brands said retailers are putting off the purchase of items for the autumn and winter 2017 season until the last minute.
On top of this, the firm said that as much as £5m of its revenue for the current financial year will not be recognised until 2019 as a result of a delay in the recording of sales with a new European client.
Shares fell 50.5pc, or 106p, to 104p, an all-time low.
After months of battering London-listed Acacia Mining, the government of Tanzania took aim at
Petra Diamonds yesterday, accusing the miner of undervaluing a package of precious metals by more than £11m.
Petra Diamonds saw £27m wiped off its market value after warning that a parcel of diamonds from its Williamson mines in Tanzania has been blocked from export to its office in Belgium. Although Tanzania’s government has not formally declared the reason behind its actions, Petra said some of the staff at Williamson – in which it owns a 75pc stake – are being questioned by authorities.
Because members of its staff are being questioned, Petra said operations at Williamson have been temporarily suspended for safety and security reasons.
Over the weekend, Tanzania said it seized the diamonds at an airport, intending to nationalise them after valuing them at around £22.4m – far higher than the £11.2m quoted by Petra.
The country’s finance minister Philip Mpango said he had also ordered a criminal investigation into all officials involved in declaring the value of the diamonds and issuing export permits, and will organise a fresh valuation.
But yesterday, Petra said the government has complete oversight of diamonds produced at Williamson – authorities own a 25pc stake of the mine – and said it is not responsible for diamond valuation prior to export.
The accusations made by Tanzania’s government are reminiscent of those made against fellow FTSE250 member Acacia (down 4.7pc or 9p to 183p). Authorities slapped Acacia with a £144m tax bill earlier this year for allegedly undervaluing the value of its gold ore – claims which Acacia vigorously denies. Yesterday, Petra’s shares fell 5.7pc, or 5.1p, to 84.85p.
Avocet Mining fell 0.5pc, or 0.6p, to 25.5p after resuming talks to restructure its balance sheet after reporting progress with creditors as it struggles to keep open its mine in Burkina Faso.
The mine has been plagued by disruptions, including a twomonth shutdown, because funding for operations has been hit by the need to make overdue payments to suppliers.
The FTSE 100 rose 0.5pc, or 36 points, to 7413.6. The index was boosted by a rally across the insurance sector, driven by relief that Hurricane Irma was not as destructive as it could have been alongside the absence of missile tests in North Korea over the weekend.
Property and casualty insurance firm Lancashire Holdings led the pack, up 10.3pc, or 63p, to 674p, while Beazley rose 4.3pc, or 19.2p, to 470.2p, and Hiscox jumped 3.4pc, or 41p, to 1265p.