Global terror fears sink Hostelworld shares 29pc

Hostelworld shares travelled down after the group revealed terrorist attacks had hit bookings.

The online booking website had good growth in bookings from Asia but said visits to Europe had been lower than expected.

It’s the latest in a line of tour operators and holiday firms which have struggled amid the political upheaval in the world.

thomas Cook (up 3.3pc, or 2.4p, to 75.1p) and tui (down 1.7pc, or 18p, to 1039p) have both reported lower demand following attacks in Turkey, Tunisia and Belgium.

Hostelworld said in an annual meeting statement that the average booking value had also been lower this year – while the number of mobile bookings had increased, trips booked this way tended to be for a shorter amount of time.

It said the outcome for the year depends on a recovery in European destinations over the key summer travel season.

Numis, which downgraded the stock from a ‘ buy’ to an ‘ add’ (meaning add more stock if you already hold it), said the group is making good progress in the areas of the business which it can control such as brand, technology and marketing. It also believes it still offers good growth potential.

With so much uncertainty, though, investors were packing their bags. Shares plunged 28.9pc, or 74.3p, to 183p. Car company Marshall Motor

Group was in the fast lane after it announced an acquisition. Marshalls sells and repairs new and used vehicles, and also leases cars on deals typically lasting between two and five years.

Its purchase of Ridgeway Garages for £106.9m will add 30 franchises to the group across the Home Counties, Wiltshire and Dorset. The move will see Marshalls’ presence increase from 19 to 25 counties across England. Ridgeway’s earnings last year were £20.2m. Shares accelerated 24pc, or 36p, to 187.5p on the news.

Another autos dealer, Inchcape, hit the brakes after a trading update. The firm said that like-forlike revenue was up 12.4pc for the first four months of the year, but had fallen 18pc in North Asia where consumer confidence had weakened. The group also said performance was in line with expectations, but disappointed investors drove the share price down 3.1pc, or 22p, to 691p.

Investors were none- too - impressed by Balfour Beatty’s contract win to build a lorry area on the M20. The group has been given the task of constructing the area to relieve congestion around Kent in a contract worth up to £130m.

It is supposed to be a solution to Operation Stack, where lorries have queued up along the motorways when they are unable to travel across the English Channel. But shares finished 0.8pc, or 2p lower, at 243.2p.

The Ftse finished a tickle in to positive territory for the day, rising just 0.04pc, or 2.8 points, to 6,265.65.

Paypoint shares soared after it revealed investors were set for a £25m payday. The first third of a special annual dividend will be paid in December, with the remainder to come next July.

In its preliminary results, Paypoint said investors could expect a total dividend for the year of 42.4p. The group, best known for its cash machines which can be found in 26,700 UK shops, said profits had risen slightly to £8.2m and retail transactions grew 17.8pc to 140m. It also now has more than 10,000 terminals in stores across Romania. Shares advanced 3.7pc, or 32.5p, to 906.5p on the update.

Blackburn-based toilet tissue maker Accrol is looking to roll out shares on to the alternative market. Set up in 1993 by Jawid Hussain, the father of current chief executive Majid Hussain, Accrol’s toilet paper, kitchen rolls and facial tissues account for 7pc of the total UK tissue market.

Sales topped £100m last year and earnings were up 13.7pc; now Accrol hopes listing on the stock market will help it increase its market share. Trading on Aim is expected to begin on June 10.