Investors quit Experian as marketing arm is sold
SHARES in financial data firm Experian fell as much as 6pc as it announced plans to offload its email marketing business. The Nottingham-based firm, best known for its credit scoring service, said the decision came after a review of its business.
Experian said that while the division had won new clients and seen strong revenue growth, it did not fit in with the rest of the group’s businesses.
In the six months to September 30, Experian said performance in North America had been good while revenue growth in Latin America had hit 7pc. Operating profit was down 8pc at £408.9m.
Shareholders are set for an interim dividend of 10.3p, to be paid on January 27.
Experian is £63m into a £320m share buyback programme, which should be completed by the end of the financial year. At the end of the day, shares had slipped 3.3pc, or 50p, to 1467p.
The stock market was dominated yesterday by the firms which look best-placed to benefit from the plans of the new US president, Donald Trump. Construction and building businesses, oil and commodities companies and pharmaceutical giants all rode high.
Ashtead was the sharpest riser. The equipment rental firm’s US business accounted for about 86pc of its revenue in the third quarter of the year. Yesterday shares gained 11.5pc, or 143p, to 1385p.
Talk of cuts to regulation in the energy industry sent Antofagasta up 8.9pc, or 52.5p, to 641.5p, while
Fresnillo gained 10.7pc, or 171p, to 1771p.
Seemingly against the expectations of many, the FTSE 100 finished in the black, up 1pc, or 68.7 points, at 6911.84. Sainsbury’s was the greatest faller, still suffering from its profit slump. Shares fell 6.6pc, or 16.8p, to 238.7p.
Tate & L yle plunged as brokers downgraded their ratings on the stock over fears around its exposure to Mexico. Shares dropped 11.9pc, or 89p, to 659p.
Motor retailer Lookers fell on a third-quarter trading update. The business, which has around 150 franchised dealerships, said gross profit from new car sales was up 11pc in the nine months to September 30 but margins softened.
Lookers completed the sale of its parts division for £120m. The firm, which sells about 180,000 cars a year, will use the proceeds to fund acquisitions. It also plans to improve its website, invest in new technology to improve customer experience and increase retention.
While the group said it hadn’t noticed any difference in customer behaviour yet post- Brexit, it acknowledged that a weaker pound was creating uncertainty. Shares fell 3pc, or 3.25p, to 106.5p.
Wizz Air took off as passenger numbers were up 17pc in the first half of the year. The low-cost air- line carried 12.5m customers in the six months to September 30.
Revenue was £808.2m, up 10.1pc on the same period a year ago. Pretax profit was up 37.5pc to £230.3m. Wizz started 54 routes in the first half of the year and now flies to 38 countries from 26 bases. Shares flew up 3.2pc, or 50p, to 1630p.
Mosman Oil and Gas saw its share price more than triple as it announced the purchase of an oil asset in the US.
Aim-listed Mosman has struck a deal with Australian business Cue Energy Resources for an 80pc stake in Pine Mills in Texas. It will also acquire Buccaneer Operating, which runs the field. The purchase will cost around £786,000. Shares rose 264pc, or 1.65p, to 2.28p.
Workspace Group climbed as it announced a 40pc increase in its interim dividend.
Investors in the real estate investment trust, which owns and manages about 65 properties in London, are set for a payout of 6.8p a share. In its half-year results, Workspace said net rental income had climbed 6pc compared to the same period a year ago. Shares gained 4.4pc, or 28.5p, to 674.5p.