Hilton Food tumbles as surging costs hit profits
SHARES in Hilton Food Group endured one of their worst days on the stock market after the company warned ‘unprecedented’ cost increases had hit profits.
The FTSE 250 meat and fish packer, which operates across Europe, Australia and New Zealand, said it struggled to curb the rising costs hurting its UK seafood business.
As a result, its profit for the year would be below expectations.
But Hilton Foods added it was well- placed for 2023 given its ‘strong’ financial position.
But analysts seemed less than impressed, with RBC cutting the target price to 600p from 700p.
Hilton’s biggest fall came in September when shares tumbled 28pc after a profit warning for the year.
Shares plunged another 15.1pc, or 96p, to 538p yesterday.
The FTSE 100 rose 0.08pc, or 6.15 points, to 7306.14 and the FTSE 250 was up 0.75pc, or 138.32, points to 18,697.89.
At advertising giant WPP, chief financial officer John Rogers is stepping down after three years to be replaced by Britvic finance boss Joanne Wilson.
She will receive the same package as Rogers, 54, who earned £4.7m in pay including bonuses and share awards last year.
Rogers is believed to be in line for a new top job.
WPP’s shares rose 2.4pc, or 19p, to 824.8p.
DCC swung into reverse after its profit fell short of market expectations.
The Irish conglomerate saw its profit rise 13pc to £221.2m in the six months to September.
But Jefferies said this was 2pc below the consensus among analysts amid a decline in DCC’s healthcare business. JP Morgan lowered its target price to 7000p from 7500p. DCC’s shares fell 8.2pc, or 407p, to 4537p.
Despite Morgan Stanley raising their target prices, BP sank 3.2pc, or 16.1p, to 485.7p while Shell slid 2.5pc, or 63p, to 2438p.
Defence firm Babcock was up 4pc, or 11p, to 285p after Berenberg issued a ‘ buy’ rating and a target price of 425p.
FTSE 250 insurer Direct Line revealed plans for a more affordable, basic car insurance policy after seeing sales slump following price hikes.
The policy, to be launched under the Churchill brand, will offer cover for the policyholder’s vehicle and third-party damage, but strip out many extras.
Details of the new basic cover came as Direct Line said total motor premiums tumbled 8.9pc to £1.1bn in the first nine months of 2022 after it raised prices following a surge in claim costs.
Shares fell as much as 8pc in early trading, before closing 3.1pc lower, or 6.2p, to 193.2p.
Also in the second tier, Hammerson
was handed a much-needed boost in its post-pandemic recovery as shoppers returned to stores. The owner of shopping centres such as the Bullring in Birmingham said footfall across the UK, Ireland and France was now between 90pc and 95pc of the level seen before the pandemic struck.
Following the upbeat results, the group expects profit for the year to be at least £100m – above the £86.5m consensus. Shares gained 4.8pc, or 1.02p, to 22.5p.
Engineering group IMI rose 5.1pc, or 67p, to 1387p after it agreed to snap up the smart temperature controls manufacturer Heatmiser in a deal that could reach £118m.
Kingspan rose 1.4pc, or 0.7p, to 54p despite five brokers cutting the building insulation specialist’s target price.
An Esports firm backed by David Beckham is to offer courses to help young people break into the industry. Guild Esports revealed a tie-up with post-16 education provider SCL for BTEC diplomas.
Its shares rose 8.3pc, or 0.13p, to 1.63p.