Second day of share falls after Inmarsat profit alert

INMARSAT found itself under fire again yesterday while still reeling from a profit warning on Thursday.

Several brokers cut their target price for the stock after the firm revealed sales slid in the first three months of the year.

Berenberg said the mobile satellite communication firm’s announcement had been ‘a big surprise’.

Inmarsat cut its guidance for the year, telling investors to expect full-year revenues to come in at £830-£900m. Berenberg had thought the firm’s previous revenue expectations had been ‘challenging, yet achievable’.

But the shares were off investors’ radars, falling 5.9pc, or 50.5p, to 812.5p. They had started the week at 919.5p.

Not to be confused with the High Street giant, John Lewis of Hungerford designs, makes and fits kitchens and furniture. Yesterday it revealed that growth for the six months to the end of February had been lower than expected.

Half-year turnover was £3.6m when the firm had hoped for £4m. The business isn’t taking the news lightly. It has undergone a comprehensive review with a focus on improving productivity and reducing costs to the tune of £300m. Last month the group announced that a non-executive director had resigned from the board due to ill health. He has not yet been replaced.

Shares in the Aim-listed tiddler slipped 8.9pc, or 0.1p, to 1p.

BBA Aviation provides support services for airports such as refuelling and ground handling of planes, operating worldwide.

The firm found itself among the greatest mid-cap fallers yesterday after an update revealed that although trading was in line with expectations, like-for-like revenue was down 6pc in the first three months of the year. Its Signature Flight Support arm, which serves the business market, said revenue had grown despite a mild winter cooling demand for de-icing.

But ASIG, the firm’s support services business which operates out of large international and hub airports, reported a revenue drop of 12pc after contract losses. BBA acquired Landmark Aviation earlier in the year for £1.5bn, and said once the two were fully integrated the merger should deliver around £24m of cost savings. Shares landed 4.2pc, or 8.3p, lower at 189.4p.

PureTech Health got a booster shot after it revealed progress in one of its projects. The healthcare firm looks for innovative ways to tackle medical problems.

One of its projects is Akili Interactive Labs, which is developing a video game for diagnosing and treating cognitive disorders such as Attention Deficit Hyperactivity Disorder.

Yesterday the firm revealed it would be opening enrolment for trials in a programme for treating children who suffer from ADHD. The project will aim to treat the disorder without medication. Its study aims to enrol at least 300 children aged between eight and 12 in the US. Each will use a programme on a tablet computer for four weeks to try and help improve attention and memory.

Shares gained 3pc, or 3.75p, to close at 125.75p.

On the FTSE 100 (up 0.14pc, or 8.45 points, to 6125.70), energy firm

SSE was among the greatest risers for the day. The firm surged ahead after the spot price of gas inflated because of supply problems. In New York the Dow Jones industrial Average was up 0.43pc, or 75.75 points at 17736.46 by late in the trading day According to data from National

Grid (up 0.4pc, or 4.3p, to 991.8p), the UK was 19m cubic metres per day short of its forecast demand level of 202.1mcm. The news sparked a share price rise at SSE of 1.6pc, or 24p, to 1500p. Centrica gained 0.67pc, or 1.4p, to 209.9p.

Merlin Entertainments shares lifted off again after a tumultuous few weeks. It suffered an investor backlash after it pleaded guilty over a crash which injured five last year.

It dipped again after a fault on a new ride left customers stuck in mid-air this week.

Shares rode higher by 0.9pc, or 4p, to close at 431.4p.