Struggling Card Factory hoping to Get Well Soon
INVESTORS might want to send a ‘Get Well Soon’ message to Card
Factory, whose shares plunged yesterday on a lacklustre trading update.
Growth at the card and gift retailer has been flat as high street footfall suffers. In a trading update the firm said sales growth in the first half of the year was just 0.2pc. Its website had delivered much of that growth.
Card Factory said variable footfall had hit weekly sales in the lead up to and following the EU referendum and the wider impact of the vote remains uncertain. While average spend in-store has grown, that has been offset by lower transaction numbers.
The firm opened 34 new stores in the first half the year, bringing its numbers to 848, and said it is confident of delivering full-year profits within expected levels. Shares slipped 6.8pc, or 21.7p to 298.5p.
Strong sales of the latest Harry Potter book sent St Ives shares soaring. The marketing and publishing firm said revenues in its strategic marketing division are likely to be up 30pc when it reports its full-year results in October. That was helped by securing a seven-year contract with the English Football League. It has also secured a contract with Whitbread and additional services under its contract with HSBC. Numis, which has a Buy rating on the stock, said it was a reassuring trading update from the business. Shares rocketed 25.2pc, or 24.75p to 123p.
The FTSE 100 climbed 0.70pc, or 48.29 points to 6914.71. It’s now within touching distance of the 7,000 barrier, which it broke for the first time in March last year.
Among the highest risers of the day was travel giant Tui, which took off in spite of a weaker pound and ongoing terror fears among tourists. The holiday firm said the third quarter of its financial year had been a strong one and there had been no bookings slowdown in the UK since the referendum.
While the firm is expecting visitor numbers to Turkey to halve to around 1m this year, it has shifted its focus from the east to the west of the Mediterranean to try to offset this. Long haul and cruise demand are also strong.
Tui has reduced its sales growth forecasts to 2-3pc from 5pc, but still expects earnings to be up at least 10pc this year as travellers look to more profitable destinations. Shares moved up 2.9pc, or 29p to 1041p. Residential landlord company
Grainger rose as it reassured investors that there had been no material impact on the business since the EU referendum. Grainger said it is monitoring the situation closely and is well positioned to take advantage of new potential investment opportunities.
Grainger owns residential properties worth more than £2.6bn across the country, which it rents out and acts as landlord. In the ten months to July 31 it said demand had been high and rents had increased 4.9pc on new lets and 2.8pc on renewals. The time taken to rent out properties has also fallen steadily over the past three months.
Grainger has generated £91m from selling vacant properties over the past ten months, and is investing in new properties including a £100m scheme in Salford comprising 614 homes. Shares inched up 0.1pc, or 0.2p to 220p.
Akers Biosciences develops rapid screening and testing products for the healthcare industry to deliver information more quickly and costeffectively. Its product pipelines focus on diagnosing diabetes, respiratory and infectious diseases among others. Akers said product revenue rose to £1.3m in the six months to June 30, up 15pc on the same period last year.
The firm reduced its loss before tax for that period by 26pc to £1.9m. Sales of a flagship test to China and cost reductions have helped performance. Akers has signed its first distribution deal for a new Akers Wellness product and has successfully completed a clinical trial for a rapid, finger-stick blood test for chlamydia. Shares advanced 4.7pc, or 10p to 225p.