Trainline shares crash as private backers cash out
ONLINE ticket seller Trainline hit the buffers after a group of investors, led by the US private equity group KKR, cashed out.
The shareholders, which included funds managed by Ares, Index Ventures and Alven Capital, raised £279m after they sold a 14.1pc stake in Trainline to institutional investors.
The 68m shares were sold at 410p each, 7pc less than Trainline’s closing price of 442p on Monday, the day before the sale took place. News of the deal sent Trainline shares down 4.5pc, or 20p, to 422p, and KKR’s representative on the board, Philipp Freise, stood down after the sale.
KKR bought Trainline for around £450m in 2015 and nurtured it through one of this year’s most successful European floats.
The bookings website and app listed at 350p in June, meaning despite yesterday’s drop it has still rallied by a fifth since it made its summer debut.
Blue-chip precious metals miner Fresnillo fell foul of movements in the price of gold. Shares in the Mexico-focused giant shed 4.6pc, or 30.4p, to 626p, as the price of gold edged to its lowest level in three months.
Equity markets, especially in the US, are back on the up after a turbulent summer. Easing geopolitical tensions amid optimism that the US-China trade spat is reaching a period of detente, and signs of stabilisation in the global economy, sent gold 0.2pc lower to $1,454 an ounce.
The same upbeat attitude among traders helped the FTSE 100 edge 0.5pc higher, or 36.9 points, to 7365.44. It was also boosted by
Aveva Group, which rose 3.5pc, or 150p, to 4408p, after the software developer swung to a profit of £24m in the six months to September. This was up from a loss of £5.5m in the same period of last year – although it was aided by a £3bn merger with a division of Schneider Electric last year.
Another Footsie riser, credit checker Experian, gained 2.5pc, or 60p, to 2442p after it said fullyear revenue would be towards the top of a guided range.
The FTSE 250 index closed minimally higher, up 0.08pc, or 17.14 points, at 20,427.17.
Shares rallied 9.5pc, or 130p, to 1504p at Oxford Instruments, which makes research tools such as microscopes, high-field magnets and software.
Pre-tax profit surged 55pc to £18m between April and September, and the firm hiked its interim dividend 8pc.
And Aggreko, which falls into the category of ‘firms that you have undoubtedly benefited from but may not have heard of’, rose 3.2pc, or 25.2p, to 822.2p.
It makes air conditioners, and back-up and mobile generators that are used everywhere from music festivals to oil sites.
It is on track to meet market expectations for the full year, despite an 8pc fall in revenues over the first nine months.
At the other end of the mid-cap index, electronics products maker
Electrocomponents sank 10.8pc, or 76p, to 630p, after pre-tax profit fell 4.3pc.
It had to write down £10.4m of assets, including £7.2m from deals with British Steel before it collapsed in late May, and £3.2m against inventory recovered from the steel maker.
Support services group DCC fell despite profits rising 15pc in the first half of 2019.
It left its full-year guidance unchanged – perhaps disappointing bullish traders who were hoping for an upgrade. It closed down 6.2pc, or 458p, to 6916p.
Pub giant JD Wetherspoon, led by arch-Brexiteer Tim Martin, rose 1.1pc, or 16p, to 1525p, ahead of a trading update that will be released today.