Tui takes a dive after scrapping flights planned for next month
SHARES in Tui hit fresh turbulence yesterday after the tour operator cancelled all holiday flights that had been due to take place next month.
The group – which lost its spot in the FTSE 100 earlier this year – fell 84.5p to 436.1p. It had previously said it hoped to resume flights from June 12, but has been forced to scrap that ambition as travel restrictions remain in place.
The drop left Tui as the biggest faller on the FTSE 250, on a day of heavy losses across Europe’s main indices that brought four sessions of gains to a clattering halt.
The FTSE 100 was hit heavily, caught between rising nerves over relations between the US and China, and a strengthening pound.
Rolls-royce led laggards on the FTSE 100, skidding 47.4p lower to 271.6p after it was cut to junk by S&P Global Ratings.
The downgrade is the latest blow to the engineering group – which has taken a heavy blow as Covid-19 smashes the global aviation sector.
Bookmaker Flutter Entertainment dipped slightly after raising £812.6m.
The placing – at £101 per share, a 4.7pc discount to Thursday’s closing price – is designed to allow the group to capitalise on opportunities that arise from the current economic crisis, including expanding Flutter’s US operations.
Flutter closed down 320p at £102.80.
Elsewhere, listed legal
group DWF plunged 14.5p to 66.6p after boss Andrew Leaitherland stepped down with immediate effect.
Sir Nigel Knowles, its current chairman, has become its new chief executive. No reason was given for the exit of Mr Leaitherland, who has been with the group for more than 20 years.
The group’s board said “strong and experienced leadership is essential” given the current crisis.
In a trading update alongside the announcement, the group said the disruption in April had been “greater than anticipated”, warning revenues grew 11pc over the financial year as a result – below the expected rise of 15pc to 20pc.
Capital & Counties and Shaftesbury both rose slightly after Capco confirmed it is in talks to buy a 26.3pc stake in the rival landlord.
In a statement, Capco said: “There can be no certainty that these discussions will lead to any agreement between Capco and the selling shareholder.”
Peel Hunt analysts said the potential stake buyout “can only be as a precursor to a merger” between the groups, which both own a swathe of land on central London.
Shares in insulation supplier SIG rose 1.2p to 29.2p after it said private equity firm Clayton Dubilier & Rice would back its efforts to raise £150m. CD&R has agreed to invest up to £85m as part of the equity raise, and has guaranteed a minimum of £72.5m.
The announcement came alongside the group’s full year results, which showed it had swung to a £108.9m loss before tax, down from a £28.5m profit the year before.