London’s FTSE 100 firms 43 points to 7,375 early on Monday as strong export data out of China and the reaching of a deal between the US and Mexico providing relief to markets rattled by President Donald Trump’s aggressive trade bargaining.
Hard-pressed holidays company Thomas Cook (TCG) sparks up 23% to 19.8p as it confirms talks are underway with its largest shareholder, the Chinese group Fosun, regarding a bid for its tour operator business. Embattled Thomas Cook stresses there’s no certainty this preliminary approach will turn into a formal offer, but the board ‘will consider any potential offer alongside the other strategic options that it has, with the aim of maximising value for all its stakeholders’.
Plumbing and heating products powerhouse Ferguson (FERG) cheapens 4% to £51.40, despite reaffirming full year trading profit guidance and launching a $500m share buyback. Investors are disappointed as third quarter revenue growth of 6.2% comes in light of market expectations amid slower growth in the US, Ferguson’s largest market.
Property play Helical (HLCL) is marked 5% higher to 372.5p after confirming speculation that it has received ‘more than one’ takeover approach from different parties. However to date all the bids have undervalued the London and Manchester-focused offices developer, in the opinion of the board.
Hammered by a recent profit warning triggered by a lost contract, bonding solutions and adhesives group Scapa (SCPA:AIM) skips 9.9% higher to 179.8p as chief executive officer (CEO) Heejae Chae retracts his decision to step down and agrees to stay on in the hot seat.
Video games developer Codemasters (CDM:AIM) edges 2.5p higher to 257.5p on positive full year results and a confident outlook statement. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) raced 60% higher to £18.7m in the year to March 2019 with an increase in higher margin digital sales, and the racing games specialist also flags a strong pipeline of games scheduled for the current financial year.
Elsewhere, pharmaceutical firm Vectura (VEC) improves 1.9p to 80.9p despite the unexpected news CEO James Ward-Lilley is to step down at the end of the month, with finance director temporarily stepping into the breach. The search for a new CEO is to begin immediately.
MJ Gleeson (GLE) sheds 10.2% to trade at 796p on the shock news CEO Jolyon Harrison has left the affordable housebuilder ‘with immediate effect’ following a dispute over his remuneration salary and succession planning.
Agronomics (ANIC:AIM) advances 22.7% to 6.75p on excitement surrounding a £4.5m fundraise supported by renowned investor Jim Mellon, new chairman and Innocent Drinks co-founder Richard Reed as well as health and fitness entrepreneur David Giampaolo, to fund investments in the alternative food sector.
