The FTSE 100 opens around 20 points lower at 7,330 as sterling gains sting the large blue-chip firms deriving their revenues from overseas. Statements suggesting the Bank of England may raise interest rates is one reason the pound has strengthened against the dollar.
Video games seller GAME Digital (GMD) crashes 28% to 23.74p after warning full year earnings before interest, taxation, depreciation and amortisation (EBITDA) will be ‘substantially below previous expectations’. An unexpected trading update blames continued tough trading on the UK high street as well as less supply of the Nintendo Switch console into the UK than hoped for.
Baby and children’s goods supplier Mothercare’s (MTC) shares remain relatively flat at 119p despite releasing its annual financial report to 25 March 2017 highlighting risks to the company. It views there’s greater risk of being impacted by sterling devaluation and sourcing goods from suppliers outside the UK since Brexit in its last financial year. The company is also worried that its China partnership might break down.
Nanomaterials manufacturer Nanoco (NANO) sees its shares rise by 15.4% to 37.5p as it receives its first commercial order. The order comes from Wah Hong Industrial, a manufacturer of optical films for the display industry which is purchasing Nanoco’s cadmium-free quantum dots.
Cyber security firm ECSC (ECSC:AIM) drops 22.2% to 350p on releasing an update for its financial year to 31 December 2017. CEO Ian Mann says that the company is ‘experiencing a delay in revenue growth that will directly impact’ its 2017 results.
Another AIM-listed tech firm Proxama (PROX:AIM) loses almost 69% of its value, marked down to 0.04p, as it announces plans to raise £5.3m via a £1.2m placing and an open offer of up to £4.1m. News of the capital raising accompanies full year results revealing a reduced pre-tax loss. If Proxama can't raise the money it will have to pursue other financing options including a loan note with an alternative investment manager.
Publishing giant Trinity Mirror’s (TNI) release of a trading statement has little impact on its share price, down by 0.53% to 94.50p. Chief executive Simon Fox says that trading environment for print if the first half of the year ‘remains volatile’ although anticipates a better second half. The company has also had to increase its legal spend relating to phone hacking although says that over 80% of claims are settled.
Stone quarry operator Fox Marble (FOX:AIM) announces it has reduced its expected order for 2017 to €3.6m, pushing its share price down 4.44% to 8.6p. The company say that there may be potential project delays due to the administration of one of its agents Pisani.
