Shares in housebuilders are dragged down by disappointing results from Bovis Homes (BVS) which reports a decline in pre-tax profit, operating margins and return on capital employed. The company is targeting 10% to 15% fewer property completions in 2017 while it tries to improve operations and customer service.
Bovis’ shares slump 9.3% to 762.75p with stockbroker Davy calling 2016 ‘a year to forget’. In comparison, its peers only fall by a smaller amount. Berkeley (BKG) slips 1.8%, Crest Nicholson (CRST) retreats 1.3% and Bellway (BWY) is down 1.1%.
Unilever (ULVR) falls 8.2% to £34.85 as Kraft-Heinz withdraws its takeover proposal.
Royal Bank of Scotland (RBS) jumps 5.1% to 254.7p on news it may not have to spin out Williams & Glyn to meet its remaining State Aid obligations.
Interserve (IRV) collapses by 19% to 271.5p after making new provisions for contract issues on its exited energy from waste business. It has raised the amount from £70m to £160m and even that may not be enough, warns investment bank Liberum.
Petra Diamonds (PDL) says its full year production could be near the bottom end of its previously guided 4.4-4.6m carats range. Commissioning on a new processing plant is eight weeks late as a result of contractor problems. Investors don’t seem too worried with the share price flat at 148.2p.
Gemfields (GEM:AIM) faces big earnings downgrades from analysts as it will no longer hold a higher quality emerald auction in its second half period, prompting its shares to fall 3.7% to 48.63p. The miner attributes the auction timing to changes elsewhere in its schedule whereby it has moved an auction from December 2016 to February this year as a result of earlier issues with India’s financial system.
Alpha Real Trust (ARTL) has complained that Hansteen’s (HSTN) 300p per share takeover offer for Industrial Multi Property Trust (IMPT) is too low, helping push up shares in the latter by 2p to 309.25p. The market seems to be pricing in a higher bid. Alpha owns 18.7% of the investment trust.
Engineer Hayward Tyler (HAYT:AIM) falls 6.2% to 45.5p after downgrading its full year earnings guidance due to contract delays.
