Paddy Power Betfair (PPB) has shrugged off adverse sports results in late 2016 to say that full year earnings will come in at the mid-point of its previously guided £390m to £405m EBITDA range. It lost almost £5m as punters cleaned up with the US election result in addition to unfavourable football scores. The shares dip 1.7% to £85.32 despite the market already knowing about tough conditions across the gambling sector in November and December.
‘Betfair’s sportsbook, Paddy Power’s sportsbook and the over-the-counter sportsbooks in Paddy Power’s 600-plus shops all lost money on football during the month of December,’ says stockbroker Davy. The broker seems increasingly confident that earnings forecasts for 2017 will have to be revised upwards as the year progresses as it says prospects are good in Europe and Australia.
Silver producer Hochschild Mining (HOC) jumps 6.4% to 240.35p after saying its Pallancata mine in Peru would restart on Wednesday after resolving an issue with the local community. Metals production has stopped in December after a road blockade by locals who wanted to renegotiate land access agreements.
Troubles in its healthcare arm force packaging to filters manufacturer Essentra (ESNT) to say operating profit will either miss or come in at the bottom end of its previously downgraded £137m to £142m guidance for 2016. The company had already issued two profit warnings last year due to a variety of problems. Its shares fall 10.1% to 397.8p.
An increase in production helps to offset a flat diamond price and a slight delay to starting a new processing plant at FTSE 250 miner Petra Diamonds (PDL). Analysts are sitting on their hands pending half year results in March which could see them revise earnings forecasts. Shares in Petra nudge ahead 1.8% to 159p.
A profit warning and dividend cut sends Braemar Shipping (BMS) down 13% to 255p. Weakness in the oil and gas sectors has become worse than expected and there is a minor issue with market activity in its logistics arm.
Revolymer (REVO:AIM) jumps 4.7% to 33.5p after striking an exclusive global supply and joint market deal with FTSE 250 chemicals group Croda (CRDA) for the small cap’s Zinador product which removes smells from a wide range of items including clothes, animal waste and sewers.
High costs from acquisitions and gross margin pressure have forced analysts to reduce their 2016 pre-tax profit expectations for Flowtech Fluidpower (FLO:AIM) by about 8%. Shares in the hydraulics specialist decline by 10% to 120.75p, wiping out all the gains made so far this year.
