Advertising giant WPP (WPP) says the first seven months of its new financial year have been very tough thanks to slowing GDP growth around the world. Second quarter net sales growth was less than the first quarter with forecast client spending in quarter two ‘under considerable pressure’, it says. Unsurprisingly the market has taken a negative view of the results, sending its share price down 1.9% to £15.63.
Oil producer Enquest (ENQ) has downgraded its output guidance, saying there may no longer be any production growth in the second half of its year. It produced 37,015 barrels of oil equivalent per day in the first six months of 2017 which itself is lower than expected. The company expects its Kraken field to drive a ‘material increase’ in production from 2018. ‘EnQuest is in a very tight corner, and simply has to make Kraken work,’ says Canaccord Charlie Sharp. Investors don’t like the news, sending its share price down 9.9% to 29.5p.
High street gloom is clearly felt in Laura Ashley’s (ALY) full year results which show a dramatic decline in profitability. Its pre-tax profit is down 72% to £6.3m and shareholders won’t be getting a final dividend this year. Chairman Tan Sri Dr Khoo Kay Peng has blamed challenging trading conditions and the impact of weak sterling. The retailer’s shares fall 2.4% to 8.5p on the news.
Half year results from construction firm Costain (COST) are better than expected thanks to success in its natural resources arm which has moved back into profit. Group revenue grew by 10.5% to £874.5m which is higher than the £794m forecast by investment bank Liberum. The market likes the update, sending the shares up 2.4% to 451.5p.
Middle Eastern healthcare provider NMC Health (NMC) has secured a new contract to run various clinics and services for Emirates Healthcare. The new coincides with solid half year results which show 13% revenue growth boosted by acquisitions and the roll out of new beds. Its shares rise 2.9% to £24.89.
Game Digital (GMD) says it will prioritise developments in e-sports and has put its digital enterprise activities up for review. That could mean the sale of its Multiplay Digital arm which involves game server hosting technology. The group’s shares fell by more than 30% in June after issuing a profit warning, blamed on a stock shortage for new games consoles. A trading update today shows some improvement in its UK and Spanish markets. Its shares rise 15.7% to 28.5p in early trading.
Highlands Natural Resources (HNR:AIM) rises 16.7% to 26.25p after securing investment from an unnamed oilfield services provider for its East Denver project.
Packaging group Robinson (RBN:AIM) slumps 9.6% to 117.5p as it struggles to deal with higher costs which have eaten into profit margins and pushed up operating expenses. Profit margins have also been hit by reduced consumer demand for premium branded products. Broker FinnCap has downgraded its 2017 pre-tax profit forecast by almost 42% to £1.2m.
