The collapse of 15-year-old Scandinavian airline Primera Air has sent its FTSE rivals into a downward spiral. The budget airline, which began offering long-haul flights from UK airports earlier this year, said on Monday night that it was going into administration and would cancel all flights. Hundreds of passengers were left stranded. Coming hours after Ryanair Holdings (RYA) warned its profits would be lower for the year due to higher oil costs and strike action, Primera’s downfall piled pressure on the sector. High street travel agent Thomas Cook Group (TCG), which has its own airline, fell 5.2%, or 3.05p, to 55.2p, easyJet (EZJ) dropped 1.4%, or 16.5p, to close at 1205.5p, Wizz Air Holdings (WIZZ) was down 4%, or 106p, to 2544p, and British Airways’ owner International Consolidated Airlines Group SA (CDI) (IAG) edged 1.4%, or 9.2p lower, to 634p.
Ilika (IKA) sparked investor interest as it announced it has begun shipping pre-launch samples of its tiny batteries. The products, which are only millimetres in size, are designed for use in miniature medical implants. Ilika has sent shipments to equipment manufacturers in the US and Asia, who will test the batteries. They should be ready for a full product launch in early 2019, Ilika said.
Ferguson (FERG) slumped 6.8%, or 446p, to 6083p as it revealed its full-year results. Revenue was up 7.6% to £16billion, while profit was also up from £709.8million to £977.6million and the dividend payment increased by 21% – so far, so good. However, investors were more focused on the apparent weakness in Ferguson’s UK market, where revenue slipped 5.3% to £2billion and profit crashed 28.8%. Helal Miah, an investment research analyst at The Share Centre, said the falling share price could also be a sign that some investors were taking profits. He added: ‘The key driver for the group’s success continues to be the strength of the US economy – particularly its housing and construction market which is keeping demand high for its plumbing and heating products.’
Interserve (IRV), which has been trying to pull itself into shape after a series of profit warnings and the collapse of its rival Carillion, fell a little further after selling its scaffolding unit. Enigma Industrial Services bought the loss-making business for £3.6million, plus a further £1m if it hits certain targets.
Pennant International Group (PEN) won a £10.2million contract in Qatar. The firm, which helps train engineers in the defence and other regulated sectors, will supply training aids for aeroplane maintenance, aircraft marshalling and ground handling.
Unilever (ULVR) bosses have been branded ‘out of touch with shareholders’ amid growing opposition to plans to axe its British headquarters. The Anglo-Dutch company, whose brands include Marmite, Domestos and PG Tips, wants to abandon its legal home in the UK and base itself solely in the Netherlands. But the proposals have faced opposition from British shareholders with a string of major City institutions including Aviva Investors, Legal & General Investment Management and M&G vowing to block the move.
Royal Mail (RMG) was last night accused of handing its current and former bosses huge rewards for failure after a shock profit warning sent shares crashing 25%. Nearly £1.2billion has been wiped off the value of the company since Monday afternoon when boss Rico Back revealed profits would come in between £500million and £550million this year – well below the £694million it made last year. To make matters worse for investors, analysts believe the dividend could be under threat, while households also face the prospect of paying higher prices for stamps as Royal Mail seeks to bolster its finances.
Royal Dutch Shell ‘B’ (RDSB) has given the go-ahead for a £23.9billion project to sell gas from Canada around the world. The project will see natural gas from vast basins piped to a plant in Kitimat, British Columbia, where it will be cooled to liquid form and shipped overseas, particularly to Asian markets. The first liquefied natural gas (LNG) from the LNG Canada project is expected before 2025, ahead of a likely boom in demand for the fuel from buyers in China especially.
SCS Group (SCS) stunned investors today with rising profits and sales, despite a cocktail of factors weighing on the firm in the last year. Shares in the resilient Sunderland-based group jumped by more than 8% to £2.16 in morning trading, after it said a downturn at its 27 House of Fraser concessions had been ‘more than offset’ by growth at its 101 core stores.
