There was no sugar-coating the bad news from Tate & Lyle, with the food and drink ingredients firm cutting its annual guidance due to pricing pressures and a slow second half. The FTSE 250-listed group now expects a mid-single-digit decline in its full-year revenue, excluding its recent US acquisition, against previous forecasts for only a slight drop. Meanwhile full-year earnings growth is seen at the lower-end of its 4 per cent to 7 per cent guidance range.
The warning came even as Tate & Lyle reported a 14 per cent increase in third-quarter revenue. However, that included the contribution of CP Kelco, a leading provider of pectin and speciality gums acquired last year, without which sales fell by 4 per cent. Tate & Lyle said its cash generation remained strong, having completed its £215million share buyback programme in January. But none of the good news stopped it sliding 6.7 per cent, or 42p, to 590p.
Pricing pressure: Golden syrup-maker Tate and Lyle now expects a mid-single-digit decline in its full-year revenue against previous forecasts for only a slight drop. Even as the UK economy saw some surprise growth late last year, the FTSE 100 retreated from recent record highs, closing down 0.5 per cent, or 42.72 points, at 8764.72. But the FTSE 250 ended 0.2 per cent, or 35.64 points, firmer at 20,916.14.
Coca Cola HBC topped the blue-chip leader board, up 7.4 per cent, or 220p, to 3190p, a new all-time high, as the soft drinks bottler reported strong organic revenue growth driven by sparkling, coffee and energy drinks, led by Monster. On the second line, miner Ferrexpo jumped by 2.5 per cent, or 2.3p, to 93.10p amid hopes of a potential peace deal between Ukraine and Russia. And Wizz Air shares increased 6 per cent, or 95p, to 1687p with reports suggesting the airline would look to restart flights to Ukraine shortly after the announcement of any ceasefire.
Elsewhere, Vistry gained 4.3 per cent, or 26p, to 626p as it was revealed that US hedge fund Abrams Capital Management has lifted its stake in the housebuilder to 10.2 per cent from 8.2 per cent. And Renewi rose 4.3 per cent, or 33p, to 851p as the waste manager agreed to be bought by Australian investment firm Macquarie in a £707million deal. But Renishaw tumbled 11.7 per cent, or 420p, to 3160p after the engineer reported lower-than-expected interim profits, with its second-quarter profit down on the first.
And Lancashire shed 4.8 per cent, or 30p, to 599p as the insurer said that it expects to incur net ultimate losses of between £116million and 132million related to the California wildfires. Among the small caps, Gattaca gained 10.5 per cent, or 7.5p, at 79p as the staffing solutions firm said trading was in line with expectations. And Empire Metals rose 5 per cent, or 0.41p, to 8.55p as it reported significant progress on development at a titanium mine project in Australia.
But Thruvision dropped 33.3 per cent, or 1.5p, to 3p after it warned that key contract wins would be delayed until the next financial year, with full-year revenue forecast at £5million to £6million – down from its previous £9million estimate. Ondo InsurTech gained 4.7 per cent, or 1.8p, to 39.8p as the leak detection technology firm remains on track to be profitable in the second half of its next financial year.
Driven by rapid expansion in the US and Europe, it has seen strong demand for its LeakBot device, with customers up by around 60 per cent over the past year and full-year revenue forecast to grow by around 70 per cent, and has sealed a contract to pilot the LeakBot in four US states. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
