Market Report: Ultra Electronics hit as defence cuts begin
Saturday 16 November 2013
Shares in the anti-submarine warfare specialist Ultra Electronics dived yesterday as US defence cuts began to hurt. But Ultra is in good company – its warning on delayed US deals follows similar alerts from peers Cobham and Meggitt.
Ultra has been furiously cost-cutting to offset any delays but it hasn’t been enough. The FTSE 250 group sank 80p to 1,816p as it warned its full-year sales would come in below last year as delays in the US and Oman hit.
Ultra sank 80p to 1,816p and was joined by Cobham, down 0.2p to 270.4p, and Meggitt, down 7p to 505p. Investec’s analysts are still supportive though and said they continue “to back management to do the right things to drive long-term shareholder value”.
The wider market was on good form and welcomed Federal Reserve chairman-elect Janet Yellen’s dovish reassurance that the US’s fiscal stimulus programme would continue. The FTSE 100 advanced 27.31 points to 6,693.44.
The good mood meant traders were willing to invest in riskier stocks, and the big oil stocks were in favour with Shell 43p better at 2,185.5p while Tullow Oil added 12p to 897p.
Broker Hargreaves Lansdown got a boost from analysts at JPMorgan Cazenove who said it would benefit from the recent regulatory changes in retail investment. They rated it overweight and the broker ticked up 15p to 1,179p.
SABMiller was firm, up 18p at 3,197.5p as the brewer reappointed John Manser as acting chairman because of the “recent sudden worsening” of the health of its chairman Graham Mackay, who had surgery for a brain tumour earlier this year.
Back on the mid-tier index, digital sports media group Perform was in the red for a second day after a profit warning on Thursday and fell 24.3p to 435.7p.
Ladbrokes rebuffed rumours it was to issue another profit warning by the year-end on Thursday but investors were still spooked by its vague comments in its update and it lost 3.1p to 177.1p.
Troubled Finnish nickel firm Talvivaara Mining lost another 2.64p to 3.51p as fears for its future increased and it did not rule out bankruptcy.
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The one chart that shows how George Osborne is almost certainly going to be our next Prime Minister
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...