Almost £230m was wiped off the value of an animal genetics company after it warned that turmoil in China’s pig and dairy markets would hit its profits.
Ahead of its interim results next week, FTSE 250 group Genus said it could make just £58m in profits for the 12 months to the end of June.
Just three months ago, it said it was on track to hit the £73m forecast by analysts.
Shares fell 16.2 per cent, or 344 pence, to 1,780 pence in response. That reduced the value of Genus by £227 million, leaving it worth £1.2 billion.
Genus sells genetically improved semen, embryos, and cattle and pigs to help farmers produce high-quality meat and milk.
Profits hit: FTSE 250 group Genus sells genetically improved semen and embryos and cattle and pigs to help farmers produce high-quality meat and milk.
Business has been disrupted in China, home to the world’s largest pork market, which has been hit by disease outbreaks.
London’s main markets held firm even as the UK fell into recession last year.
The FTSE 100 rose 0.4 per cent, or 29.13 points, to 7,597.53 and the FTSE 250 rose 0.5 per cent, or 95.73 points, to 19,099.62.
Coca-Cola HBC, the drinks bottler and seller of Fanta, Costa Coffee and Monster Energy, extended its profits yesterday following two broker upgrades.
It came a day after the company reported record profits for the third year in a row amid growing demand. The shares, which gained 8 per cent on Wednesday, rose 2.4 per cent, or 58 pence, to 2,440 pence.
Also rising was Ithaca Energy, up 5.3 per cent, or 6.8 pence, to 136.2 pence, after the North Sea producer reported strong results for 2023 with production in line with forecasts and business costs slightly lower than expected.
Data analytics company Relx raised its annual dividend after a strong year.
Stock market surveillance – DSW Capital
A slowdown in deal negotiations after the Christmas holidays sent DSW Capital tumbling.
The group, which helps professionals set up their own businesses, said revenue in January and this month was lower than expected after some M&A deals were delayed and others fell through.
It had expected to make between £1.1m and £1.4m in profits in the 12 months to the end of March, but is now expecting between £600,000 and £700,000. The shares, which were trading at 100p in 2021, fell 20.7 per cent, or 12.5p, to 48p.
The payout will rise 8 per cent to a 58.8 per cent share after revenue rose 7 per cent to £9.2bn in 2023, while profits rose 9 per cent to £2.3bn. .
Relx, which organizes more than 400 events around the world, including the London Book Fair and MCM Comic Con, added that it wants to buy back £1bn of shares in 2024.
However, the stock fell 0.7 per cent, or 22 pence, to 3,314 pence.
GSK has completed the acquisition of a clinical-stage biopharmaceutical company that is developing treatments for adult patients with severe asthma.
The blue-chip company agreed last month to buy Aiolos in a deal worth up to £1.1bn.
Shares in the company fell 0.3 per cent, or 5p, to 1,663p.
The town was divided when it came to Kingfisher.
Analysts at Jefferies downgraded the owner of B&Q and Screwfix, saying continued challenges in France will likely hamper growth.
But his counterparts at Citigroup were much more optimistic, urging clients to buy shares as the retailer should benefit from a recovery in the UK property market.
That sent Kingfisher up 3 per cent, or 6.6p, to 225.1p.
After a difficult first half, housebuilder MJ Gleeson (unchanged at 500p) said there were positive signs of a recovery in demand alongside improving mortgage rates.
The group sold 125 fewer homes in the six months to the end of December, while revenue fell 11.4 per cent to £151.5 million and profits fell 55.3 per cent to £7.2 million.
Airline and travel package company Jet2 said it expects higher annual profits as tourists fly for city breaks, take advantage of an earlier Easter and enjoy the sunshine this summer.
The group forecast profits of between £510m and £525m for the year to the end of March, up from £480m and £520m.
Its shares rose 2.6 per cent, or 34 pence, to 1,360 pence.