Marks and Spencer Group PLC (LSE:MKS) shares were down 5.8% to 122.20p in late afternoon trading as broker JPMorgan Cazenove put the FTSE 250-listed firm's shares on "negative catalyst watch" as it warned the cost-of-living crisis for UK consumers has only just begun.
In a note on UK retailers, JP Morgan said the sector is entering an, at best, uncertain environment with input costs and opex still much higher than pre-crisis levels, 12% UK minimum wage inflation, and wholesale utilities costs already more than triple-digit inflation even if now frozen.
Increased costs push profits at James Fisher lower
Shares in James Fisher & Sons PLC (LSE:FSJ) fell 5.9% today after it reported a sharp fall in half year profits reflecting an increase in administrative expenses and as the cost of sales outpaced revenue growth.
Pre-tax profits in the six months to June 30 narrowed to £3.2mln from £8.1mln last year, while revenue advanced 2.0% to £238.4mln from £233.7mln.
But this was offset by administrative expenses which increased by 9.6% to £49.2mln from £44.9mln while the cost of sales also outpaced revenue growth, rising 2.9% to £182.7mln from £177.6mln.
Contract win lifts Avon Protection
News of a $15.1mln contract win from the US Department of Defence sent shares in Avon Protection PLC (LSE:AVON) soaring by 34% today.
The order is for 380,000 pairs of M61 filters worth with deliveries expected to commence in early in its 2023 financial year.
Avon also said trading in the second half of 2022 had improved in line with management's expectations.
Autocentres arm lifts Halfords
Shares in Halfords bucked the weaker market soaring 15.5% today after an upbeat trading statement covering the 20 weeks to August 19th.
The company fared well during the pandemic due to the boom in cycling but in June shares crashed after it warned that inflation was denting earnings and demand.
But today the group reported a 9.2% increase in total revenue for the 20 week period and continues to target full-year underlying pre-tax profits of £65mln to £75mln with second half profits set to exceed those of the first half.
Peel Hunt described the statement as “highly positive given the external conditions” with an eye-catching performance from the Autocentres division which saw 19% like for like growth boosted by better productivity.
Reiterating its buy rating the broker said this was a “good effort” with no change to forecasts.
GB Group shares soar on possible US bid
Shares in GB Group (LSE:GBG) PLC soared 21.74% today after US private equity firm GTCR said it is currently considering a possible cash offer for the cyber security company.
In a statement released after the UK market close on Tuesday the Chicago-based firm said that there can be no certainty any firm offer will be made, nor as to the terms on which any firm offer might be made.
GB Group advised shareholders to take no action at this stage.
AJ Bell investment director Russ Mould mourned another loss to the “already shrinking UK tech sector” with “cybersecurity GB Group the latest on the block as it is targeted by a US private equity firm.”
He pointed out that the weak pound left UK companies vulnerable to such approaches.