10.41am: Amigo jumps as FCA clears it to resume lending
Shares in Amigo Holdings PLC (LSE:AMGO) (Amigo Holdings PLC (LSE:AMGO)) jumped 41% on Friday to 5.30p after the industry regulator gave the embattled firm the all clear to resume lending.
The guarantor lender, which was derailed by a barrage of customer complaints over alleged mis-selling, restricted lending at the start of the pandemic before suspending all activity in November 2020.
Following a lengthy investigation, the Financial Conduct Authority agreed a rescue plan with Amigo, which included paying compensation to creditors and returning to lending by 26 February 2023.
The high court sanctioned the scheme in May, and on Friday Amigo said the FCA was now satisfied it had met the threshold conditions for Amigo to return to lending.
Amigo said lending would resume via pilot scheme, which would limit the level of new loans for at least two months.
Danny Malone, chief executive, said: "We return to lending with FCA approval as a changed company in terms of our values and the way we operate, with a focus on supporting financial inclusion and mobility for customers.
"A successful pilot will also move us a step closer to paying out compensation to redress creditors under the terms of the scheme."
9.30am: Mondi rises after positive Q3 update
Packaging firm Mondi PLC (LSE:MNDI) said volume and price growth is more than offsetting inflationary pressure sending shares higher.
In the third quarter of 2022, underlying earnings before interest, tax, depreciation and amortisation surged 55% year-on-year to EUR450mln from EUR290mln.
"Higher average selling prices and overall volume growth more than offset significant cost pressures," it said. "While significant geopolitical and macroeconomic uncertainties remain and we anticipate continued inflationary pressures on our cost base as we enter the fourth quarter, we are confident that the group will continue to demonstrate its resilience and deliver a year of good progress" the company said.
Shares rose 2.43% to 1,409.50p.
9.25am: International Distributions Services pluges as losses mount following stroke action
Shares in Royal Mail owner International Distributions Services PLC (LSE:IDS) (International Distributions Services PLC (LSE:IDS)), (IDS) slumped 14% to 180p after it disclosed the full financial impact of industrial action at its UK parcels and letters business and told the market it would be cutting 10,000 jobs.
In a downbeat update on trading, the company said just three days of industrial action had cost the business £70mln as warned the market it expects the Royal Mail delivery arm to make an operating loss of £219mln in the first half.
Broker Peel Hunt said the loss was worse than its £136mln forecast, and even allowing for £70mln which is due to industrial action, meant the the underlying £149mlm is still worse and due to the lack of efficiency improvements.
Peel Hunt also pointed out IDS states that full year 2023 operating losses will be c.£350mln compared to its bottom of the range forecast of a £55mln loss based on eight days of industrial action that has either taken place or been notified.
But the broker noted the CWU has threatened a further 16 days of strikes, which would only increase the losses and damage Royal Mail's ability to retain parcel volumes.
Peel Hunt reiterated its sell rating.