MARKET REPORT: Profit warning hits kitchen gadget maker Ultimate Products knocking 50% off share price
The UK firm behind kitchen brands such as Russell Hobbs and Salter went off the boil yesterday after warning that it is unlikely to grow revenues in its 2018 financial year – despite only being six weeks into the period.
Trading as UP Global Sourcing Holdings, Ultimate Products – whose bosses banked more than £50million when it floated in March – said punters are spending less on non-food items due to falling confidence, while prices have increased due to the weak pound.
As a result of the caution, Ultimate Brands said retailers are putting off the purchase of items for the autumn and winter 2017 season until the last minute.
On top of this, the firm said that as much as £5million of its revenue for the current financial year will not be recognised until 2019 as a result of a delay in the recording of sales with a new European client.
Gadget slump: Ultimate Products said UK punters are spending less on non-food items due to falling confidence, while prices have increased due to the weak pound
Shares fell 50.5 per cent, or 106p, to 104p, an all-time low.
After months of battering London-listed Acacia Mining, the government of Tanzania took aim at Petra Diamonds yesterday, accusing the miner of undervaluing a package of precious metals by more than £11million.
Petra Diamonds saw £27million wiped off its market value after warning that a parcel of diamonds from its Williamson mines in Tanzania has been blocked from export to its office in Belgium.
Although Tanzania’s government has not formally declared the reason behind its actions, Petra said some of the staff at Williamson – in which it owns a 75 per cent stake – are being questioned by authorities.
Because members of its staff are being questioned, Petra said operations at Williamson have been temporarily suspended for safety and security reasons.
Over the weekend, Tanzania said it seized the diamonds at an airport, intending to nationalise them after valuing them at around £22.4million – far higher than the £11.2million quoted by Petra.
The country’s finance minister Philip Mpango said he had also ordered a criminal investigation into all officials involved in declaring the value of the diamonds and issuing export permits, and will organise a fresh valuation.
But yesterday, Petra said the government has complete oversight of diamonds produced at Williamson – authorities own a 25 per cent stake of the mine – and said it is not responsible for diamond valuation prior to export.
The accusations made by Tanzania’s government are reminiscent of those made against fellow FTSE 250 member Acacia (down 4.7 per cent or 9p to 183p).
Authorities slapped Acacia with a £144million tax bill earlier this year for allegedly undervaluing the value of its gold ore – claims which Acacia vigorously denies. Yesterday, Petra’s shares fell 5.7 per cent, or 5.1p, to 84.85p.
Avocet Mining fell 0.5 per cent, or 0.6p, to 25.5p after resuming talks to restructure its balance sheet after reporting progress with creditors as it struggles to keep open its mine in Burkina Faso.
The mine has been plagued by disruptions, including a two-month shutdown, because funding for operations has been hit by the need to make overdue payments to suppliers.
The FTSE 100 rose 0.5 per cent, or 36 points, to 7413.6. The index was boosted by a rally across the insurance sector, driven by relief that Hurricane Irma was not as destructive as it could have been alongside the absence of missile tests in North Korea over the weekend.
Property and casualty insurance firm Lancashire Holdings led the pack, up 10.3 per cent, or 63p, to 674p, while Beazley rose 4.3 per cent, or 19.2p, to 470.2p, and Hiscox jumped 3.4 per cent, or 41p, to 1265p.
Most watched Money videos
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Dacia Spring is Britain's cheapest EV at under £15,000
- How to invest for income and growth: SAINTS' James Dow
- Mini unveil an electrified version of their popular Countryman
- German car giant BMW has released the X2 and it has gone electric!
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Some drivers are forced to choose between buying food or...
- Is coin minting about to become another lost British art?...
- Musk's £45bn payday goes to a vote just months after the...
- Deliveroo returns to order growth as international trade...
- Not a student? You can still bag a FREE railcard by...
- AJ Bell shares jump as it tops 500,000 DIY investors with...
- Dunelm shares slip amid 'challenging sales environment'
- Hedge funds betting against UK water firms as debt levels...
- Liontrust boss blames unloved UK stocks for £6bn fund exodus
- Saga cruises sails back into the black as passenger...
- Bank of England boss Andrew Bailey forecasts big...
- BUSINESS LIVE: EasyJet winter losses narrow; Hipgnosis...
- Czech Sphinx launches audacious swoop on troubled Royal Mail
- MARKET REPORT: Luxury stocks sparkle as LVMH sales soothe...
- French owner of Gatwick to buy majority stake in...
- EasyJet narrows winter losses as holiday demand...
- Is the child benefit state pension trap claiming MORE...
- Hands off the King's head: We must resist this assault on...