Shares in AO World jumped after it bumped up its annual profit forecast for the third time since November.
The Bolton-based online electrical retailer, which sells domestic appliances such as washing machines and dishwashers as well as phones and laptops, now expects to report between £37.5million and £45million of profit for the year to March 31. This is up on the previous range of £30million and £40million it gave in January.
AO World attributed its latest upgrade to the success in streamlining its business. Shares soared 25.2 per cent, or 14.15p, to 70.4p.
Shares boost: AO World now expects to report between £37.5m and £45m of profit for the year to March 31. This is up on the previous range of £30m and £40m it gave in January
The FTSE 100 fell 0.7 per cent, or 58.83 points, to 7876.28 and the FTSE 250 gained 0.09 per cent, or 17.18 points, to 19903.28.
The latest quarterly FTSE reshuffle – based on how companies are ranked in terms of value at the close of trading last night – is unlikely to see any change among the blue chips.
But there is plenty of movement among the mid-cap stocks with greetings card company Moonpig and gambling giant 888 set to be booted out of the FTSE 250 after a slump in their share prices.
Moonpig listed on the stock market in London to great fanfare in February 2021 and was seen as a potential pandemic winner as shoppers flocked online to buy cards and gifts for friends and family during lockdowns.
But its shares failed to live up to the hype even at the start. And they were further hit as lockdown restrictions ended and shoppers returned to stores.
Shares slipped 0.3 per cent, or 0.3p, to 117.4p yesterday, leaving them well below the listing price of 350p and with a market value of around £400million – putting it in line for demotion from the FTSE 250. 888, which owns 1,400 William Hill shops in the UK as well as online brands including Mr Green, faces tougher gambling regulations as well as an internal investigation into suspected money laundering on VIP customer accounts in the Middle East.
Stock Watch – Safestay
Safestay said business is returning to normal after the turmoil caused by Covid.
The hostel chain saw the average price of a bed at its sites rise to £23.70 in 2022 from £19.70 a year earlier.
Occupancy rates across its 16 hostels reached 63 per cent – up from 35 per cent in 2021.
As a result, revenues look set to have hit £19million last year.
It is also expecting to report a profit of £5.9million having made a £1million loss a year earlier.
Shares jumped 30 per cent, or 6p, to 26p.
Its shares are down nearly 20 per cent so far this year and 85 per cent in the past 18 months, leaving it on course for relegation.
The stock rose yesterday by 3.4 per cent, or 3p, to 70.65p , giving it a value of £315million.
Chemicals group Croda International plunged 5.3 per cent, or 366p, to 6562p after sales tumbled at its consumer care division.
This overshadowed a 10.6 per cent rise in sales across the whole group to £2.09billion in 2022, while profit jumped 89.6 per cent to £780million.
Meanwhile Intertek saw its revenue increase by 4.9 per cent on a like-for-like basis to £3.19billion in 2022.
The quality assurance and product testing business, which advises companies on managing risks across their supply chains, said it expects ‘mid-single digit’ like-for-like revenue growth this year. Shares fell 4.6 per cent, or 200p, to 4174p.
Serco, the outsourcing giant which does security, transport and immigration work for the Government, saw its revenue increase by 2 per cent to £4.5billion in 2022 even though Covid-related business fell by £480million.
The company, which worked on the test and trace programme during the pandemic, reiterated its forecasts for this year, with profit expected to be around the same level as the previous 12 months. Shares gained 4.7 per cent, or 7p, to 156p.
Student accommodation provider Unite Group cheered as it returned to full occupancy during the 2022-23 academic year.
It said an increasing number of students hoping to nail down places earlier meant it now expected rental growth of between 6 per cent and 7 per cent for the 2023-24 academic year.
This is up on the previous target of 5 per cent. Shares fell 0.2 per cent, or 2p, to 983p.
