Shares in Darktrace fell as the cybersecurity firm cut its earnings forecasts.
The Cambridge company said it expected a ‘tale of two halves’ in the year ahead with growth only coming in the second half.
The stock, which listed in 2021 at 250p, fell 2.5 per cent, or 9.2p, to 360p.
Darktrace said revenues jumped 31.3 per cent to £44million in the 12 months to the end of June while annual profits jumped nearly eight times to £32.8million. But it cut forecasts for the year ahead.
The downgrade partly reflected changes to commission payments.
Its sales team will be paid bonuses in a lump sum rather than in two instalments, which it said is how the industry tends to operate and will make it easier to hire and retain ‘key experienced talent’.
Shares hit: Darktrace said it expected a ‘tale of two halves’ in the year ahead with growth only coming in the second half
But it will affect cash flow. Russ Mould, investment director at AJ Bell, said: ‘Darktrace has had a volatile time as a public company – it was under pressure thanks to associations with controversial tech entrepreneur Mike Lynch.
An independent audit of accounts gave it an apparent clean bill of health over the summer and it really needs a steady period of delivery to help win credibility.’
The FTSE 100 fell 0.2 per cent, or 11.79 points, to 7426.14 and the FTSE 250 was down 0.2 per cent, or 39.60 points, to 18,451.82.
AstraZeneca sank 1.2 per cent, or 130p, to 10,606p as the pharma giant revealed US regulators have asked for more evidence on mitigating risk before approving its drug Ultomiris.
It is used in the treatment of adults with a rare disease where the immune system targets healthy tissues and cells.
Ashmore boss Mark Coombs insisted there is ‘mounting evidence that the negative cycle has turned’ as the asset manager’s client activity levels increase.
The upbeat outlook came even though the firm, which invests in emerging markets such as Colombia, Indonesia and Saudi Arabia, saw assets under management fall 13 per cent to £45billion as clients pulled £9billion out of its funds. Shares rose 1.3 per cent, or 2.4p, to 194.7p.
Stock Watch – Genedrive
Genedrive soared 11.1 per cent, or 1.25p, to 12.5p after regulators approved the sale of a test that helps manage treatment in stroke patients – paving the way for its use by the NHS.
Under the test, a single cheek swab sample is taken and quickly identifies six genetic variants that can reduce the effectiveness of a drug given to those who suffer from ischaemic strokes.
The test can be done at the bedside or in a ward, with the results being delivered in around an hour.
Private equity firm Bridgepoint, which has owned Burger King in the UK since 2017, has bought the US infrastructure manager Energy Capital Partners (ECP) for £835million. The deal will see ECP shareholders own up to 25 per cent of the enlarged group.
William Jackson will remain as chairman but step down from also being chief executive so that Raoul Hughes, managing partner of Bridgepoint, can take over next month. Bridgepoint jumped 8.2 per cent, or 14.4p, to 189.3p.
Bakkavor rose 2 per cent, or 2p, to 101p after the company, which provides fresh prepared food such as salads, sandwiches and pizzas, increased its annual forecasts.
Revenue was up 7.9 per cent to £1.1billion in the six months to July 1 while profit rose 2.1 per cent to £43.4m.
Profit is likely to be at least in line with the £89.4million it made the year before, and around £4million ahead of market forecasts.
Oxford Nanopore, which is backed by science investor IP Group, fell 6.8 per cent, or 15.8p, to 215.2p after the gene sequencing company widened its losses and narrowed annual revenue guidance.
Losses hit £70.1million in the first half of 2023, up from £30.2million the year before. It expects its Life Science Research Tools revenue to rise 18 to 25 per cent in 2023, down from a previous forecast of 16 to 30 per cent.
Severfield, the structural steel group which is helping to build Everton football club’s stadium, warned soaring inflation and rising interest rates have forced clients to delay projects.
Among them was Sunset Studios, which paused construction on a film production base in Hertfordshire. Severfield sank 7.7per cent, or 5.2p, to 62.6p.
