Shares in the owner of Royal Mail rose after its biggest shareholder increased its stake.
In a vote of confidence for the postal group, Daniel Kretinsky’s Vesa Equity Investment increased its holding in International Distributions Services (IDS) from 26.15 per cent to 27.58 per cent.
The billionaire who has been dubbed the ‘Czech sphinx’ set up his investment vehicle, which also has a stake in Sainsbury’s, five years ago.
Its latest backing should provide some much-needed respite for investors in IDS, which last week reported that its half-year losses trebled to £169million.
It came as losses at its Royal Mail arm hit £319million – more than wiping out profits of £150million at its international sister arm GLS.
Special delivery: Daniel Kretinsky’s Vesa Equity Investment raised its holding in Royal Mail-owner International Distributions Services from 26.15% to 27.58%
Shares in IDS gained 2.5 per cent, or 6.2p, to 252.5p, taking gains for the year to nearly 20 per cent.
The FTSE 100 rose 0.2 per cent, or 14.07 points, to 7483.58 while the FTSE 250 was almost flat – rising by just 0.66 points, to 18,480.83.
First Group hit the buffers after the bus and rail operator swung to a loss of £68.4million in the six months to the end of September, having made an £8.7million profit during the same period last year.
It came as the group suffered a one-off charge of around £142million on its balance sheet as it pulled out of two local government pension schemes.
The company’s shares reversed 4.5 per cent, or 7.9p, to 167.1p.
There was good news for Intertek – up 3.4 per cent, or 131p, to 3960p yesterday– as the quality assurance firm reported its highest revenue growth in the last ten years amid soaring demand for its services.
Stock Watch – Windward
Windward rose after the maritime analytics company won a five-year contract worth £3million with a European national coastguard.
The AIM-listed Israeli firm, chaired by the former BP boss Lord Browne, uses data and artificial intelligence to solve issues in maritime trade.
Windward’s technology will be used by the European customer to protect it against the ‘increasing sophistication of maritime bad actors’.
Shares gained 9.1 per cent, or 6p, to 72p yesterday.
The City liked what it read in Sage’s full-year results on Wednesday as Barclays, Deutsche Bank and Citigroup all raised the target price on the accounting software giant’s stock.
The shares, which have risen 52 per cent this year, added 0.04 per cent, or 0.5p, to 1130.5p.
PZ Cussons, which is behind brands such as Imperial Leather soap, Carex and St Tropez, expects higher first-half revenues following an improved performance in Nigeria.
Shares increased 3.8 per cent, or 5.2p, to 143.2p.
North Sea oil producer Ithaca Energy rose 8.6 per cent, or 13.2p, to 166.4p after Goldman Sachs analysts raised its target price to 227p from 215p.
It came a day after the group reiterated its forecasts for this year, including a commitment to pay out a £319million dividend for 2023.
Brick manufacturer Michelmersh remained hopeful that its annual results will meet the market’s expectations as resilient trading in the final quarter of this year outweighs a downturn in the construction industry and consumer concerns over the state of the economy.
Shares strengthened 1.2 per cent, or 1p, to 82p.
Mitie slid 1.3 per cent, or 1.4p, to 105p but has set its sights on reaching its recently upgraded forecast for an annual profit of at least £190million after the company, which provides engineering, security and cleaning services to various public and private sector customers, posted higher first-half revenues and profit.
Avation flew higher as it said publicly listed aircraft leasing firms such as itself are well-placed to take advantage of a shortage of ‘viable’ planes.
The group said such conditions would prove challenging for its rivals who are primarily backed by private equity or debt.
Its shares ascended 3.2 per cent, or 4p, to 128p.
