Three important things you need to know from across the markets this morning from investment writer, Tony Cross.
Sheffield based aquaculture, genetics, nutrition and health business has this morning announced a strategic review and formal sale process of the business. It’s a £300m market cap company and whilst this may be unremarkable news normally, coming hot on the heels of the Wincanton announcement at the end of last week, management are suggesting again that shareholders are being disadvantaged by the fact illiquidity in the underlying market is suppressing the true valuation. Shares have leapt higher this morning as a result, although have now eased back off the 28% gain seen at one point. Ironically given the concern over liquidity, the stock is currently trading on a spread of around 7%...
BAE Systems drifted lower this morning, marginally underperforming the wider London market as investors continued to mull over the impact of Air Astana – 49% owned by BAE – seeing is IPO pushed back by a month. For a company of BAE’s size the potential windfall here is relatively small, but the resulting price action does suggest that the stock had been bid higher in anticipation.
Engineering play Trifast was one of the worst performers on the London market, falling 25% in early trade before making a modest recovery. The company issued a trading update, noting continued low visibility and volatile demand in a number of regions. Critically the board explain that group results for the full year to 31st March 2024 will now be significantly below expectations, with revenues tipped for £230m and adjusted EBIT margin of 5%, down from prior forecasts of £254m and 6% respectively.
