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MARKET REPORT: De La Rue exits FTSE 250 as rising costs hit profits

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It literally has a licence to print money, yet for De La Rue that didn’t count for much after it sounded the profit alarm, driving the share price down 10.1 per cent.

Such has been the autumn from grace for the banknote printer, it has dropped out of the mid-cap FTSE 250 index to be counted among the many City’s smaller fry as of late. 

De La Rue said its earnings can be hit by the rising input costs because it also cautioned over a ‘substantial degree of uncertainty within the outlook’.

Profit warning: Banknote printer De La Rue said its earnings can be hit by the rising input costs because it also cautioned over a ‘substantial degree of uncertainty within the outlook’

‘There may be a possibility that disruption may affect revenue,’ it said. The stock, down 50 per cent within the last 12 months, was changing hands for 10.2p less at 99.8p yesterday.

The FTSE 250 gained 84.22 points to shut at 19,934.04.

Turning to the broader market, the FTSE 100 advanced 38.4 points to 7522.75. Gains were led by Imperial Brands, up 3.2 per cent, or 56.5p, to 1841.5p, after Goldman Sachs tipped the tobacco firm’s shares.

Retailers were struggling over concerns about the price of living crisis and a warning from Marks & Spencer that shoppers are tightening the purse strings.

Tesco was down 1.2 per cent, or 3p, to 255.3p, Sainsbury’s lost 1.3 per cent, or 3p, at 229.3p but Marks gained 4.8 per cent, or 6.4p, to shut at 138.65p.

The day’s big riser got here from the world of medical technology with Angle, the maker of a blood test that may detect cancer, soaring 58.4 per cent, or 57.5p, to 156p after getting a green light from the US Food & Drug Administration.

Approval for its parsortix testing system from the regulator heralds a recent era for personalised cancer care in a market estimated to be price in excess of £100billion.

Stock Watch – Genflow Biosciences

Belgium and UK-based Genflow Biosciences, a pioneer in developing anti-ageing drugs, ignored the lure of US markets and listed in London in January, raising £3.7million.

It makes treatments for a healthy long life and is targeted on a stress-responsive protein – Sirtuin 6 – researching the role it plays in individuals who live to 100 and beyond.

Yesterday, it filed patent applications related to the therapeutic uses of the protein and its variants. 

Shares were flat at 4.75p.

 Caspian Sunrise, a Kazakhstan oil and gas producer, rose 41.4 per cent, or 1.2p, to 4.1p, because it reported an increase of 1,400 barrels of oil to its production capability to 4,000 per day.

Elsewhere, the £310million takeover of M&C Saatchi by Next 15 Communications is ‘removed from a done deal’, reckons broker Peel Hunt.

The maths is interesting and leaves the acquisition finely poised as tech entrepreneur Vin Murria, whose earlier bid was trumped by Next 15, holds greater than 22 per cent of M&C, which could find yourself being a blocking stake.

Next 15 requires 75 per cent of investors to get behind its board-backed 247.2p-per-share money and shares deal, so it requires a robust turnout from investors get the transaction over the finish line without Murria’s backing. 

Saatchi fell 1.9 per cent, or 4p, to 206.5p

Meanwhile, a proposed £482million takeover for Randall & Quilter seems to have hit the buffers, with US suitor Brickell saying it’s pulling out just as shareholders were about to vote on the deal. 

The AIM-listed insurance group said it had received a letter from Brickell Insurance – controlled by Miami-investment group 777 Partners –alleging that it was in breach of certain obligations under the terms of the deal.

R&Q said it doesn’t consider it has breached the terms or that Brickell had the suitable to terminate the offer. 

It said it would seek the US firm’s consent for an equity fundraising as an alternative, but saw shares plunge 42.1 per cent, or 59p, to 81p.

Morses Club also slumped – by 31.1 per cent, or 2.5p, to five.55p – after joining the list of corporations to have pushed back results this 12 months. The sub-prime lender is delaying its figures three months to August.

Drug developer Synairgen wheezed 24.5 per cent lower, or 8.52p, to 26.3p after reporting an increased operating lack of £57.9million.

Although its lead drug failed to fulfill the targets of a late-stage Covid clinical trial, management said further evaluation has provided encouragement that it has the potential to save lots of patients with severe viral lung infections.

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