Shares in Haleon fell for a second day after the consumer health giant became Europe’s biggest stock market listing for a decade.
The demerged company, which owns brands including Sensodyne and Panadol, joined the London exchange on Monday following its split from drugs group GSK.
The shares started trading at 330p – valuing it at £30.5billion – but ended their first day at 308p.
Haleon, which owns brands including Sensodyne and Panadol, joined the London exchange on Monday following its split from drugs group GSK
The slide continued yesterday, with the stock down another 2.4 per cent, or 7.35p, to 301p, giving Haleon a value of less than £28billion.
That is enough to make it one of the biggest 20 companies on the FTSE 100 index, and including its debts of £10billion gives Haleon an enterprise value of close to £38billion.
But that is well below the £50billion offered in an audacious takeover swoop by consumer goods giant Unilever earlier this year – a proposal roundly rejected by GSK management.
With City analysts poring over the company, Barclays issued an ‘equal weight’ rating and target price of 348p compared with a ‘buy’ rating from UBS alongside a 380p target price.
There was better news for GSK after its shares bounced back after taking a hit from the Haleon demerger. Shares rose 2.7 per cent, or 46.15p, to 1783.4p.
The FTSE 100 was up 1.01 per cent, or 73.04 points, to 7296.28 and the FTSE 250 rose 1.41 per cent, or 267.44 points, to 19282.59.
The gains came on a day of mixed official figures. While the number in work jumped by 296,000, UK pay tumbled at its fastest rate on record amid the cost of living crisis.
Stock Watch – Photo-Me International
Shares in Photo-Me International surged after it cashed in on soaring demand for passports following the easing of Covid restrictions.
In an upbeat update, the passport photo booth and launderette operator said it expects revenue growth of at least 20 per cent for the full year compared with 2021.
Photo-Me has forecast annual profits of between £79million and £84million as long as no further restrictions are imposed. Shares shot up 18.5 per cent, or 14.8p, to 95p.
Informa provided some welcome news for investors after reiterating its guidance on revenue and profit.
The blue-chip exhibitions organiser last month hiked its full-year expectations to the higher end of the guidance range provided in March. With the new outlook still intact, shares rose 5.9 per cent, or 31.6p, to 568.6p.
Shares in Biffa climbed in early trading after it sealed a ten-year contract to manage the UK’s first Deposit Return Scheme (DRS) for drinks containers – collecting bottles and cans – in Scotland.
The mid-cap waste management firm will take charge of the scheme, which begins next August, with a 20p refundable deposit given for drinks containers between 50ml and three litres that customers return to one of the collection sites. But the shares ended the day down 1 per cent, or 3.8p, at 361p.
Shares in Wise rose 14.9 per cent, or 52.1p, to 400.8p as the money transfer giant said it expects to report revenue growth of between 30 per cent and 35 per cent for the full year.
Joules rose 2.3 per cent, or 0.5p, to 22p after the ‘Yummy mummy’ fashion brand said its full-year profits were likely to beat market expectations following a series of cost-cutting measures.
4imprint stormed towards the top of the FTSE 250 leaderboard. The marketing firm, which makes promotional products such as bags and pens, said it expects to ‘meet or exceed’ its target of £830million in revenue during this financial year.
The firm now expects operating profit for the full year 2022 to be at least £62million, beating analysts’ forecasts.
Peel Hunt maintained its ‘buy’ rating and set a target price of 3900p as shares climbed 18.85 per cent, or 460p, to 2900p.
In The Style was out of fashion, however, saying it is planning for revenue to be broadly flat for 2023 and expects a £2million loss.
The warning came as the digital womenswear brand reported a 28 per cent increase in revenues to £57.3million for its first full year as a public company. Profits fell to £0.6million from £3.8million a year earlier.
Analysts at Liberum said they see ‘a clear path for the group to return to profitability’ at the end of 2024.
The broker reiterated its ‘buy’ rating but cut the target price to 120p from 150p as shares tumbled 32.9 per cent, or 24.5p, to 50p.
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