MARKET REPORT: One savings bank dives into the mortgage price war
Shares of One Savings Bank (OSB) plummeted amid the mortgage price war.
The investment property lender expects net interest margin – a measure of the difference between what the lender pays out to customers with deposits and what the lender generates in loans – to fall this year.
OSB attributed the crisis to increased competition in the ‘subdued’ mortgage market and rising deposit costs.
The group also expects its loan book to grow less than hoped this year. Shares fell 18.8 percent, or 90.8p, to 393.4p in their biggest one-day fall since July last year.
The FTSE 100 rose 0.8 percent or 66.30 points to 8,347.35 and the FTSE 250 rose 0.7 percent or 141.87 points to 21,094.16.
Downturn: One Savings Bank expects its net interest margin — a measure of the difference between what it pays out to customers with deposits and what it generates in loans — to fall this year
Dozens of companies, including Rio Tinto (up 0.8 percent, or 35.69p, to 4,751p), Hikma Pharmaceuticals (up 0.5 percent, or 10.89p, to 2,074p) and Harbour Energy (up 2 percent, or 5.51p, to 286p), traded ex-dividend.
This means that investors who buy shares in these companies from now on will not receive the next payout.
Wizz Air fell 5.8 percent, or 76p, to 1,236p after Barclays downgraded the airline’s rating.
The battle for shopping centre operator Capital & Regional – down 1.4 per cent or 0.9p to 65.7p – will continue as Newriver and property investment company Praxis have until September 12 to submit bids.
Due to customer delays, ITM Power’s annual turnover has fallen by millions.
The green energy company had been expecting to report revenues of between £35m and £40m for the 12 months to April next year, but is now targeting £18m to £22m. Shares fell 6.4 per cent, or 3.7p, to 54.45p.
Stock Monitoring – Accesso Technology
Accesso Technology, which provides software that allows customers to buy tickets and queue online for events, has warned that revenue will be negatively affected by weaker trading over the summer and project delays.
The group expected to achieve a turnover of at least £124 million this year.
Due to project delays in the Middle East and weak trading in July, the group now forecasts annual turnover of around £117m to £119m.
The shares fell 27.4 percent, or 192p, to 508p.
According to Gooch & Housego, delays in deliveries to customers and suppliers will affect profits.
The company, which makes medical eye scanners among other products, expects sales to fall in the second half of the year, while profits are expected to be £1.5m lower than forecasts for the year to the end of September.
The share price fell 3.4 percent, or 16p, to 460p.
Cider and lager seller C&C expects its annual forecasts to be met despite the bad weather in June.
The drinks giant behind Bulmers and Tennent’s is confident it will meet its profit expectations for the current financial year.
The company also plans to launch a second £13m share buyback programme from September, which sent the share price up 3.2 per cent or 4.8p to 156.4p.
Peter Brotherton is stepping down as chief executive of IT services provider Redcentric after six years in the role. Annual results show revenue rose 15.2 per cent to £163.2m in the year to March, while losses narrowed from £12.5m to £4.7m.
Redcentric fell 0.7 percent, or 1p, to 138.75p.
Robinson, which makes plastic bottles, trays and containers, has hired a new CEO, John Melia, in December.
The company, which counts Reckitt Benckiser, Unilever and Fortnum & Mason among its clients, reported higher first-half revenue, up 2.4 percent, or 2.5p, to 107.5p.
Finally, Devon miner Tungsten West appointed Jeffery Court as CEO to replace Neil Gawthorpe – rising 10 percent, or 0.25p, to 2.75p.
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