MARKET REPORT: Pest control firm Rentokil is bugged by weak US performance

A wave of questions about bed bugs was not enough to save Rentokil Initial.

Shares in the pest control company, dubbed the ‘royal pied piper’ after the Buckingham Palace contracts in the 1960s, tumbled 18.6 per cent (110.9 pence) to 483.9 pence after it warned of weaker demand in North America.

The FTSE 100 company said sales in the region, which makes up 60 percent of group revenues, rose just 2.2 percent in the three months to the end of September.

It warned that its performance in North America would be “marginally below previous expectations.”

That clouded an otherwise ‘good overall performance’ as third-quarter sales rose 53 percent to £1.4 billion.

Slump: Shares in Rentokil, dubbed the ‘royal pied piper’ after the Buckingham Palace contracts in the 1960s, plunged 18.6% after it warned of weaker demand in North America

Rentokil said inquiries about bedbugs in Britain rose by 32 percent in the first nine months of this year as concerns grow about an influx from France.

On a record day for corporate results, the FTSE 100 fell 1.2 percent, or 88.47 points, to 7,499.53 and the FTSE 250 fell 1.1 percent, or 190.32 points, to 17,213.14, as the conflict clouded prospects in the Middle East.

Mondi joined Rentokil in dragging down the blue chip index after the paper and packaging company said demand remained ‘subdued’ in the third quarter.

In the three months to September 30, the company made a profit of £227 million, compared to £392 million in the same period last year. Shares fell 6.1 percent, or 81p, to 1,252p.

Centamin’s gold production fell 21 percent to 101,370 ounces in the three months to the end of September.

That brought the miner’s production for the first nine months of 2022 to 321,931 ounces, putting it on track to reach the low end of its range of 450,000 to 480,000 ounces this year. Shares fell 2.6 percent, or 2.25p, to 83.05p.

The London Stock Exchange Group did its best to lighten the mood, reiterating that revenues, which rose 8 percent to £1.97 billion in the three months to the end of September, should grow in the upper 6 percent range to 8 percent per year. cents reach this year. It rose 1.9 percent, or 152p, to 8226p.

Stock watch – Oxford Nanopore

Oxford Nanopore posted gains after a massive investment and collaboration aimed at accelerating access to clinical markets.

The gene sequencing company said Biomerieux, a global diagnostics company, has agreed to purchase 29 million shares worth almost £70 million.

And it has joined forces with US healthcare provider Mayo Clinic to develop tests for cancer and improve patient care.

The shares, which peaked at 716p in 2021 before plummeting, rose 14.3 per cent, or 26.9p, to 215p.

Mike Ashley’s fashion empire has increased its stake in Asos for the second time this week.

Frasers Group, whose brands include Sports Direct, Jack Wills and Flannels, now owns 23 percent of the online retailer. Asos fell 2.9 per cent, or 11.8 cents, to 390.2 cents, while Frasers fell 1.6 per cent, or 13 cents, to 786 cents.

Dunelm’s first quarter turnover rose 9 per cent to £390 million as customers left their homes.

But continued uncertainty around the economy, fueled by the home goods retailer, appeared to dampen sentiment, sending the share price down 0.9 percent, or 9 cents, to 1,028 cents.

Hollywood Bowl rose 4.3 percent, or 10 cents, to 243.5 cents as it cashed in on families flocking to the bowling alleys to keep their children occupied during the wet summer holidays.

Sales rose 11p to £215m in the year to the end of September – better than the £201m ​​analysts had expected.

McBride, which supplies cleaning and hygiene products to supermarkets, says pressure on family finances has pushed customers to buy own-brand products, meaning profits were higher than expected. Shares rose 22.2 per cent, or 7.25p, to 39.9p.

Data analytics company Relx said sales rose 8% in the first nine months of 2023, but shares fell 0.3 percent, or 8p, to 2880p.

Schroders’ assets under management fell to £724.3 billion from £726.1 billion at the end of the previous quarter in the three months to September 30, as investors became more nervous about turbulence in financial markets. Shares fell 2.6 percent, or 10p, to 374.3p.

Man Group rose 0.4 per cent, or 0.9p, to 215.2p, while assets under management rose from £125m at the end of June to £132m at 30 September.