A third quarter trading update out from the advertising giant WPP this morning underlined the challenging market faced by the company right now. Reported revenues were down 8.4% YoY, with the CEO concluding that current performance was unacceptable. A campaign of product simplification is underway, whilst the business also looks to grow its addressable market but investor reaction has been muted. The full year revenue outlook has been downgraded and the WPP share price is off almost 10% in early trade.
Another Q3 update, this time from the healthcare company Haleon, was published today. This saw organic revenue growth of 3.4% with sectoral outperformance and the company also reiterated guidance for the full year, despite what look like mounting FX headwinds. The market welcomed the update however with the Haleon share price up more than 2% shortly after the open.
The electronics manufacturer saw its share price surge this morning, following news that the company was to be acquired by Cicor Technologies in a cash and shares deal. That puts a value of 155p per share on the business, so today’s gains have taken out most of that delta. Directors at TT agree that the company’s lack of scale is a limiting factor when it comes to scaling, whilst the current macro backdrop adds further risk. The TT Electronics share price was up 59% before 9am.
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