FTSE-250 listed oil and gas company Ithaca Energy saw its shares pushed to the foot of the table on Tuesday following news that two key shareholders had sold down a significant stake in the business. An accelerated book build process was used, with a price of 213.75p per share achieved. The share price has continued to sell off below that level although it’s worth noting that the two parties who sold down remain significant shareholders. The lack of free float here could well explain the overreaction. The Ithaca share price was down 12% in early trade.
Half year numbers from the house brick manufacturer Michelmersh were issued this morning. The company noted a modest increase in revenues, but a sluggish performance in mainland Europe acted as a drag on profitability and margins. There’s confidence that the performance in the second half will improve and the temporary suspension of production in Belgium is set to resume in Q4, with management believing the company to be well positioned for the medium term. The note also highlights outperformance in the UK market but this hasn’t been sufficient to placate shareholders with the Michelmersh share price down 10% shortly after the open.
The textile rental business was only recently admitted to the main board, has a market cap of more than £500m and impressed the market this morning with interim results. These highlighted a 5% improvement in revenues, an uptick in margins and adjusted operating profits up by 14%. There’s a strong balance sheet, further margin improvement is forecast and the company also announced the commencement of a £25m share buyback. The Johnson Service share price was up 12% approaching 9am.
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