Essentra plummets on poor pipeline

Monday, 21 November: The FTSE 100 was flat as miners and oil majors proved to be the largest gainers on the index as a softer dollar made commodities more affordable, with Brent crude clawing back losses to draw level for the month at c. $48.50/bbl. The FTSE 250 slipped three-quarters of a percent lower, led lower by Essentra, the largest faller in London today.
Investors rushed for the exit with Essentra after it issued a profit warning for 2016 sending the stock 20% lower. The plastic and fibre products company cited market softness in its pipe protection arm and slower-than-expected improvements in its packaging unit. Adjusted operating profit guidance was reduced from £155-£165m range to £137-142m.
Mitie Group was another casualty of investor sentiment, as shares slid more than 10% as it announced its second profit warning of the year, and swung to a large first-half pretax loss. This was as the Group decided to write off its healthcare business. The support services company cited the UK’s vote to quit the EU as hitting revenue as clients stripped out costs. The stock was the most shorted among European firms announcing earnings this week, with 13.3% of its shares out on loan.

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