Investors bet on GVC


Wednesday, October 9: Indices in London were mixed at the close, with the FTSE 100(+0.33%) closing out the day in the green due to a raft of mining, financial and consumer stock which closed higher whilst a mixed basked of equities weighed the FTSE 250 lower(-0.15%).

AIM-listed Scapa(+1.19%) traded higher intraday as the business guided it was set to meet with FY expectations in its half-year trading update. On a statutory basis, revenues grew 14.3%(CC terms: 10.4%) driven by Healthcare and the full period effect of the Systagenix technology transfer. Statutory Group trading profit reflected the impact of the ConvaTec contract loss and is expected to be approximately 17% below the prior period. The Industrial & Healthcare business informed the market that organic revenue growth of 4.6% was seen in the Healthcare division, despite the loss of aforementioned ConvaTec volumes. H2 is expected to benefit from a strong pipeline of new products and technology products. Industrial revenues increased 3.9%(CC: 1.5%) despite market headwinds, notably in the autos sector. Such challenges are not expected to abate but a strong pipeline makes for a rosier outlook.

Gaming giant GVC(+5.15%) raised full year guidance and simultaneously caught the eye of investors. The gambling company raised EBITDA guidance to between £670-680m, up from a previously guided £650-670m. In the three months ended September 30, the company saw online net gaming revenue(NGR) increase 12%, despite prior year numbers including the benefit from the FIFA World Cup. UK retail was reportedly ahead of expectations despite the introduction of legislation to cut the max stakes on fixed-odds betting terminals to £2. Over-the-counter NGR in the U.K. retail business was 7% ahead of Q3 ’18 on a LFL basis, as new FOBT legislation saw NGR from machines fall 36%.

European equities were higher at the close, with the FTSE 100 +0.33%, the CAC 40 +0.78% and the DAX 30 +1.04%.

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