G4S Leads FTSE 100 Lower as Growth Outlook Cut
Shares tumbled nearly 5% after downgraded revenue growth forecast
by Abi Moses on 12th November, 2017 if ($blog_item->blog_updated_date != '0000-00-00 00:00:00'): ?> and updated 30th November, -0001 12:00am endif; ?>
Shares in the world’s largest security group, G4S, tumbled nearly 5% after it downgraded its revenue growth forecast.
The company now predicts revenue growth of approximately 3-4% this year, in comparison to an early prediction of 4-6%. This percentage comes after a disappointing performance in the Middle East and India.
G4S was the largest faller in the FTSE 100, with the index closing down 49.17 points at 7,513.11.
Primark owner AB Foods dropped over 3.7% regardless of posting a rise in profits.
The food-to-fashion group stated that the adjusted operating profit heightened 22% to £1.36bn in the year to 16 September, with group revenues higher by 15% at £15.4bn.
However, AB Foods shares were hit following a statement that its profits as a sugar business were set to tumble this year as a result of lower European Union prices.
Outside of the FTSE 100, shares in the upmarket drinks maker, Fevertree, soared nearly 15% after its full-year results were set to be “materially ahead” of current market expectations. The company said that its UK trading had been “particularly impressive”.
Meanwhile, on the currency markets, the pound dropped 0.2% against the dollar to $1.3156.
Oil prices took a drop after having surged in the previous session. At the beginning of the week, prices had heightened by the most for six weeks after Saudi Arabia’s crown prince moved to tighten his grip on power at the weekend.
Overall, Saudi Arabia is the world’s largest exporter of crude oil and the second-largest producer of the commodity.
Additionally, Brent crude dropped below the $64-a-barrel mark to $63.81 yesterday, while US crude tumbled 0.4% to $57.15 a barrel.
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