FTSE 250 movers: IDS in focus on Kretinsky interest; Kainos slips again

17th Apr 2024 13:40

(Sharecast News) - FTSE 250 (MCX) 19,408.65 0.33%

International Distribution Services was the big story on the FTSE 250 Wednesday, after it emerged that Czech billionaire Daniel Kretinsky had made a takeover approach for the Royal Mail owner.

Kretinsky already owns 27% of IDS through his investment vehicle Vesa Equity Investment. Following reports by Reuters and the Financial Times that he was considering a bid, EP Corporate Group - Vesa's parent company - confirmed that a non-binding indicative proposal had been made earlier this month.

EP said IDS had rejected the proposed cash offer, but added that it "looks forward to continuing to engage constructively with the board as EP Group considers all its options".

As at 1230 BST shares in IDS had put on 18% at 252.72p. IDS, which owns both Royal Mail and Dutch parcels business GLS, has yet to comment.

Royal Mail was privatised between 2013 and 2015, but has struggled as it looks to maintain its expensive delivery network despite the number of letters being sent falling sharply.

The Royal Mail delivered 14.3bn letters in 2011 but expects to deliver just 7bn this year.

However, under its universal service obligation, the regulated postal business is bound to deliver items anywhere in the UK for the same price, Monday through Saturday.

The Royal Mail has also been hit by stiff competition in its parcels delivery service, however, as well as widespread industrial action.

Kretinsky founded Vesa with business partner Patrik Tkac in 2018. Vesa also holds stakes in J Sainsbury and Foot Locker.

Kainos shares fell after Berenberg also lowered its target price on software company Kainos from 1,315.0p to 1,260.0p on Tuesday following the group's full-year trading update on 15 April.

Kainos warned that annual revenues would be "slightly below consensus" of £400.7m, although adjusted pre-tax profits were seen in line with consensus at £76.3m for a 19.0% margin.

"Reflecting some continuation of these dynamics into FY 2025, we lower our revenue forecasts by 1.7%, 5.0% and 5.0% in FY 2024, FY 2025 and FY 2026, respectively, and reduce our price target from 1,315p to 1,260p, offering circa 24% upside," said Berenberg.

Dr Martens shares tripped up again a day after yet another profit warning and news that CEO Kenny Wilson was on his way out.

On the plus side, mining shares were up after FTSE 100 majors Rio Tinto, and Anglo American and Antofagasta all put out positive production news. Ferrexpo and Hochschild Mining were among the best performers.

Market Movers

FTSE 250 - Risers

International Distributions Services (IDS) 254.80p 18.95%

Ferrexpo (FXPO) 46.35p 4.98%

Watches of Switzerland Group (WOSG) 352.20p 4.26%

Hochschild Mining (HOC) 150.20p 3.87%

Wizz Air Holdings (WIZZ) 2,012.00p 2.71%

PZ Cussons (PZC) 85.10p 2.65%

Ithaca Energy (ITH) 118.40p 2.60%

BlackRock World Mining Trust (BRWM) 561.00p 2.56%

Close Brothers Group (CBG) 450.40p 2.27%

Quilter (QLT) 102.60p 2.19%

FTSE 250 - Fallers

Kainos Group (KNOS) 941.00p -4.66%

Trainline (TRN) 337.60p -2.37%

ICG Enterprise Trust (ICGT) 1,192.00p -2.30%

TBC Bank Group (TBCG) 2,930.00p -2.17%

Dr. Martens (DOCS) 65.60p -2.09%

Harbour Energy (HBR) 292.40p -1.85%

Chemring Group (CHG) 348.50p -1.69%

Auction Technology Group (ATG) 518.00p -1.52%

Baillie Gifford Japan Trust (BGFD) 709.00p -1.39%

Hargreaves Lansdown (HL.) 720.00p -1.37%