GSK shares rebound 28.32% to 1783.4p on continued volatility following its £30.5b spinoff of Haleon
Pharmaceutial giant GSK spun off its consumer health division Haleon yesterday in the largest London listing in a decade. Haleon is now the world's largest consumer health business, owning familiar brands such as Sensodyne, Aquafresh, Advil, and Panadol. GSK shed Haleon in order to place a greater focus on drug and vaccine development.
Yesterday, GSK shares finished down 19.16% as the demerger was seen as a disappointment by many investors. Haleon's valuation ended up significantly lower than the £50b Unilever had offered to pay for the company in January. However, today GSK shares corrected up 28.32% after the consolidation of GSK shares became effective at 8 AM this morning.
Hotel Chocolat shares plummet 44.89% to 129.5p on warning of lower sales growth and profit in the year ahead, following decision to close all US stores
Hotel Chocolat said it expects to register a loss for FY 2022, swinging from a profit of £7.8m the previous year.
Hotel Chocolat said statutory reported profit for FY 2022 was expected to be a loss, being affected by "the outcomes of an internal business review, predominantly as a result of non-cash impairment provisions and costs arising from discontinued activities including the closure of retail stores in the US". The company's US business will be done solely online and wholesale when the last store closes in H1 FY23.
In addition to closing its US stores, the company said it would materially reduce its Japan joint venture, with ongoing investment limited to essential working capital only.
"Given the current global macro-economic climate, the group will now deliberately focus its efforts over the next three years on its most proven and lowest-risk strategies with the greatest potential for further increased profitability and scaled cash generation." the company said.
Polymetal International shares jump 32.08% to 235.1p on plan to dispose of Russian assets
Polymetal International announced a plan to sell its assets located in the Russian Federation in order to shield its remaining business from sanctions. Currently, Polymetal's Russian business accounts for 70% of its sales. Polymetal said it would focus on Kazakhstan instead.
"The primary objective of the potential transaction is to restore shareholder value by seeking to allow the market to appropriately value the Company’s Kazakhstani assets and de-risk its ongoing operations. The Company believes that the potential transaction would also increase the likelihood of the Company’s ability to re-enter all the relevant equity and sustainability indices and regain a significantly wider institutional audience." Polymetal said.
4imprint shares rise 18.85% to 2900p on improved guidance
4imprint raised its full-year outlook today, now expecting US$75m in operating profit, firmly above consensus. The company reported 14% higher total orders and 14% higher average order values in North America in H1 compared to pre-Covid 2019 levels. Overall, demand revenue was up 30%.
As a result, the company now expects to meet or exceed its target of $1 billion in revenue for 2022.