Europe Movers: Adesso, Ceconomy, Diploma, Mission Group, Victrex

Inga Muller
13 May, 2024
Frankfurt

European markets struggled to advance in Monday's trading, and benchmark indexes in Paris, London, and Frankfurt edged lower. 

The DAX index decreased by 0.2% to 18,739.21; the CAC-40 index fell by 0.2% to 8,205.66; and the FTSE 100 index inched higher by 0.03% to a new intraday record of 8,437.07. 

In the previous week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%. 

The yield on 10-year German bonds edged up to 2.50%; French bonds inched higher to 3.00%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.83%.

Diploma PLC increased 5.8% to 4,132.0 pence after the wire and cable supplier reported strong first-half results. 

Revenue in the first half rose 10% to £638.3 million, adjusted operating profit increased 14% to £125.4 million, and basic earnings per share fell to 43.1 pence from 47.3 pence a year ago. 

The company raised its full-year revenue outlook to 16% in constant currency, driven by a 5-percent increase in organic sales and a 10-percent increase through acquisition. 

Annual earnings per share are estimated to rise by 15%, reflecting a strong contribution from recent acquisitions. 

Victrex plc added 1.5% to 1,302.69 pence after the high-performance polymer group reported earnings in the first half declined by a third, but the company held out for earnings improvement in the second half. 

Adesso SE declined 3% to €103.20 after the IT service provider suffered a loss of €3.3 million in the first quarter compared to a profit of €2.02 million in the corresponding period a year ago. 

Revenue in the first quarter increased 15% to 317.1 million, and the number of full-time equivalent employee rose 17% to 9,926. 

Revenue in Germany increased by 17% and outside Germany, revenue increased by 6%. 

Revenue in the Netherlands and Italy surged by 20% and 21% respectively. 

Ceconomy AG increased 3.8% to €2.31 after the electronics retailer headquartered in Dusseldorf, Germany, said adjusted annual earnings are likely to exceed market expectations. 

Revenue in the fiscal second quarter ending in March increased 6.5% after adjusting for currency and portfolio effects, driven by a 5.1% increase in same-store sales. 

The company now estimates adjusted operating earnings between €290 million and €310 million, surpassing the consensus estimate of €273 million. 

The electronics retailer had previously guided "clear improvement" in adjusted earnings before interest and taxes from the prior year's €243 million in 2023, but the company had not provided a specific range. 

Mission Group PLC fell 5.2% to 23.88 pence after the digital marketing agency rejected a takeover approach from rival Brave Bison. 

Brave Bison increased by 2.0% to 2.58 pence.