Staff at Ladbrokes came into work with a smile on their face this morning after Premier League results went the bookie’s way over the weekend — but the mood didn’t last long.
The betting company suffered its worst share-price fall in almost a year after Deutsche Bank warned investors that there will be “more pain before gain”.
The investment bank thinks Ladbrokes’ results on Thursday will show “another year of sizable market-share losses” and “profitability going backwards for another year”.
Analyst Richard Carter continues: “We now believe that the root of the problem is deeper and more structural than we had previously thought. It will require investment, probably further restructuring and even a strategic rethink.”
With Labrokes boss Richard Glynn set to leave and a replacement yet to be found, the bookie looks a risky bet. Ladbrokes tumbled 7.7p to 114.3p.
The FTSE 100 teased market watchers, shooting up to 6943.61 — near its all-time high of 6950 — before dipping 15.69 points to 6899.51.
Index operator London Stock Exchange was fittingly among the best performers, rising 37p to 2498p after Numis increased its target price to reflect the upcoming sell-off of the Russell Investment Management business.
British Airways-owner IAG climbed 9.5p to 560.75p following news that a trade union representing Aer Lingus workers has changed its mind and decided to back IAG’s takeover plans for the Irish flag carrier.
Investors were unmoved by news that travel agent Thomas Cook is considering offloading its airline business. The company, which owns 88 planes, dipped 0.1p to 123p.
Jefferies trimmed its target price for Tullow Oil, off 14.4p to 392.95p, to reflect higher spending on maintenance at it Jubilee field in Ghana. A dud well in Kenya left Premier Oil down 7.2p at 169.9p.
Argos and Homebase owner Home Retail Group ticked up 2.7p to 206.2p. following rumours that private equity could be interested in the company, while Walmart has also been linked.
Packaging group DS Smith climbed 13p to 360.1p on news it is snapping up recycled cardboard business Duropack for €300 million (£220 mililon).
Retail investor favourite Quindell leapt 17.75p to 93.75p as it confirmed talks were still on to sell parts of its legal division.
The insurance outsourcer has extended the exclusivity period with Australian law firm Slate & Gordon.
Israeli spreadbetting firm Plus500, which sponsors Atletico Madrid, inched up 8p to 593.5p with chatter its results midweek will be impressive.
