MARKET REPORT: Trainline shares crash 4.5% as private backers cash out


Online ticket seller Trainline hit the buffers after a group of investors, led by the US private equity group KKR, cashed out.

The shareholders, which included funds managed by Ares, Index Ventures and Alven Capital, raised £279million after they sold a 14.1 per cent stake in Trainline to institutional investors.

The 68m shares were sold at 410p each, 7 per cent less than Trainline’s closing price of 442p on Monday, the day before the sale took place. 

Trainline shareholders, which included funds managed by Ares, Index Ventures and Alven Capital, raised £279m after they sold a 14.1 per cent stake in Trainline to institutional investors

Trainline shareholders, which included funds managed by Ares, Index Ventures and Alven Capital, raised £279m after they sold a 14.1 per cent stake in Trainline to institutional investors

News of the deal sent Trainline shares down 4.5 per cent, or 20p, to 422p, and KKR’s representative on the board, Philipp Freise, stood down after the sale.

KKR bought Trainline for around £450million in 2015 and nurtured it through one of this year’s most successful European floats.

The bookings website and app listed at 350p in June, meaning despite yesterday’s drop it has still rallied by a fifth since it made its summer debut.

Blue-chip precious metals miner Fresnillo fell foul of movements in the price of gold. Shares in the Mexico-focused giant shed 4.6 per cent, or 30.4p, to 626p, as the price of gold edged to its lowest level in three months.

Equity markets, especially in the US, are back on the up after a turbulent summer. 

Stock Watch – Alien Metals 

Alien Metals surged after the miner published results from a series of rock samples.

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The AIM-listed firm said an analysis of samples from two iron ore projects it is on the brink of buying in Australia were high grade, and fit the criteria allowing them to be shipped without being processed. 

The projects could produce ore comparable to that mined by other firms locally.

Alien has until next Monday to decide if it will buy a 51 per cent stake in both sites. Stock rose 23.3 per cent, or 0.04p, to 0.18p.

Easing geopolitical tensions amid optimism that the US-China trade spat is reaching a period of detente, and signs of stabilisation in the global economy, sent gold 0.2 per cent lower to $1,454 an ounce.

The same upbeat attitude among traders helped the FTSE 100 edge 0.5 per cent higher, or 36.9 points, to 7365.44. 

It was also boosted by Aveva Group, which rose 3.5 per cent, or 150p, to 4408p, after the software developer swung to a profit of £24million in the six months to September. 

This was up from a loss of £5.5million in the same period of last year – although it was aided by a £3billion merger with a division of Schneider Electric last year.

Another Footsie riser, credit checker Experian, gained 2.5 per cent, or 60p, to 2442p after it said full-year revenue would be towards the top of a guided range.

The FTSE 250 index closed minimally higher, up 0.08 per cent, or 17.14 points, at 20,427.17.

Shares rallied 9.5 per cent, or 130p, to 1504p at Oxford Instruments, which makes research tools such as microscopes, high-field magnets and software.

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Pre-tax profit surged 55 per cent to £18million between April and September, and the firm hiked its interim dividend 8 per cent.

And Aggreko, which falls into the category of ‘firms that you have undoubtedly benefited from but may not have heard of’, rose 3.2 per cent, or 25.2p, to 822.2p.

It makes air conditioners, and back-up and mobile generators that are used everywhere from music festivals to oil sites.

It is on track to meet market expectations for the full year, despite an 8pc fall in revenues over the first nine months.

At the other end of the mid-cap index, electronics products maker Electrocomponents sank 10.8 per cent, or 76p, to 630p, after pre-tax profit fell 4.3 per cent.

It had to write down £10.4million of assets, including £7.2million from deals with British Steel before it collapsed in late May, and £3.2million against inventory recovered from the steel maker.

Support services group DCC fell despite profits rising 15 per cent in the first half of 2019.

It left its full-year guidance unchanged – perhaps disappointing bullish traders who were hoping for an upgrade. It closed down 6.2 per cent, or 458p, to 6916p.

Pub giant JD Wetherspoon, led by arch-Brexiteer Tim Martin, rose 1.1 per cent, or 16p, to 1525p, ahead of a trading update that will be released today.

 

 

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