Shares in ECO Animal Health Group PLC slumped 19.61% after warning that it could be hit by a substantial tax charge following a review of its tax arrangements abroad.
The company said “It has recently come to our attention that certain aspects of a sales tax related to imported products in a foreign jurisdiction where we operate through a subsidiary company, might have been applicable.”
As a result, it has made a provision of £2.5mln for the year to March 2022 which will feed through to a £1mln fall in EBITDA.
Higher R&D costs of £0.3mln are also expected.
The group said it expects to report full year revenues in excess of £82mln and EBITDA of around £6.5mln including the impact of the tax provision and an exchange rate gain of £1mln.
PageGroup falls after highlighting "slight" slowdown in July
Shares in PageGroup PLC (LSE:PAGE) topped the FTSE 250 fallers on Monday after highlighting signs of a slight slowdown in some of its markets in July.
The international recruiter saw its shares tumble 6.33% to 422.20p dragging industry rival Hays (LON:HAYS) PLC (LSE:HAS) down 3.54% to 122.55p.
Despite a strong set of results Steve Ingham, Chief Executive Officer, said “In July, we noted a slight slowing in time to hire in some of our markets.”
But the group reaffirmed its full year guidance for operating profits of around £206mln and announced a special dividend of 26.71p.
Group operating profit rose to £115.3mln from £64.3mln in the first half of 2021.
Last week a survey from the Recruitment and Employment Confederation showed that employers had slowed their hiring via recruitment agencies by the most in 17 months in July reflecting concerns about the economy.
Joules' shares soar on Next talks
Shares in upmarket clothes retailer, Joules Group PLC (AIM:JOUL), surged 42.42% on Monday after it confirmed news of a potential investment by retail giant Next PLC (LSE:NXT).
Joules said the potential equity investment would raise proceeds of around £15mln.
Danni Hewson, AJ Bell financial analyst said: “Joules has found a new lease of life on the stock market following news of a potential investment in the business by retail giant Next.”
“Joules has been struggling this year, with disappointing sales, supply chain problems and rising costs. Once a shining star in the retail sector, Joules saw its share price collapse after a string of profit warnings.”
“Next doesn’t typically buy companies outright so it seems unlikely that an initial investment in Joules will lead to a full takeover.”
“Instead, expect to see it become an influential shareholder and for more of Joules’ products to appear on Next’s website.”
“Next has a system called Total Platform, which enables third party retailers to grow their sales without large capital costs, operational risks or time developing sophisticated infrastructure” she pointed out.