8:58 PM
specialshowtoday
The lunchtime gossip in packed City
watering holes yesterday was of the sudden resignation of Paul Compton,
chief executive of Manchester-based stockbroker and wealth management
group WH Ireland.
News of his immediate departure saw the shares crash 18.5p or 25 per cent to 56p.
The fact his exit statement did not contain any reason why the respected former Tosca Asset Manager and Cazenove stockbroker was jumping ship and that his face had been immediately wiped from the group’s website page had conspiracy theorists working overtime.
Richard Killingbeck, who had only joined WH Ireland in September to head
up its private wealth management business, has now assumed the duties
of acting chief executive.
‘It certainly does look bad,’ said one fund manager. ‘To leave so abruptly and with no explanation is bound to set tongues wagging. The fear now is that Compton could be a seller of his 14.2 per cent stake in the business. With that potential hefty overhang, the shares are not going up.’
On the other hand, Compton could sell
his stock to a predator. Consolidation within the stockbroking
fraternity will pick up in the new year. Many firms have for months been
feeding off scraps, intensifying the urge to merge.
Sizeable share stakes in WH Ireland have changed hands more times over the years than a pack of Paul Daniels’ playing cards.
A consortium of well known City investors including David Ross, co-founder of Carphone Warehouse, bought a 10 per cent stake at £1 a share in April 2008.
Welsh entrepreneur Richard Griffiths’s Ora Capital Partners, 4.25p up at 143.5p, also acquired an 8.1 per cent shareholding at 42.5p in November 2010.
The Footsie retreated 16.24 points and Wall Street traded 30 points off in the early stages on prevailing concerns over the ‘fiscal cliff’ negotiations.
John Boehrer, speaker of the House of Representatives’ jangled nerves by saying: ‘President Barack Obama still has not made an offer that meets the standards, but Republicans have.’
Struggling hedge fund giant Man Group attracted buyers at 81.1p, up 3.5p. Recovery hopes were enhanced by this week’s news that chief executive Peter Clarke had bowed to growing shareholder dissent over the group’s slow progress and walked the plank.
He will be replaced in February by Emmanuel Roman, chief operating officer and former boss of GLG.
Awaiting news of the sale of its US business, insurer Aviva rose 5.9p to 372.8p. Rio Tinto, JP Morgan Cazenove’s Top 2013 Pick in the mining sector, rose 27.5p to 3338.5p. Nervous selling ahead of Monday’s fourth quarter trading update blew a fuse at Aggreko, 31p lower at 2144p.
Profit-taking dragged TUI Travel, which has regained its place in the Footsie, eased 3.6p to 282.5p.
A reassuring full-year pre-close trading statement helped bus group National Express accelerate 7.7p to 187.9p. Trading is in line with expectations. Broker Oriel Securities says its exposure to Spain does remain a deterrent for potential investors.
Capital Drilling was sold down to 15.25p before closing 10p or 38pc down at a 52 week low of 16.5p after announcing that drilling operations with Centamin, 25p lower at 27.7p, will be suspended following cessation of operations at Sukari.
The company has 22 drills in Egypt, of which 19 are with Centamin. Northern Petroleum gushed 6.25p to 54.75p after managing director Derek Musgrove bought 25,000 shares at 48.6p a pop.
Small buying lifted First Derivatives 10p to 515p after the company announced it has signed a multi-year annuity software licence with the Australian Securities and Investment Commission for the Delta Stream product to be used as a market surveillance system for multiple asset classes.
Warning that it expects full-year revenues will be slightly below market expectations following softer trading in late November and December, drugs testing firm Cyprotex fell 1.12p to 3.38p.
Omega Diagnostics jumped 2p to 15p after increasing its banking facility by £1million providing a total overdraft facility of £1.7million.
Advanced Medical Solutions slumped 10.5p to a 52-week low of 58.5p after warning that pre-tax profits will be ‘at the lower end of market expectations’. Its surgical sealant Liquiband in the US has disappointed in the second-half of 2011 and the first-half of 2012.
Disappointing interims left Expansys 0.35p cheaper at 1.08p. Nplus1Singer downgraded its current year pre-tax prifit forecasts by £1.1million to £3.2million and next year’s by £1.4million to £3.6million.
News of his immediate departure saw the shares crash 18.5p or 25 per cent to 56p.
The fact his exit statement did not contain any reason why the respected former Tosca Asset Manager and Cazenove stockbroker was jumping ship and that his face had been immediately wiped from the group’s website page had conspiracy theorists working overtime.
Shares crash: Paul Compton left WH with no explanation
‘It certainly does look bad,’ said one fund manager. ‘To leave so abruptly and with no explanation is bound to set tongues wagging. The fear now is that Compton could be a seller of his 14.2 per cent stake in the business. With that potential hefty overhang, the shares are not going up.’
Sizeable share stakes in WH Ireland have changed hands more times over the years than a pack of Paul Daniels’ playing cards.
A consortium of well known City investors including David Ross, co-founder of Carphone Warehouse, bought a 10 per cent stake at £1 a share in April 2008.
Welsh entrepreneur Richard Griffiths’s Ora Capital Partners, 4.25p up at 143.5p, also acquired an 8.1 per cent shareholding at 42.5p in November 2010.
The Footsie retreated 16.24 points and Wall Street traded 30 points off in the early stages on prevailing concerns over the ‘fiscal cliff’ negotiations.
John Boehrer, speaker of the House of Representatives’ jangled nerves by saying: ‘President Barack Obama still has not made an offer that meets the standards, but Republicans have.’
Struggling hedge fund giant Man Group attracted buyers at 81.1p, up 3.5p. Recovery hopes were enhanced by this week’s news that chief executive Peter Clarke had bowed to growing shareholder dissent over the group’s slow progress and walked the plank.
He will be replaced in February by Emmanuel Roman, chief operating officer and former boss of GLG.
Awaiting news of the sale of its US business, insurer Aviva rose 5.9p to 372.8p. Rio Tinto, JP Morgan Cazenove’s Top 2013 Pick in the mining sector, rose 27.5p to 3338.5p. Nervous selling ahead of Monday’s fourth quarter trading update blew a fuse at Aggreko, 31p lower at 2144p.
Profit-taking dragged TUI Travel, which has regained its place in the Footsie, eased 3.6p to 282.5p.
A reassuring full-year pre-close trading statement helped bus group National Express accelerate 7.7p to 187.9p. Trading is in line with expectations. Broker Oriel Securities says its exposure to Spain does remain a deterrent for potential investors.
Capital Drilling was sold down to 15.25p before closing 10p or 38pc down at a 52 week low of 16.5p after announcing that drilling operations with Centamin, 25p lower at 27.7p, will be suspended following cessation of operations at Sukari.
The company has 22 drills in Egypt, of which 19 are with Centamin. Northern Petroleum gushed 6.25p to 54.75p after managing director Derek Musgrove bought 25,000 shares at 48.6p a pop.
Small buying lifted First Derivatives 10p to 515p after the company announced it has signed a multi-year annuity software licence with the Australian Securities and Investment Commission for the Delta Stream product to be used as a market surveillance system for multiple asset classes.
Warning that it expects full-year revenues will be slightly below market expectations following softer trading in late November and December, drugs testing firm Cyprotex fell 1.12p to 3.38p.
Omega Diagnostics jumped 2p to 15p after increasing its banking facility by £1million providing a total overdraft facility of £1.7million.
Advanced Medical Solutions slumped 10.5p to a 52-week low of 58.5p after warning that pre-tax profits will be ‘at the lower end of market expectations’. Its surgical sealant Liquiband in the US has disappointed in the second-half of 2011 and the first-half of 2012.
Disappointing interims left Expansys 0.35p cheaper at 1.08p. Nplus1Singer downgraded its current year pre-tax prifit forecasts by £1.1million to £3.2million and next year’s by £1.4million to £3.6million.
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