FTSE 100 movers: Vodafone slides after results; Intertek surges on EQT bid

(Sharecast News) - London's FTSE 100 was down 0.4% at 10,231.23 in afternoon trade on Tuesday. Vodafone slid despite saying it swung to a full-year pre-tax profit.

Dan Coatsworth, head of markets at AJ Bell, said: "In the stock market it's often said that it's better to travel than arrive, hence why shares in Vodafone dipped on robust-looking full-year results after a strong rally in the past 12 months.

"The numbers were at the top end of guidance as CEO Margherita Della Valle pointed to strong prospects after shedding underperforming parts of the business and driving a consolidation of its UK operations.

"Further revenue expansion is expected for the current financial year although the growth outlook could be characterised as solid rather than spectacular.

"Vodafone's largest market Germany continued to demonstrate it had shaken off the impact of regulatory headwinds although performance remained subdued amid subscriber losses.

"The big growth is being delivered in less mature markets in Africa where its Vodacom operations are chalking up double digit increases in service revenue.

"After years of going nowhere in stock market terms, Vodafone has been rewarded for its strategic progress over the past year. Today's market reaction is a reminder it cannot sit on its laurels."

Banks were also under the cosh, with Lloyds, Barclays and NatWest all lower. David Morrison, senior market analyst at Trade Nation, said: "Investors expressed uncertainty over who may end up leading the UK government, and, perhaps more importantly, who may replace Rachel Reeves as Chancellor of the Exchequer, should she be defenestrated in the fall-out."

Intertek surged after Swedish private equity firm EQT lifted its takeover approach for the inspection, product testing and certification group to around £9.4bn.

EQT made a third and final offer for Intertek at £60 per share, up from £58 in cash. The PE firm noted that once the final dividend of 107.7p per share is included, the total value would be £61.077 per share.

The cash consideration represents a premium of 59% to the closing share price on 9 April, which was the day before EQT submitted its initial proposal to Intertek.

Imperial Brands gained as the tobacco company backed its full-year outlook and posted an uptick in first-half revenues, but warned that if the conflict in the Middle East persists, it could have a more meaningful impact on costs and consumer demand.

FTSE 100 - Risers

Intertek Group (ITRK) 5,365.00p 7.73% Compass Group 11 (CPG) 31.52p 4.60% British American Tobacco (BATS) 4,532.00p 3.45% Imperial Brands (IMB) 2,797.00p 2.60% London Stock Exchange Group (LSEG) 9,206.00p 2.06% Coca-Cola Europacific Partners (DI) (CCEP) 6,920.00p 1.76% BP (BP.) 547.70p 1.58% Unilever (ULVR) 4,247.00p 1.46% Haleon (HLN) 332.20p 1.44% Shell (SHEL) 3,168.00p 1.18%

FTSE 100 - Fallers

Vodafone Group (VOD) 110.50p -8.06% Airtel Africa (AAF) 398.80p -4.76% Lloyds Banking Group (LLOY) 94.22p -3.86% Barclays (BARC) 411.85p -3.81% St James's Place (STJ) 1,158.50p -3.65% NATWEST GROUP (NWG) 558.00p -3.54% Entain (ENT) 508.80p -3.27% 3i Group (III) 2,428.00p -3.26% BT Group (BT.A) 231.90p -3.01% Barratt Redrow (BTRW) 255.00p -3.00%