MARKET REPORT: Weir Group sees shares stutter after cyberattack

Mining equipment maker Weir Group saw its shares fall as investors digested the news that it had been hit by a cyber attack.

The stock fell 2.5%, or 40.5 pence, to 1,607 pence on Friday after the FTSE 250 engineer said Thursday evening that an “attempted ransomware attack” at the end of last month had received his profits.

Ransomware is a type of computer software that infiltrates a computer network and threatens to post, block, or destroy private data unless the attacker gets paid.

Cyberattack: Weir Group shares fell 2.5% on Friday after FTSE 250 engineer said Thursday evening that “attempted ransomware attack” late last month hit profits

Weir said the attack had no impact on its orders and all of its facilities were operational, however, the incident caused shipping delays and its capabilities would be affected for the remainder of 2021.

As a result, the company said profit for the year is expected to be between £ 230 million and £ 245million, around 10-15% lower than previous forecasts.

Despite his IT problems, analysts for brokerage Shore Capital said Weir was still “well positioned to take advantage of long-term market dynamics.”

They added: “Population growth, the convergence of living standards in developing economies, urbanization, declining ore grade and decarbonization are all pleading for Weir, as demand for mining products essential increases / is required, especially for battery metals given the expected significant transition to renewables. ‘

Stock Watch – N Brown

MARKET REPORT: Weir Group sees shares stutter after cyber attack

N Brown, owner of clothing brands Jacamo and Simply Be, took a boost after praising the success of its turnaround strategy.

For the six-month period ended at the end of August, the fashion company reported a profit of £ 24.2million, up 7% year-on-year, despite revenue falling 0.1% to £ 346million .

N Brown – who also owns Ambrose Wilson and Home Essentials – has stepped up its marketing in recent months, recruiting new brand ambassadors, including TV presenters Davina McCall and Amanda Holden for its JD Williams line.

Shares jumped 2.5%, or 1.18 pence, to 48.5 pence.

The view was echoed by analysts at Peel Hunt, who said that despite the “very serious” cyberattack, Weir also described “an encouraging business environment” which has boosted their confidence in the stock.

The FTSE 100 barely budged, up 0.25%, or 17.51 ​​points, to 7,095.55 while the FTSE 250 was down 0.1%, or 23.05 points, to 22,536.17.

A disappointing set of jobs figures, which showed the US economy added 194,000 jobs in September, well below expectations of 500,000, took the market’s breath away.

IAG, owner of British Airways, was up, rising 1.6%, or 2.9p to 179.72p, after the government announced plans to remove 47 countries from its “red list”.

Nations due to be removed from the list on Monday include tourist hot spots such as South Africa, Thailand and Mexico.

Electrocomponents was up 0.2%, or 2p, to 1077p, as he said trading in the six months leading up to October was ahead of his expectations.

The manufacturer of computer circuit boards and factory control systems said its revenue during the period increased by 31% from the previous year, and as a result, its annual profit margin is expected to be slightly higher than the previous year. previous expectations.

Volex, a maker of power cables and electrical outlets, charged 0.2%, or 1p, to 428.5p after buying two Canadian companies for £ 13million in cash.

The group said the two new companies, manufacturing company Prodamex and wire harness maker Terminal & Cable, will expand their presence in the key North American market once the acquisition is completed in the third quarter of next year. .

Clean fuel specialist ITM Power jumped 1.5%, or 5.6p, to 389p after its consortium received a £ 27million grant from the European Union to develop a 100-megawatt hydrogen electrolyzer in Germany.

The electrolyzer produces hydrogen which can then be used as a source of green energy.

ITM said it plans to complete the project in 2024.

Bloomsbury, the publisher of Harry Potter, also got a boost very early on after one of its authors, Zanzibar-born Abdulrazak Gurnah, received the Nobel Prize for Literature. The shares eventually fell and closed at 343p.

Online fashion giant Boohoo cried as its shares fell 2.3%, or 4.5 pence, to 187.95 pence after a series of brokers’ target price cuts.

Berenberg analysts cut their target on the retailer to 350p from 460p while Credit Suisse slashed its price to 265p from 350p.

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