Two struggling mid-cap companies, Inmarsat and Rentokil Initial, have issued upbeat statements which have lifted their shares.
Satellite operator Inmarsat said it had returned its core maritime business to growth, thanks to increased subscriber numbers and price changes. With revenues edging up $1m to $684m in the first half, the company's shares have climbed 41.7p to 526p.
Meanwhile Rentokil has risen 3.8p to 75.45p as it said it expected its troubled City Link parcel service to return to profitability in the fourth quarter. Overall, the cleaning and pest control group reported a 7% rise in first half profits.
In a hold note , Robert Morton at Investec said:
Rentokil Initial has reported a satisfactory first half to the year, with results slightly ahead of consensus. Importantly, however, the group is giving reassurance that the turnaround at City Link is on track. Overall the group is maintaining underlying guidance for the full year, but currencies will be a significant head wind. It may be too early to bank on it, but If the recovery at City Link does finally come through, then the shares should start to perform.
