Pubs group Mitchells & Butlers has fallen 7p to 179.5p after revealing a 2% fall in profit margins, despite an increase in sales over Christmas.
And the company warned:
"Recessionary pressures are intensifying and as a result, we expect continued sizeable declines in on-trade beer volumes and a significant contraction in the eating out market."
Matthew Gerard at Investec said:
"Whilst M&B's business model is well positioned in the current environment, we see few catalysts for a re-rating to a double-digit P/E multiple and suspect that estimates will remain under pressure. We place our price target of 160p under review, but stick with our hold recommendation."
Meanwhile, rival Fuller, Smith & Turner added 2p to 379p after saying full-year profits would be in line with market expectations.
Environmental services group Eaga edged up 1p to 144p. The company said half-year earnings had climbed 13% to £21.4m and it was raising its dividend by 10%.
But IT group Misys has fallen 4.25p to 112.75p on trader talk of a possible profit warning alongside half-year figures due tomorrow. The company specialises in banking and healthcare software.
