Why Dunelm Group plc, Low & Bonar plc and Man Group PLC Should Lag The FTSE 100 Today

Dunelm Group plc (LON: DNLM), Low & Bonar plc (LON: LWB) and Man Group PLC (LON: EMG) are all hit.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The FTSE 100 (FTSEINDICES: ^FTSE) is rebounding a little after yesterday’s losses, picking up 66 points to 6,296 by midday, boosted by a rise in easyJet after the budget airline announced strong June passenger numbers. But there are still fears surrounding Portugal, whose borrowing rates are rising.

With the FTSE on the up, which shares are falling? Here are three from the various indices having a hard time today:


Shares in soft-furnishings retailer Dunelm Group dipped a little this morning, down 10p (1.1%) to 938p, after the firm released a trading update. Although generally positive overall, the final quarter was mixed.

Total sales in the quarter were up 6.4%, but like-for-like sales were down 2.8% — over the full year we saw total sales up 12.2% and like-for-like up 1.7%. The end of the year was hit by weather — not by bad weather this year, but exceptionally good weather a year ago giving 2012 Q4 sales a boost.

Still, the shares are still up around 85% over the past 12 months.

Low & Bonar

Low & Bonar (LSE: LWB) shares dropped 1.75p (2.7%) to 63p on the release of first-half results, which generally showed falls from the same period last year. The firm, which makes high-performance materials, saw a small rise in revenues from £183.9m to £184.1m, but that turned to a 37% fall in statutory pre-tax profit to £4m. Basic earnings per share (EPS) fell 27.5% to 1.74p, but the company did lift its interim dividend by 6.25% to 0.85p per share.

Chairman Martin Flower told us that “With sales momentum renewed as the Group enters the traditionally stronger second half we remain confident of meeting expectations for the full year“. This expectations suggest a 5% rise in EPS, putting the shares on a P/E of under 10.

Man Group

Man Group(LSE: EMG) shares have been very volatile of late. Having been recovering since the credit crisis, the shares were recently standing at double their price from a year ago. But since peaking at 133p near the end of May, the price has slumped by 38% to 82.4p today, including a 1.1% fall today.

The reason? The revelation in early June that the firm’s flagship AHL fund had lost more than 10% of its value in May, essentially reversing its profits for the year.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that’s offering a 5% yield and which could be set for some nice share price appreciation too?

It’s the subject of our BRAND-NEW report, “The Motley Fool’s Top Income Share For 2013“, which you can get completely free of charge — but it will only be available for a limited period, so click here to get your copy today.

> Alan does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Why the FTSE 250 looks an incredible bargain

While all the attention is on the elite FTSE 100, the mid-cap FTSE 250 index looks unbelievably cheap. I don't…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

Here’s my plan to make the most of juicy UK shares ahead of 2024 and beyond!

Our writer reckons there hasn't been a better time to snap up quality UK shares. She explains how she's planning…

Read more »

Young Black woman using a debit card at an ATM to withdraw money
Investing Articles

Here’s how many Lloyds shares I’d need to buy for a £100 monthly income!

Offering a higher dividend yield than the average across FTSE 100 stocks, are Lloyds shares worth buying for passive income…

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

Up 27% in 2023, what next for the Tesco share price in 2024?

The Tesco share price has had a great 2023, rising 27% while the FTSE 100 was flat. But what might…

Read more »

Hand is turning a dice and changes the direction of an arrow symbolizing that the value of an ETF (Exchange Traded Fund) is going up (or vice versa)
Investing Articles

FTSE 250? No, I’d buy this index fund instead

Investing in index funds can be a profitable enterprise. Our author has been exploring the different options to determine the…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

This 4% yielding FTSE 100 giant is dirt-cheap and perfect for passive income!

Looking for a mammoth business with shares trading at discount levels and offering an excellent passive income opportunity? Our writer…

Read more »

UK money in a Jar on a background
Investing Articles

Here’s how I’d use dividend shares to try and turn £5,000 of savings into passive income of £900 a year

With dividend shares at today’s prices, Stephen Wright thinks there are two ways to turn a £5,000 investment into something…

Read more »

Investing Articles

After a recovery that Lazarus would have been proud of, is the easyJet share price worth a look?

With its dividend restored and its balance sheet repaired, the easyJet share price looks like a bargain. But Stephen Wright…

Read more »