MARKET REPORT: Wizz Air lands at a low as provider swings to a loss

Recently ranked the worst airline for customer service for the third year running, budget carrier Wizz Air swung to a loss in the first quarter.

Investors are already unhappy with the Budapest-based airline over boardroom pay, with top managers due to get millions of pounds worth of free shares just for staying.

And its annual meeting today is likely to be fractious. Last year investors rebelled against an extension to a scheme to give chief executive Jozsef Varadi a bonus of up to £100million if the share price soared – but the stock is now down over 25 per cent in the year-to-date following a 22.6 per cent, or 433p, drop to 1480p yesterday.

Wizz achieved first-quarter revenue growth, but a loss reflected a rise in financing expenses, partly owing to costs related to its plane engines being plagued by unpredictable issues, which will spill over into the second quarter.

The FTSE 100 fell 1 per cent, or 84.62 points, to 8283.36. Meanwhile the FTSE 250 dipped 0.7 per cent, or 141.48 points, to 21,459.23.

Investors had another plethora of results to digest. Medical equipment manufacturer Smith & Nephew gained 6.8 per cent, or 76p, to 1199p after interim profits came in ahead of expectations, helped by a turnaround plan.

First-half revenues rose 4.3 per cent to £2.2billion, while operating profits jumped 19.5 per cent to £257million. 

BAE Systems fell 0.9 per cent, or 12p, to 1285p after the defence firm upgraded its 2024 forecasts to reflect strong deliveries of military kit and benefits from a US acquisition.

And Sensodyne toothpaste and Panadol painkillers maker Haleon took on 2.4 per cent, or 8.4p to 358p as it predicted high single-digit growth in organic operating profit in 2024, after strong demand for oral care products and vitamins.

London Stock Exchange Group rose 4 per cent, or 382p, to 9852p after it reported first-half income above expectations, helped by progress with its Microsoft venture, and a rise in subscription value.

But Schroders dropped 9.7 per cent, or 38.2p, to 354.6p as it posted a fall in first-half net operating income even though it has record high assets under management, of £773.7billion.

Outsourcer Serco shed 6.3 per cent, or 12.1p to 179.4p after a fall in first-half profits and revenues while it reiterated annual guidance.

Vesuvius lost 11.8 per cent, or 57p, to 426.5p as the ceramics engineer’s first-half revenue and profits fell and said an end-market recovery will now only materialise next year. 

And Melrose fell 12.5 per cent, or 73.8p, to 515p as lower 2025 sales guidance look the shine off results which the aerospace components firm said beat its expectations.

But Vanquis Banking rose 2.4 per cent, or 1.3p to 56.1p as the lender, formerly Provident Financial, saw weak half-year results offset by savings. 

And industrial threads firm Coats added 12.9 per cent, or 11.5p, to 101p as it lauded a recovery in footwear and apparel sectors.

Gulf Marine Services rose 11.8 per cent, or 2p, to 19p after the provider of self-propelled support vessels for energy projects said it will reinstate its dividend.