Shares in Fever-Tree lost some of their fizz after co-founder and deputy chairman Charles Rolls announced he would bow out in June.
Over the last 17 years he and his business partner, chief executive Tim Warrillow, have transformed the market for tonic waters. They launched in time to enjoy the full force of the ‘gin-aissance’ boom – and created a stock market darling.
It’s been an outlandish success story for two virtual strangers who went into business together after having an hour-long coffee because Warrillow wanted to pick Rolls’s brain about the industry.
Fever-tree co founders Tim Warrillow, (left) and Charles Rolls, (right). Rolls has announced he is to step down as chairman in June
It’s also been a roaring success for the Rolls bank account – the 62-year-old pocketed £242million from several stake sales in 2017 and 2018 and still has a 7 per cent share worth around £140million.
He has pledged to remain a ‘significant shareholder’.
He said: ‘Fever-Tree deals in a world of best-before dates and I am happy to be stepping down before I reach mine.’ But the AIM-listed group’s backers were less convinced.
Shares fell 5.3 per cent, or 95.5p, to 1706p, as it battles a short-term slump in sales because of widespread pub closures.
While its status as a stock market darling has gone somewhat flat, junior market-listed biotechnology group Novacyt is still very much on the up.
Stock Watch – Omega Diagnostics
Biotechnology group Omega Diagnostics lost ground after star Baillie Gifford fund manager Richard Sneller sold a chunk of his holding.
He took his stake down from 20.3 per cent to 17.7 per cent – but is still its biggest investor.
The AIM-listed firm’s shares have rocketed 650 per cent in a month after inking a partnership to work on a Covid-19 antibody test.
It fell by as much as 14 per cent but closed 3.5 per cent lower, down 2p, at 55p.
Shares climbed 0.5 per cent, or 2p, to 428p after it racked up orders worth £90million for its Covid-19 tests, which it is selling to more than 100 countries.
Chief executive Graham Mullis said the order book is ‘transformational’ for the company, whose Primerdesign unit in Southampton designed and developed the testing kits.
Optimism about countries’ ability to deal with the outbreak helped push the FTSE 100 higher, meaning it has risen every day so far this week.
It broke the 6000 mark after rising 2.63 per cent, or 156.75 points, to 6115.25 while the FTSE 250 rallied 3.34 per cent, or 543.76 points, to 16,835.34.
Housebuilder Persimmon reassured investors that interest from customers has remained at ‘good levels’ throughout lockdown, with average sales prices slightly above last year.
It restarted work on its construction sites this week and has not furloughed any workers.
Even though forward sales are down 11 per cent compared with a year ago, shares edged 2.8 per cent higher, up 62p, to 2272p.
Other firms, such as Trainline – up 4.4 per cent, or 15.6p, to 373.6p – and Hiscox, which fell 3.6 per cent, or 26.6p, to 706p, were mulling their finances.
Trainline and its lenders have reached an agreement that means it can still access an important loan even if it builds up debt, while insurer Hiscox is considering several options about what to do next – and could tap the market for cash.
Elsewhere, an Edinburgh court has given Premier Oil permission to buy £660million of North Sea fields and to restructure its debt.
Shares rose 17 per cent, or 4.43p, to 30.48p, though it still needs to raise at least £282million through a fundraising, and its largest investor wants to appeal against the court’s decision.
The cash call might be difficult when oil prices are so low, though they rallied yesterday after the amount of crude in US stockpiles was less than analysts had expected.
Brent crude jumped 12 per cent to $23 a barrel while US oil, trading at below $0 a barrel last week, rose 26 per cent to $16.
This lifted shares in BP 3.5 per cent, or 11.4p, to 333.5p, and Royal Dutch Shell by 3.4 per cent, or 47p, to 1451.49p. Shell today reveals if it is keeping its prize dividend after the recent price slump.
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