Ocado, Dillistone and Highland Gold

“The FTSE100 made small gains although early trading was once again overshadowed by terrorism following the weekend attack at London Bridge in which seven people were killed and around 50 injured. Sterling was mildly on the back foot against the dollar and euro, as the market counts down to Thursday’s General Election,” says AJ Bell Investment Director Russ Mould.

“Online supermarket Ocado topped the FTSE250 board in early trading after it struck its first overseas deal with an as yet unnamed European retailer. Ocado currently works with Morrisons and Waitrose in the UK but the European retailer wants to remain anonymous until its online business is launched in order to retain a competitive advantage. Ocado will provide its full software platform, know-how and support services but not its automated warehouse technology with the retailer relying on its own staff to pick the products for delivery. Ocado’s shares were up by more than 6.4%.

“Recruitment software solutions provider Dillistone’s shares plunged after it warned that full year results are likely to be significantly below market forecasts. The group suffered a dip following the EU referendum and although its order book has improved since the start of this year, this has not been enough to offset the slow start. The group is currently working on a highly confidential new product which it believes has the potential to be very significant, although not profitable before 2019. Dillistone’s shares were down by over 14.7%.

“Highland Gold’s shares rose after it received clearance from the Russian government for development of the Kekura gold deposit. Highland Gold needed this permit in addition to the standard exploration and mining licences it already held because Kekura is deemed as federally significant due to the size of the mineral deposits. A definitive feasibility study is currently scheduled for completion this autumn, with a view towards beginning commercial production in 2020. Highland Gold’s shares were up by more than 1.8% in early trading.”

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