{{B}}A
Habgood{{/B}}
Habgood, the pharmaceutical company, saw its share price plummet yesterday, following a cut in its corporate credit rating. Investors were unnerved by the group's shrinking access to capital and its wish to fund ambitious expansion plans. Although the sector as a whole has been weak for some time, Habgood is looking particularly vulnerable, and may well prove to be a target for takeover from within the industry. Analysts would not be surprised if Jerry Greenway, the company's chief executive, and architect of its strategy of expansion, were to step down.
{{B}}B
KK Leyton{{/B}}
Truck manufacturer KK Leyton has said that its unit sales rose by a modest 1.3 per cent in the last six months, compared with 1.7 per cent in the same period last year. The company blames the economic downturn in its main markets and increasing pressure from larger competitors. However, grounds for guarded optimism came in the form of an announcement that the company is about to roll out a cost-cutting programme which should help to protect its profit margins. Analysts believe this will strengthen KK Leyton's position until conditions improve.
{{B}}C
Meadowsweet{{/B}}
Discount clothing retailer Meadowsweet, whose 240 stores are mostly in Scotland and northern England, is set to merge with rival Marika Clothing, with slightly fewer stores in the south of England. Making the announcement, Elaine Tungate, Meadowsweet's chief executive, said that the two brands would be kept distinct, and each would retain its existing management team for the time being. Marika is targeted at female shoppers aged 25 to 45 while Meadowsweet is aimed at the over-45s, which, according to Ms Tungate, makes it an 'ideal merger' and 'a natural fit'.
{{B}}D
Crofts{{/B}}
Crofts' ambitious plans massively to increase the number of its cafes are continuing to raise questions about profitability, and as a result shares are still trading below their level of a year ago. Andrew Hughes, Crofts' chairman, anticipates a speedy recovery, because of the company's focus on customer satisfaction. His optimism is not shared by analysts, though, who point out that the new outlets are simply taking customers from existing cafes, with the result that, contrary to Crofts' confident forecast when the plans were initially unveiled, income is static and same-store sales have been falling all year.
{{B}}E
Downing Energy{{/B}}
Downing Energy is to spin off its subsidiary Forthland Resources and adopt a new holding company structure. At the same time it will take the name Forthland Energy. Carol Mortimer, Downing's CEO, said that splitting the companies will mean each being able to focus on what it does best. Both are already in discussions with their banks about, extending their credit facilities - essential if they are to survive their present difficulties. The announcement led to a small rally in Downing's share price, reversing the steady decline of recent days.