WEBVTT - Craneware Plunges, Reckitt Dips, MIPS Gains

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's not to take a look at some stocks on

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<v Speaker 3>the move today in Europe. I'm Rachel Evans with Stephen

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<v Speaker 3>Carroll and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

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<v Speaker 3>thank you join us. Let's start with Craneware, which released

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<v Speaker 3>an update today. What's been the market reaction.

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<v Speaker 1>Yeah, so obviously Ukraineware is AIM listed, so a small

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<v Speaker 1>stock here in London. It's the software firm in London.

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<v Speaker 1>But it's some interesting moves this morning. The stock has

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<v Speaker 1>been plunging. It was down at one point over I

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<v Speaker 1>think thirty thirty one percent. That's the most in seven years.

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<v Speaker 1>This is after an update this morning. Essentially, they're expecting

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<v Speaker 1>performance in twenty twenty six to be below expectations, so

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<v Speaker 1>a couple of metrics there that they noted will now

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<v Speaker 1>be broadly in line with last year with twenty twenty

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<v Speaker 1>five so flat. This is a number of reasons, but

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<v Speaker 1>partly down to deferral of some small but quite significant contracts.

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<v Speaker 1>So they're coming down down the line later and they'll contribute.

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<v Speaker 1>During twenty twenty seven, they kind of tried to, you know,

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<v Speaker 1>offer a bit of reassurance, saying despite that customer attention demand,

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<v Speaker 1>cash generation, they've all remained strong. But as I say,

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<v Speaker 1>that hasn't really helped in terms of shareperss. Movements morning

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<v Speaker 1>down as much as thirty one percent. An analysts are saying,

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<v Speaker 1>you know, this obviously reflects timing headwinds and how much

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<v Speaker 1>of an impact that has on the company.

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<v Speaker 4>We've had an update about a court case as well,

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<v Speaker 4>involving a unit of Recket Bankies are cleared by a

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<v Speaker 4>jury in the United States. This is over a baby

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<v Speaker 4>formula case. What happened and how our investors reacting.

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<v Speaker 1>Indeed, yeah, so this is me Johnson, the unit of Recket.

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<v Speaker 1>So as you say, they're the baby formula maker. They

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<v Speaker 1>were cleared from a claim that re Recket hides risks

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<v Speaker 1>that that formula can sometimes cause oh sorry cause a

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<v Speaker 1>sometimes fatal bow disease, so that they knew and that

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<v Speaker 1>they marketed it anyway. So it's a win for them,

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<v Speaker 1>but shares are wavering. So they were initially up slightly.

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<v Speaker 1>Now last time may look just slightly down into the red. Essentially,

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<v Speaker 1>it's a bit of a drop in the ocean. So

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<v Speaker 1>Reckit and one of its US rivals called Abbot Laboratories,

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<v Speaker 1>they're still facing two thousand lawsuits over the same issue

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<v Speaker 1>across America. So this has been long on running issue

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<v Speaker 1>for Reckit. Blue MG Intelligence Intelligence is actually estimating that

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<v Speaker 1>there could ultimately be as many as ten thousand claims.

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<v Speaker 1>They've won a few, but there's still a lot to

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<v Speaker 1>get through. There's a possibility of future losses again Bluemogon

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<v Speaker 1>Intelligence saying that or estimating they could be forced to

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<v Speaker 1>pay as much as three billion dollars to resolve all

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<v Speaker 1>the lawsuits. So Reckit and Abbot, they obviously they both

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<v Speaker 1>deny that it causes the disease. And as I say,

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<v Speaker 1>they have won a few lawsuits, but this risk is

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<v Speaker 1>really overhanging on the stock. The stock's already down about

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<v Speaker 1>wreck It about fifteen percent so far this year and

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<v Speaker 1>as they say, wavering. So it's a small win, but

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<v Speaker 1>a lot to get through. In relation to their baby

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<v Speaker 1>formula unit.

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<v Speaker 3>Very interesting indeed, And finally we've been seeing gains for MIPS,

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<v Speaker 3>which manufactures and sells sports helmets. What's the story there.

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<v Speaker 1>Yeah, so the Swedish firm. They also related to law.

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<v Speaker 1>They've settled a patent infringement lawsuit. So that was initiated

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<v Speaker 1>by a company called brain Guard, which is a Spanish company.

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<v Speaker 1>So MIPS will have to pay three point twenty five

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<v Speaker 1>million dollars and they did say it will have a

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<v Speaker 1>bit of a negative impact on their third quarter. But

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<v Speaker 1>shares soaring up as much as eighteen percent most of

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<v Speaker 1>nearly two years, and List is saying it removes a

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<v Speaker 1>big overhang. It's very positive with the stock. The assessment

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<v Speaker 1>should support a rerating for the company, and it brings

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<v Speaker 1>back to the limelight the underlying performance over the next

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<v Speaker 1>twelve months that should really shine through and they can

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<v Speaker 1>focus on that and put this behind them, So shares

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<v Speaker 1>rising as a result.

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<v Speaker 2>The Stockmovers report from Bloomberg Radio. Check back with us

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