REGIONAL airline group FlyBe yesterday saw its shares fall more than 20 per cent after scaling back guidance for its 2012 profits.
The airline, which raised £60m at the end of last year for European expansion as part of its London flotation, said it had been hit by “an extremely challenging macro-economic backdrop” in its core UK market.
House broker Investec reduced its estimate for profits in 2012 from £37m to £22m, the same as this year, and shares in the company fell to 170p, 125p lower than the float price.
The turbulence in the FlyBe share price will come as a blow to those trying to bring UK companies to market in the City.
Recently a couple of UK floats, Skrill and Edwards, have had to be cancelled, with investors complaining about a lack of faith in new issues.
Market participants partly blame the poor share price performances of a group of recently floated companies, although FlyBe says it has been rocked by economic headwinds.
FlyBe’s advisers said yesterday they remained “chipper” about the group’s prospects.