The share prices of Card Factory and AA, both held by equity income manager Neil Woodford, fell yesterday on the back of disappointing first-half results.
Card Factory shares closed the day at 290p, tumbling some 18% as the firm reported a 14% decline in its pre-tax profits to £23.2m on the back of foreign exchange movements, the national living wage and investments.
This came despite sales rising 6.1% to £179.6m as the firm opened 30 new shops and extended its range of personalised gifts available through the website.
This will be another disappointment for equity income manager Neil Woodford, who holds 2.05% in Card Factory in his £726m CF Woodford Income Focus fund.
Meanwhile, shares in AA, which makes up 1.09% of the Income Focus and 0.78% of the £8.8bn Equity Income fund, slumped more than 8% in morning trading to 153.80p, but recovered a bit later to close the day at 157p.
The slump came despite the firm announcing the appointment of well-respected former Expedia and Microsoft executive Simon Breakwell as its new permanent chief executive, as the City was disappointed by its half-year results.
The firm reported a modest rise in revenues of 1% to £471m, while trading earnings before interest, tax, depreciation and amortisation also rose 1% to £193m.
Leader of People's Party
Listing two global equities strategies
Aims to encourage competition in industry
Markets went into freefall
Issued 50,000 new shares