The City watchdog is expected to scrutinise share trades at Brighton Pier Group after a 14% fall in the stock price in the two days before yesterday’s profit warning.
The alert, which sent the shares tumbling 62% in early trading, is a fresh blow to Luke Johnson, its chairman and biggest shareholder, as he seeks to rebuild his reputation after the travails of Patisserie Holdings.
An investigation by the Financial Conduct Authority would be embarrassing for him, given that Patisserie Holdings, where Johnson is also chairman, is at the centre of investigations by the Serious Fraud Office and Financial Reporting Council over a £40m hole in its finances.
