(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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Taylor Wimpey, up 12%. The housebuilder said it is on track to deliver 2020 results towards the top end of expectations, supported by positive conditions in the UK housing market. In addition, assuming the market remains broadly stable, Taylor Wimpey expects to deliver operating profit in 2021 materially above the top end of the current consensus range. The current company-compiled consensus expectation for 2021 is for operating profit in a range of GBP359 million to GBP626 million. Turning to shareholder returns, Taylor Wimpey reiterated that it expects to recommence ordinary dividend payments in 2021, starting with the payment of a 2020 final dividend. It will review a special dividend in 2021 for payment in 2022. "To tell the market you will top expectations in 2021... is a bullish move. This is underpinned by the company's bumper order book and the fact that house sales agreed now will not complete until next year. A return to dividends at the full-year stage and the promise of a possible 2022 special dividend will be music to the ears of income investors," said AJ Bell's Russ Mould. Large-cap peers Persimmon, Barratt Developments and Berkeley Group were up 5.0%, 3.8% and 3.4% respectively in a positive read-across.
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Anglo American up 4.0%. Morgan Stanley upgraded the miner to Overweight from Equal Weight.
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JD Sports up 3.6%. JPMorgan started coverage on the sportswear retailer with an Overweight rating.
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FTSE 250 - WINNERS
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FirstGroup, up 5.5%. The transport operator said it has secured "enhanced financial flexibility" from its lenders for the next two bank covenant testing dates. FirstGroup said its September 30 covenant tests are expected to be "comfortably met" when the accounts for the period are finalised. However, while the public transport company is confident that its balance sheet is now "robust in a range of downside scenarios", it has sought covenant amendments "as a matter of prudence". FirstGroup said it has agreed covenant amendments for the March 31 and September 30 tests in 2021. The net debt to earnings before interest, taxes, depreciation and amortisation covenant has been amended to less than 5.5 times and then 4.5 times for the March and September tests, respectively, compared to 3.75 times previously.
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FTSE 250 - LOSERS
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TP ICAP, down 3.5%. The interdealer broker unveiled a cost savings programme as it reported a slide in third quarter revenue. Revenue for the first nine months of 2020 was GBP1.38 billion, down 2% on a year ago on a reported basis. Global Broking revenue was down 6%, reflecting "weaker trading volumes" in the third quarter against a strong prior year comparative. For the third quarter, group revenue was down 19% to GBP388 million from GBP478 million a year ago. Global broking revenue was down 19% in the recent quarter and Energy & Commodities by 15%, but Data & Analytics revenue was up 9%. Together with market volatility anticipated from the US election and Brexit, TP ICAP expects full-year revenue guidance to be in line with 2019 on a constant currency basis. In addition to efficiency actions taken in its broking businesses during the second half, the firm is also seeking further improvement to its operating profit margin and has implemented a "targeted reorganisation" of the structure of broking businesses.
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Ultra Electronics Holdings, down 3.0%. The aerospace and defence engineering company expressed confidence in its business, but expects challenging conditions in commercial aerospace to continue into 2021. Ultra said trading has continued as expected, noting that all its facilities have remained open with no significant disruption to operations or demand. Ultra highlighted "strong" order intake and good revenue growth. It added operating margins are slightly better than expected due to lower indirect costs related to the pandemic. Reduced capital expenditure due to Covid related deferral of site investments as well as strong advance payments also have contributed positively to cash conversion. Looking ahead, the company said: "Whilst we expect the challenging conditions in commercial aerospace to continue into 2021, our core defence markets are robust, and we remain confident in Ultra's ability to deliver exceptional value for all our stakeholders."
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UDG Healthcare, down 2.5%. Jefferies downgraded the healthcare services provider to Underperform from Hold.
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OTHER MAIN MARKET AND AIM - WINNERS
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Countrywide, up 43% at 207.00 pence. The estate agent said it has received a possible takeover offer valuing the firm at GBP81.8 million. Connells has approached Countrywide with a 250 per share offer, a 72% premium to Friday's closing share price of 145p. "The approach is at an early stage and Connells has indicated that any offer is conditional upon, amongst other things, completion of confirmatory due diligence and the recommendation of the board of Countrywide," said Countrywide. There is no certainty an offer will be made, nor as to the terms of any such offer.
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OTHER MAIN MARKET AND AIM - LOSERS
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Abcam, down 3.2%. RBC Capital downgraded the life science research software firm to Sector Perform from Outperform.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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