LONDON (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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Rolls-Royce Holdings, up 2.2%, BAE Systems, up 1.2%. UK Prime Minister David Cameron is set to announced a GBP178.0 billion investment in defence equipment and support over the next decade when he outlines the findings from the Strategic Defence and Security Review later Monday. The new budget represents a GBP12.0 billion uplift in total funding for defence equipment and will focus on investments which will help the UK "respond to diverse threats in an increasingly dangerous and uncertain world", according to a statement from the Ministry of Defence. The investment will include nine new Boeing P8 maritime patrol aircraft and an extension to the UK's multi-role Typhoon jets, built by BAE Systems, for another decade through to 2040, allowing the Ministry of Defence to create two extra squadrons. There will also be an investment in ground attack capabilities for the Typhoons.
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FTSE 100 - LOSERS
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RSA Insurance Group, down 1.9%. Barclays cut its price target on the insurer to 425 pence from 440p, though it kept its Equal Weight rating intact. RSA shares were trading at 430.30p.
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FTSE 250 - WINNERS
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Home Retail Group, up 6.3%. A number of private equity firms are considering making GBP1.0 billion takeover bids for the owner of catalogue retailer Argos and DIY and garden centre chain Homebase, The Sunday Times reported. Several retail industry figures have been asked to advise on potential bids for the company in the wake of the profit warning that Home Retail issued in October, which it blamed on uncertainty around Black Friday promotions. Home Retail had a market capitalisation of GBP912.8 million after Monday's gains.
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FTSE 250 - LOSERS
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Playtech, down 8.4%. The gaming technology company said it has terminated its agreement to acquire contracts-for-difference broker Plus500 over concerns it will not be able to secure UK Financial Conduct Authority approval before the end of 2015, and warned that the collapse of the Plus500 deal increases the risk that its purchase of Ava Trade also may get cancelled. In response, Plus500 outlined its plans for an independent future, proposing an interim dividend of USD0.2121 per share, and a share buyback programme. Playtech said it will not incur any penalties in relation to terminating the Plus500 deal and said it has no "immediate plans" in regards to its 9.9% stake in Plus500. If the Ava Trade deal is terminated, Playtech would lose its non-refundable USD5 million deposit already paid, but would incur no financial penalty.
Mitie Group, down 5.6%. The outsourcer said its pretax profit rose in the first half due to restructuring charges booked a year earlier not repeating, but its headline profit was weaker due to tougher conditions for its healthcare business. The group said its pretax profit for the first half to the end of September was GBP45.1 million, compared to a GBP1.3 million loss booked a year earlier due to restructuring charges it booked as it restructured itself into a services-focused business. Stripping out one-offs, however, pretax profit fell to GBP50.1 million from GBP57.0 million in the half due to weaker conditions for Mitie's healthcare business, which was hit by unprofitable contracts the group has now exited. Mitie will pay an interim dividend of 5.4 pence, up from 5.2 pence.
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MAIN MARKET AND AIM - WINNERS
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Feedback, up 22%. The medical devices firm said it inked a memorandum of understanding with Alliance Medical Group, with the aim of integrated its TexRAD texture analysis software into Alliance's lung cancer imaging service. The company said that whilst technical discussions are at a "very early stage", it considers the deal to be "potentially of great significance as regards the future commercialisation of TexRAD software." Alliance and Feedback will undertake an imaging research study to assess the use of TexRAD in lung cancer, with the eventual aim of getting National Institute for Health and Care Excellent approval for TexRAD to be used in the lung cancer pathway.
Deltex Medical Group, up 11%. The monitoring technology company said it has added two further new accounts to its platform programme in the US, a teaching hospital in the mid-west, and a hospital in Washington State. Deltex said that the teaching hospital has indicated it plans to buy at least 40 of Deltex's oesophageal Doppler monitoring probes per month during its initial implementation. The agreement with the second hospital requires it to buy at least 30 adult surgical probes a month.
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MAIN MARKET AND AIM - LOSERS
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Alecto Minerals, down 33%. The miner said it has struck a deal to acquire the Matala and Dunrobin Gold Mines in Zambia in cash and shares and said it will launch a GBP650,000 placing. Alecto said the gold mines acquired have good potential to be developed to production in the near to medium term. The two mines have an aggregate 760,000 ounces of gold in place, according to resource estimates, at an average grade of 2.3 grams per tonne. It will pay a total of GBP1.5 million to acquire the assets, to be covered by the issue of 943.8 million shares, GBP100,000 in cash and a deferred consideration of GBP307,500. In addition, Alecto will raise GBP650,000 via a placing to fund the cash element of the acquisition and back work at the projects, plus its proposed joint venture in Mali.
Iofina, down 25%. The iodine production and iodine chemical derivatives maker warned it will take a hit from available brine for its facility in Oklahoma following an earthquake in the US state. Iofina said a magnitude 4.7 earthquake occurred around five miles south of one of its IOsorb plants in Oklahoma. No injuries to employees or damage to the facility was recorded, but the Oklahoma Corporation Commission Oil and Gas Conservation Division has issued an implementation plan to reduce salt water injection in a nearby area. The result of this will be a fall in available brine for the Iofina plant, which could spread to other plants. Iofina expects it will hit its production target for the second half, but said while the overall ramifications of the changes in Oklahoma are not yet clear, the company currently expects its crystalline iodine production rate may fall 10% to 20% per year.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
17 Jan 2014 13:22
UK MIDDAY BRIEFING: Royal Dutch Shell Shocks With Profit Warning
LONDON (Alliance News) - Oil giant Royal Dutch Shell shocked the market Friday by warning that its profits will be well below expectations after nearly every part of its business performed below its expectations in the fourth quarter.
The profit warning has sent its
