LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Aviva, up 5.4%. The insurer said it has entered 2016 from a position of strength after reporting higher annual operating profit for 2015 and lifting its dividend. Operating profit increased 20% to GBP2.67 billion in 2015, the insurer said, versus GBP2.21 billion in 2014, beating company-supplied analyst expectations of GBP2.49 billion. Aviva increased its total dividend per share for the year by 15% to 20.8 pence from 18.1p, slightly below analyst expectations of a 21.2p payment, and said it expects dividend increases to "moderate" in future. However, the insurer will consider "additional" distributions to shareholders, depending on economic conditions, markets, and having excess capital and liquidity. "We are not there yet," Aviva said. Nomura said Thursday's highlight was Aviva's "strong" Solvency II ratio of 180%, which was ahead of the broker's expectation of 170%. Nomura said consensus was between 165% and 170%.
Whitbread, up 1.5%. Jefferies upgraded the hotel operator and Costa coffee parent to Hold from Underperform.
Intu Properties, up 0.7%. Maquarie raised the mall operator to Outperform from Neutral.
RSA Insurance Group, up 0.7%. Panmure Gordon upgraded the insurer to Hold from Sell.
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FTSE 100 - LOSERS
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Ashtead Group, down 6.5% at 793.00p. Deutsche Bank started coverage on the equipment rental company at Sell with a price target of 660p.
Rolls-Royce Holdings, down 2.5%. Goldman Sachs cut its rating on the power systems developer to Neutral from Buy.
Royal Bank of Scotland Group, down 2.1%. Bernstein cut the state-backed lender to Marketperform from Outperform.
BHP Billiton, down 2.5%, and Direct Line Insurance Group, down 1.8%. The stocks went ex-dividend, meaning new buyers no longer qualify for dividend payouts.
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FTSE 250 - WINNERS
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Amec Foster Wheeler, up 8.2%. The oil and gas services company slashed its dividend after turning to a substantial loss in 2015, and reiterated its dividend this year will fall even further as the downturn in the oil, gas and mining markets continues. Amec reported a GBP235.0 million pretax loss in 2015, swinging from a GBP155.0 million profit despite revenue in the year rising 37% to GBP5.45 billion from GBP3.99 billion last year. Amec said it will pay a total dividend of 29.0 pence for the full year, a drop from the 43.3 pence paid in 2014. Despite this Amec said "our exposure to a number of end markets... means we expect to see only a slight fall in like-for-like revenue, and a reduction in trading margins significantly less than the decline in 2015". Societe Generale kept its Buy rating, saying: "Importantly, the company has also earmarked various non-core assets for disposal over the next 15 months with the target of reducing net debt by half over the coming 15-18 months."
Savills, up 5.7%. The real estate advisor recorded a surge in pretax profit, boosted by strong revenue growth from its US business. Savills recorded GBP98.6 million pretax profit for the year ended December 31, 16% higher than GBP84.7 million in 2014, after revenue came in at GBP1.28 billion, up 19% from GBP1.08 billion in 2014. Savills recommended a final dividend of 8.0 pence per share, meaning total dividend for the year will be 26.0 pence per share, up from 23.0p for 2014.
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FTSE 250 - LOSERS
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Wm Morrison Supermarkets, down 2.0%. The supermarket chain cut its dividend despite swinging to a pretax profit in its recently-ended financial year, mainly due to the restructuring costs booked a year earlier, but expressed confidence in its outlook as underlying profit hit its expectations. The grocer said its pretax profit for the year to the end of January was GBP217.0 million, swung from a GBP792.0 million loss a year earlier, when it booked significant costs on the restructuring of its business and store estate. Morrisons declared a final dividend of 3.50 pence per share, taking its total dividend to 5.00p, down from the 13.65p it paid out a year earlier.
Domino's Pizza Group, down 1.8%. The food delivery stock went ex-dividend.
Ibstock, down 1.6%. The building products maker said trading had been in line with expectations, with revenue growth robust on the back of strong clay brick prices. Ibstock said it saw a slower start to 2016 in terms of UK brick sales, but said its expectations for the full year remain unchanged. It said its construction of a new stock brick manufacturing plant in Leicestershire is expected to add approximately 100 million bricks per annum to its production capacity. The new plant is expected to be commissioned in the second half of 2017.
Michael Page International, down 1.4%. The recruiter posted growth in pretax profit, revenue and gross profit for 2015 but cautioned on a tough trading environment going into 2016, particularly in China. Michael Page said pretax profit for the year to the end of December rose to GBP90.7 million from GBP80.4 million in 2014, as revenue grew to GBP1.06 billion from GBP1.04 billion. The 1.7% growth in revenue would have been 7.1% in constant currencies, but the group took a hit from the weak euro and soft emerging market currencies. "Despite challenges in a number of our larger markets, the unpredictable nature of the current cycle and our limited visibility, we will continue to focus on driving profitable growth in 2016," said Chief Executive Steve Ingham.
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MAIN MARKET AND AIM - WINNERS
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Public Service Properties Investments, up 11%. The real estate investment and financing company agreed to sell its remaining properties leased to Marseille Kliniken Group for EUR10.0 million. The sales have been made to subsdiaries of Marseille Kliniken, the German nursing home owner, and should close in around six weeks. Public Service said it will use around EUR4.1 million of the proceeds to pay down its senior debt pile, with the rest to be used to cover sale costs and working capital.
First Quantum Minerals, up 13%. The miner struck a USD712.0 million deal to sell the Kevitsa nickel-copper-platinum group elements mine in Finland. First Quantum will sell the mine to Boliden AB, a Swedish mining company, in cash. The deal is expected to complete in May, subject to securing competition approval.
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MAIN MARKET AND AIM - LOSERS
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Sprue Aegis, down 9.8%. The home-safety products company said it renegotiated its supply agreement with DTL, and the effect of this will result in its operating profit for the year falling below market expectations. Sprue said DTL, which supplies Sprue's smoke alarms and accessories, has invested in a new technology manufacturing facility and is bearing increased labour costs in China. Due to this, Sprue has agreed to accept modest price increases under its supply agreement and will bear the part of the effect of sterling's weakening against the dollar. The effect of the changes mean Sprue's operating profit for the year to the end of December 2016 will be around GBP8.3 million, slightly below market expectations.
Ferrexpo, down 9.2%. The iron ore miner said its profit and revenue plummeted in 2015 as an increase in production and a reduction in costs were not enough to offset steep falls in iron ore pellet prices, and it warned prices will drop further this year and remain low potentially until 2020. The group said its pretax profit amounted to USD25.4 million in the year, falling from the USD254.3 million profit in 2014 as revenue dropped to USD961.0 million from USD1.38 billion a year earlier.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
Copyright 2016 Alliance News Limited. All Rights Reserved.
22 Jan 2016 17:00
