LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Tuesday.
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FTSE 100 - WINNERS
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Shire, up 3.6%. The pharmaceutical company is the leading riser in the blue-chip index as it continues to benefit from the mergers and acquisition speculation and activity that has recently been boosting the healthcare sector. According to Reuters, US pharmaceutical company Allergan is preparing to approach Shire about a potential takeover bid. Allergan, which is itself facing an unsolicited bid from Valeant Pharmaceuticals International, has already been turned away by Shire in recent months, but is currently eyeing another potential takeover, according to Reuters.
Experian, up 1.3%. Shares in the company have jumped after FTSE-100 peer Intertek said Chief Financial Officer Lloyd Pitchford has resigned and will leave the company on September 30 to join Experian as chief financial officer. Before Intertek, Pitchford spent ten years at BG Group where he held various senior finance positions, including financial controller, and seven years at Mobil Oil in financial and commercial roles.
St James's Place, up 1.1%. The wealth manager reported an increase in funds under management in its first quarter, after taking in GBP1.2 billion in net inflows, a 26% increase on the comparative quarter of 2013. It said its funds under management grew by GBP1.5 billion to GBP45.8 billion over the quarter to end-March, despite the slight fall in world stock markets. New money invested, which amounted to GBP1.9 billion, drove net inflows but was supported by a positive investment performance of GBP300.0 million.
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FTSE 100 - LOSERS
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AstraZeneca, down 1.3%. The pharmaceutical giant, which has seen its share price jump sharply recently, is a big faller despite a raft of positive price target revisions. S&P Capital IQ has raised its price target to 5,020.00 pence from 4,460.00p, having upwardly revised it as recently as last Friday. Credit Suisse has increased its target to 4,800.00p from 4,000p, UBS has lifted its price target to 4,825.00p from 4600.00p, and Jefferies has raised its target to 5,000.00p from 3,700.00p. Panmure has upgraded its rating on the stock to Buy, from Hold, and raised its price target to 5,400.00p from 3,900.00p. However, after the company's share price rose almost 15% on Monday, meaning it has jumped approximately 25% in the last two weeks, AstraZeneca has fallen back slightly Tuesday.
Glencore Xstrata, down 0.2%. Caracal Energy Inc said Glencore International AG, a subsidiary of Glencore Xstrata, has acquired 4.2 million shares in Caracal at a price of 550 pence per share on Monday, ahead of its planned takeover. Caracal, which operates in Chad, said Glencore's acquisition brings its total holding in the company to 18.9 million shares, or 12.35%, assuming the conversion of Glencore's USD40 million principal amount of Caracal convertible bonds due September 2017. On April 14, Glencore reached an agreed deal to acquire Caracal Energy for 550 pence a share, or about GBP808.5 million in cash, ending Caracal's proposed merger with Transglobe Energy Corp.
Intertek Group, down 0.2%, as its CFO moves to Experian. Intertek said Financial Controller Edward Leigh will replace Pitchford as chief financial officer and join Intertek's Board.
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FTSE 250 - WINNERS
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Telecity Group, up 13%. The company has reaffirmed its full-year currency-neutral revenue growth target of 10% for 2014, after it said it had seen a solid first quarter to end-March. The firm continues to expect revenue of between GBP355 million to GBP362 million for the year. It also maintained its medium-term capital expenditure guidance range of between GBP110 million to GBP130 million. It said that its first quarter currency neutral revenue growth was 9.4% compared to the previous year, accelerated from the levels it had seen at the full year 2013. Earnings before interest, tax and appreciation margins also showed good growth, Telecity said, in line with the 2013 levels.
NMC Health, up 4.4%. The private healthcare network operator in the United Arab Emirates said revenues rose 11% in the first quarter to March 31, driven by higher occupancy levels and good trading conditions. It posted revenue of USD153.8 million, up from USD139.0 million in the previous year. Healthcare revenues were up 10% to USD79.2 million from USD71.8 million, as occupancy levels at its hospitals rose to 71.3% in the first quarter from 64.7% at the end of 2013. The company said it expects the implementation of mandatory healthcare insurance in Dubai to begin in the fourth quarter of 2014. It expects to see benefits from this from 2015 onwards. It will add a total of 410 new beds to its capacity in 2014 and 2014 it said.
UBM, up 3.5%. The group has reiterated its guidance for 2014 despite seeing revenues decline in the quarter to end-March, hit by currency exchange movements, events running later than in 2013, and restructuring in its marketing services. It posted revenue of GBP163.0 million in the quarter, down from GBP188.5 million in the previous year, leading to a total adjusted operating profit of GBP29.4 million, down from GBP35.4 million. Liberum Capital has reiterated its Buy recommendation at 840.00 pence price target, saying that that UBM's forward bookings look strong, and its underlying business model is still attractive. However, it said that the interim management statement was "likely to be seen as slightly disappointing, with the underlying revenue declining higher than what we think the market expected."
Redrow, up 2.7%. The housebuilder said that the positive sales market seen in 2013 continued into the new year, with the group operating from an average of 92 outlets in the period, up 12% from 82 last year, in line with the company's focus on increasing delivery of new homes to meet the elevated demand. In a trading update for the 17 weeks from January 1 to April 25, Redrow posted a 17% rise in net reservations at 1,280, compared to 1,091 last year, resulting in a sales rate of 0.82 per outlet per week, up 5% on 2013. The company also reported a rise in the average selling price of private reservations for the financial year-to-date, up 16% to GBP289,000 from GBP249,000 last year, mainly due to an increasing proportion of sales in London and the South East.
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FTSE 250 - LOSERS
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Serco Group, down 21%. The outsourcing company said after the UK equity market close on Monday that, after a more challenging 2014 so far, it is reviewing its performance and may have to revise its expectations lower. The outsourcing company said that, ahead of its upcoming annual general meeting on May 8 and the arrival of new Chief Executive Rupert Soames on May 1, it is reviewing its performance so far this year, noting that performance has been more challenging than previously expected. It said it will now consult with its shareholders regarding the possibility of strengthening its balance sheet through an equity placing.
UK Commercial Property Trust, down 2.2%. The trust said its net asset value increased by 2.2% over the first-quarter, rising to 74.7 pence from 73.1 pence, adding that its manager's latest forecast for total returns in 2014 stands at 15.5%, driven by an acceleration of capital value growth supplemented by a slightly lower level of income return.
Foxtons Group, down 1.9%. The company's shares have had a volatile morning, opening as much as 3% higher, before falling to a 4% loss, and then recovering just 1.9% lower. The estate agent released a strong management statement, saying that revenue rose 19% to GBP34.1 million as property sales commissions jumped 41% in 2013 to GBP17.6 million, driven by significant volume growth and increasing property prices. The numbers "highlight the highly operationally geared nature of Foxtons' business model," says Numis Securities analyst Chris Millington. The analyst sees little reason for the volatile morning and says the risk to earnings estimates remains "firmly to the upside".
Bodycote, down 1.1%. The engineering company said revenue rose at constant currency rates in the first quarter of 2014, although the company joined the long list of those reporting a hit when currency fluctuations are taken into account. It said revenue was GBP153 million for the three months to end-March, a 2.8% increase at constant currencies but down 2.2% at actual exchange rates.
Vedanta Resources, down 0.8%. The multi-commodities company said net profit at its subsidiary Sesa Sterlite fell in its full year despite improved revenues and results from its fourth quarter as costs hit the company. It said its net profit fell 16% in its full year ended March 31 from 1the previous year as the company's finance costs increased.
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AIM ALL-SHARE - WINNERS
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Christie Group, up 18%. The company said it will swing to a profit in the first half of 2014 and it expects its results for the year as a whole to be substantially ahead of current market forecasts after progress in the merger and acquisition mandates it flagged last month moved quicker than expected. It said that its results for the first half will be positive, compared with the GBP300,000 loss it made in the first half of 2013, although it didn't say which profit measure it was referring to. Christie had reported an operating loss before exceptional items of GBP273,000 in the first half of 2013.
Terrace Hill Group, up 15%. The property investor's shares have jumped after resuming trading on AIM following the publication of a reverse takeover document on Monday.
Fastjet, up 14%. The low-cost African airline said that it is restructuring two of its loss-making Fly540 businesses, so it can focus on new opportunities in east and southern Africa. The Fly540 businesses operate on a traditional airline model and not the Fastjet low cost model. As part of the restructuring, two group-owned ATR aircraft previously operating in Ghana and Angola have been taken out of service and are currently in the process of being sold. The group said it will announce further details on the restructuring of both Fly540 operations in due course.
Iofina, up 13%. The specialist iodine producer said it has successfully completed a USD5 million unsecured bond to be issued to Panacea Ltd. It said it intends to use the proceeds of the bond to strengthen the company's cash position, which stood at USD2.3 million at the end of March, as it looks at expanding its production base. Iofina said the bond is convertible into fully paid shares at a conversion price equivalent to 40 pence per share, which is roughly a 5.6% premium to its closing price of 37.75 pence on Monday. The group currently quoted at 43.25 pence Tuesday. The shares halved last week after Iofina reduced its production expectations.
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AIM ALL-SHARE - LOSERS
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North River Resources, off 18%. The firm has submitted an application for a Mining Licence for the Namib Lead zinc silver mine with the Ministry of Mines and Energy in Namibia. However, work on the feasibility study for the project - which was on track at the end of March - has been delayed due to the slow completion of metallurgy testing, said North River. North River also said that it has applied for a renewal of the EPL 2902 license, in which the mine is located, and which contains a number of near mine exploration targets integral to the project.
Atlantic Coal, down 18%. The coal miner said its production rates and coal sales volumes fell in its first quarter due to weather constraints in North America during the period. It said its clean coal production fell 14% to 35,757 tonnes in the three months to end-March from 41,555 tonnes in the previous quarter as the cold and long winter in Pennsylvania caused major operational problems. It also said its clean coal sales volumes fell 14% to 36,449 tonnes from 42,280 tonnes and its clean coal stockpile fell 7.5% to 2,702 tonnes from 2,922 tonnes, both also compared to the previous quarter.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
4 Nov 2013 12:08
