Astrazeneca Share News (AZN)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Wednesday.
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FTSE 100 - WINNERS
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Barclays, up 3.9%. The bank is the biggest riser in the blue-chip index after beating consensus forecasts for its half-year adjusted profit. It reported a 6.7% fall in first-half adjusted pretax profit, as adverse currency movements and a fall in the profitability of its investment bank were only partially offset by improvements in personal and corporate banking, Barclaycard and its 'non-core' division. It said it made a GBP3.35 billion adjusted pretax profit in the first six months of 2014, down from GBP3.59 billion adjusted pretax profit in the corresponding period last year, though the result still beat the GBP2.96 billion analyst consensus forecast provided by the bank. The adjusted figures, which strip out items including own credit, costs of provisions for mis-sold products, and goodwill impairment, were presented alongside statutory results showing a 49% increase in pretax profit to GBP2.50 billion from GBP1.68 billion.

Travis Perkins, up 3.2%. The building merchants has reported an increase in pretax profit for the first half, boosted by a combination of improving market conditions, increasing customer confidence and the successful introduction of a number of self-help initiatives. It posted pretax profit of GBP153.7 million for the six months to end-June, up 14% from GBP134.7 million a year earlier, as revenue rose to GBP2.73 billion from GBP2.45 billion.

Royal Bank of Scotland Group, up 2%, and Lloyds Banking Group, up 1%. The banking companies are up after Barclays became the second of the big banks to beat analysts expectations in the first half, following RBS's surprise announcement last week. Lloyds reports its own results on Thursday.

AstraZeneca, up 0.9%. The pharmaceutical company has entered into an agreement to acquire Spanish pharmaceutical company Almirall SA's respiratory franchise for an initial USD875 million. The deal could be worth up to USD1.22 billion including development-, launch- and sales-related milestones, AstraZeneca said, and it also has agreed to make sales-related payments to Almirall. It will fund the transaction from existing cash resources and short term credit facilities. Almirall's development subsidiary for proprietary devices, Almirall Sofotec, will also transfer to AstraZeneca. The company also announced Wednesday that it will collaborate with Kyowa Hakko Kirin Co Ltd for a Phase I/Ib immuno-oncology study to evaluate the safety and efficacy of two combinations of three compounds on multiple solid tumours. The study will combine AstraZeneca's MEDI4736 compound with Kyowa Hakko Kirin's compound mogamulizumab, and also AstraZeneca's tremelimumab compound with mogamulizumab. Under the deal, the two companies will co-fund the study, which Kyowa Hakko Kirin will conduct.

Severn Trent, up 0.5%. The water company has outlined a number of changes to its Executive Committee responsibilities, attributed by the company to plans to prepare the business for the next regulatory period. The changes will help the "business to become more operationally effective, more competitive in non-regulated retail markets, more customer focused and deliver further shareholder value," said Severn Trent CEO Liv Garfield.
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FTSE 100 - LOSERS
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Antofagasta, down 2.3%. The miner said its copper production rates increased in its second quarter compared with the first but were down on the previous year, while cash costs increased after it agreed bonuses with labour unions at its Esperanza mine in Chile. It said copper production fell to 178,800 tonnes for the three months to end-June, down 0.9% on the year, while its half yearly production rate was 4.4% lower at 348,200 tonnes as a result of declining ore grades. However, second quarter copper production was up 5.5% on the previous quarter. It said its gold production was 67,000 ounces for the quarter, an 18.0% increase on the previous quarter but 13% down on the previous year. Its molybdenum production was 1,600 tonnes, a 5.9% fall on the previous quarter and a 20% fall on the previous year. The company also said that its cash costs before by-product credits in the second quarter were USD1.90 per pound, a 3.8% increase compared with the previous quarter due mainly to the signing of a bonus deal between Esperanza and its labour unions.

Compass Group, down 1.8%. The food service and support services company said its outlook for the current financial year remains unchanged and positive after it booked 4.0% comparable organic revenue growth in its fiscal third quarter and 3.9% for the first nine months of the year. However, it also warned of the hit it is taking from the strength of sterling on its results, which are denominated in the currency. It said that if current currency rates were to continue through its fiscal fourth quarter, then it would have wiped GBP92 million, or 7.3%, off its fiscal 2013 underlying operating profit and GBP1.20 billion, or 6.9%, of its fiscal 2013 revenue.

3i Group, down 1.4%. The private equity group said it realised GBP164 million of its investments in its first quarter, down from the GBP195 million it realised a year earlier. The group also remained a net divestor, with only GBP35 million of new cash investments over the quarter, compared to GBP47 million the year before. 3i also said that the strength of the pound led to a GBP68 million negative foreign exchange impact, although that has already been expected.

GKN, down 1%. The automotive and aircraft parts engineer has reversed some of the gains it posted on Tuesday. The company closed up 6.7% Tuesday after it said its pretax profit rose 6% to GBP296 million in the half year to end-June, up from the GBP278 million a year earlier, as automakers used more GKN parts in their cars. These gains have been somewhat pared on Wednesday, though it still has a long way to go before all of them are given up.

Rio Tinto, down 0.7%. The mining company has reached an agreement to sell its subsidiary Rio Tinto Coal Mozambique, which holds the Benga coal mine and other projects in the Tete province of Mozambique, for USD50 million. It said the subsidiary, which was acquired when the company bought over Riversdale Mining Ltd in 2011, would be sold to International Coal Ventures Private Ltd. Rio said the sale is subject to certain conditions and approvals, but it expects the deal to complete in the third quarter this year.

ITV, down 0.7%. The broadcaster's shares opened at a five-month high of 210.00 pence Wednesday after the company reported a strong first half performance and sounded confident about its prospects. However, with the shares having risen by 20% in the past three weeks alone, investors have taken some profits at that high, sending the shares lower. "We've seen a big run-up in ITV's share price in the last month or so and rather than any disappointment about today's results, I would suggest that this is a classic case of buy on rumour and sell on the fact as investors book some profits," said CMC Markets chief market analyst Michael Hewson. In a statement covering the half year to end-June, ITV posted a pretax profit of GBP250 million, up from GBP179 million, as total revenue rose to GBP1.23 billion from GBP1.14 billion.
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FTSE 250 - WINNERS
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Pets At Home Group, up 6%. The pet and pet products retailer posted higher sales and revenue in the first quarter of its financial year. It said like-for-like sales were up 4.1% in the 16 weeks to July 17, driven by its loyalty scheme VIP Club, and sales of advanced nutrition and health & hygiene products, along with continued growth for its veterinary practices and the pet grooming salons it has in some stores. Overall revenue rose 10.4% to GBP210.8 million, thanks to new store openings and strong performance across its food, accessories and services businesses.

MoneySupermarket.com Group, up 4.1%. The price comparison website said its first-half pretax profit increased by a third, boosted by revenue increases across its brands, and a gain on the sale of a stake in HD Decisions Ltd. It said it made a GBP26.4 million pretax profit in the six months to end-June, compared with GBP19.8 million in the corresponding period a year earlier. Revenue increased to GBP122.4 million from GBP112.3 million.

Diploma, up 4%. The technical products and services provider said that trading in the third quarter to end-June was in line with expectations, with its revenue in the nine months up 6% from the previous year. It said that revenue was up 8% at constant currency rates and adjusting for acquisitions.

National Express Group, up 3.4%. The bus, coach and rail operator's shares are solidly higher, even though the company reported lower profit and revenue for the first half of 2014 as it was hit by the extreme winter weather in North America early in the year, industrial action at its Spanish unit, and took a hit from the strength of sterling. It reported a pretax profit of GBP23.4 million for the six months to end-June, down from GBP34.3 million a year earlier, as revenue declined to GBP939.5 million, from GBP956.7 million. This more than offset a GBP14 million of cost savings. Still, the company raised its interim dividend to 3.35 pence a share, up from 3.25 pence last year, as it said it remains on course to deliver on its full-year profit expectations at constant exchange rates.

Rightmove, up 1.4%. The company, which runs rightmove.co.uk, reported an increase in profit and revenue for the first half, as its property website continues to prove popular with advertisers and consumers. It posted pretax profit of GBP58.8 million for the six months ended June 30, up from GBP44.6 million a year earlier, as revenue rose 20% to GBP80.4 million from GBP67.2 million. The popularity of the company's flagship website has gone from strength to strength, with home hunters visiting more often and looking at "more property than ever," Rightmove said. Page impression rose 13% to 8.1 billion from 7.2 billion, while enquiries rose 27% to 22.3 million from 17.5 million. Average revenue per advertiser rose 13% to GBP671 per month from GBP593 per month a year earlier.

Riverstone Energy, up 1.3%. The closed-ended investment company's shares have risen, even though it said it made a loss in its half year, the second half-yearly results the company has released since listing, due to losses from its investments and higher expenses, as the company ramps up its operations. It posted a total loss of USD2.4 million during the six months ended June 30 following losses from its investments totalling USD1.0 million and expenses totalling USD2.1 million. Earlier this year, the company, which listed in London in October 2013 and was promoted to the FTSE 250 in December, posted a net profit of USD575,000 for the period from May 23, 2013 to the end of December.

Taylor Wimpey, up 1%. The housebuilder reported an increase in profit for the first half, buoyed by a strong housing market in London and the South East. It posted a pretax profit of GBP210.2 million for the half year ended June 29, up 26% from GBP166.5 million a year earlier. Pretax profit before exceptional items rose to GBP178.4 million from GBP109.0 million a year earlier. Revenue rose 18% to GBP1.19 billion in the half from GBP1.01 billion a year earlier, driven by much improved selling prices. Average selling prices in the UK rose to GBP205,600 from GBP187,600, while prices for UK private sales crept up to GBP224,100 from GBP205,200 a year earlier, benefiting from a mix of product and improved quality locations. During the period 5,959 homes were built compared with 5,159 homes a year earlier.
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FTSE 250 - LOSERS
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Jupiter Fund Management, down 4.3%. The company reported a 4.4% increase in assets under management in the first half of 2014, boosted by GBP1.3 billion of net inflows largely driven by GBP875.0 million of mutual fund inflows. It said assets under management increased to GBP33.1 billion from GBP31.7 billion during the six months to end-June. However, first-half pretax profit decreased to GBP48.4 million from GBP59.1 million in the corresponding period last year, as a result of GBP5.3 million of costs incurred on the sale of its private client and charity operations to Rathbone Investment Management. Also eating into pretax profit was a GBP2.6 million write down to nil of iO Adria Ltd, compared with the GBP6.7 million gain in the year-earlier period, made from the sale of its holding in Cofunds Holdings Ltd to co-investor Legal & General Group PLC.

International Personal Finance, down 2.2%. The home credit business said its interim pretax profit declined by more than half as higher impairments and a GBP22.6 million charge on the buyback of EUR190.2 million of Eurobonds at a premium to par value combined to more than offset an increase in revenue. It said it made a GBP24.5 million pretax profit in the six months to end-June, compared with GBP54.7 million in the corresponding period last year. Revenue increased by GBP33.8 million to GBP394.1 million but impairments rose by GBP21.8 million to GBP130.2 million. On an underlying basis, which excludes the Eurobond buyback charge, the company reported an 11% increase in pretax profit. However, it said that the underlying figure took a GBP3.9 million hit due to weaker foreign exchange rates. It also announced entry into Spain, saying that it expects investment in the country to be around GBP3.0 million in 2014 and a further GBP8.0 million in 2015 with targeted break-even in 2018.

Beazley, down 1.4%. The speciality insurer is among the leading fallers in the mid-cap index after going ex-dividend, meaning new buyers no longer qualify for the latest dividend payout.
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AIM ALL-SHARE - WINNERS
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President Energy, up 6.7%. The oil and gas exploration and development company said it has decided to take full ownership of the Puesto Guardian Field in Argentina, after buying the 50% it doesn't own for an initial cash payment of USD5 million, to be followed by a further USD1.9 million in cash payments over two years. Under the terms of the deal, President will pay Tripetrol Petroleum SA and Petrolera San Jose SRL an initial USD5 million, before two separate payments of USD880,000 and USD1 million at the end of 2015 and 2016, respectively. It will also waive long standing debt worth USD1.6 million owed by the sellers and will provide a royalty of 5% on the proceeds of production whenever production reaches 1,000 barrels per day from Puesto Guardian capped at USD11 million, bringing the total possible consideration to USD20 million.

Frontier Developments, up 5.7%. The video game developer said it has released the first phase of the Beta development process of its forthcoming Elite: Dangerous game on schedule.

Tissue Regenix Group, up 5%. The company said that it has received approval from the Medicines and Healthcare Products Regulatory Agency to start the first UK clinical trial of its dCELL meniscal device for knee repairs. It expects the trial to begin in the fourth quarter of 2014, after it completes final tests and preparations. It said the approval "marks a critical stage" in getting EU clearance and a CE mark, which will allow it to fully commercialise the dCELL meniscus products. The device is used to repair damage from tears in the meniscus knee cartilage from injury or degeneration.
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AIM ALL-SHARE - LOSERS
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Altona Energy, off 9.5%. The coal-focused energy company said the negotiations over the Arckaringa joint venture deal are continuing in China. Altona, alongside project partners Wintask and Sino-Aus, said the group recently held talks in X'ian over the commercial terms of the joint venture. "All of the parties had hoped to conclude the joint venture agreement before 31 July 2014 however there is complexity inherent in negotiating an agreement across international jurisdictions for a project of the size and potential of the Arckaringa project," said Altona Chairman Michael Zheng.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp

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