Barclays Share News (BARC)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Thursday.
-------
FTSE 100 - WINNERS
-------
Barclays, up 4.9%. Barclays has detailed plans to shrink its investment bank with a new round of job cuts, while shifting billions of pounds' worth of risk-weighted assets into what it termed a non-core unit. Analysts say that while the creation of a non-core unit is just a new way of packaging the same assets, the cost cutting that has been announced is encouraging. Barclays will address the plunging profitability of its investment banking division by putting about GBP115 billion of risk-weighted non-core assets in an internal unit, in a very similar move to that made by Royal Bank of Scotland Group with the creation of its own "bad-bank". The GBP115 billion accounts for about 26% of Barclays group total assets. Management expects to run them down to about GBP50 billion by the end of 2016. Barclays also announced that its investment banking shake-up will result in about 7,000 extra job losses within the unit by 2016, 2,000 of which will be this year.

Standard Chartered, up 3.3%. The bank said its first-quarter operating profit fell by a high single-digit percentage due to difficult market conditions, a weak performance in Korea as the business there is scaled down, and the weakness of emerging market currencies including the Indian rupee and the Indonesian rupiah. However, in the context of these known ongoing headwinds, "this is pretty reassuring," says Investec analyst Ian Gordon. "With expectations suitably managed for lower revenues in the first half, investors can take comfort from actual delivery of slight revenue growth," says Gordon.

BT Group, up 3.3%. The telecommunications company raised its total dividend for the year to end-March, after it beat market expectations for pretax profit and revenue, and promised further dividend growth over the next two years. It posted pretax profit of GBP2.31 billion, broadly flat on the year before, as revenue rose to GBP18.29 billion from GBP18.10 billion. Profit was damped by restructuring charges of GBP276 million and a GBP450 million investment in the new BT Sport service. However, excluding exceptional costs and the restructuring charges, pretax profit rose to GBP2.81 billion, from GBP2.66 billion. Analysts were expecting BT to post a pretax profit before items of GBP2.21 billion on revenue of GBP18.25 billion, according to consensus expectations provided by the company. The company raised its total annual dividend to 10.9 pence, from 9.5 pence.

Prudential, up 2%. The company has reported a 29% increase in first-quarter new business profit, boosted by its operations in the US, the UK and Asia. It said new business profit increased to GBP529.0 million in the quarter to end-March from GBP410.0 million a year earlier. While increases were reported across all three of its main areas of operation, they were most marked in the US and the UK. The group's fund management arm, M&G Investments, benefited from more than GBP1.4 billion in net inflows over the quarter, while the institutional business saw GBP100.0 million in net inflows.

Barratt Developments, up 1.6%. The housebuilder said it has been trading well so far in 2014, with an increase in net private reservations and sales. The residential property development group said net private reservations were up 25% at 0.71 per active site up to May 4, compared with 0.68 per active site a year earlier. Total forward sales were up 47% to GBP1.92 billion, compared with GBP1.31 billion, equating to 9,382 plots, up from 7,155 plots.

Glencore Xstrata, up 1.3%. The mining giant has appointed former BP Chief Executive Tony Hayward as permanent chairman with immediate effect. Hayward was appointed to the board in April 2011, prior to Glencore's initial public offering. He served as senior independent director from the IPO until May 2013, when he was appointed interim chairman. Hawyard has served as chief executive of Genel Energy since June 2011. He was CEO of BP, but stood down in the wake of heavy criticism of the company's response to the Gulf of Mexico oil spill.
-------
FTSE 100 - LOSERS
-------
Sage Group, down 5.5%. The company raised its interim dividend to 4.12 pence, from 3.88 pence, after it swung back to a pretax profit of GBP164.5 million in its first half, but investors have reacted negatively to the news that Chief Executive Guy Berruyer has stepped down.

Centrica, down 2.8%. The energy company has cut its earnings outlook for the full year, blaming tough market conditions in the US and UK as well as the pressure being put on energy companies by politicians and consumer groups in the UK. It now expects full-year adjusted earnings per share to be in the range of 22 pence to 23 pence. It said its UK business had been hit by the mild weather and the competition being driven by the focus on energy bills. Its US business was hit by the extreme winter weather there which meant the company booked additional costs. Centrica also said it will sell 40% of its North American gas assets into a joint venture with Qatar Petroleum International for CAD200 million.

Randgold Resources, down 1.3%. The gold mining company has seen its shares fall despite reporting an annual increase in pretax profit in the first quarter, as production increased at its Kibali mine. Pretax profit for the three months to end-March was USD108.1 million, up from USD85.4 million a year earlier. However, the figure was down from USD129.7 million in the fourth quarter of 2013 due to increased costs. Revenue was USD284.4 million, in line with the USD284.7 million it reported a year earlier, but down from USD291.8 million in the previous quarter.

RSA Insurance Group, down 0.5%. The company reported a decrease in first-quarter net written premiums on both an underlying and headline level, as the insurer undertook a more disciplined underwriting approach across its regions and continued to work on turning around its fortunes. RSA said net written premiums fell to GBP1.98 billion in the first three months of 2014, compared with GBP2.34 billion a year earlier, a 15% fall.
-------
FTSE 250 - WINNERS
-------
Perform Group, up 6.8%. The digital sports media company reported that its revenues rose 32% on the year in the first quarter to end-March. It said revenue rose to GBP56.9 million, up from GBP43.0 million. It said that it was on track to meet its expectations for revenue and earnings before interest, tax, depreciation and amortisation. Perform also said that said it has snagged media buying giant WPP's Ashley Milton as its new chief financial officer. Milton presently works as chief financial officer for WPP's media investment division, and previously held the position of finance director at Tarsus Group.
-------
FTSE 250 - LOSERS
-------
SuperGroup, down 11%. The clothing retailer's shares have plummeted after it missed sales targets in the last quarter, and said it now expects its pretax profit for the full year to be at the lower end of expectations, hit by heavy promotions in the UK retailer sector. It reported a 12% increase in revenue for the fourth quarter ended April 26 to GBP97.8 million, up from GBP87.1 million the prior year, driven by a 13% increase in retail sales to GBP54.6 million, and a 11% rise in wholesale sales to GBP43.2 million. However, on an underlying and reported basis, like-for-like retail sales declined, missing expectations for growth. They were down 1.3% on an underlying basis, which excludes the mega-deal promotions on eBay, and down 3.1% on a reported basis. The group said that like-for-like sales were hit by a late Easter, product mix, and lower eBay sales. Supergroup said that after a challenging retail trading environment during the quarter, its pretax profit for the full-year will be at the lower end of the consensus range of GBP61.1 million to GBP65.2 million.

Unite Group, down 1%. Shares in the group are down after Schroder Real Estate Investment Trust said it has moved a step closer to selling its development scheme in Wembley, after Unite was granted planning consent for a 699-room student hall of residence at the site. On September 18, 2013, Schroder announced that it had exchanged contracts to sell the one acre plot, but said the deal was subject to Unite securing detailed planning consent for 200,000 square feet of student accommodation comprising approximately 684 rooms. Unite subsequently secured consent for 699 rooms. Schroder said this increased the sale price to GBP7.6 million from GBP7.4 million including overage, compared with a valuation at March 31 of GBP6.3 million.
-------
AIM ALL-SHARE - WINNERS
-------
New World Oil And Gas, up 40%. The oil and gas exploration and development company said it has moved a step closer to completing its deal with Niel Petroleum SA under which Niel Petroleum plans to invest USD25 million in New World for a 75% stake. The company said Kuwaiti businessman Muaaz Alfahaid, representing Al Maram Trading & Contracting, will acquire a 20% stake in Niel Petroleum for USD20 million, with the proceeds used for the final subscription payment to New World. Earlier this year, Niel Petroleum made an initial USD4.8 million payment to New World. The deal, agreed last September, has been beset by delays meaning New World was left waiting for a transfer of funds. New World Oil & Gas also said that is has signed a deal whereby it will take a 49% equity interest, with 60% economic benefits from net revenues, in Alfahaid's Kuwait-based business, which has the right to participate in drilling and oil production in the country.

SerVision, up 20%. The company, which develops and manufactures digital security systems, has inked a new distribution agreement with Live Video USA Inc to distribute its video gateway products in the US and Canada. Under the agreement, Live video will be able to distribute SerVision's products until the end of 2015. It has committed to an order schedule of six purchase orders worth USD4.0 million, SerVision said.

Nature Group, up 15%. The company reported a GBP10.7 million pretax loss due to a GBP12.9 million goodwill write off associated with its merger with International Slop Disposal B.V., however, excluding this cost, full-year revenues rose 52% and underlying pretax profit more than doubled as its divisions made good progress, despite facing changes in legislation and delays in bringing its Gibraltar operations back online.

Max Petroleum, up 9.9%. The oil and gas company has announced further successful drilling results from its East Kyzylzhar I Field, finding two high quality reservoirs in its KZIE-4 appraisal well.

Conroy Gold & Natural Resources, up 9%. The group said a follow up trenching programme showed wide mineralised zones at its Clay Lake gold project in County Armagh, Northern Ireland. Wide sheared and mineralised black shale was present in three trenches. Mineralised black shale in this area tends to be associated with the presence of gold, the company said.

E-Therapeutics, up 6.9%. The company said it has been cleared by the US Food and Drug administration to resume recruiting patients for its Phase Ia study of compound ETS2101, a potential treatment for brain cancer. The company had previously paused recruitment for the trial due to a drug storage issue, which it has since resolved.

Idox, up 6.4%. The software and services company has re-iterated its confidence in meeting market expectations for its full-year results, as revenue rose in the first half to end-April. It said that it had seen a "very satisfactory trading performance" during the half year, as revenues from continuing operations rose 12%. Idox said that it had been able to reduce net debt to GBP8.7 million from GBP19.8 million at the year end October 31, 2013.
-------
AIM ALL-SHARE - LOSERS
-------
Hume Capital Securities, off 32%, after it announced the resignation of Chief Executive Nitin Parekh amid a board review of its financial resources.

Ferrum Crescent, down 26%. The iron ore developer has been hit by the news that it has not received a second payment from Anvwar Asian Investment as part of a deal to sell a 35% interest in its subsidiary that holds its Moonlight iron ore assets in South Africa for USD10 million. The company was paid USD500,000 as part of the deal during March, and said at the time that it expected a second USD500,000 payment by the end of April. However, on Thursday, the company said Anvwar Asian Investment has failed to make this payment and requested a delay until May 26. Ferrum said it is taking advice on how to move forward regarding the delay.

Stellar Diamonds, down 22%. The diamond miner has announced that it placed 148.2 million new shares at 1.25 pence per share. The dilution has brought the share price down from Wednesday's close of 1.675 pence. The company said it has raised about GBP1.85 million before expenses through the placing, money it will use to accelerate its plans to advance its Baoulé kimberlite project in Guinea towards trial mining and for continuing bulk sampling at Tongo Dyke-1 in Sierra Leone. Stellar Diamonds is currently quoted at 1.2495 pence.

-------
By James Kemp; jameskemp@alliancenews.com; @jamespkemp

Copyright 2014 Alliance News Limited. All Rights Reserved.