Last checked at LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Monday.
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FTSE 100 - WINNERS
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Capita, up 1.7%. Numis Securities has upgraded Capita to Buy, from Hold, and increased its price target on the stock to 1,365.00 pence, from 1,152.00p, citing strong contract win momentum and acquisitions made in the year-to-date. "We believe the market is underestimating the growth momentum of the business, and that the more explicit focus on return on capital employed should stabilise or improve returns in 2014 to 2016," says Numis analyst Julian Cater.
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FTSE 100 - LOSERS
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Lloyds Banking Group, down 1.1%. The company has set the price range of the initial public offering of TSB Banking Group on the London Stock Exchange at between 220 pence to 290 pence per share, which would value the spun-off retail bank at about GBP1.28 billion at the mid-point of the range. Lloyds said it expects to offer 125.0 million TSB shares to investors, representing a quarter of the bank's shares. However, with TSB's book, or net asset value, at about GBP1.50 billion, Lloyds is set to sell the shares at at least a small discount - 15% at the mid-range of the proposed pricing - amid signs of cooling investor appetite for IPOs.
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FTSE 250 - WINNERS
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Bellway, up 1.3%. The housebuilder's shares have jumped after Bank of America Merrill Lynch upgraded the company to Buy from Neutral.
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FTSE 250 - LOSERS
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Dixons Retail, down 1.4%, and Carphone Warehouse Group, down 1%. The Telegraph reported over the weekend that EE is poised to pull out of its relationship with Carphone Warehouse in a move that threatens the retailer's GBP3.6 billion merger with Dixons. The newspaper said that EE, which is the the UK's biggest mobile operator, is reviewing its consumer retail strategy, with a conclusion due "within weeks," and a complete withdrawal from Carphone Warehouse is the potential result.
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AIM ALL-SHARE - WINNERS
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Leni Gas & Oil, up 28%. The oil and gas exploration and development company said its GY-665 well at the Goudron Field in Trinidad has now intersected 687 feet of gross oil bearing sands in its primary target, the Gros Morne formation, and the company has decided to shorten the planned total depth of the well. It said the well, which is the second of 30 new development wells on the site, found the large region of oil sands between 2,006 feet and 2,693 feet in depth. However, the company said that when the well reached 2,750 feet in depth, at the base of the Gros Morne formation, it decided to shorten the planned total depth of the well and to not drill into its secondary targets due to the high quality of the Gros Morne hydrocarbon indications it has already found. It said it hopes to reduce any risks linked with deepening the well and to accelerate the time frame for bringing the site into production by stopping now. LGO said the well will now be logged and cased, before being completed as a Gros Morne producer, while its previously planned secondary targets will be drilled by one of the other wells drilling the site.
Eckoh, up 10%. The secure payment products provider said it has signed a five-year exclusive agreement with an unnamed US-based provider of business process outsourcing and communication services to distribute Eckoh products across the US. The deal, which starts on July 1, has minimum revenue payments to Eckoh totalling USD24 million, which become payable when certain sales criteria, measured annually, are achieved.
Snacktime, up 9.4%. The vending machine company said it has raised GBP570,000 gross through a subscription for new shares that will provide the company with working capital and the means to reduce its debt. The subscription will increase Boris Belotserkovsky's stake in the company to 26.14%, from 7.3% previously. SnackTime said that Versatel Co Ltd, a newly incorporated vehicle registered in the UK whose directors are Belotserkovsky and Oleg Chulkov, subscribed for the 3.8 million shares at 15 pence each. Dealings in the new shares are expected to begin on Tuesday. SnackTime said it will have 20.1 million shares in issue at that time. SnackTime's shares are currently quoted at 13.13 pence.
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AIM ALL-SHARE - LOSERS
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Hightex Group, off 31%. The engineering company has posted a widened pretax loss on nearly halved revenue in 2013, hit by operational problems at its Brazilian joint-venture company. It reported a pretax loss of EUR2.8 million, widened from EUR1.1 million, as revenue dropped to EUR9.9 million from EUR17.2 million. Hightex said receivables from its Brazilian joint venture have been cast into doubt due to difficulties in obtaining financial information.
Great Western Mining Corp, down 23%. The mineral exploration company is a big loser, even though it said it has completed nine holes at its M2-Smith copper target in Nevada, and that assay results from its recent drilling has shown a further five discovery grade and thickness copper intercepts. It said that, by May 28, its phase 2 drilling programme at the site had completed nine holes, M2-010 to M2-018, for a total of 6,245 feet out of a planned 14,000 feet for the entire programme, and found five new discovery grade intercepts. It said it was encouraged by the assay results for the nine new holes, saying that the five discovery grade intercepts had grade thicknesses greater than 45,000 parts per million copper, including a 40 foot space of 0.41% copper in the M2-015 hole and a 55 foot space of 0.36% copper in the M2-018 hole.
Blue Star Capital, down 16%. The company said it has raised GBP150,000 through a share subscription with institutional and private investors, money it will use as it looks to fund its working capital needs and repay a shareholder loan. It said that the investors subscribed for 27.3 million shares at 0.55 pence each. The fundraising, coupled with a conversion of the loan which was taken out on April 28 2011, means that Blue Star Capital is now free of debt. Blue Star Capital's shares are currently quoted at 0.5015 pence.
Distil, down 14%. The drinks brands owner reported a narrowed pretax loss in the year to end-March, despite seeing revenue decline, as it shifted its business model to focus on its own brands and away from third-party distribution. It posted a pretax loss of GBP392,000, narrowed from GBP738,000 in the previous year, even though revenue declined to GBP2.4 million, from GBP3.8 million. In the previous year, the company posted GBP299,000 in exceptional costs relating to a failed acquisition. Distil also said its cost of sales dropped to GBP1.8 million, from GBP2.9 million, and administrative expenses declined to GBP942,000, from GBP1.5 million.
Escher Group Holdings, down 11%. The software company said it will now recognise just under a third of outstanding licensing revenue of USD6 million in the first half of 2014, due to a customer roll-out taking longer than expected. It expects to realise USD1.8 million in the first half, with the remainder pushed back into the second half. Escher said the customer, which it didn't name, is rolling out Escher's software to its post office network.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
3 Oct 2014 11:05
