LONDON (Alliance News) - The following stocks are the leading risers and fallers on the main London indices midday Wednesday.
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FTSE 100 - Winners
J Sainsbury, up 3.7%, is one of the few risers on the FTSE 100. The company said its market share of 16.8% for the year to October 13 is its highest for 10 years, as it kept outperforming its main rivals with strong sales and profit growth in the first half of the financial year. The supermarket raised its interim dividend to 5 pence, from 4.2p, as it reported a 9.1% rise in pretax profit to GBP433 million for the 28 weeks to September 28, from GBP397 million a year earlier. Total revenue rose to GBP12.68 billion, from GBP12.16 billion, while like-for-like sales rose 1.4%, the 35th consecutive quarterly increase according to the company.
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FTSE 100 - Losers
BHP Billiton is down 2% after it announced the suspension of mining at the Nickel West Leinster Perseverance Underground operation. The temporary suspension of the operation is likely to result in a reduction of total saleable nickel production at Nickel West in the December 2013 quarter.
Tullow Oil, down 1.6%, and Royal Dutch Shell, down, 1.4%, are amongst the biggest blue-chip fallers. Tullow and Shell are two of AIM-listed Wessex Exploration's partners at the Guyane Maritime Venture, with a holding of 27.5% and 45% respectively. Wessex has reported that it has completed its four well exploration programme at the permit, offshore French Guiana. GM-ES-5, the final well of the 2012-2013 four well project, has been drilled to a total depth of 6,460 metres and the well will now be plugged and abandoned, said the firm. Wessex has conducted reservoir evaluation work with the reservoir sequences encountered as expected but with no evidence of hydrocarbons.
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FTSE 250 - Winners
Fenner climbs 7.8%. While the company reported declines in revenue, down 1% to GBP820.6 million from GBP830.6 million in 2012, underlying profit, falling 15% to GBP101.5 million from GBP118.8 million, and adjusted earnings-per-share, down 17% to 30.1p from 36.1p, these were in line estimates, says Liberum Capital. The fact that the dividend was increased by 7% to 11.25p reflects the company's "confidence in prospects and strong financial position," the brokerage says. Liberum raises Fenner's target price to 515.00p from 410.00p, maintaining a Buy recommendation. Numis raises its price target to 480.00p from 415.00p, retaining its Add recommendation, as it "expects Fenner to return to growth in 2014."
esure Group jumps 5.4%. The recently listed motor-and-home insurer said it is on track to meet market expectations for the full year, after reporting an increase in gross premiums written in the third quarter. The company said it wrote GBP161.5 million in gross premiums for the quarter ended September 30, compared with GBP158.8 million for the corresponding period last year. Additional sales revenue, excluding claims income, also saw strong growth as a result of the increase in policy count.
ICAP is up 5% after it said it expects its pretax profit for the full year to be marginally ahead of last year, despite reporting a small decline in half year revenue in line with guidance it issued towards the end of September. ICAP said it expects full-year profit before tax, which was reported at GBP66 million last year, to be marginally ahead of the prior year, as long as market conditions do not "materially change".
Drax Group is up 4% after it raised its full-year forecasts. It said trading conditions had remained strong in recent months, with contracted sales up at the coal-fired units at its power station. The company said it now expects full-year EBITDA and earnings-per-share excluding exceptional items to be "materially ahead of current market consensus forecasts."
Bank of Georgia Holdings, up 0.7%, has reported that its third quarter pretax profits have risen by 20% after revenues rose and operating expenses declined. The bank made a GEL66.4 million pretax profit for the three months to September 30, compared with GEL55.2 million for the corresponding period in 2012. Revenue increased by 5.6% to GEL138.3 million as a result of strong net interest income figures and a 25% leap in net insurance revenue, which more than compensated for a 9.7% decline in net fee and income commission. Additionally, operating expenses fell to GEL54.9 million from GEL58.1 million, as general and administrative expenses were cut by 25%.
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FTSE 250 - Losers
Partnership Assurance Group is down 21%. The annuities provider said it doesn't expect to see growth in its year-on-year retirement sales in the fourth quarter, as last year's figures were boosted by the introduction of gender neutral pricing. "The key reason it seems is that they gave guidance for the fourth quarter [in their formal statement] which was...below market expectation and they indicated on the [analyst] call that it was probably a stretch target to get there," Canaccord Genuity analyst Ben Cohen told Alliance News.
Kier Group is down 6% despite saying that it is on track for the full-year. Both its construction and property divisions have secured a number of profitable contracts. In an interim management statement for the period July 1 to date, Kier said it won GBP450 million worth of work during the period much of which came through framework agreements.
Balfour Beatty declines 4%. The infrastructure construction firm remains under pressure following its GBP252.7 million offer of convertible bonds on Tuesday. It announced Wednesday that its joint venture has been recommended for the GBP213 million North Metro Rail Line design-build project by the Regional Transportation District of Denver, Colorado. Graham Balfour Beatty Hammon Contractors will be tasked with providing design and construction services across the 13.5 mile transit project.
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AIM - Winners
Petards Group jumps 132%. The security and surveillance systems company, which has won a string of train CCTV contracts in recent months, said it had won a deal worth over GBP7 million to provide and maintain secure radio systems for the Royal Air Force. Under the contract, Petards will replace the RAF's entire secure radio equipment which allows safe movement and personnel around airfields and communication between air traffic control and air field staff. It said it will provide most of the equipment over the next 15 months and then maintain it for 10 years, with an option to extend for a further 5 years.
Herencia Resources is up 20% after Hong-Kong investment fund Shining Capital Management agreed to provide it with up to GBP2.5 million to facilitate the development of Herencia's main projects in Chile. Shining Capital will become one of the company's main investors, having agreed to buy in at 0.62 pence a share. It will provide a first tranche of GBP620,000 and a second tranche of GBP1.86 million, and will have a 16.4% stake in the company when the investment in complete. Herencia will use the new funds to start a drilling project at its Picachos copper project in Chile in the first half of 2014, accelerating plans to get a maiden resource estimate. It also will advance work on getting permits, developing logistics and engaging with the local community at its Paguanta silver-zinc-lead project in the country. Lastly, it will continue exploring the Loretto project adjacent to Paguanta and the La Serena project.
Legendary Investments is up 11% after one of its investments, Virtualstock, signed a "significant" contract extension with Office Depot to support the stationary retailer's expansion into Germany, Austria, Switzerland and the Benelux countries.
Ceramic Fuel Cells, up 9.4%, has said it will install 45 of its BlueGEN fuel cell micro-CHP appliances on the island of Ameland in the Netherlands and deliver 10 more for installation at social housing partners in the UK over the coming year. The Netherlands order is part of a project that just got funding. The Island is attempting to become CO2 neutral by 2020 by developing a series of renewable energy projects. The UK deal is part of the National Grid Affordable Warmth Solutions scheme. National Grid will gift the fuel cells to housing providers which will use them to try and reduce fuel costs for social housing tenants by feeding power back into the grid.
Volga Gas, up 6.9%. The company said operating subsidiary OOO Gaznefteservice has received regulatory approval for upgrade works on its Dobrinskoye Gas Processing Plant, a decision it thinks will lead to lower costs and higher revenues as it can ramp up production from its gas fields. Volga has already built the main processing stream at the plant, and expects to get final approval to move to full production once it has installed "certain minor modules" as required by the Russian state construction agency.
Corac Group, up 4.7%, has received a further order of USD1.4 million from BP Trinidad & Tobago LLC for the design and engineering phase of its project. The project is to develop a compact gas compressor that will be used for deployment on an offshore production platform. This order brings the total value secured by Corac on the project to USD2 million.
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AIM - Losers
Wessex Exploration drops 48% after reporting that the final well at its Guyane Maritime Permit has been drilled and plugged.
Centurion Resources is off 21%. Centurion has confirmed its proposal for the acquisition of the entire issued share capital of FinnAust Mining for GBP7.7 million. The company has conditionally raised GBP3.4 million pursuant to the placing, in order to fund the development of FinnAust's prospective portfolio in southern Finland. The firm said the placing has been priced at 5 pence per share post a one-for-ten share consolidation which is equivalent to 0.5 pence per share ahead of the proposed consolidation.
BowLeven falls 16% after saying it is looking to raise about GBP13.3 million through a placing to fund development of its Etinde project. The company successfully placed 3.9 million shares in a placing first thing Wednesday at 45 pence a share, and is offering 25.6 million shares in an open offer at the same price.
Northern Petroleum is down 13%. With a stake in the Guyane Maritime Permit, the news that the final well has been abandoned has weighed on the company's share price.
Xenetic Biosciences is down 11%. The company said shareholders holding 26.46% of its stock have now given irrevocable undertakings to accept a takeover offer from General Sales And Leasing Inc.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2013 Alliance News Limited. All Rights Reserved.
2 Mar 2015 10:15