LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Tesco, up 4.1%. The supermarket chain reported growth in like-for-like sales in the first quarter of its financial year, marking its second consecutive quarter of like-for-like growth, and announced that it is selling its Harris + Hoole coffee shop business to rival chain Caffe Nero. The supermarket said like-for-like sales in the 13 weeks ended May 28 grew by 0.9% year-on-year, with 0.3% growth in the UK and and 3.0% in the international business. Tesco said volume grew by 2.2% in the UK and by 2.7% internationally, while transactions rose by 1.7% in the UK and by 1.5% internationally. The launch of its 'farm' brands performed well in the UK, Tesco said, but price deflation did hit UK like-for-like sales by 0.7%.
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FTSE 100 - LOSERS
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RSA Insurance Group, down 1.3%. The insurance company's shares were lower after being one of the best performing stocks on Wednesday, closing up 2.1%.
Experian, down 0.3%, United Utilities Group, down 0.2%. The stocks went ex-dividend meaning new buyers no longer qualify for the latest dividend payout.
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FTSE 250 - WINNERS
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DS Smith, up 5.6%. The recycled packaging company reported revenue growth but only a marginal rise in pretax profit for its recently-ended financial year as costs related to acquisitions the company made dragged on results. DS Smith said pretax profit for the year to the end of April was GBP201.0 million, up slightly from the GBP200.0 million it made a year earlier. This was held back by exceptional charges of GBP79.0 million, up from GBP51.0 million a year earlier, as the group made five acquisitions and integrated those businesses over the course of the year. Stripping out this one-off effect, pretax profit rose to GBP280.0 million from GBP251.0 million. Revenue rose to GBP4.07 billion from GBP3.82 billion a year before.
Cobham, up 2.4%. The defence, aerospace and satellite communications technology company said it has secured a contract with aircraft manufacturer Airbus to supply the Inmarsat SB200 Evolution Service safety system. The contract, which will see aircraft in Airbus's single aisle and long-range aircraft ranges fitted with the communications technology from 2018, could be worth around USD200.0 million, Cobham said, with the potential for additional revenue as demand for satellite communications capability on board aircraft increases. The system, known as the Aviator 200S and 700S, will provide voice and data air-ground communication for the aircraft.
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FTSE 250 - LOSERS
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Debenhams, down 0.8% at 68.40 pence. The department store chain was continuing its losses from Wednesday after trimming its gross margin guidance for the full year amid a slowdown in like-for-like sales and tough trading conditions in the UK since the turn of the year. Shares in Debenhams ended down 6.1% on Wednesday. Goldman Sachs cut its price target on the stock to 70p from 80p, and Deutsche Bank lowered its price target to 80p from 85p.
Weir Group, down 0.4%. The engineer said it has sold two businesses operating within the renewables sector for up to GBP36.7 million and said it remains on track to deliver results in line with expectations, despite orders and revenue falling. Weir has agreed to sell American Hydro Corp and Ynfiniti Engineering Services for an initial combined consideration of GBP34.4 million, with the remainder being paid subject to certain conditions being satisfied. Both businesses were part of Weir's Flow Control division and generated a combined revenue total of GBP38.0 million and an operating profit of GBP1.4 million in 2015. Weir said it will book a loss on disposal of around GBP5.0 million as the company continues to progress it plans to sell GBP100.0 million worth of assets.
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MAIN MARKET AND AIM - WINNERS
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Clontarf Energy, up 125% and Petrel Resources, up 11%. On Wednesday, Clontarf Energy and Petrel Resources said authorities in Ghana welcomed them to begin negotiations about obtaining an offshore block over the Tano basin block. Clontarf and Petrel are working together through their stakes in Pan Andean Resources. In 2014, press reports said that authorities in Ghana were about to award an offshore area to a third-party, which Pan Andean believed partly made up its own Tano 2A block. Clontarf and Petrel said Wednesday the Ghanaian Ministry of Petroleum has informed them that authorities have reviewed the proposal put forward by Pan Andean, stating the block named Lukoil B is "available for negotiations". The companies both said they would "confirm our interest and follow up on this prospective acreage," which will add a new, deeper offshore block to the existing Tano 2A block held by the firms.
Image Scan Holdings, up 11%. The X-ray imaging company said it has signed a distribution deal for X-ray mail screening systems with Todd Research, a leading manufacturer within the X-ray market. Under the deal, Image Scan will distribute Todd Research's range of mail and security scanning systems. Image Scan said the partnership has already secured orders in Africa and Asia, though no financial details on these orders or the deal itself were disclosed.
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MAIN MARKET AND AIM - LOSERS
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Agriterra, down 31%. The agricultural company said it has begun destocking its cattle due to political unrest in the area around its cattle ranching operations in central Mozambique. The company said it has taken this decision in order to "safeguard and crystallise its considerable livestock capital" following a deteriorating political and economic environment in Mozambique. Agriterra noted that local militias operating under the Mozambican National Resistance are now entrenched in some rural areas in the Manica province, where Agriterra's three farms are located, increasing the possibility of livestock theft and increasing the risk in the movement of people and goods in the country.
Stadium Group, down 28%. The electrical components company said it will not grow as much as expected during the current financial year after losing a "significant customer" as the supplier of wireless services warned its full year results will be fail to meet current expectations. The company said it has received notice from a significant wireless customer in the telematics space that, following a period of reduced call-off, they will move product design in-house and manufacturing elsewhere. "The loss of this customer will result in a delay to the company's anticipated growth and full year results for 2016 are now expected to be below market expectations," said the company.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
Copyright 2016 Alliance News Limited. All Rights Reserved.
16 Feb 2017 08:53
UPDATE 1-Cobham shares plunge on yet another profit cut for British engineer
(Adds shares, background) LONDON, Feb 16 (Reuters) - Britain's Cobham missed a profit target that had already been repeatedly lowered and took a charge on a troubled contract with Boeing, capping "an incredibly turbulent and disappointing year" for the defence and aerospace group. In
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