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Pin to quick picksDirect Line Share News (DLG)

Share Price Information for Direct Line (DLG)

London Stock Exchange
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Share Price: 198.00
Bid: 198.00
Ask: 198.40
Change: 2.30 (1.18%)
Spread: 0.40 (0.202%)
Open: 196.70
High: 198.35
Low: 196.70
Prev. Close: 195.70
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UK WINNERS & LOSERS SUMMARY: UK Insurers Fall After Pulling Dividends

Wed, 08th Apr 2020 10:44

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.

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FTSE 100 - WINNERS

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Pennon Group, up 2.0%. Exane BNP raised the water company to Neutral from Underperform.

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FTSE 100 - LOSERS

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Aviva, down 8.7%, RSA Insurance, down 2.2%. The insurers bowed to regulatory pressure after withdrawing dividends due to the Covid-19 outbreak. Last Thursday, the European Insurance & Occupational Pensions Authority called on insurers to "suspend all discretionary dividend distributions and share buybacks". The UK Prudential Regulation Authority also last week wrote a letter requesting that insurance companies be prudent in their approach to dividends. Aviva said it "recognises the importance" of a cash dividend and will reconsider its payout arrangements in the fourth quarter of 2020. RSA said it intends to resume making payouts "when prudent to do so". It previously had proposed a 15.6 pence final payout for 2019. "The cash hasn't been lost, it's just retained within the company. Nonetheless, given dividend cuts in other sectors have already knocked a sizeable chunk off the market yield, this will be very unwelcome for income investors. Choosing not to a pay a dividend will also raise questions about Aviva's own view of the current market conditions, it's not exactly a vote of confidence," said Hargreaves Lansdown analyst Nick Hyett.

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Tesco, down 3.8%. The supermarket chain warned of costs as high as GBP925 million due to the Covid-19 outbreak, but upped its annual payout to shareholders and reported a boost in recent sales as UK consumers stockpiled over fears of shortages. In the financial year ended February 29, revenue excluding VAT climbed 1.3% to GBP64.76 billion from GBP63.91 billion. The firm's pretax profit fell 19% however, to GBP1.32 billion from GBP1.62 billion. Sales costs climbed 1.6% to GBP60.2 billion and administrative expenses edged 0.7% higher to GBP2.1 billion. Costs could rise again, Tesco cautioned, due to the Covid-19 outbreak. The grocer said it has "considered a range of scenarios" and predicted that it in its year ending February 2021, it could incur costs between GBP650 million and GBP925 million associated with the deadly virus. Compounding the share price decline, Shore Capital cut the stock to Hold from Buy.

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FTSE 250 - WINNERS

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Hyve Group, up 9.2%, The exhibitions and conference organiser cancelled its current year dividend but believes it is well placed for future growth. Hyve had previously reported a "strong" first-quarter performance - for its year ending September 30 - but on Wednesday said its second-quarter has been hit by the coronavirus. The company previously said it expects a hit of between GBP17 million to GBP19 million on revenue for its year ending September 30, translating to a GBP16 million to GBP18 million dent in profit. In order to combat this, Hyve has furloughed over 25% of its staff in the UK and its management team has taken a temporary 20% pay cut. Hyve also said it has secured a waiver for its June covenant tests under its debt facilities. The company has access to debt facilities of GBP250 million, which it has fully drawn.

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TUI, up 4.5%. The Anglo-German travel operator confirmed it has signed an agreement for a EUR1.8 billion loan from the German government to help keep it afloat as the coronavirus batters the travel industry. The bridging loan equivalent to USD1.99 billion will be issued through German public lender KfW and be used to bolster TUI's credit line. Global lockdowns to stem the spread of the virus have brought holiday travel to a standstill, forcing TUI's hotels, flights and cruise ships to stay empty.

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FTSE 250 - LOSERS

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Direct Line Insurance, down 5.3%. The midcap insurer joined its large-cap counterparts in withdrawing dividends due to the Covid-19 outbreak. Direct Line noted the announcement from the European regulator and the PRA, and explained it will call off its final payout "in recognition of the regulatory guidance and heightened uncertainty". Its solvency II coverage ratio stood at 176% at the end of March, within the targetted 140% and 180% range. The company added that claims in most of its units, motor in particular, have fallen as more people are forced to stay at home due to lockdowns. In the travel business however, claims have risen due to restrictions in international travelling.

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AG Barr, down 4.5%. The soft drinks maker said its annual earnings fell and said it will not pay a final dividend in order to save cash amid the Covid-19 outbreak. Revenue in the year ended January 25 slumped 8.4% to GBP255.7 million from GBP279.0 million. Pretax profit was down 16% at GBP37.4 million from GBP44.3 million. After an interim payout of 4.00p per share, the IRN-BRU maker said no to a final payout. It means its total dividend for the year is down 76% from 16.64p. AG Barr said its annual performance in the soft drinks unit faced "tough comparatives", due to what it labelled "record-breaking" summer weather in 2018.

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OTHER MAIN MARKET AND AIM - WINNERS

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ASOS, up 26% at 1,968.00p. The online fashion retailer said late Tuesday profit for the first half of its financial year increased sevenfold on a double-digit rise in retail sales globally. For the six months to the end of February, ASOS's pretax profit was GBP30.1 million, a sharp increase from GBP4.0 million the year before, as revenue grew by 21% to GBP1.60 billion from GBP1.31 billion, driven by a 21% rise in overall retail sales. In the UK, retail sales increased by 20%, as active customer growth increased by 10% and orders by 18% despite increased competition. ASOS said it will raise funds through a placing of new shares in the company. ASOS on Wednesday confirmed it raised GBP247 million through a 15.8 million share issue at 1,560p each.

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OTHER MAIN MARKET AND AIM - LOSERS

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IQE, up 5.8%. Deutsche Bank raised the semiconductor wafer products manufacturer to Buy from Hold.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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London close: Stocks slip back after last week's peak

(Sharecast News) - London markets finished in the red on Monday, having traded below the waterline through the session after reaching a peak at the end of last week.

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LONDON MARKET MIDDAY: Stocks make tepid start to new week

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LONDON BROKER RATINGS: SocGen raises Sage; Numis cuts Virgin Money

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning and Friday:

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25 Mar 2024 09:04

LONDON MARKET OPEN: FTSE 100 treads water, FTSE 250 declines

(Alliance News) - The FTSE 100 in London traded flat early Monday, while the pound remained below the USD1.26 mark, as Bank of England Governor Andrew Bailey suggested rate cuts may happen soon.

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25 Mar 2024 07:16

Direct Line confident in standalone prospects as Ageas abandons pursuit

(Sharecast News) - Direct Line said on Monday that it was confident in its standalone prospects after Belgium's Ageas announced it would not be making an offer for the insurer following two failed attempts at engaging with the board.

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22 Mar 2024 18:48

TOP NEWS: Ageas withdraws bid for Direct Line after advances spurned

(Alliance News) - Ageas AG on Friday said it has withdrawn a proposed bid for Direct Line Insurance Group PLC after failing to secure the backing of its UK peer.

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21 Mar 2024 16:33

London close: Stocks rise as BoE keeps rates on hold

(Sharecast News) - London markets closed higher on Thursday, sustaining gains after the Bank of England adhered to expectations by maintaining interest rates at a 16-year high.

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21 Mar 2024 10:02

TOP NEWS: Direct Line eyes cost cuts as new CEO fends off Ageas

(Alliance News) - Direct Line Insurance Group PLC on Thursday announced plans to save GBP100 million and boost insurance margins, as it looks to stymie the unwanted advance of Belgium's Ageas SA.

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21 Mar 2024 08:08

Direct Line reinstates dividend, announces new cost-savings plan

(Sharecast News) - Direct Line posted a widening of its full-year losses on Thursday as it announced a new £100m cost-savings plan and declared a 4p a share dividend.

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21 Mar 2024 07:52

LONDON BRIEFING: Stocks called up thanks to New York rally

(Alliance News) - Stocks in London are to open higher on Thursday, after a global equity market rally following the latest interest rate call from the US Federal Reserve.

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17 Mar 2024 22:57

Sunday newspaper round-up: Nationwide, Direct Line, Rolls-Royce

(Sharecast News) - Nationwide's bid to create the UK's second-largest savings and loans group by taking over Virgin Money may be derailed if its members get a say on whether the deal goes through or not. It would take just 500 Nationwide members depositing £50 each one to convene a special meeting and ask for a vote on the deal. Furthermore, preparations for a vote would keep Nationwide from meeting the 4 April deadline for making a binding offer under Takeover Panel rules. However, the society says that its existing legal advice is that no vote is required. - Financial Mail on Sunday

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17 Mar 2024 10:50

PRESS: Direct Line suitor Ageas heads to China for Fosun backing

(Alliance News) - Direct Line Insurance Group PLC suitor Ageas SA has looked to win support of its own largest shareholder, China's Fosun, in its bid to acquire the FTSE 250-listed insurer, the Sunday Times reported.

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14 Mar 2024 15:10

PRESS: Top shareholder in Ageas criticises Direct Line approach - Sky

(Alliance News) - Ageas SA, the Belgian insurer pursuing a takeover of Direct Line Insurance Group PLC, its London-listed rival, is facing opposition from one of its own leading shareholders to a potential deal, according to Sky News.

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14 Mar 2024 15:06

UK earnings, trading statements calendar - next 7 days

Friday 15 March 
Berkeley Group Holdings PLCTrading Statement
Volution Group PLCHalf Year Results
Monday 18 March 
Marshalls PLCFull Year Results
Seeing Machines LtdHalf Year Results
Serinus Energy PLCFull Year Results
SigmaRoc PLCFull Year Results
Team Internet Group PLCFull Year Results
Tuesday 19 March 
Atalaya Mining PLCFull Year Results
Close Brothers Group PLCHalf Year Results
DFS Furniture PLCHalf Year Results
Eagle Eye Solutions Group PLCHalf Year Results
Essentra PLCFull Year Results
Fintel PLCFull Year Results
Litigation Capital Management LtdHalf Year Results
Midwich Group PLCFull Year Results
Mpac Group PLCFull Year Results
MP Evans Group PLCFull Year Results
Pebble Group PLCFull Year Results
Personal Group Holdings PLCFull Year Results
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Staffline Group PLCFull Year Results
Tissue Regenix Group PLCFull Year Results
Trustpilot Group PLCFull Year Results
Yu Group PLCFull Year Results
Zotefoams PLCFull Year Results
Wednesday 20 March 
Computacenter PLCFull Year Results
EKF Diagnostics Holdings PLCFull Year Results
Eurocell PLCFull Year Results
FDM Group PLCFull Year Results
Investec PLCTrading Statement
Kenmare Resources PLCFull Year Results
Prudential PLCFull Year Results
VietNam Holding LtdHalf Year Results
Thursday 21 March 
Aptitude Software Group PLCFull Year Results
Aquis Stock Exchange PLCFull Year Results
Centamin PLCFull Year Results
Direct Line Insurance Group PLCFull Year Results
Dowlais Group PLCFull Year Results
Energean PLCFull Year Results
Gulf Keystone Petroleum LtdFull Year Results
Hostelworld Group PLCFull Year Results
Ithaca Energy PLCFull Year Results
M&G PLCFull Year Results
National World PLCFull Year Results
Next PLCFull Year Results
Secure Trust Bank PLCFull Year Results
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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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