Funding Circle Share News (FCH)

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - WINNERS----------National Grid, up 1.5%. The UK power lines operator submitted draft business plans for the new RIIO-T2 price controls in the UK, covering the five years from April 2021. The plans cover electricity and gas transmission and have been submitted to the energy supplier's independent user groups and to Ofgem's RIIO02 Challenge Group. In May, UK energy regulator Ofgem announced its new price controls, known at RIIO-2, which set the allowed baseline return on equity at 4.3% in a cost of equity range of between 4.0% and 5.6%. This is close to 50% lower than the previous RIIO-1 price control. The lower allowed return on equity, as well as a lower permitted return on debt, is intended to cut the costs passed on to UK energy consumers by GBP6 billion over the five-year price control period from 2021 to 2026 versus RIIO-1. National Grid's financing assumption under RIIO-2 is for a cost of equity of 5.5% with a cost of debt at 1.7% and a 3.2% rate of return. ----------FTSE 100 - LOSERS----------Croda International, down 4.4%. UBS downgraded the speciality chemicals company to Neutral from Buy.----------InterContinental Hotels Group, down 2.8%. UBS cut the hotel operator to Sell from Neutral. ----------FTSE 250 - WINNERS----------Plus500, up 5.5%. The contract-for-difference provider said it was "pleased" with its overall performance in the first half of 2019, with the firm meeting expectations. The first quarter was hit by low levels of volatility in financial markets, Plus500 said, but revenue in the second quarter jumped 74% on the first quarter to USD94 million. As a result, first half revenue was USD148 million, but this would be well below, by some 68%, the USD465.5 million posted in the first half of 2018, a record period. During the first half, 48% of revenue came from outside of the European Economic Area, the online spread betting company added.----------Stagecoach Group, up 2.9%. Liberum raised the transport company to Buy from Hold. "While we continue to harbour some concerns about free cash flow, and the strategic challenges faced by the group, we believe these are more than adequately reflected in the current share price. In our view, the valuation now appears more attractive, on balance, on an April 2020 price-to-earnings ratio of 8.0 times," the broker said. ----------FTSE 250 - LOSERS----------Funding Circle Holdings, down 19%. The small- and medium-sized business lending platform warned economic uncertainty is leading to lower loan demand. As a result, Funding Circle now sees 2019 revenue growth 20% on 2018, from previous guidance of 40% revenue growth. In 2018, it posted GBP141.9 million of revenue, so 2019 guidance is for approximately GBP170 million. Funding Circle has "further tightened" lending to higher-risk band businesses, which has affected volumes, but the company believes this will protect returns for investors. In the first half of 2019, new loan originations rose 14% year-on-year to GBP1.2 billion, with loans under management rising 37% to GBP3.5 billion. Revenue growth is guided to be 30%, with no comparable provided. "Funding Circle has bold ambitions yet being conservative with its growth plans has to be a better strategy than being all guns blazing just to become the market leader. Going too fast presents significant execution risks and scope for major disappointments. Funding Circle should have learned its lesson by now, given how it hasn't been awash with good news since being a listed company," said AJ Bell's Russ Mould. ----------OTHER MAIN MARKET AND AIM - WINNERS----------Cap-XX, up 27%. The supercapacitor maker announced it had agreed a settlement and licence deal with Cornell-Dubilier Electronics. In 2018, Cap-XX launched a patent case against CDE which resulted in court action against the US privately-owned capacitor maker. On Tuesday, Cap-XX explained CDE will now licence two patents held by Cap-XX on a non-exclusive basis following the settlement. The royalty rate to be paid to Cap-XX by CDE was described as "in line" with royalty rates from other licence agreements. No further financial details were provided. "We are delighted that CDE has settled our action," Cap-XX Chief Executive Officer Anthony Kongats said. "This settlement reinforces the integrity of our intellectual property, which is critical to the production of supercapacitors as well as other related applications."----------OTHER MAIN MARKET AND AIM - LOSERS----------Dialight, down 30%. The LED lighting manufacturer said its order intake in the second quarter has "weakened", which is expected to continue for the rest of 2019. The company said Chief Executive Officer Marty Rapp will resume his retirement after coming out of retirement in January last year to take up the role. Rapp is set to step down on August 9, following the release of the company's interim results earlier that week. He will be replaced on an interim basis by current Chief Financial Officer Fariyal Khanbabi. Dialight said a search for a permanent replacement is underway. Rapp will remain an adviser to the company for six months after he steps down to ensure a "smooth transition". As a result of the poor trading, Dialight now expects its underlying profit for 2019 to be between GBP10 million to GBP13 million. The company noted the target range does not take into account an expected GBP4 non-underlying cost. ----------Associated British Engineering, down 24%. The engineering firm said it is considering the sale of its British Polar Engines operating subsidiary given a sizeable pension scheme deficit and interim loss. When reporting its financial year to March, the company noted its agreement with the trustees of the Associate British Engineering Group pension scheme - who had agreed to suspend monthly deficit contributions until the end of July. As at March 31, the deficit stood a GBP1.4 million and was the sole liability of British Polar Engines. In its interim statement to September 30, the company reported a drop in British Polar Engines revenue to GBP498,000 from GBP666,000 resulting in a pretax loss of GBP342,000 versus a loss of GBP377,000 the year prior. Given the loss and the pension deficit, the pension scheme trustees have begun discussions with the pension regulator concerning the deficit. Associated British Engineering said it "has decided that it is appropriate to consider all options", which includes the possible sale of British Polar Engines. No firm proposals have yet been made.----------