Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Thursday.
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FTSE 100 WINNERS
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International Consolidated Airlines Group, up 1.6%. Credit Suisse has added the company to its European Focus List and raised its price target to 616.00 pence from 587.00p, maintaining its Outperform rating. The company currently trades at 377.10p.

GlaxoSmithKline, up 0.8%. Barclays has raised the pharmaceutical giant to Overweight from Equal Weight.

London Stock Exchange Group, up 0.6%. HSBC has raised the company to Overweight from Neutral, with a price target increase to 2,100.00p from 1,861.00p. The stock currently trades at 1,936.00p.
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FTSE 100 LOSERS
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Tesco, down 5.0%. The supermarket chain said the Deloitte investigation into its overstatement of expected half year profit has been concluded, with the "impact" confirmed as GBP263 million, slightly higher than the GBP250 million it had revealed last month. Of that, GBP118 million related to this year's first-half trading profit, and the rest to prior years. The company added that Chairman Richard Broadbent will step down once the business is "back on track". The news came as it reported a first-half trading profit of just GBP937 million, down 41% on the year before.

Tullow Oil, down 4.3%. The oil & gas producer said it encountered hydrocarbon shows at the Kodos-1 wildcat exploration well in the Kerio Basin onshore Kenya, indicating the presence of an active petroleum system, but reservoirs were mixed quality alluvial sands close to the basin boundary fault at this well location. The company said the Weatherford Rig-804 drilled Kodos-1 to a final depth of 2,500 metres, and the well will be plugged and abandoned. The rig will now be moved to drill the second well in the basin at Epir-1, 25 kilometres north of Kodos-1 in a separate sub-basin. Tullow Oil said further drilling in the greater Kerio Basin can be expected during 2015, following up on the "encouraging" hydrocarbon shows at Kodos-1.

Unilever, down 2.4%. The Anglo-Dutch consumer goods giant reported a further weakening in trading, as market growth continued to slow in emerging markets, particularly in China, and its European markets continued to be hit by volume and price declines. The company said revenue declined 2.0% to EUR12.2 billion in the three months to end-September, with currency movements taking 2.6% off the figure, and following the sale of its North American pasta sauces business and its Slim-Fast brand earlier in the year. Still, the figure was an improvement compared with the first nine months of the year, when revenue declined 4.3% to EUR36.3 billion including a 6.6% currency movement hit. However, underlying sales and volume growth slowed in the third quarter. Underlying sales growth was 2.1%, compared with 3.2% growth for the whole nine months, while volume growth in the quarter was just 0.3%, compared with growth of 1.4% in the first nine months of the year. The CEO warned that the company expects markets to remain tough for at least the remainder of the year, and said it has further accelerated its initiatives to cut costs and simplify the business.

Anglo American, down 2.4%. The miner reported increases in diamond, nickel and iron ore production during the third quarter whilst copper, platinum and thermal coal production declined. The company reported a 37% increase in iron ore production to 13 million tonnes for the third quarter ended September 30, compared to 9.5 million tonnes a year earlier. Iron ore production for the year is expected to reach up to 46 million tonnes, compared to the previous target of 44 million tonnes. It also reported an increase in diamond production to 8.2 million carats in the quarter compared to 7.7 million carats in the third quarter of 2013. Nickel production also rose to 10,700 tonnes from 9,500 tonnes driven by continued improvements at its Barro Alto mine in Brazil. Copper production was down 15% to 176,900 tonnes from 207,300 tonnes a year earlier and platinum production dropped to 533 tonnes in the third quarter from 623 tonnes. Thermal coal dropped to 9 million tonnes, 4% lower than the 9.4 million tonnes reported a year earlier.

Wm Morrison Supermarkets, down 2.0%, and J Sainsbury, down 1.4%. The UK supermarkets are down as a result of Tesco's disappointing full-year results.

BAE Systems, down 1.9%, Smiths Group, down 1.7%, and Intu Properties, down 1.4%. The companies went ex-dividend, meaning new buyers no longer qualify for the latest dividend payouts.

Rio Tinto, down 1.7%. The mining giant said it has extended the tenure of of Chief Executive Sam Walsh and Chief Financial Officer Chris Lynch, saying the move provided a strong endorsement of their leadership, the compay's strategy and its focus on driving shareholder value.
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FTSE 250 WINNERS
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Debenhams, up 4.9%. The department store operator reported a lower pretax profit for its last financial year, but said the efforts it is taking to turn the business round are paying off as operating profit rose in the second half of the year. Debenhams reported a pretax profit of GBP105.8 million for the 52 weeks to August 30, down from GBP139.0 million a year earlier, as higher sales and distribution costs as well as administrative expenses offset a revenue rise to GBP2.31 billion, from GBP2.28 billion. Its operating profit for the year fell to GBP128.6 million, from GBP155.4 million. However, its operating profit in the second half of the year was up 2.9% on the same period a year earlier, compared with the 22.9% decline it reported in the first half of the year, showing the impact of its turnaround plan, the CEO said. Its gross margin was down 100 basis points in the first half, but was up 10 basis points in the second half.

Inchcape, up 3.5%. The car retailer said it produced a strong performance in the third quarter but said its revenue growth in the period and for the year to date has been hit by the strength of sterling. Inchcape said third quarter revenue was GBP1.7 billion, up 10.6% on a constant currency basis but up only 4.4% at actual currency rates. Like-for-like revenue increased 11.6% at constant currency, but only 6% in actual rates. Sterling strength had a similar impact on its nine-month revenue, up 9.6% at constant currency to GBP5 billion, but up only 1.9% at actual foreign-exchange rates. Like-for-like revenue was up 9.4% at constant rates, but only up 1.9% at actual rates.

Britvic, up 2.8%. The drinks company raised its guidance for full year operating earnings, despite reporting a drop in fourth-quarter revenue, citing poor summer weather and subdued retail spending in Europe. Britvic said it expects earnings before interest and taxes to be ahead of the top end of its GBP148 million to GBP156 million estimate, as revenue and volumes grew over the full year and cost cuts took effect. Still, the company reported a 4% fall in revenue to GBP344.2 million in the fourth quarter, with Ireland sales down 18.5% to GBP33 million and sales in France down 18% to GBP63.8 million. UK sales fell 2.1% to GBP230.1 million while International sales rose 31% to GBP17.3 million.

African Barrick Gold, up 2.1%. The gold miner reported an increase in pretax profit and revenue during the third quarter as higher production rates offset lower gold prices. The company said it delivered its eighth successive quarterly reduction in all-in sustaining costs. It reported a pretax profit of USD45.6 million for the three months ended September 30, compared to USD39.5 million in the comparable period in 2013. For the nine months ended September 30, African Barrick have reported a pretax profit of USD107.8 million, compared to the USD817 million loss reported a year earlier. Revenue for the quarter increased to USD240.9 million, compared to USD220 million in the comparable period in 2013. For the first three quarters of the year, African Barrick has generated USD686.4 million in revenue, compared to USD707.4 million in 2013. Higher sales volumes helped offset the lower gold prices, it said.

SEGRO, up 1.5%. The property company said it made good progress in the third quarter on the back of stronger occupational market conditions in the UK. SEGRO said it added GBP1.9 million in annualised net rent in the quarter to the end of September, against a GBP0.1 million net take-back in the same period last year. The group let 149,000 square metres of existing space in the quarter.

SVG Capital, up 1.0%. The private equity investor said it expects to complete the return of GBP470 million to shareholders by the end of the first quarter of 2015, having returned GBP390 million to date. In a third-quarter statement, SVG Capital outlined plans for a tender offer of up to GBP50 million in December, with pricing to be determined with reference to share price and net asset value per share. The company said the "relatively buoyant" exit environment over the last few years has allowed it to return a significant amount of capital to shareholders.
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FTSE 250 LOSERS
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Foxtons Group, down 16%. The estate agency said its third-quarter performance had been hit by a sharp slowdown in London property sales volumes over the period, adding its expectation that market volumes will remain constrained for the second half has forced it to downgrade its earnings forecast for the year. The company said its performance in the third quarter to September 30 was hit by a slowdown in London property sales, coming after an "exceptionally strong" period in the nine months to June 30, when it said volumes hit the highest levels since 2007. It said market volumes in the third quarter were more in line with the first half of 2013 and said it now expects the second half of 2014 to see a significant fall in volumes year-on-year. Group revenue for the third quarter was down to GBP39.9 million from GBP41.1 million a year earlier. Revenue for the nine months to September 30 remains above the year before, at GBP112.7 million against GBP103.7 million in 2013.

Ladbrokes, down 4.0%. The bookmaker said it is on track to meet full-year expectations and reaffirmed its dividend plans after posted a jump in operating profit and a rise in revenue in the third quarter. The company said group operating profit in the third quarter to September 30 was GBP33 million, nearly double the GBP17 million posted a year earlier. That came on the back of a 13% rise in net revenue in the period, it said. However, Numis has reiterated its Reduce rating on the stock, saying that upcoming regulation in the gambling industry will weigh on the company's future profits.

IG Group Holdings, down 2.8%. The company is amongst the fallers in the mid-cap index after going ex-dividend.

Hochschild Mining, down 2.5%. The precious metal miner reported a drop in third-quarter production, but said it remains on track to meet is full-year output expectations and will continue to cut costs. Attributable production fell to 4.8 million silver equivalent ounces in the three months to September 30, from 6.3 million ounces a year earlier and from 5.9 million ounces in the second quarter. The company's silver production fell to 3.5 million ounces and gold production fell to 21 million ounces.
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AIM ALL-SHARE WINNERS
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StratMin Global Resources, up 17%. The company said it had identified substantial surficial regolith-hosted graphite mineralisation at its Mahefadok prospect, in the central part of the Loharano property in Madagascar about 1,500 metres south-east of its producing Loharano graphite deposit. StratMin said geophysical surveying, geological mapping and the excavation of forty pits and four trenches at the site identified mineralisation that occurs as two north-south zones 250 and 750 metres in length, between 70 and 120 metres in width and up to 5.90 metres in depth, the maximum depth of excavations.

Baron Oil, up 8.7%. The company said it has obtained approval in Peru to move to a drilling programme at the Block Z-34 well and said studies conducted on the Block XXI area in Peru showed significantly higher hydrocarbon potential than previously thought. Baron said it and its partner, Union Oil and Gas Group Corp, have obtained approval from Perupetro SA, the Peruvian state oil company, to start a drilling programme at the Block Z-34 site. Perupetro also approved a Force Majeure clause for the block, extending the time limit for the well to be drilled. In addition, the company said the results from the Block XXI prospect showed significant higher hydrocarbon potential in the areas than previously understood. On the back of the strong results, Baron is planning to acquire 600 km of 2D seismic in the southern area of the block in the early part of 2015.

Porta Communications, up 7.1%. The company said trading in the third quarter was strong, with all of its operating units hitting targets, and it is in talks about possible acquisitions that could further boost profitability. The group's Newgate Communications business in the UK won 15 new clients and projects in the quarter, while its Redleaf PR arm, acquired in April this year, is trading ahead of budget with a regular flow of new business, it said. Porta also said it is in advanced talks on two potential acquisitions which, if completed, are expected to have an impact on both its trading and profitability levels.
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By Neil Thakrar; neilthakrar@alliancenews.com

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