LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - LOSERS----------ITV, down 4.2%. The broadcaster said its revenue grew in the first nine months of 2018, though it expects revenue from advertising to fall in the final quarter due to an uncertain economic environment. ITV delivered 6% year-on-year growth in external revenue to GBP2.26 billion, with income from advertising up 2% to GBP1.29 billion in nine months to September-end. Looking forward, the company expects its ITV Studios to deliver "good" revenue and profit growth in 2018. Organic revenue growth is expected to come in 3% higher year-on-year. However, revenue from advertising is forecast to be down about 3% in the fourth quarter of 2018 and flat over the full-year due to "the increasingly uncertain economic environment". ----------Marks & Spencer, down 3.1%. The food, clothing and homeware retailer reported a fall in revenue in the first half of its financial year, but said profit rose due the cost savings from restructuring strategy. For the six months to September 29, M&S reported a 7.1% increase in pretax profit to GBP126.7 million from GBP118.3 million a year ago. However, revenue for the half-year fell 3.1% to GBP4.97 billion from GBP5.13 billion, with sales falling across all M&S divisions. In Clothing & Home, revenue was down 2.7% to GBP1.70 billion, hurt by the store closures, with like-for-like sales down 1.1%. Food revenue dipped 0.2% to GBP2.81 billion with like-for-like revenue down 2.9% "reflecting tough trading", M&S said.----------FTSE 250 - WINNERS----------Capita, up 5.5%. The outsourcer said it won a contract to continue managing Westminster City Council's revenues & benefits service. The contract is for an initial seven years but has a three year extension option, with the full ten year deal worth approximately GBP65 million. Capita will carry on collecting council tax and national non-domestic rates, as well as managing housing benefits and other services. The business technology provider will also extend the use of its Capita One digital platform for collections.----------UDG Healthcare, up 3.5%. RBC Capital started coverage on the healthcare provider with an Outperform rating late Tuesday. ----------FTSE 250 - LOSERS----------Sophos Group, down 25%. The cyber security software provider said it swung to an interim profit with solid revenue growth, though it has lowered billings growth expectations going ahead. Sophos posted pretax profit of USD26.0 million for the six months to September 30, improving from a loss of USD35.5 million a year before. Revenue was up 18%, or 16% at constant currency, to USD349.5 million. First half billings rose 3% to USD353 million, and by 2% at constant currency to USD361 million. Sophos' renewal rate was 118%, compared to 142% a year prior. In July, Sophos had guided for mid-teens constant currency billings growth in its second half, but on Wednesday said it now expects a "modest" improvement in constant currency billings growth. "Assuming 5% growth in the second half would imply USD450m in billings for the second half and USD800 million for the full year, which would be 4% growth but 5% below current consensus. We were looking for 9% billings growth," said Shore Capital. Compounding its woes, the stock was cut to Neutral from Overweight by JPMorgan. ----------JD Wetherspoon, down 10%. The pub operator said it expects to achieve annual results "slightly below" the prior year, despite reporting a rise in sales over its first quarter. For the first quarter to October 28, Wetherspoon said like-for-like sales increased 5.5%, while total sales were up 6.2%. The company added that it "remains in a sound financial position". Chairman Tim Martin said sales continued to grow "strongly" despite tougher comparatives. Martin said that Wetherspoon now expects an annual trading outcome "slightly below" that achieved in its previous financial year. For the year to July 29, the chain recorded pretax profit of GBP107.2 million and revenue of GBP1.69 billion.----------G4S, down 10%. The security services company said it expects its annual profit to be in line with the prior year despite revenue growth across all of its divisions. G4S reported organic revenue growth of 2.5% year-on-year in the three months to the end of September. For the first nine months of 2018, revenue grew by 1.1%. On a divisional basis, revenue in the Secure Solutions unit was up 2.5% on the prior year. The company noted organic revenue growth in the security segment was partially offset by lower revenue in care & justice services. Looking forward, G4S expects profit before interest, tax and amortisation for 2018, after investment in new products and services, to be in line with 2017 on a constant currency basis. Analysts at Bank of America said G4S delivered a poor update highlighting the organic growth of 2.5% coming in sharply lower than consensus estimates of 4.5%.----------OTHER MAIN MARKET AND AIM - WINNERS----------Immedia Group, up 23%. The digital content supplier said it signed a three-year contract with an undisclosed UK high street financial institution. Under the deal, Immedia said it will deliver live audio stream to all of the institution's consumer retail estate in the UK. Immedia noted that at this stage it is restricted from disclosing any further information, but it will keep shareholders updated as the project progresses.----------Best of the Best, up 15%. The competitions organiser said profit and revenue for the first six months of its financial year are ahead of market expectations. Despite increased taxes as a result of being required to move from Value Added Tax to the Remote Gaming Duty in 2017, the company reported a "solid" performance for the six months to the end of October. Best of the Best noted following the UK Budget announcement, the Remote Gaming Duty is due to increase to 21% from 15% from October 2019, and it will take steps to mitigate the impact of the tax increase. Revenue for the group is now almost completely from online sales, with only one physical site remaining at Birmingham Airport.----------OTHER MAIN MARKET AND AIM - LOSERS----------Mulberry Group, down 3.5%. The luxury handbag maker reported a sharply widened interim loss due to the toll of the collapse of department store partner House of Fraser, compounding slumping sales and increasing costs. For the six months to September 30, the group posted a pretax loss of GBP8.2 million compared to GBP609,000 loss a year ago. The widened loss was due to a one-off GBP2.1 million cost related to the collapse of UK department store chain House of Fraser, in which Mulberry operated 21 concessions. Though the hit from House of Fraser was small than forecast, a further one-off expense of GBP2.5 million related to the company's launch in Korea also contributed the loss. Operating expenses rose to GBP50.4 million from GBP46.8 million a year ago. Revenue fell by 8% to GBP68.3 million from GBP74.6 million, with the UK sales affected by "soft retail conditions". UK Retail sales dropped 11% to GBP40.4 million. On a like-for-like basis, UK Retail sales were 7% lower. What's more, sales in the UK have continued to fall since, dropping 7% in the six weeks to November 3. ----------
8 Apr 2016 09:56
