Interserve Share News (IRV)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - WINNERS----------Rio Tinto, up 2.0%. The Anglo-Australian miner hiked its normal payout and issued a special distribution amid "strong" 2018 results and healthy production expectations for 2019. In 2018, pretax profit widened 42% to USD18.17 billion from USD12.82 billion the year prior. This was after revenue rose 1.2% to USD40.52 billion from USD40.03 billion the year before. Underlying earnings before interest, taxes, depreciation and amortisation narrowed 2.4% to USD18.14 billion from USD18.58 billion the year before. This was broadly in line with the USD18.15 underlying Ebitda consensus, according to company-compiled figures. Rio Tinto proposed a 135.96 pence final dividend per share, up 5.0% from 129.43p the year prior. It declared a 183.55p special dividend following a series of asset sales during the year. For the full year, the dividend rose 9.5% to 232.78p from 212.56p the year before. ----------Taylor Wimpey, up 0.8%. The housebuilder posted a slightly higher annual profit than analysts expected as the company said it experienced "another" strong year in 2018. Pretax profit for 2018 was GBP810.7 million, up 19% on last year. Excluding exceptional items pretax profit came in at GBP856.8 million, slightly above company-compiled analyst consensus of GBP854.0 million and up 5.5% on the GBP812.0 million generated in 2017. Taylor Wimpey's revenue came in at GBP4.08 billion, up 2% on the year before, but marginally short of consensus of GBP4.10 billion. The company has already declared dividends worth GBP499.5 million for 2018, and for 2019 it plans to pay some GBP600 million, as already announced, made up of both both ordinary and special dividends. ----------FTSE 100 - LOSERS----------Marks & Spencer, down 9.5%. The high street stalwart entered the online grocery space as it confirmed a 50-50 joint venture with Ocado Group. M&S plans a share issue to fund the venture and also announced it would rebase its dividend lower. The two FTSE 100 companies entered a deal which will see M&S pay GBP750 million to Ocado for a 50% stake in the joint venture, slightly less than expected. M&S will pay GBP562.5 million in upfront cash, with a deferred cash payments of GBP187.5 million plus interests payable within five years and based on unspecified financial and operational conditions. The agreement is expected to close in the third quarter of 2019. M&S will fund the deal by a GBP600 million right issue which will be launched following the publication of its 2019 financial statements. The issue has been fully underwritten on a standby basis by Morgan Stanley. M&S also said it will rebase its dividend lower by 40% to a "sustainable level". M&S expects to pay a 7.1p final dividend in respect of its current financial year, down from 11.9p last year. Conversely, Ocado shares were up 4.1%, the best blue chip performer. "On the face of it the move by M&S is a good one, although it is long overdue and the company has some catching up to do," said analysts at the Share Centre. ----------ITV, down 5.0%. The broadcaster reported earnings growth in 2018 despite the uncertain economic and political environment, but said it expects to see a single-digit decline in advertising revenue in the first four months of its current financial year. Total external revenue rose 2.6% to GBP3.21 billion in the twelve month to December 31, in line with analysts' expectations, with total revenue up 3.0% to GBP3.76 billion from GBP3.66 billion in 2017. Looking ahead, ITV said economic and political uncertainty continues to impact the demand for advertising "as expected", with total advertising forecast to be down 3% to 4% over the first fourth months. The first half of the year also will show the effect of tough advertising comparatives, the company noted, particularly in June against the World Cup last year. However, ITV said the investments it is making and the timing of ITV Studios deliveries will be weighted to the second half.----------FTSE 250 - WINNERS----------Weir Group, up 3.0%. The pumps and valves maker reported a significant drop in annual profit due to, in part, a write down on the value of its to-be-sold Flow Control arm. However, Weir said it expects to deliver "another year of good constant currency revenue and profit growth". For 2018, statutory pretax profit from continuing operations fell to GBP86.1 million from GBP198.6 million a year prior. Weir booked GBP224.0 million of exceptional items and intangibles amortisation for 2018, it said, compared to just GBP56.3 million the year prior. Weir's revenue increased by 23%, or 28% at constant currency, to GBP2.45 billion, with like-for-like growth at 15%. Weir is paying a 30.45 pence final dividend, taking the total for 2018 to 46.2p, 5% higher than what it paid in 2017. ----------Playtech, up 2.8%. The gaming and financial technology provider alongside blue chip peer GVC Holdings said they have entered a long-term partnership agreement lasting until 2025. Under the deal, Playtech will provide its services and products to all GVC brands, in both existing and new markets. No financial details were disclosed. The two companies also agreed to co-operate to integrate Playtech's products and services onto the GVC platform. Furthermore, the partnership will see an extension of the agreement for Playtech BGT Sports to supply Ladbrokes Coral with the software for its suite of self-service betting terminals in the UK, Ireland and Belgium. Playtech said its 2019 adjusted earnings before interest, taxes, depreciation and amortisation remain unchanged. ----------FTSE 250 - LOSERS----------Metro Bank, down 20%. The challenger bank late Tuesday reported more than doubled annual pretax profit on the back of a strong revenue increase. For 2018, Metro Bank posted pretax profit of GBP40.6 million, up from GBP18.7 million. Revenue meanwhile increased 38% to GBP404.1 million from GBP293.8 million. The bank's common equity tier one ratio fell to 13.1% from 15.3% in 2016. Additionally, the bank said it entered a standby underwrite agreement with RBC Capital Markets, Jefferies Group and KBW to raise GBP350 million in equity. The equity raise is expected to take place in the first half of 2019.----------Ted Baker, down 11%. The fashion retailer said it expects annual profit to come in 8.4% lower than last year, excluding costs related to an ongoing investigation into harassment claims against Founder & Chief Executive Ray Kelvin. Ted Baker expects its pretax profit for the year ended January 26 to be GBP63 million, down from GBP68.8 million a year ago. This is before costs related to Kelvin's external investigation, the collapse of department store chain House of Fraser, and the acquisitions of No Ordinary Shoes Ltd and No Ordinary Shoes USA. On Wednesday, Ted Baker said pretax profit has been "adversely affected" by three non-cash impacts, being a GBP2.5 million charge due to foreign exchange movements, costs related to system upgrades and a GBP5 million inventory write-down. ----------OTHER MAIN MARKET AND AIM - WINNERS----------Tarsus Group, up 12%. The events company reported a strong 2018, with like-for-like revenue growth in particular doing well for the business-to-business media company. For 2018, Tarsus' revenue fell to GBP99.7 million from GBP117.7 million in 2017, though like-for-like revenue growth was 9%. Pretax profit was GBP16.5 million, down from GBP27.9 million, and the adjusted figure fell to GBP27.9 million from GBP40.2 million. However, Tarsus focuses on biannual figures. On this basis, revenue climbed 46%, with adjusted pretax profit rising 45% biannually. Tarsus runs exhibitions and conferences, some of which are biannual, as well as having publishing operations. The company declared a 7.7 pence final dividend, taking the year's total to 11.0p, up 10% on the prior year. Looking forward, Tarsus said it is confident 2019 will be a successful year, with trading in the first two months of the year going well.----------OTHER MAIN MARKET AND AIM - LOSERS----------Interserve, down 8.5% at 18.95p. The embattled outsoucer said cost reductions under its Fit for Growth restructuring plan helped to narrow its loss in 2018, and urged shareholders to vote in favour of a deleveraging plan that will avoid a default in existing financing arrangements. The company said its loss narrowed in 2018 to GBP111.3 million from GBP244.4 million reported a year earlier, despite revenue dropping 11% to GBP2.90 billion from GBP3.25 billion. Separately, Interserve said it will launch a fully underwritten share placing and open offer under the deleveraging plan, which is pending shareholders approval at a general meeting on March 15. Interserve said it plans to raise GBP435.2 million through a placing and open offer of 2.84 billion shares at a price of 15.3p each. The issue price represents a 26% discount to the closing price of 20.7p on Tuesday. Interserve currently has 150 million shares in issue and a market capitalisation of GBP28 million, meaning current shareholders will own just 5% of the company after the dilution of the share issue. ----------