LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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easyJet, up 6.3%. The low-cost airline upgraded its full-year profit guidance following a strong summer trading season. The FTSE 100 airline said its pretax profit for the financial year to the end of September is now expected to be GBP675 million to GBP700 million, up from its previous guidance of GBP620 million to GBP660 million. The group said its strong revenue performance over the summer has more than offset any cost challenges it has faced this year and said it passenger numbers and load factor both hit record levels in August.
Wm Morrison Supermarkets, up 4.8%. The supermarket was in demand after a report in The Daily Telegraph suggested South African billionaire Christo Wiese is now training his sights on the UK supermarket industry. Wiese, who owns a 19% stake in frozen food retailer Iceland and who has been linked with a takeover of Wm Morrison Supermarkets PLC in the past, told the Telegraph that his investment firm, Brait, may make its next venture in the UK supermarket sector. The stock was also upgraded Thursday to Neutral from Sell by UBS, with a price target of 175p, up from 165p. It was quoted at 169.90p Thursday morning.
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FTSE 250 - WINNERS
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Lookers, up 6.7%. The motor retailer and aftersales services provider said it has struck an GBP87.5 million cash deal to acquire Addison Motors, which trades as Benfield Motor Group. Benfield is based in Newcastle-upon-Tyne and operates 30 car dealerships across the UK, offering sales, service, parts and bodyshop facilities for new and used cars and commercial vehicles, Lookers said. Analysts hailed the deal, with Numis describing the acquisition as a "major step" for Lookers. The broker said that "the new company helps to consolidate Lookers' position with key original equipment manufacturers and dovetails nicely in terms of location," adding it expects the acquisition to raise Lookers' level of profitability "significantly".
Virgin Money Holdings, up 3.0%. Investec upgraded the financial services provider to Buy from Hold, saying the economic fundamentals which will drive its share price performance are all positive at present.
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FTSE 250 - LOSERS
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Go-Ahead Group, down 6.7%. The transport operator said its annual pretax profit was pulled lower by exceptional costs, but said its underlying performance was strong and its revenue surged higher thanks to stronger-than-expected trading in its rail unit. Still, it expects to hit its GBP100 million operating profit target for the bus operations in the 2016-17 financial year, a year later than it had anticipated. Its pretax profit for the year to June 27 was GBP78.7 million, down from GBP91.2 million a year earlier, as the group booked GBP8.8 million in exceptional costs, having booked a GBP12.1 million gain a year earlier. Stripping out exceptional costs, Go-Ahead's pretax profit was up to GBP96.6 million from GBP84.9 million.
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MAIN MARKET AND AIM - WINNERS
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African Potash, up 13%. The company said it has signed its third and largest offtake agreement to supply fertiliser through its previously signed agreement to build a production and distribution platform for fertiliser in Africa. The company has signed a memorandum of understanding with an unnamed Zimbabwean fertiliser supply company to provide 150,000 metric tonnes of fertiliser per year.
Dart Group, up 10%. The leisure travel, distribution and logistics company said it is confident its full-year results will materially outpace market expectations following robust summer trading in its leisure travel arm and a solid performance in its Fowler Welch unit. Dart said the early indications for the winter season in the leisure travel arm are satisfactory, but it said it has seen continued strong demand over the summer months for its package holiday and flight-only products. Dart also said it has entered into a deal with aerospace giant Boeing to buy 27 new Boeing 737-800NG aircraft, to be delivered between September 2016 and April 2018.
Motif Bio, up 8.6%. The biopharmaceutical company said the US Food and Drug Administration has granted fast-track designation to its Iclaprim drug. The intravenous drug is used to treat acute bacterial skin and skin structure infections and hospital-acquired bacterial pneumonia. Amphion Innovations, up 8.8%, also benefited from the rise in value of Motif Bio shares in the first half and its shares were higher on the back of the Motif Bio news.
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MAIN MARKET AND AIM - LOSERS
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Forbidden Technologies, down 12%. The company which owns and develops cloud video platform Forscene and video social network eva, said it made a GBP1.4 million pretax loss in the six months to June 30, compared with GBP1.2 million in the corresponding half the prior year. Revenue was down to GBP327,338 from GBP348,077, while operating costs rose to GBP1.4 million from GBP1.3 million. Deferred and future revenue from agreed deals increased to GBP220,000 from GBP33,000 six months earlier.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
17 Jul 2015 06:40
