LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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International Consolidated Airlines Group, up 1.0%. The British Airways and Iberia owner was up after Davy Research hiked its price target on the stock to 800 pence from 700p and kept its Outperform rating intact. IAG shares were trading at 564.5p. Davy said IAG is now its preferred name in the European airlines sector in 2016, in particular due to its heavy focus on returns, its strong cash generation, and synergies from the acquisition of Irish flag carrier Aer Lingus.
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FTSE 100 - LOSERS
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Kingfisher, down 4.2%. The DIY retailer, which owns B&Q and Screwfix, announced a five-year plan to deliver a GBP500 million annual profit uplift by the end of the fifth year and a capital return of GBP600 million over the next three years. The DIY retailer said it will deliver the GBP500 million per annum in extra profit on top of the profit it will generate from normal business. It expects its performance pre-transformation to be broadly in line with the macroeconomic backdrop in its respective markets, Kingfisher said. The costs of the transformation plan will reduce reported profit, before the benefits of the plan, by GBP50 million in the first year of the plan and by between GBP70 million and GBP100 million in the second year, Kingfisher warned. In total, the five-year plan is expected to cost GBP800 million in capital expenditure, operating costs and exceptional operating cost.
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FTSE 250 - WINNERS
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Ophir Energy, up 7.8%. The oil and gas explorer said it has signed heads of terms with US oil services group Schlumberger to be its upstream partner on the Fortuna floating liquefied natural gas project in Equatorial Guinea. Ophir said Schlumberger, subject to the agreement being definitively agreed and to government approval in Equatorial Guinea, will get a 40% economic interest in the project.
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FTSE 250 - LOSERS
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IMI, down 3.6%. The engineer was downgraded to Underperform from Neutral by Credit Suisse, which also trimmed its price target on the stock to 710 pence from 870p. IMI shares were trading at 780.5p.
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MAIN MARKET AND AIM - WINNERS
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MX Oil, up 158%. The oil and gas investment company said it has received a formal offer and term sheet to acquire its investment in Nigeria. The oil and gas investment company said value of the offer "represents several multiples" of MX Oil's current market capitalisation and said it believes selling the investment on these terms would be more attractive to its shareholders than raising equity to fund its investment to first oil. MX Oil said it will, therefore, actively progress the talks with the bidder.
Havelock Europa, up 41%. The furniture and interior services company said it was beginning to see benefits from its cost-reduction measures taken at the end of the year, as it announced its trading had been in line with expectations for 2015. The company said its programme for "right sizing" and simplifying the business was gaining momentum, with its order book going into 2016 up 15% on 2015 at GBP23.0 million.
Cdialogues, up 14%. The mobile marketing company said it expects to report a fall in revenue and earnings for 2015, as it had flagged in November. The company expects to report earnings before interest, tax, depreciation and amortisation of around EUR2.0 million, down from EUR2.9 million a year before, on revenue of EUR8.8 million, down from EUR9.9 million a year before. "During 2015, the company continued to develop its operations and remains focused on growing its customer base and geographic reach. Investment in products and new business opportunities ensure that the company has a strong foundation for growth and new project launches in the coming months," said Chief Executive Officer Paul Spanos in a statement.
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MAIN MARKET AND AIM - LOSERS
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Plexus Holdings, down 39%. The oil and gas engineering services company issued a profit warning as it has taken a heavy hit from the sharp downturn in activity in the oil and gas industry. Plexus said that, amid the oil price dropping heavily and a subsequent slowdown in activity by its customers, it cannot see the reduced level of activity being recovered in its current financial year to the end of June, which will hit those results significantly. Plexus said it anticipates its revenue for the first half to the end of December will be below GBP7.0 million, with revenue in the second half to fall around 20% from the first half. Due to this weakness, Plexus said it financial results for the year to the end of June will be "very significantly below" market expectations.
HaloSource, down 31%. The clean water technology company said it expects to report a fall in revenue for 2015, but has now "fully resolved" some operational challenges that had hit its business during the year. The company, which makes clean water technology, expects to report revenue of around USD16.3 million for 2015, down from the USD21.0 million it reported in 2014. Around USD1.9 million in orders that had previously been expected to be shipped in 2015 have now been pushed back to the first quarter of 2016, HaloSource said.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
4 Nov 2015 12:19
