LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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J Sainsbury, up 1.0%. The retailer was the only big four UK supermarket to increase sales in the past 12 weeks, for the second consecutive period, according to Kantar Worldpanel's grocery market survey. Sainsbury's sales rose 0.9% in the 12 weeks to September 13 to GBP4.01 billion from GBP3.97 billion in the same period a year earlier, as its market share stayed flat at 16.2%. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said that Sainsbury's attracted 250,000 new shoppers through its doors in the 12 weeks and managed to maintain its market share through the continued expansion of its Sainsbury's local outlets.
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FTSE 100 - LOSERS
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Anglo American, down 7.0%, Antofagasta, down 6.5%, Rio Tinto, down 4.6%, BHP Billiton, down 4.6%. Miners were trading lower after Credit Suisse took a hatchet to its recommendations and price targets in the sector. The downgrades by the bank also took a heavy toll on FTSE 250 miners, with Kaz Minerals down 17%.
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FTSE 250 - WINNERS
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IG Group, up 3.3%. The spread betting and contracts-for-difference company said its revenue increased substantially in the first quarter against a weak comparative, but said the volatile market conditions make it difficult to predict an outcome for the full year. IG said that in what is normally a very quiet period for the business, financial markets presented a number of trading opportunities for investors in the quarter, including the debate around Greece's membership of the eurozone and the turmoil in the Chinese economy, the latter of which served to push client activity to a peak at the end of August. Revenue for the group was up 24% to GBP106.0 million in the quarter to the end of August.
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FTSE 250 - LOSERS
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AA, down 8.1%. The breakdown cover and roadside assistance company said its trading profit fell in the first half, though it said it is trading in line for the full year and said it will pay an interim dividend, its first since listing in mid-2014. The AA said its trading earnings before interest, taxation, depreciation and amortisation in the half to the end of July was down to GBP199.2 million from GBP211.8 million a year earlier, blamed by the company on the early phasing of marketing spend, the roll-out of diagnostic technology, a run-off of a former credit card account in its financial services division, the weak euro in Ireland, and higher operating costs.
AG Barr, down 5.2%. The Scottish drinks company posted a fall in profit in the first half as revenue was hit by challenging market conditions, poor weather and a tough comparative period last year. The company, which makes brands including Irn-Bru and Rubicon, reported a fall in pretax profit in the six months ended July 25 to GBP16.9 million from GBP19.0 million in the first half of the prior year, as revenue declined to GBP130.3 million from GBP135.7 million. AG Barr said that the soft drinks market was hit by price deflation and very poor weather, particularly in northern Britain, and that it also faced a tough comparative period the year before which was driven by better-than-average weather and the Glasgow 2014 Commonwealth Games.
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MAIN MARKET AND AIM - WINNERS
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New World Oil & Gas, up 18% at 0.0650 pence. Resources sector investor Paternoster Resources said it has acquired an 8.0% stake in New World for GBP256,688. Paternoster bought 366.6 million shares in New World and though it did not provide information on the cost of the shares, this works out to around 0.0700p per share. Paternoster shares were down 1.2%.
Swallowfield, up 9.6%. The personal care and beauty products company said its profit multiplied in the first half of 2015, and it reinstated payment of dividends as a result, although revenue was hit by foreign exchange movements. The personal care and beauty products supplier said its pretax profit in the six months ended June 30 jumped to GBP814,000 from GBP140,000 in the first half of 2014, as the prior year suffered from the cost of exceptional items. Swallowfield will pay a final dividend of 2.0 pence, having not paid one the year before.
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MAIN MARKET AND AIM - LOSERS
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Pittards, down 19%. The leather products company reported a rise in profit in the first half of 2015, despite a fall in revenue as it improved its gross margin, but warned that current trading is below expectations in a "depressed" leather industry. It said that its pretax profit in the six months ended June 30 doubled to GBP0.6 million from GBP0.3 million the year before, even though revenue fell to GBP15.6 million from GBP17.4 million. Increased gross margin offset lower sales volumes as it benefited from "more favourable currency movements". But Pittards warned that the current order book is below its expectations, reflecting a lower level of demand in July and August. It said that activity levels in the leather industry are "depressed" and likely to remain so in the medium term.
Mosman Oil & Gas, down 17%. The oil and gas company raised GBP1.5 million in a placing of 33.3 million shares at 4.5 pence per share, which it said will allow it to progress its proposed acquisition of a 70% interest in the South Taranaki Energy Project assets in New Zealand. It will combine the proceeds with the NZD4 million royalty funding - equivalent to GBP1.7 million - it secured in September, and the 5% deposit it has paid. The total consideration for 100% of the assets is NZD10 million - equivalent to GBP4.2 million - which it will pay in two tranches.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
IN BRIEF: Pittards confirms appointment of joint administrators
Pittards PLC - Yeovil, Somerset-based leather goods producer - Further to announcement last month, confirms it has appointed Lucy Winterborne and Daniel Hurd, administrators from Ernst & Young LLP, as joint administrators to the company. Says the joint administrators are at an advanced stage of negotiations to sell its business and assets, including its Ethiopian subsidiaries. Says the transaction is expected to formally close no later than Wednesday. Says that if the transaction cannot be concluded, the joint administrators will assess available options to realise value for the Pittards' creditors. Says the joint administrators will be contacting shareholders "in due course" with further information on the administration process and the sale of Pittards' business and assets.
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