LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Thursday.
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FTSE 100 - WINNERS
Aviva, up 9.3%. The life insurer's results were ahead the markets expectations on each of the key financial metrics except capital generation. It reported a GBP2.05 billion operating profit for 2013, compared with GBP1.93 billion in 2012, while swinging to a GBP2.15 billion profit after tax from 2012's GBP2.93 billion loss. The group also said that it has reduced its inter-company loan by GBP1.7 billion to GBP4.1 billion, with an agreement reached with the UK's Prudential Regulation Authority to reduce the loan to GBB2.2 billion by the end of 2015.
Aggreko, up 7.6%. The temporary power company raised its full-year dividend by 10% to 26.30 pence a share, even though its 2013 pretax profit and revenues both fell from 2012 when results were buoyed by contract to power the London Olympics. Still, the results largely meeting expectations. Strong cash generation reduced its net debt by about GBP230 million over the year to GBP363 million. The stock fell heavily last week when long-standing Chief Executive Rupert Soames was poached by Serco, but analysts say the company remains in good shape.
Schroders, up 3.2%. The asset manager reported a 24% increase in pretax profit after management and performance fees swelled on the back of strong net inflows and reinforced by the acquisition of Cazenove Capital. The group will pay a 58.0 pence full-year dividend, up from 43.0 pence in 2012, with Chief Executive Michael Dobson stating that the 35% increase was the culmination of a strong financial position and confidence in opportunities for continued growth in the long-term.
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FTSE 100 - LOSERS
IMI, down, 4.8%. The engineering firm reported an increase in profit and revenue for the full year, but warned of pressures on profit margins in the first half of 2014. It warned that it expects first half margins to be slightly lower than last year. Meanwhile, analysts expect foreign exchange to weigh on 2014 results by about 5%.
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FTSE 250 - WINNERS
Inmarsat, up 4.4%. The group has lifted its full-year dividend and expressed confidence for 2014 despite reporting that 2013 pretax profit fell due to lower revenues and impairment charges. Inmarsat posted a pretax profit of USD189.1 million in 2013, down from USD293.6 million in 2012, as revenues declined to USD1.26 billion from USD1.33 billion in the previous year, and it posted an impairment charge of USD185.2 million. Despite the decline, Jefferies analyst Giles Thorne is upbeat. Coming into the final quarter of the year, investors had been worried about potential downgrades, "on the back of a deterioration in the sequestration-impacted solutions business and perhaps even some contagion into Inmarsat Global," says Thorne. However, fourth quarter results were solid, he says, with revenue of USD317.4 million 2.2% ahead of consensus forecasts. Although Ebitda of USD150.9 million came in 1.5% behind consensus estimates, it was "bang in line" excluding the USD1 million to USD2 million mergers and acquisitions fees from the Rignet and Globe Wireless deals.
Vedanta resources, up 2.7%. The mining company has made Tom Albanese its new chief executive from April 1. Former Rio Tinto CEO Albanese joined the company last September as Chairman of its Vedanta Resources Holdings Ltd.
Betfair Group, up 2.6%. The online betting company said customer numbers, revenues and profits all rose in its fiscal third quarter and it gave a positive outlook, partly thanks to soaring growth in mobile betting. Group revenues were up 5% to GBP95.4 million in the three months to end-January, with its earnings before interest, tax, depreciation and amortisation, excluding certain items and foreign exchange losses, rising 28% to GBP20.2 million, from GBP15.8 million. It said it now expects its underlying Ebitda for the year to end-April to come in towards the top end of its previously guided range of between GBP82 million and GBP87 million.
Man Group, up 2.6%. The hedge fund manager said Goldman Sachs will run its share buy back programme. Man had previosuly said it would buy back up to USD115 million worth of shares between March 6 and December 19.
Kentz Corporation, up 2.3%. The major engineering company said it has been awarded Phase 2 of the Moatize Coal Mining Project by Brazil's Vale SA in the Tete Province of Mozambique.
Cobham, up 1.9%. The aerospace and security technology company is amongst the biggest risers in the FTSE 250 despite reporting that its 2013 full-year pretax profit tumbled 38% amid challenging trading conditions in the defence and security markets. Jefferies analyst Sandy Morris believes it is an "element of relief," that is causing the share price rise. Importantly, while the 2013 results were broadly in line with Jefferies' estimates, the 2014 and 2015 guidance has remained unchanged, says Morris, adding that, "we now have a steady ship."
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FTSE 250 - LOSERS
Imagination Technologies Group, down 8.2%. The group has lowered its guidance for its royalty units and licensing revenue for the full year. It said that unit shipments of its chips had been below expectations due to a slower rate of smartphone market growth and a lower market share in the entry-level segment of the smartphone market.
Balfour Beatty, down 7%. The construction giant has reported a sharp drop in profit for 2013, as it was hurt by the reorganisation of its UK construction business and a significant downturn in the Australian natural resources sector. It posted pretax profit of GBP32 million for 2013 compared with GBP147 million in 2012, even though revenue rose to GBP8.74 billion from GBP8.66 billion. Revenue including the company's share of joint ventures and associates rose to GBP10.12 billion from GBP9.97 billion in 2012.
Unite Group, down 2%. The student accommodation provider has reported a fall in pretax profit and revenue for the full year, due to a reduction in planned sales of completed property. It posted pretax profit of GBP77.1 million for 2013, down from GBP126.2 million, as total revenue - which includes rental income and property sales - fell to GBP101.6 million from GBP214.6 million a year earlier. It also announced plans to raise GBP100 million through the issue of news shares, with the funds to be used partly to increase its stake in the Unite UK Student Accommodation Fund.
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AIM - WINNERS
Crawshaw Group, up 24%. The meat retailer said its full-year results will now be further ahead of market expectations than it previously thought after it saw particularly strong trading in January. The company had said in early January that its results for the financial year to January 31 would be ahead of market expectations thanks to strong trading over the key Christmas period.
IndigoVision Group, up 17%. The company has increased its interim dividend after profits and revenues jumped in the first half of the year, driven by sales of new cameras it has launched in the last two years. It also said the second half has got off to a good start. It reported a pretax profit of GBP1.3 million for the six months to end-January, up from GBP952,000 a year earlier, as revenues rose to GBP18.4 million, from GBP16.1 million. It said it will pay an initial interim dividend of 6.0 pence, up 9% on the same dividend last year.
Quadrise Fuels International, up 13%. The developer of fuel oil alternatives said it has raised USD10.7 million by placing 33.4 million new shares at a price of 32 pence per share. The proceeds will allow it to advance each of its currently active programmes as well as pursuing new projects and strengthening its balance sheet. It said the additional project capital will allow it to expedite deployment of the manufacturing units for its MSAR fuel, fund its research and development facility, protect existing and future intellectual property and enable the company to recruit additional specialist staff.
Faroe Petroleum, up 11%. The firm announced that it has discovered oil and gas at its Pil exploration well in the Norwegian Sea. The oil and gas company said a gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas has been penetrated at the Pil well, which has proved to be an effective reservoir at the Shell-operated Draugen oil field, located 60 kilometres to the north east. Faroe will now conduct a drill stem test once total vertical depth has been reached.
Ferrex, up 11%. The exploration and development company said exploration activities at its Mebaga Iron Ore Project have found an additional high grade iron ore space in the eastern half of the licence.
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AIM - LOSERS
32Red, off 8.1%. Despite raising its full-year dividend 29% after it reported double-digit growth in 2013 profits and revenues and giving a positive outlook for 2014, the online gaming company is a big loser. Analysts put the move down to profit taking after the stock performed strongly over the last year of exceptional growth. The group's share price jumped more than 70% in 2013.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
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