LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------
FTSE 100 - WINNERS----------
GlaxoSmithKline, up 6.0%. The drugmaker said it will acquire Novartis's 36.5% stake in their consumer healthcare joint venture for
USD13 billion, or around
GBP9.20 billion. Glaxo will also initiate a strategic review of Horlicks and other consumer nutrition products to support funding of the stake acquisition. The review will include the company's 72.5% shareholding in Indian subsidiary, GlaxoSmithKline Consumer Healthcare. The consumer healthcare joint venture was formed as part of the three-part transaction between Glaxo and Novartis which was approved by shareholders in 2014.
Ferguson, up 4.3%. The plumbing and heating products supplier proposed a
USD1 billion return to shareholders via a special dividend as well as reporting a rise in profit for its first half. The special payout represents expected proceeds from the sale of Nordic building-materials distributor Stark, due to be completed at the end of March. Ferguson had announced the sale to an affiliate of Lone Star Funds in November. Revenue in the six months to January grew to
USD10.03 billion from
USD9.38 billion in the previous year, with a strong performance in the US, which accounts 79% of revenue. Pretax profit increased to
USD598 million from
USD556 million year over year. Ferguson declared an interim dividend of
57.4 cents per share, up 10% from last year's
52.1 cents per share. ----------
FTSE 250 - WINNERS----------
AG Barr, up 3.5%. The soft drinks maker said revenue and profit rose for its recently ended financial year, and it raised its dividend as a result. The Irn-Bru maker said revenue rose 8.0% to
GBP277.7 million for the year ended January 27 from
GBP257.1 million the year before, as pretax profit climbed 4.2% to
GBP44.9 million from
GBP43.1 million the year prior. During the year, the company said Irn-Bru sales were up 8.0%, "the biggest ever year of sales" for the brand, while Rubion sales rose 5.3% and Funkin sales were up 25%. The company proposed a final dividend of 11.84p per share, up from 10.87p the year before, bringing its total payout for the year to 15.55p, an increase of 8.0%.
Entertainment One, up 2.8%. JPMorgan resumed coverage on the Peppa Pig TV show owner with an Overweight rating.----------FTSE 250 - LOSERS----------
Superdry, down 8.7%. The high street fashion retailer said its founder Julian Dunkerton will leave the business and intends to donate up to
GBP1.2 million in Superdry shares to the sea protection charity Blue Marine Foundation. Dunkerton will step down as a founder and product & brand director of the clothing retailer on Saturday to devote more time to his other business and charitable interests.
IG Group Holdings, down 4.9%. The online trading services provider said revenue for its 2019 financial year will be lower than that expected for the year ending May 31, 2018, mainly due to regulatory changes in the UK and EU. Trading in cryptocurrencies is unlikely to be strong in the 2019 financial year, the company added. The company's revenue in 2018 financial year to date has benefitted from the strong volume of client trading in cryptocurrencies. "Demand for the products and services offered by IG is strong, and growing and the company expects to return to growth after [financial 2019]," IG said as it noted temporary leverage restrictions placed by European Securities & Markets Authority and the UK Financial Conduct Authority in relation to contracts for difference and binary options trading for retail clients.
Stagecoach Group, down 0.7%. The transport operator said its full-year expectations remain unchanged, despite a hit to regional UK bus operations following recent adverse weather conditions. In the 44 weeks ended March 3, UK Bus like-for-like revenue slipped 0.1% for regional operations, while London operations declined 4.3%. In the same period, UK Rail - excluding South West Trains - like-for-like revenue rose 3.2%, and Virgin Rail Group rose 2.8%. In regional UK Bus operations, Stagecoach reported like-for-like revenue growth has been suppressed in recent weeks by the widespread snowstorms throughout the UK. Stagecoach said its adjusted earnings per share expectations for the year ending April 28 remain unchanged from the time of its interim results in December.----------
OTHER MAIN MARKET AND AIM - WINNERS----------
FreeAgent, up 78% at
115.00 pence. Royal Bank of Scotland said it has agreed to acquire the accounting software company at 120p per share, valuing it at
GBP53 million. The offer price represents an 86% premium to FreeAgent's closing price of 64.50p on Monday, and a 43% premium to its initial public offering price of 84p. FreeAgent directors intend unanimously to recommend sharheolders vote in favour of the deal. "RBS is pleased to have reached an agreement on a recommended acquisition of FreeAgent. Since the beginning of our partnership, we have been impressed by FreeAgent and its technology and are excited by the enhanced offering we will be able to provide to our customers," said RBS Chief Executive Ross McEwan. Shares in RBS were up 1.2%.
James Halstead, up 4.9%. The commercial floor coverings distributor raised its interim dividend slightly as revenue and profit increased during the six months ended in December. The company increased its interim payout by 2.7% to
3.85 pence per share from 3.75p per share. During the half-year, the company reported revenue growth of 5.4% to
GBP126.0 million from
GBP119.6 million as pretax profit grew 2.2% to
GBP23.7 million from
GBP23.2 million. Looking ahead, James Halstead noted that trading in January was particularly strong, and February and March also compared well to the same months last year. As a result, sales in the year to date are 10% ahead of a year before.----------
OTHER MAIN MARKET AND AIM - LOSERS----------
Quadrise Fuels International, down 35%. The company posted a pretax loss of
GBP2.0 million for the six months to December 31, narrowed from a
GBP2.4 million loss a year earlier, with no revenue generated in the last six months of 2017 compared to
GBP68,000 a year earlier. The company said it has accumulated tax losses of approximately
GBP47 million, available to be carried forward against future profits. The interim results come a day after the firm said the planned combustion boiler trial project in Saudi Arabia is no longer anticipated to go ahead as originally planned, and the company intends to focus on other activities that can deliver meaningful progress.----------
