LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Tuesday.
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FTSE 100 WINNERS
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Experian, up 0.9%. The information services and credit report company shares are higher even though it said earnings in its recently completed financial year were hurt by unwelcome foreign exchange movements and cautioned that it expects earnings to be affected in its current financial year. It said it made a USD1.01 billion pretax profit in the year ended March 31, compared with USD1.05 billion in the prior year. However, Chief Executive Brian Cassin said Experian is "executing well" on its strategic priorities. "We finished the year well, with organic growth improving as we exited the year," said Cassin.
Lloyds Banking Group, up 0.2%. The bank is continuing its gradual return to full private ownership, as stock exchange documents confirmed that the UK taxpayer's stake has fallen yet again. The documents confirmed that the taxpayer's stake in the bank has fallen to 19.93% from 20.95% previously. Chancellor of the Exchequer George Osborne wants to continue to sell down the stake held in Lloyds and to involve private investors in a future share sale. The disposals to date have been been to institutional investors.
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FTSE 100 LOSERS
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EasyJet, down 8.3%. The low-cost airline said it swung to a profit in the first half of its financial year and made a pretax profit of GBP5 million in the six months to end-March, compared with a loss of GBP53 million a year earlier. However, easyJet warned that air traffic control strikes in France had knocked about GBP25 million off its profit, and it expects revenue per seat at constant currency to decline by low single digit percentage points in the second half of the year. Moreover, analysts at Nomura, Numis, Panmure Gordon and Cantor have, or say they are likely to, cut their full-year forecasts for the company as a result of the disruption in France and tough outlook.
Prudential, down 2.6%. The life insurance company said its group chief risk officer, Pierre-Olivier Bouée, is stepping down after almost two years in the role. Prudential is yet to name Bouée's successor but said a replacement will be announced in due course. The news means that Mike Wells, who is set to become chief executive in June as Tidjane Thiam departs for Credit Suisse, will work with a new risk chief when he takes the helm.
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FTSE 250 WINNERS
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Thomas Cook Group, up 4.1% at 159.6 pence. Credit Suisse upgraded the UK travel operator to Outperform from Neutral, lifting its price target to 180p from 159p.
Enterprise Inns, up 1.3%. The pub operator reported a huge drop in profit in the first half of its financial year, which it blamed on costs associated with debt refinancing and property charges. However, the company added that, as part of its strategic review to optimise the returns from every asset within its property portfolio, it will increase its operational flexibility by expanding its managed business and building a high-quality commercial property portfolio. It reported a pretax profit of GBP10 million in the six months to March 31, versus a GBP47 million a year earlier.
Inchcape, up 0.8% at 855p. UBS upgraded the automotive retailer to Buy from Neutral, lifting its price target to 1,000p from 680p.
Greene King, up 0.8% at 810.73p. JP Morgan upgraded the brewer and pub operator to Overweight from Neutral, raising its price target to 920p from 830p.
Spire Healthcare Group, up 0.5%. The independent hospital group reiterated its full-year guidance for 2015, as it traded positively and in line with expectations in its first quarter. Spire said that during the three months to end-March revenue grew around 10%, with growth coming from all of its three major payor groups, with Self-Pay and National Health Services businesses being particularly encouraging. Stripping out its acquisition of St Anthony's Hospital last May, revenue rose 6%.
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FTSE 250 LOSERS
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Regus, down 6.8% at 245.02p. JP Morgan Securities said that Estorn has agreed to sell 30 million Regus shares at 245 pence each, raising gross proceeds of about GBP73.5 million for the vehicle controlled by the serviced office provider's founder Mark Dixon. Dixon will still hold about 294.3 million Regus shares after the deal, or about a 31.4% stake in the business.
Al Noor Hospitals Group, down 3.9%. The United Arab Emirates-focused private healthcare service provider said it had continued to perform in line with its expectations in the first quarter of 2015, with revenue growth of 12%, but it announced the resignation of Chief Financial Officer Pramod Balakrishnan. Investec and Numis both see the reported growth figure as a little weak and below the brokers' expectations for the full year. "Aside from the CFO’s resignation, there is little to generate positive momentum in the shares today," writes Investec's Cora McCallum, who also says it is hard to identify a positive trigger in the near term.
Hiscox, down 3.0%. The insurer said first-quarter gross written premiums increased by 12% to GBP561.7 million, driven by several of its operations within its retail underwriting division, as well as its London Market and reinsurance divisions. Even though it increased gross written premiums, the company said it walks away from unprofitable business.
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AIM ALL-SHARE WINNERS
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Aurasian Minerals, up 67%. The miner said it has agreed to form a joint venture in Laos with investment firm Sahamit Phattana that will undertake exploration and mineral development activities in the country. Aurasian said it will hold a 70% stake in the new venture with Sahamit holding the rest. Cost contributions will be on a pro-rata basis. Aurasian will also finance one-third of Sahamit's 30% stake with a loan.
Sareum Holdings, up 14%. The specialist drug discovery and development business said Chief Executive Tim Mitchell would describe the company's research pipeline, including the programme set to file for clinical trials later this year, at the BioTrinity event in London on May 12. Sareum said the presentation will include the CHK1 cancer programme which is expected to file for clinical trials approval later this year. BioTrinity is a biopartnering and investment conference.
W Resources, up 11%. The company said it had completed the scout diamond drilling programme at the CAA/Portalegre gold and base metal exploration licence in Portugal and had got encouraging results from the five holds drilled. It said that the most significant result from the programme was from Hole CAAD-05 which intersected 16 metres of gold at 1.37 grams per tonne between 124 metres and 140 metres.
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AIM ALL-SHARE LOSERS
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Reach4entertainment Enterprises, off 43%. The media and entertainment marketing company said Monday after the market close that it expects to report a loss in 2014 following the revaluation of its assets and therefore will not meet current market expectations for its full-year pretax profit. It said it is in discussions with its bank with regards to a restructuring of the company's bank loan or to replace it altogether, and as part of these discussions has undertaken a revaluation of its assets which will result in a "significant" non-cash impairment charge for 2014.
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By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
20 Jun 2014 07:15
