LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Wednesday.
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FTSE 100 WINNERS
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ITV, up 5.8%. The broadcaster proposed a GBP250 million special dividend of 6.25 pence per share, and raised its total ordinary dividend, as it posted a rise in pretax profit for 2014. The company proposed a final dividend of 3.3 pence, taking its total dividend for the year up to 4.7 pence from 3.5 pence. The company has committed to grow its full-year ordinary dividends by at least 20% per year over the three years to 2016.
Standard Chartered, up 4.8%. The emerging markets bank reiterated that it has no plans to turn to the market to bolster its capital position, instead setting out plans to cut capital-intensive risk assets and to sell and exit under-performing businesses, as it maintained its dividend despite a 30% drop in pretax profit in 2014. Standard Chartered said pretax profit fell to USD4.24 billion in 2014 from USD6.06 billion in 2013, hit by lower operating income, higher operating expenses, and an increase in impairment losses on bad loans.
Ashtead Group, up 1% at 1,168p. Several brokers have raised the equipment rental company's price target the day after it raised its guidance in the wake of a strong third quarter. JP Morgan has raised its price target for the group to 1,240p from 1,070p, retaining its Overweight rating, while HSBC has lifted the company's price target to 1,450p from 1,300p, also reiterating its Overweight recommendation. Berenberg has upped Ashtead's price target to 1,300p from 1,295p, keeping its Buy rating.
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FTSE 100 LOSERS
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Fresnillo, down 5%. The gold and silver miner reported a steep drop in profits in 2014, as it was hit by a drop in gold production, falling precious metals prices, higher production costs, and the strengthening of the US dollar against the Mexican peso. Fresnillo forecast that its production would improve in 2015 and pledged to continue investing in growth products, even though its focus this year will be on improving efficiency and productivity and maintaining its cost position and margins.
Glencore, down 3.8%. Shares of the metals and mining giant are still down after it joined sector peers Tuesday in slashing its capital expenditure plans, after it reported lower 2014 profits hit by the fall in the oil price and prices for other commodities. Glencore shares dropped Tuesday by 3.1%, and have slid by around 24% in the past 180 days.
Legal & General Group, down 3.4%. The shares of the life insurance and investments group are down even though it reported an 8% increase in annual pretax profit, bolstered by double-digit operating profit growth in its retirement, capital and investment management divisions. Legal & General said it made a GBP1.24 billion pretax profit in 2014, up 8.8% from GBP1.14 billion in 2013. According to consensus estimates published by the company, analysts had been forecasting a pretax profit of GBP1.29 billion.
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FTSE 250 WINNERS
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Greggs, up 3.9%. The bakery chain reported a higher profit for its last financial year, buoyed by revenue growth following its successful push into the food-to-go market and better market conditions, alongside strong returns on its shop refurbishments and cost control. Greggs said pretax profit for the financial year to January 3 increased to GBP49.7 million, up from GBP33.2 million a year earlier, driven by a 5.5% rise in revenue to GBP804.0 million from GBP762.4 million.
CLS Holdings, up 2.3%. The commercial property company reported a big jump in pretax profit in 2014 on the back of a massive rise in the valuation of its property portfolio. CLS said its pretax profit for the year was GBP236.8 million, compared with GBP71.4 million in 2013, as it registered a GBP186 million gain in the valuation of its property portfolio, compared with a GBP0.2 million decline in 2013.
Dignity, up 1.1%. The funeral services company raised its final dividend by 10%, but said it swung to a pretax loss in 2014 due to costs related to its refinancing during the year, though profit increased excluding those costs on the back of higher revenue. Dignity said its pretax loss for the year was GBP67.7 million, attributable entirely to a GBP154.8 million financing cost related to refinancing its debt, which allowed it to return GBP64.4 million to shareholders. The group proposed a final dividend of 11.83 pence per share, bringing its total dividend for 2014 to 18.32 pence.
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FTSE 250 LOSERS
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Afren, down 24%. The oil explorer, which is set to be demoted from the FTSE 250 following a sharp decline in its share price since the middle of 2014, said it has decided it will not pay the USD15 million interest due on February 1 on its 2016 notes. It said it has received assurance from its ad hoc committee of bondholders that they have no intention to take enforcement action against the company, meaning Afren will have no obligation to repay the 2016 notes.
Melrose Industries, down 4.3%. The manufacturing investment company reported a fall in pretax profit in 2014 as sterling strength exacerbated a fall in revenue. Pretax profit fell to GBP128.9 million from GBP144 million, held back significantly by the strength of sterling as pretax profit with currency effects stripped out rose 21%. Revenue was down to GBP1.38 billion from GBP1.47 billion.
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AIM ALL-SHARE WINNERS
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Belgravium Technologies, up 12%. The mobile computing services company posted a rise in pretax profit for 2014 and said it believes it will achieve further progress in 2015. Belgravium Technologies has opted not to pay a final dividend in order to conserve its cash for a potential acquisition it said it has identified. It said that talks are at an early stage, but currently expects to finance the acquisition through its existing cash resources and bank debt if it goes through.
Richland Resources, up 7.2%. The Gemstone producer and developer said it has now completed the sale of its tanzanite mining, beneficiation and tsavorite licence interests in Tanzania to Sky Associates Group. Sky is buying the assets for USD5.1 million, with USD4.1 million paid to Richland on closing.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
7 May 2014 13:10
UK MIDDAY BRIEFING: HSBC Profit Slides, Sainsbury Holding Out
LONDON (Alliance News) - HSBC Holdings Wednesday reported a 20% drop in first-quarter pretax profit, driven by a weak performance Asia, Latin America and its investment bank, that was only partially offset by lower impairment charges and continued cost cutting.
In a
