LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Johnson Matthey, up 2.2%. Credit Suisse upgraded the specialty chemicals company to Outperform from Neutral, saying the market underestimates the strength of the specialty chemicals company portfolio. The Swiss bank said depressed earnings in the cyclical areas of Johnson Matthey, driven by low metal and oil prices, have created an "attractive" entry point into the "higher-quality" structural growth areas of the company's portfolio such as catalysis and battery materials.
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FTSE 100 - LOSERS
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Burberry Group, down 7.7%. The fashion house warned of further challenges in its current financial year as sales declined in the second half. Burberry said total sales in the six months to the end of March fell to GBP1.41 billion from GBP1.42 billion a year earlier. Underlying constant currency retail revenue was flat year-on-year in the half, while wholesale revenue fell 1.0% and licensing revenue fell in line with its expectations amid reductions to licensing income in Japan.
Persimmon, down 5.8%. The housebuilder reported a strong start to 2016, with private sales rates and average selling prices continuing to rise after the strong growth it reported in 2015, but noted planning delays is "hindering the drive" to boost house volumes. The group said total forward sales revenue in the first 15 weeks of 2016, including legal completions taken so far this year, are up 8.0% at GBP2.15 billion, compared with GBP2.00 billion in the year earlier period. "We remain cautious on valuation and as we expect margins to peak as selling price inflation moderates and build cost inflation persists," Liberum said. Persimmon's results did not bode well for peers Berkeley Group, down 3.8%, Barratt Developments, down 3.0% and Taylor Wimpey, down 2.5%.
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FTSE 250 - WINNERS
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Entertainment One, up 19%. The Canada-based entertainment company said it has received "no approach", following a report from the Financial Times that ITV is understood to be eyeing a takeover approach for the film and television producer. The FT report, citing people familiar with the matter, said ITV has held early talks with Entertainment One, the owner of the Peppa Pig franchise, about a potential deal, though no decision has been taken yet.
Hays, up 9.0%. The recruiter said its net fee income grew in the third quarter despite a slowdown in activity in the UK & Ireland. Hays said its total net fee income for the third quarter to the end of March grew 5.0% year-on-year and was up 4.0% on a like-for-like, constant currency basis.
Debenhams, up 3.2%.The department store chain reported growth in profit in the first half of its financial year as it revealed the search for a new chief executive is underway. The group said pretax profit in the 26 weeks ended February 27 grew to GBP93.8 million from GBP88.9 million in the first half of the prior year, as revenue remained broadly flat at GBP1.327 billion from GBP1.325 billion. Debenhams said that while it achieved a record Christmas, the rate of sales growth in the half was reduced due to it carrying less stock into the post-Christmas sale.
JD Sports Fashion, up 2.4%. The sportswear retailer expressed confidence on its outlook after delivering a rise in annual pretax profit driven by strong like-for-like sales growth. The company said its pretax profit for the 52 weeks to January 30 was GBP131.6 million, up 45% on the GBP90.5 million it made a year earlier. Revenue grew to GBP1.82 billion in the recent financial year, up 20% from GBP1.52 billion a year earlier. The company will pay a final dividend of 6.20 pence per share, up 5.1% year-on-year, taking its total payout up to 7.40p from 7.05p the year before.
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FTSE 250 - LOSERS
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PZ Cussons, down 2.5%. The personal care products company said the overall performance in its most recent trading period was in line with expectations, while its outlook for the year also remains in line, but warned on difficulties in the Nigerian market. PZ Cussons said a better performance in Europe and Asia offset more difficult trading conditions in Africa in the period between January 27 and April 13. "Whilst the overall outlook for the financial year remains in line with expectations, the situation in Nigeria remains extremely fluid and is the largest variable to the year-end outturn," the group said.
Virgin Money Holdings, down 1.8%. The lender's stock went ex-dividend, meaning new buyers no longer qualify for the latest dividend payout.
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MAIN MARKET AND AIM - WINNERS
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Weatherly International, up 69%. The copper cathode producer said production outpaced expectations in the third quarter and came in at a lower cost than guided. Weatherly said it produced 4,442 tonnes of copper cathode in the quarter to the end of March at its Tschudi mine in Namibia, 4.0% ahead of the nameplate production rate for the project. Weatherly also said C1 costs for the quarter were USD3,429 per tonne, well below its guidance for USD4,250 to USD4,350 for the financial year to the end of June.
Renold, up 14%. The power transmission company said its full-year results are expected to be slightly ahead of previous forecasts, with the volatility in sales and orders having less of an adverse impact in the last two months of its financial year to March. Renold said its full-year underlying sales, which exclude the impact of foreign exchange rates, are expected to be 1.0% higher than forecast in its February trading statement, and around 9.0% lower than the prior year.
Eland Oil & Gas, up 23%. The oil and gas company said progress has been made on the workover programme on the Opuama-3 well in Nigeria. Eland said canal access clearing operations have been completed, provided the required access to the Opuama-3 wellhead to enable re-entry into the well. The mobilisation of contractor equipment for the project has been completed, and all equipment for the re-entry is on site, Eland said. The company expects to complete flow testing on Opuama-3 in coming weeks and will provide further details thereafter.
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MAIN MARKET AND AIM - LOSERS
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Ruspetro, down 88%. The oil and gas company said it will seek shareholder approval to cancel its listing on the London Stock Exchange's Main Market and re-register as a private limited company, saying it will have a better chance of achieving the funding it needs in this form. RusPetro reported a pretax loss of USD108.7 million for 2015, narrowed from a loss of USD263.4 million in 2014, on revenue of USD43.9 million, down from USD55.1 million, mostly as a result of a lower foreign exchange loss. Shareholders will vote on the proposal May 5, and if approved RusPetro expects its trading to be cancelled on or around June 6.
Mothercare, down 15%. The mother and baby products retailer said its saw a further improvement in trading in the UK in the 11 weeks to March 26, though international sales remained under pressure. Mothercare said its UK like-for-like sales grew 2.1% in the period from the year before, helped by 5.6% growth in online sales. Gross margins also improved in the UK as the company focused on full-price sales over promotions and discounting. The international business, however, remains under pressure from a tough economic environment and adverse currency moves. International retail sales were down 9.7% at constant currency, Mothercare said, and down 10.8% at actual exchange rates.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
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23 Jul 2014 07:34