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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Wolseley, up 2.1%. The building products company said it expects to meet analysts' expectations for its trading profit in the current financial year after reporting strong growth in the third quarter of the year, driven by like-for-like sales growth, acquisitions, and an exchange rate boost. It reported a trading profit from ongoing businesses of GBP195 million for the three months to April 30, up 29.1% from GBP151 million a year earlier, as revenue grew 16.6% to GBP3.30 billion from GBP2.83 billion and the company improved its gross margins.
Wm Morrison Supermarkets, up 0.6%. The supermarket chain is the only member of the big four grocers to experience increased sales in recent weeks, according to Kantar Worldpanel UK's grocery market data. Morrisons sales rose 0.1% in the 12 weeks to May 24 to GBP2.78 billion from GBP2.77 billion in the same period a year earlier, although its market share remained the same at 10.9%.
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FTSE 100 LOSERS
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British American Tobacco, down 2.4%, Imperial Tobacco Group, down 1.7%. BAT confirmed that its Imperial Tobacco Canada subsidiary was amongst three companies ordered to pay a total of CAD15.6 billion in a case that has been running for 10 years after smokers claimed the companies failed to warn them of the risks associated with smoking. BAT said it was not a party to the proceedings and is not a party to the judgement, only its Canadian subsidiary. Imperial Tobacco Canada's share of the total damages would be CAD10.4 billion, it said. However, the companies intend to appeal the judgement. Imperial Tobacco Group is unconnected to Imperial Tobacco Canada but its shares are likely to be suffering from industry-wide read-across from the judgement.
Tesco, down 1.8%, J Sainbury, down 1.4%. The two supermarket chains posted a decline in sales in recent weeks, according to Kantar data. J Sainsbury was the second best performer of the big four, with an annual sales decline of 0.3% in the 12 weeks to May 24 to GBP4.18 billion from GBP4.19 billion. Its market share remained the same at 16.5%. Tesco came in next with a sales decline of 1.3% to GBP7.28 billion from GBP7.37 billion a year before, and a market share decline to 28.6% from 29.0%.
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FTSE 250 WINNERS
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Premier Oil, up 3.4%. The oil and gas explorer and producer said it will consolidate production at the Solan field in the UK North Sea as it takes full ownership of the project after acquiring the 40% stake in the project it did not already own. It has acquired Chyrsaor's 40% stake in the field for no upfront consideration. In return, Premier will pay Chyrsaor up to USD3 million a year and royalty payments of up to USD100 million, after allowing the repayment of the USD530 million plus interest of the outstanding loan provided by Premier to Chyrsaor.
Synergy Health, up 1.4%. The healthcare services provider posted a rise in pretax profit for its recently ended financial year, and said its current financial year has started well. For the year to March 29. Synergy posted a pretax profit of GBP43.6 million, up from GBP42.9 million a year before, as a 7.5% rise in revenue to GBP408.8 million from GBP380.5 million was partly offset by higher administrative expenses, GBP8.6 million amortisation of acquired intangibles and GBP5.8 million in exceptional and acquisition related costs. Synergy's results come after the US Federal Trade Commission said last week it intends to block STERIS Corp's proposed USD1.9 billion cash and share takeover of Synergy.
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FTSE 250 LOSERS
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AO World, down 3.6%. The online domestic appliances retailer reported a narrowed pretax loss and rise in revenue in its recently-ended financial year as it recovered from costs associated with its initial public offering in London the previous year, but said it missed its earlier financial expectations due to a weaker-than-expected sales performance in the fourth quarter. It made a pretax loss of GBP2.9 million in the year to March 31, compared with a loss of GBP7.6 million the prior year, while revenue grew 24% to GBP476.7 million from GBP384.9 million. AO World said it will not pay a dividend for the full year.
Amec Foster Wheeler, down 2.1%. The oil services company warned its scope revenue will be "modestly" lower in 2015 than in 2014 and that its trading margin will suffer a "further modest reduction" compared to its previous guidance, as challenging conditions in the upstream oil and gas industry continues. It said scope revenue was GBP1.60 billion in the four months to end-April, falling from GBP1.62 billion a year earlier. Amec Foster said revenue was down 0.9% on a pro-forma basis and down 3.6% on a like-for-like basis. It also said it expects trading profit to be more second-half weighted than in 2014.
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AIM ALL-SHARE LOSERS
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SeaEnergy, off 27%. The energy services company warned that revenue in 2015 will be below its previous expectations although broadly similar to 2014, as the steep fall in the oil prices in the second half of last year has been affecting more of its markets than it had hoped. It said it had expected the oil price decline to mainly affect mature oil and gas basins like the North Sea, and it had moved to try and offset that hit by accelerating its move into less mature international markets. However, it said its R2S visual asset management software and service business was also now reporting that projects were being delayed later in 2015 or pushed into 2016, and its Max and Co consulting business was being hit by project deferrals and budget freezes.
Intercede Group, down 13%. The cybersecurity company said it made a pretax loss in its recently-ended financial year, as revenue fell due to a number of market-related delays and it booked costs associated with investments. Intercede reported a pretax loss of GBP1.7 million in the year to March 31, compared with a pretax profit of GBP395,000 the year before, as revenue fell to GBP8.8 million from GBP9.8 million.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
4 Jul 2016 10:28
