LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Meggitt, up 0.9%. JPMorgan Cazenove raised the aerospace and defence components manufacturer to Neutral from Underweight but cut its target price to 380 pence from 450p. Meggitt shares had dropped heavily this week after it issued a profit warning on Wednesday due to deteriorating trading conditions in the third quarter and little hope of any respite from the gloom in the fourth quarter. Meggitt shares were trading at 350.40p.
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FTSE 100 - LOSERS
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International Consolidated Airlines Group, down 4.5%. The British Airways and Iberia owner said its operating profit surged in the third quarter and kept it tracking well ahead of 2014, as passenger traffic and load factor also both improved, prompting the carrier to upgrade its profit guidance. Pperating profit in the third quarter to the end of September was EUR1.25 billion, up from EUR900.0 million a year earlier and still up to EUR1.21 billion when excluding the contribution from Aer Lingus Group, the Irish flag carrier IAG acquired this year. Cantor Fitzgerald, however, said the guidance upgrade only brought it in line with market consensus expectations.
The Royal Bank of Scotland Group, down 1.4%. The lender reported improved third-quarter net profit, as it booked a big gain on the loss of control of Citizens, the US retail bank it is selling, and warned that the costs of restructuring and addressing past conduct and litigation are not about to go away. The bank said it made a GBP952 million net profit in the three months to September 30, compared with GBP896 million in the corresponding quarter the prior year. That included a GBP1.15 billion gain on the loss of control of Citizens, and the bank also confirmed it is set to sell its remaining 20.9% stake.
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FTSE 250 - WINNERS
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Vectura Group, up 9.1%. The drug development company said it has secured two milestone payments following an approval of an inhaler in the US and after hitting a development milestone in Europe. Vectura said the US Food and Drug Administration has approved the dual combination Utibron Neohaler and Seebri Neohaler products for the long-term treatment of patients with chronic obstructive pulmonary disease. The approval has triggered a USD22.5 million milestone payment to Vectura from Swiss pharmaceuticals giant Novartis, Vectura's partner on the product. Vectura also has been paid a USD750,000 cash milestone after a further development milestone was hit for its VR632 therapy in the European Union. VR632 is an asthma and COPD inhaled treatment therapy which users Vectura's dry powder inhaler and formulation technology. That milestone payment hwas made by Sandoz, a unit of Novartis.
Elementis, up 6.4%. The chemicals company said its earnings for the full year should be in line with expectations as the trends experienced in the first half of the year have continued, despite sales being down compared to last year. David Dutro, chief executive of Elementis, said cashflow has continued to perform well which will allow it to "reward our shareholders with attractive returns via our progressive dividend policy," including its special dividend programme.
Lookers, up 2.8%. The motor retailer and aftersales services provider said it saw a strong performance in the third quarter across its whole business and said its results should be in line with market expectations. The company said its trading performance in the quarter to the end of September was very strong, with a record monthly result for the business in September despite coming against a strong comparable period the year before.
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FTSE 250 - LOSERS
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Pets at Home Group, down 7.5%. The pet products and services retailer said it is trading broadly in line with market expectations, but Chief Executive Nick Wood said sales in some parts of the business had been weaker-than-expected in the half. Like-for-like sales in the 28 weeks to October 8 grew 1.8%, the company said, a slight improvement on the 1.7% like-for-like growth it posted for the first quarter but still well short of the 4.2% rise seen in the first half of its 2015 financial year. Merchandise like-for-like revenue increased 1.0%, while services like-for-like revenue was up 11%.
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MAIN MARKET AND AIM - WINNERS
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Clear Leisure, up 21%. The leisure and real estate investor said it has secured a GBP200,000 loan facility from one of its major shareholders which will be used for working capital. Clear Leisure has secured the facility from Swiss investor Eufingest. It carries an annual 3.0% interest rate and is repayable on October 29, 2017. Clear Leisure plans to full drawdown the facility as soon as possible. "We are pleased to have secured this loan from one of our longest standing shareholders and which will enable us to continue the process of restructuring the company to help us realise the value of our non-core assets," said Francesco Gardin, chairman and chief executive of the company.
SerVision, up 11%. The digital video security systems provider said its UK subsidiary has been approved as a supplier by an unnamed global logistics company to supply its end-to-end telematics CCTV security system. Following the approval, SerVision is working on fitting out a fleet of 101 vehicles in the UK with its equipment. The initial value of the deal, due to commence on November 9, is GBP225,000, with the initial purchase order now received.
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MAIN MARKET AND AIM - LOSERS
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Nakama Group, down 29%. The recruitment company posted a lower pretax profit for the first half to the end of September on Friday as total revenue declined, hit by depreciating currencies in Asia Pacific. Nakama's pretax profit fell to GBP169,000 in the half, down from GBP222,000 a year earlier, as total revenue for the group fell to GBP10.6 million from GBP11.1 million. The fall in revenue was down to a currency hit the group took in its Asia Pacific operation, as well as weaker revenue from its UK business. Asia Pacific revenue was up 18%, but would have increased 27% in constant currencies. Net fee income in the half, however, rose to GBP3.0 million from GBP2.7 million as Nakama shifted its focus away from low-margin contract placements to permanent recruitment, which offers higher margins and from which its saw net fee income rise 32% in the first half.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
21 Jul 2014 13:30
