LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
----------
FTSE 100 - WINNERS
----------
AstraZeneca, up 3.0%. The pharmaceutical giant said its operating profit increased in the third quarter and was ahead for the year to date, as AstraZeneca upgraded its revenue guidance for 2015 in constant currencies. It said its operating profit for the third quarter to the end of September rose to USD137.0 million from USD116.0 million a year earlier, helped by an improvement in margins in the half. Total revenue for the quarter fell 10% to USD5.95 billion and was down 2.0% in constant currencies. AstraZeneca upgraded its revenue guidance for the full year in constant currencies to expectations for a broadly flat performance against 2014, having previously guided to a low-single-digit percentage decline.
RSA Insurance Group, up 2.8%. The insurer said it enjoyed a good performance in the third quarter despite a "distraction" arising from the takeover interest from Swiss insurer Zurich Insurance Group, which has since withdrawn from talks to buy its London-listed rival. Year-to-date net attributable profits are ahead of RSA's plans, the company said, with third-quarter profit including GBP21.0 million in disposal gains from the sale of its Indian associate, bringing total disposal gains for the year-to-date to GBP153.0 million.
----------
FTSE 100 - LOSERS
----------
Coca-Cola HBC, down 3.1%. The soft drinks bottler reported a drop in net sales revenue in the third quarter of 2015 as a weak emerging markets category offset stronger performances from established and developing markets, although volume increased in all three regions. It said total net sales revenue fell 2.7% in the third quarter to EUR1.76 billion from EUR1.81 billion in the same period the year before, as growth of 6.4% in established markets and 6.8% in developing markets was offset by a 13% decline in emerging markets due to unfavourable movements in foreign exchange rates.
Wm Morrison Supermarkets, down 3.3%. The grocer said sales fell in the third quarter of its financial year as it continued to invest in price cuts amid a deflationary UK grocery market. Morrisons said total sales excluding fuel were down 2% in the 13 weeks to November 1, on the same period the year before, or down 4.6% including fuel. Like-for-like sales declined 2.6% excluding fuel, and 5.1% including fuel. Despite this, Morrisons said that there was good progress during the quarter against many aspects of its plan, and that it is continuing to invest in lower prices. Analysts said the like-for-like sales excluding fuel figure was below consensus expectations.
Randgold Resources, down 2.9%. Randgold said its revenue from gold sales dipped in the third quarter, leaving its profit for the period lower, as it continued to deal with the tough conditions in commodities markets. The gold miner, which operates mainly in central and west Africa, said its profit for the nine months to the end of September was USD159.2 million, down from USD216.8 million a year earlier, as profit for the third quarter fell to USD48.8 million from USD59.2 million.
----------
FTSE 250 - WINNERS
----------
Howden Joinery Group, up 7.2%. The kitchens and joinery products manufacturer said trading has remained strong so far in the second half of 2015 and it remains confident on hitting its expectations for the full year. Howden said its UK depots total revenue for the four months to the end of October rose 13% against tough year-before comparatives. For the first ten months of 2015, UK depot revenue rose 12% and was up 9.3% on a like-for-like basis. Gross margins have also been in line with the company's expectations.
SuperGroup, up 6.8%. The clothing retailer, which owns the Superdry brand, reported growth in revenue in the first half of its financial year, boosted by sales increases in both retail and wholesale, and said its gross margin is expected to be ahead of full-year guidance. SuperGroup said total group revenue rose 22% in the 26 weeks ended October 24 to GBP254.9 million from GBP208.2 million in the same period the year before.
Lancashire Holdings, up 5.4%. The specialty insurer questioned the wisdom of chasing top line growth as its third-quarter premiums fell amid pressure on reinsurance and insurance pricing but it declared a special dividend enabled by the "excess" capital on its balance sheet. Third-quarter pretax profit fell to USD32.9 million in the three months to September 30 from USD36.1 million in the corresponding quarter the prior year, as gross premiums written fell to USD120.4 million from USD152.1 million. Its combined ratio, a measure of underwriting profitability, improved to 70.2% from 82.4%.
----------
FTSE 250 - LOSERS
----------
Amec Foster Wheeler, down 22%. The oil and gas engineering services company warned on its outlook for the remainder of the year and into 2016 as it said margin deterioration will hit its second-half results and said it will slash its dividend in half in order to cope with the tough conditions. The company said its underlying revenue for the full year has been in line with expectations in the first nine months of 2015, but said that due to the ongoing weakness in oil and gas markets, its second half margins will be weaker than the first due to continued pricing pressures and an adverse revenue mix. Amec said it will cut its dividend payout for 2015 by 50%.
Cobham, down 1.8%. The aerospace and defence manufacturer said it expects its underlying earnings for the full year will miss market expectations as it takes a hit from weak demand in Asia-Pacific and delays on US surveillance orders. The group has seen some tough conditions in its satellite communications business, particularly from poor demand in Asia-Pacific and weak orders from the oil and gas industry. It has also seen some delays in US surveillance orders which had been anticipated.
Croda International, down 2.0%. The specialty chemicals company said its sales rose in the third quarter, despite a slowdown in growth in the period, and said it remains on track to meet its full-year expectations despite anticipating a currency hit to its sales and profit numbers. Sales for the third quarter to the end of September rose 1.4% to GBP262.5 million, a slowdown on its first half growth and leaving nine-month sales up 3.9% to GBP827.1 million. The results have been hit by the weak euro offsetting the stronger dollar and constant currency sales growth was higher. Despite some caution entering its markets, Croda said it remains confident on meeting expectations for the full year, despite an anticipated hit to its sales and profit for the full year from currency translation effects.
----------
MAIN MARKET AND AIM - WINNERS
----------
Altona Energy, up 55%. The coal miner said it and its partners on the Arckaringa coal project in Australia reached an agreement on amended terms of the partnership. Altona said its partners, Sino-Aus Energy Group Ltd and Wintask Group Ltd, will invest a maximum of USD33.0 million in four stages in the project. An initial drilling programme will be planned as part of a bankable feasibility study, set to be compelted within three years. In addition, Sino-Aus will provide GBP1.25 million in working capital to Altona in two tranches, subject to certain conditions.
Oracle Coalfields, up 15%. The coal miner said it has received a letter of no objection for the Block VI 600 megawatt coal-fired power plant project at its Pakistan project. The Pakistan Central Power Purchasing Agency has said it has no objection to the site, size or technology being used at the project. "This is a further step in our goal to develop a long term sustainable solution towards Pakistan's energy crisis. The federal government's concurrence to power evacuation from our project to the national grid is an important milestone towards financial close," said Shahrukh Khan, Oracle's chief executive.
----------
MAIN MARKET AND AIM - LOSERS
----------
Spirent Communications, down 5.6%. The communications technology company said its revenue for the third quarter rose but said it expects to book restructuring charges in the fourth quarter as it makes changes in order to offset shifts in the wireless devices and carrier acceptance test market. The shifts seen in the wireless market are set to hit Spirent's revenue in 2016 and the group is set to book a USD15.0 million restructuring cost in the fourth quarter to make changes it said will deliver USD25.0 million in annual savings, which should feed through in 2016. Spirent said revenue for the quarter to the end of September rose to USD125.0 million from USD110.1 million a year earlier, up 14%.
----------
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
12 May 2016 07:36
