(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Ferguson, up 5.5%. The plumbing and heating products supplier resumed dividend payments and reported annual results that beat estimates. For the financial year ended July 31, revenue slipped 0.9% to USD21.82 billion from USD22.01 billion in financial 2019; however, the figure was higher than the company-compiled consensus forecast of USD21.76 billion. Pretax profit was down 4.8% to USD1.26 billion from USD1.32 billion, while trading profit, which excludes exceptional items and amortisation of acquired intangible assets, was USD1.67 billion, up 8.6% from USD1.54 billion. The trading profit figure beat the consensus forecast of USD1.59 billion. Ferguson proposed a final dividend for the year of 208.2 cents which it said "effectively reinstates" the previously withdrawn interim dividend, and was in line with last year's payout. "Indeed, the most striking proof that the financial measures taken have been successful, as well as signposting confidence in future prospects is the full restoration of the dividend. This returns the yield to its previous level of around 3% which, although somewhat pedestrian, nonetheless places Ferguson in a minority of stocks which have been able to weather the dividend storm," commented Interactive Investor's Richard Hunter.
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B&M European Value Retail, up 4.2%. The company raised its earnings guidance as the discount retailer's knock-down prices and spacious stores were a hit among customers during the Covid-19 pandemic. B&M said its revenue in the six months to September 26, surged by just over 25% year-on-year, with its UK stores alone posting growth of 30%. In the second quarter alone, like-for-like growth in UK stores was 19%. B&M raised its earnings guidance, with interim earnings before interest, tax, depreciation and amortisation expected to come in at GBP285 million, up from July's previously guided range of GBP250 million to GBP270 million. "When people are feeling the pinch they tend to trade down from more expensive shops and products to the sort of value proposition that B&M offers. Geographically too, the business is in a good spot - it doesn't have lots of big destination city centre stores that would have been heavily impacted by a working from home inspired drop in footfall. Instead it occupies sites in smaller shopping centres and retail parks as well as local high streets," said AJ Bell's Russ Mould.
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Standard Life Aberdeen, up 3.5%. JPMorgan upgraded the asset manager to Overweight from Neutral.
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FTSE 100 - LOSERS
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Next, down 2.5%. Berenberg downgraded the clothing and homeware retailer to Sell from Hold.
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FTSE 250 - LOSERS
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Greggs, down 4.5%. The baked goods retailer said it bounced back from a "slower August" but warned of a job losses to cut costs as the UK government's furlough scheme draws to a close. In September, like-for-like sales in company-managed shops improved to 76% of the level seen in 2019. Greggs explained it saw "higher levels of activity" compared to August. Since it re-merged from the Covid-19 lockdown in July, like-for-like sales in company-managed shops have on average sat at 71% of 2019 levels. But although new store openings are planned, Greggs still warned that it may cut some jobs. eToro analyst Adam Vettese said: "The problem for food-on-the-go outlets like Greggs is that they have positioned themselves to attract passers-by in city centres and the lunchtime workers crowd. With the government now urging workers to work from home for the next six months, we can safely assume that won't happen until at least the second or third quarter of next year."
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OTHER MAIN MARKET AND AIM - WINNERS
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Alfa Financial Software Holdings, up 17%. The financial software provider said its first half earnings topped initial expectations, with profit nearly doubling. In the six month to June 30, revenue climbed 24% to GBP38.2 million from GBP30.9 million a year earlier. Pretax profit jumped 95% year-on-year to GBP10.1 million from GBP5.1 million. Alfa noted revenue and profit was "significantly ahead of original expectations". The company made no interim payout a year ago but this time round it proposed a 15 pence per share special dividend. This was despite Alfa considering "both our short and medium term requirements including a number of downside scenarios".
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OTHER MAIN MARKET AND AIM - LOSERS
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AA, down 1.5%. The roadside assistance provider posted a first-half revenue and profit fall and added that a private equity consortium now has a little longer to table a bid for the roadside assistance firm. AA last Thursday said it had agreed to a request from the remaining two bidders to make a joint offer for the London-listed firm, which also sells car insurance. AA said TowerBrook Capital Partners UK and Warburg Pincus International have confirmed a "strong interest" in making an all-cash takeover offer, acting as a consortium. The pair also would intend to significantly pay down AA's hefty debt pile. The consortium has until October 27 to make an offer to acquire AA. Turning to its results for the six months ended July 20, AA said its revenue slipped 2.6% annually to GBP478 million from GBP491 million a year earlier. Pretax profit was 38% lower year-on-year at GBP26 million from GBP42 million. AA's paid membership base slipped 2.0% during the half, with customer retention flat at 80%.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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