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Pin to quick picksSan Leon Share News (SLE)

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UK WINNERS & LOSERS: Pearson, EasyJet Lead Blue-Chip Fallers

Thu, 23rd Jan 2014 12:00

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Thursday.

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FTSE 100 - WINNERS

London Stock Exchange, up 1.1%. The company said its third-quarter revenue increased by 52% year-on-year, buoyed by recently acquired clearing house LCH.Clearnet and good growth in other areas. The London Stock Exchange said it made GBP272.0 million in revenue for the three months ended December 31, 2013, compared with GBP179.1 million for the corresponding quarter in 2012. Total income stood at GBP308.0 million, a 47% increase on last year's third-quarter.

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FTSE 100 - LOSERS

Pearson, down 8.3%. The media and education group reported that its 2013 trading and financial performance was weaker than expected, especially in North America, with 2014 trading conditions continuing to be challenging. For 2013, the group said it is expecting an operating profit of around GBP865 million, before restructuring charges, significantly lower than the adjusted operating profit of GBP936 million it recorded in 2012.

EasyJet, down 2.5%. Although the UK-based low-cost airline said it carried 4.2% more passengers in its first quarter, it said it expects to post a pretax loss of between GBP70 million and GBP90 million, assuming normal levels of disruption. The company noted that Easter fell on March 31 in 2013, resulting in GBP25 million in additional revenue in the first half of its financial year. However, this financial year will see Easter fall in April, the first month of the second half of its financial year.

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FTSE 250 - WINNERS

Kenmare Resources, up 3.9%. The titanium producer said it increased production at its Moma Mine during its fiscal fourth quarter. The firm said it mined 7.66 million tonnes of ore at a grade of 6.3% during the three months to end-October, compared with 3.48 million tonnes of ore at a grade of 5.70% a year earlier. For the full-year, Kenmare mined 23.95 million tonnes of ore at a grade of 5.90%, up 22% from the 19.6 million tonnes mined in fiscal 2012 at a grade of 5.50%.

Kentz Corporation, up 1.4%. The company has seen its shares hit an all-time high after it said it expects it 2013 earnings per share to meet its expectations, growing at a double digit rate on the 2012 figure, and it reported a jump in its order intake, pipeline of prospects and work backlog. The company said its own backlog stood at USD3.1 billion at the end of last year, up 19% from a year earlier, or USD3.5 billion including recently-acquired Valerus. Total order intake was USD2.2 billion, up 29% from USD1.7 billion a year earlier, while its pipeline of prospects grew 18% to USD15.6 billion.

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FTSE 250 - LOSERS

Petra Diamonds, down 5.1%. The company is retracing some of the gains it made in the aftermath of Tuesday's announcement that is had discovered a 29.6 carat blue-diamond. Moreover, Liberum Capital believes that the company's first half sales, released Thursday, were slightly below expectations.

IP Group, down 1.9%. The company has announced that it will issue about 45.5 million shares priced at 165 pence each in a GBP75.0 million capital raising designed to fund its future growth. In a separate statement, IP Group and Fusion IP PLC unveiled a takeover deal that will see IP Group buy up the rest of the AIM-quoted company's shares, adding to its existing 20.1% stake.

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AIM - WINNERS

Sterling Energy, up 18%. The oil and gas exploration and production company said that the force majeure forcing operations at the Ntem Concession, offshore Cameroon, to be suspended since 2005, has now been lifted. "The large prospect could be worth more than 500.00 pence (per share) if drilling is successful, with little downside if the well is dry," says Liberum Capital.

Thor Mining, up 12%. Thor said further screen fire assay tests at its 51% owned Spring Hill project in Australia have achieved a 50% increase in gold grades.

San Leon Energy, up 9.1%. The company said it has successfully completed flow testing on its Lewino-1G2 shale gas site in Poland's northern Baltic Basin. It said the Lewino-1G2 well reached a sustained gas production rate of 45,000 to 60,000 standard cubic feet per day after six weeks of well clean-up. The company said that engineers estimate a potential rate from the site of 200,000 to 400,000 standard cubic feet per day of gas, based upon full clean-up of frac fluid.

LPA Group, up 8.5%. The LED lighting and electronic systems firm said pretax profit increased in its most-recent fiscal year, despite UK sales dragging revenue down 3.9%. The firm posted pretax profit of GBP1.8 million for the period ended September 30, 2013, up from GBP877,000 a year earlier. Profits were boosted by a surplus on the sale of its Tudor Works site in Saffron Walden of GBP2.1 million, but hit by reorganisation costs of GBP809,000 and goodwill impairment of GBP85,000. It raised its final dividend 25%.

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AIM - LOSERS

Leyshon Resources, off 20%. Leyshon shares are down heavily after it recommenced trading following the demerger of its energy assets.

Cyprotex, down 19%. The company said it expects to post a pretax loss of around GBP1.2 million for 2013 compared with a profit of GBP250,000 in 2012, due to finance charges related to its redeemable loan notes and convertible loan notes with Trident Private Equity Fund III LLP. Excluding the charges, it's expecting higher profits and revenues above market expectations. Cyprotex has risen by 60% since January 17, in the run-up to the results.

Verdes Management, down 18%. The company has received a letter asking for the first GBP125,000 part of a recently received loan to be returned.

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By James Kemp; jameskemp@alliancenews.com; @jamespkemp

Copyright 2014 Alliance News Limited. All Rights Reserved.

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