LONDON (Alliance News) - The following stocks are the leading risers and fallers on the main London indices midday Monday.
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FTSE 100 - Winners
Aggreko, up 4.3%, is the biggest riser on the blue-chip index, after it said trading in the third quarter had met its expectations, with underlying revenues and trading margins slightly up on the year. The company got a huge boost in 2012 from providing temporary power units for the London Olympics, and its underlying figures exclude that impact. Including the Olympics comparison, revenues were down 6% in the three months to end-September, and trading margins a little lower. "For 2013, we expect that group profit before tax will be in line with market expectations," the company said in a statement.
Randgold Resources climbs 2.3% after it said it is eyeing new gold mining opportunities in the Ivory Coast. The company's Chief Executive Mark Bristow said in a statement that it is "aggressively exploring" further opportunities in the West African country. Bristow said that the company's geologists were using its portfolio of 15 permits to search for key gold permits in the country and that the Ivory Coast could become one of Sub-Saharan Africa’s largest exploration opportunities if its regulatory framework remains investor-friendly.
Admiral Group is up 0.8% after Numis raised its recommendation to Add from Reduce, increasing its target price by 22% to 1,425.00 pence from 1,170.00p. Nick Johnson, analyst at Numis, says that "Admiral's international operations have real potential." The company has launched insurance operation in four countries outside of the UK. Johnson also believes that Admiral is yet to reach its growth capacity within the UK.
G4S is up 0.6% after it said it had rejected a GBP1.55 billion offer for its cash solutions business from private equity firm Charterhouse Capital Partners, saying that the conditional offer fundamentally undervalues the business and its prospects. According to G4S, cash solutions services will be core to G4S's operations and strategic plans.
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FTSE 100 - Losers
Intercontinental Hotels Group, down 2.4%, is the biggest faller on the FTSE 100. The company's growth in revenue per available room has slowed in the third quarter across its hotel chains in the US and the Americas, which it blamed on the timing of certain holidays. It said RevPAR grew 3.5% in the third quarter compared with 4.5% for the first nine months of the year, while the rate in September was 1.6%, "reflecting slower group business, as seen across the industry as a whole, following the earlier timing of certain holidays." The hotel operator will release a full trading update for the third quarter November 5.
Tullow Oil falls 1.7% after it said it had temporarily suspended all operations as a precautionary measure in Block 10BB and Block 13T in Northern Kenya. The company's decision follows demonstrations by local people about employment concerns.
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FTSE 250 - Winners
Playtech climbs 1.2% after Deutsche Bank increased its price target on the stock ahead of a third-quarter trading update due on Tuesday. Recent investment in new mobile infrastructure and licensees investment in mobile should see like-for-like revenue trend back up, says Deutsche Bank analyst Richard Carter. The bank is forecasting Playtech will deliver third-quarter revenue growth of 17%, including the recent acquisition of PokerStrategy. Carter sees further near-term share price out-performance and has increased Deutsche Bank's price target for Playtech shares to 800.00p, from 746.00p, while reiterating a Buy rating.
Fidessa Group is up 0.9% after it said it expects its performance in the second half of the year to be similar to first half performance, as the company continued to experience "international growth and developing momentum" during the third quarter. In its interim management statement for the period to date from July 1, the company said the improvement in financial markets had not been marked enough for its customers to make investment decisions with confidence. However, "looking further ahead, Fidessa expects that it will see stability and opportunity returning to the markets and believes that it may already be starting to see both of these develop. This will reduce the headwinds Fidessa is currently experiencing and, coupled with further openings as momentum continues developing in its multi-asset initiative, will enable it to return to growth levels closer to those that have been seen in the past," the company said in a statement. The company also said it has a strong pipeline, giving an indication that improving conditions may be starting to filter through. David Toms, analyst at Numis, believes that the shares are "a clear Buy."
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AIM - Winners
Kolar Gold jumps 45% after it said that its partner Geomysore Services India Private has been granted a mining lease for its Jonnagiri Greenstone gold project by authorities in India, and will mobilise drilling rigs to undertake more exploratory drilling. Kolar Gold has a 30% stake in Geomysore Services India and all its gold projects.
Optimal Payments, up 5.1%. The company said it had been approved by New Jersey authorities as a payments technology and risk management provider to internet gaming companies. It said the New Jersey Division of Gaming Enforcement had approved it after reviewing its applications. "After a strong commercial and share price performance, Optimal is ready to turn predator," says Numis's Ivor Jones. Jones is buoyed by the fact that Optimal has between USD30 million and USD70 million of cash and equity to spend on acquisitions. "An acquisition could diversify the geographical and merchant mix of revenue," Jones says. Alongside this, "Optimal's expertise in online gambling payments gives it an attractive exposure to this growing sector, and to the emerging US regulated online market in particular." As the company manages to sign up more US merchants, Numis believes that investors will increasingly see it as an attractive option. Numis re-iterates its Buy recommendation, raising its target price to 350.00p from 325.00p.
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AIM - Losers
Strategic Natural Resources, down 19%, is the biggest faller on the AIM index, after it said that its subsidiary Elitheni Coal is in advanced talks with a number of South African miners about providing it with short-term funding through a debt-for-equity swap. The unit, in which Strategic Natural Resources owns a 74% stake, is very short of working capital, and may have to slow its mining operations even if does a short-term funding deal, while it tries to sort out a longer-term deal, Strategic Natural said in a statement. It warned that if the short-term funding talks aren't successful, Elitheni will have to consider its options.
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Further Winners Of Note
Avanti Capital jumps 79% after announcing that one of its portfolio companies, Eclectic Bar Group, intends to float on AIM. The investment management company that invests in bars and restaurants is due a GBP7.3 million loan from Eclectic and hopes "the IPO crystallises a return for our loyal shareholders," Richard Kleiner, director of Avanti Capital, said in a statement.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2013 Alliance News Limited. All Rights Reserved.
17 Sep 2014 12:34