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UK WINNERS & LOSERS: BAE Systems, Rexam Lead FTSE 100 Fallers

Thu, 20th Feb 2014 11:50

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

Centrica, up 3%. The major energy supplier's shares have jumped despite it reporting that pretax profit fell 32% to GBP1.65 billion in 2013, from GBP2.42 billion in 2012. Its adjusted earnings per share of 26.6 pence was in line with consensus expectations and previous company guidance. Liberum analyst Mulu Sun believes that the rise can be attributed to a rebound after a recent decline in its share price caused by political pressures in the UK and concerns over its US operations.

Petrofac, up 2.5%. The major oil and gas engineering company said it has been awarded a contract by BP, worth roughly USD1.2 billion, for work at the central processing facility for the Khazzan gas project in Oman. Alongside this, FTSE 250-listed Ophir Energy said it has signed a non-binding letter of intent with Petrofac to be the operator of its proposed gas development in Equatorial Guinea.

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FTSE 100 - LOSERS

BAE Systems, down 8.4%. The defence giant has reported a sharp drop in profit in 2013 as sharply higher impairment charges more than offset higher revenues, and the company warned that cuts to defence spending in the UK and US would continue to weigh on its performance in 2014. The group reported a net profit of GBP168 million for 2013, down from GBP948 million in 2012. It booked impairments of GBP887 million, up from GBP86 million, mainly due to the slowdown in US defence spending.

Rexam, down 4.6%. The packaging company announced that its sales rose to GBP3.94 billion in 2013, from GBP3.89 billion in 2012. However, currency fluctuations added GBP78 million to this, leaving sales down by GBP20 million on an organic basis. The company said that it ?expects to make progress on a constant currency basis" in 2014. This may have disappointed investors, although Jefferies suggests it should not be a big surprise given the heads-up Rexam provided at the interims.

Anglo American, down 3.4%. South Africa's Association of Mineworkers and Construction Union said on Thursday that it plans to continue the ongoing platinum miners strike against the world's top three platinum producers, Reuters has reported. The decision is a blow to companies and investors, which had hoped to bring an end to the month-long strike. Anglo Platinum, as subsidiary of Anglo American, has been significantly hit by the protests.

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FTSE 250 - WINNERS

Playtech, up 9.6%. The gaming and betting software company expressed confidence for 2014 and announced a special dividend, as it saw revenues rise in 2013 and pretax profit further boosted by the sale of its share in William Hill Online to William Hill. The company posted a pretax profit of EUR491.3 million, up from EUR89.0 million in 2012, as revenues rose to EUR367.2 million, from EUR317.5 million. It announced a special dividend of GBP100 million, in addition to maintaining its total dividend for the year at EUR23.2 euro cents per share.

Petra Diamonds, up 2.1%. The diamond mining company said it swung to a pretax profit in its first-half on increased production, lower costs and major sales. It posted a pretax profit of USD42.2 million for the six months ending 2013, from a pretax loss of USD14.9 million the previous year. Revenues increased 19% to USD185.5 million, from USD156.3 million, as the company increased production and sold five stones, each at prices exceeding USD1 million, during the period. Group costs were lowered by 16% to USD143.2 million from USD170.6 million, while production rose by 31% to 1.6 million carats. It also said it is on track to achieve its goal of 3.0 million carats for the full-year.

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FTSE 250 - LOSERS

Essentra, down 4.3%. The speciality packaging components company reported its pretax profit grew by 15% in 2013. However, with the shares having risen by 10% in the week before the results, commentators suggest there may be some profit taking. The stock has been downgraded by Canaccord Genuity to Hold, from Buy, following the recent share price spike.

Lonmin, down 3.2%. Lonmin is another major platinum miner that is being hit by the ongoing platinum miners strike in South Africa.

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AIM - WINNERS

Snoozebox Holdings, up 57%. The company has reported a turnaround in fortunes, with revenues up about 80% in 2013 and key events like Glastonbury and the Ryder Cup gold competition added to its roster for 2014. The company had predicted in December that revenues would be up about 80% in 2013 after a restructuring programme, and it confirmed the growth on Thursday, saying it expects revenues to be about GBP6.5 million. It has also improved margins as it cut operating costs sharply.

Univision Engineering, up 20%. The digital surveillance firm said it will no longer have to repay a loan it had with Mayne Management Ltd after a signing a deal whereby Mayne waives all rights to repayment of capital and interest payments under the agreement. The group had owed USD3.9 million to Mayne.

EMED Mining, up 9.7%. The minerals development and exploration company has received a key document needed for the development of its Rio Tinto Copper Project in Spain. It said The Ministry of Environment of the Government of Andalusia issued the Dictamen Ambiental for the site on 19 February. The release is a significant milestone in the approval process for the company's environmental plan for the site, containing draft conditions which are to be included in the final environmental plan.

Clean Air Power, up 6.8%. The group said it has received an order for natural gas injectors worth USD500,000 from its German distributor. The injectors will be used in the manufacture of a 7 litre medium-duty spark ignited natural gas engine by a global truck manufacturer. The engine, which is suitable for use in vehicles such as buses and refuse vehicles, is to be aimed at the growing Russian market, where the government has set out ambitious plans to encourage the use of natural gas as a road fuel throughout the country.

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AIM - LOSERS

DDD Group, down 11%. DDD said that it expects revenue for the full-year to be more than halved compared with the previous year, as it saw demand fall for its 2D to 3D conversion software due to the continued decline of the personal computer market. It now expects revenue for the year to be around USD3.4 million, down from USD8.6 million in the previous year.

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

Copyright 2014 Alliance News Limited. All Rights Reserved.

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IN BRIEF: UniVision says winding-up petition adjourned again

UniVision Engineering Ltd - Hong Kong-based company that supplies, designs, installs and maintains closed-circuit television and surveillance systems, and also sells security-related products - Announces that the winding up petition brought against it by one of its sub-contractors, KML Engineering Ltd, first announced on July 28, has been adjourned until October 16. The hearing had already been adjourned to September 27, and then to today, by the High Court in Hong Kong.

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UniVision Engineering receives wind up petition from E-Star

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UniVision Engineering receives GBP1.2 million wind up petition

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IN BRIEF: UniVision Engineering unable to explain jump in share price

UniVision Engineering Ltd - Hong Kong-based company that supplies, designs, installs and maintains closed-circuit television and surveillance systems, and also sells security-related products - Says it is not aware of any material commercial or operational reason for the significant increase in its share price, other than the recent restoration of trading on AIM after the publication of its half-year report on June 19.

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IN BRIEF: UniVision swings to loss following MTR contract termination

Univision Engineering Ltd - Hong Kong-based CCTV supplier - Says it swings to pretax loss of GBP256,000 in the six months ended 30 September 2022, from a profit of GBP142,000 in the same period the year prior. Revenue falls to GBP653,000 from GBP5.0 million the prior year. The company says this was due to the termination of its major contract with MTR Corporation Ltd, which was effective from June 20. The company says it is considering a number of financing methods to improve its liquidity following the collapse of revenue; obtaining a loan facility of HKD12 million - around GBP1.2 million - and a potential investor providing a standby unconditional facility of HK20 million. The company declares no interim dividend.

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IN BRIEF: UniVision Engineering belated results show swing to loss

UniVision Engineering Ltd - Hong Kong-based CCTV supplier - Reports delayed final results for the year ended March 31, 2022. Says revenue fell by 64% to GBP3.9 million from GBP10.9 million the year prior mainly due to the expiry of several maintenance contracts and the delay of several project deliveries. Pretax loss totalled GBP10.3 million, swinging from a pretax profit of GBP563,000 before. Company is considering and negotiating a number of financing measures to improve its liquidity and financial position. After reviewing cash flow projections prepared by management, company feels it has sufficient working capital to finance its operations and meet its financial obligations over the next 12 months. Continues to negotiate with MTR Corp over termination of its contract for alleged breach of contract which company disputes. Explains the termination of the contract would represent a significant loss of future revenue and profit for the company. However, says company would be able to re-deploy resources from this contract to other projects to mitigate this reduction. Calls for meetings with MTR Corp to discuss outstanding amounts and to quantify unbilled work.

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IN BRIEF: UniVision's CFO leaves board; asked to pay Synnex

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IN BRIEF: UniVision Engineering suspended from trading on AIM

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