(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Homeserve, up 2.7%. The home emergency cover provider said its membership businesses, policy renewal and mid-term cancellation rates have all continued in line with historic trends in a "traditionally quieter period", spanning April to mid-July. The home repairs and improvements company added that it has felt no effects from Covid-19 and "customer satisfaction is at record highs" reflecting strong service levels during the pandemic. Homeserve has resumed mergers and acquisitions activity with a strong pipeline of targets and four profitable acquisitions completed in May and June, the most significant of these bringing 38,000 new policy customers in Spain. Walsall, England-based Homeserve continues to expect to deliver a solid performance in the year ending March 31, 2021.
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National Grid, up 2.0%. Deutsche Bank raised the UK power grid operator to Buy from Hold.
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Rio Tinto, up 1.7%. The Anglo-Australian miner left its annual guidance unchanged after posting mixed second-quarter production figures. Bauxite and iron ore output grew in the three months to June 30, though there was a double-digit fall in titanium dioxide slag production, figures from the miner showed. The FTSE 100-listed firm did edge its capital expenditure forecasts higher as the bite from Covid-19 eased and the dollar weakened. Pilbara iron ore production rose 4% year-on-year in the second quarter to 83.2 million tonnes, with shipments edging 1% higher to 86.7 million tonnes.
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FTSE 250 - WINNERS
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Renishaw, up 6.0%. The precision instruments maker raised its annual revenue forecast, but downgraded its profit estimate. Renishaw predicted revenue for the year to June 30, to be around GBP510 million. In May, it had guided for revenue in a range between GBP490 million to GBP505 million. However, Renishaw warned it will miss its annual pretax profit estimate due to GBP46 million in charges, but remains focused on cash preservation due to the Covid-19 pandemic. The company, which makes dental scanning products and precision measurement equipment, in May, had guided pretax profit for the financial year, to be in the range of GBP31 million and GBP41 million. It anticipates GBP24 million in restructuring costs and GBP22 million of fair value losses of financial instruments in financial 2020. In financial 2019, the company recorded pretax profit of GBP109.9 million on a revenue of GBP574.0 million. Adjusted pretax profit had totalled GBP103.9 million.
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Ninety One, up 2.2%. The money manager, formerly part of Investec, posted a double-digit climb in assets under management during its first-quarter. Assets under management rose 14% to GBP118.0 billion at June 30 from GBP103.4 billion at the end of March. The second quarter of 2020, the first quarter of Ninety One's 2021 financial year, saw equities bounce as easing Covid-19 restrictions in some areas improved risk sentiment.
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OTHER MAIN MARKET AND AIM - WINNERS
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Verona Pharma, up 42%. The biopharmaceutical company said it has raised USD200 million in an oversubscribed private share placement and subscription. The fundraise comprises a private placement of 39.1 million American Depositary shares, each representing eight ordinary shares, at USD4.50 per ADS, and 43.1 million ordinary shares at the same issue price. Net proceeds of the financing is expected to total USD183 million, after deducting placement agent fees and estimated expenses. The issue price represents a discount of 4.7% to USD4.72 per ADS price on Wednesday. The company focused on respiratory diseases said it will use the proceeds to fund its phase 3 clinical program - Ensifentrine as a novel inhaled nebulized COPD therapy - in chronic obstructive pulmonary disease and for general corporate purposes. The trials are planned to start later in 2020.
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Pennant International, up 24%. The training and support services provider announced the winning of a new contract with an initial order value of GBP1.5 million. The award follows Pennant in February receiving a statement of intent for the purchase of training aids worth up to GBP5 million from a unnamed Middle East-based customer. The majority of revenue on the order is expected to be recognised in 2021 as the training aids are completed and delivered. The new contract award takes Pennant's contracted order book for 2021 to just under GBP13.5 million. Looking ahead, the group expects the customer to make further purchases, and anticipates another order to be placed either later in 2020 or early 2021.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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