Wood Group (J) Share News (WG.)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Glencore, up 14%. The miner and trading house outlined plans to accelerate its debt reduction and capital preservation measures and to cut its capital expenditure for this year and the next amid the weak commodities market. Glencore said it will increase its debt reduction and capital preservation measures target to USD13.0 billion, from a previous target of USD10.2 billion, with USD8.7 billion of this either already achieved or locked-in. Glencore said its new net debt target for the end of 2016 is USD18.0 billion to USD19.0 billion, from its previous target of the low twenties of billions. The group has also further reduced its capital expenditure targets for 2015, down to USD5.7 billion from USD6.0 billion, and for 2016, where the cut is more severe, down to USD3.8 billion from USD5.0 billion.

TUI, up 5.7%. The travel company said it outperformed its expectations in its first year post the merger of the London-listed firm with its German parent company, with revenue and the company's earnings both increasing. TUI said its earnings before interest, taxation and amortisation increased to EUR865.0 million for the year to the end of September, up from EUR777.0 million a year earlier. Revenue for the year increased to EUR20.0 billion from EUR18.6 billion, with very strong performances from its tourism business, particularly hotels and resorts and cruises, and a robust year for its specialist travel arm. The company said it will pay a full-year dividend of 56.00 euro cents per share, up from 33.00 cents a year earlier and 10% higher than the dividend guidance it gave at the time of its merger.

Centrica, up 3.9%. The energy company said earnings remain on track for 2015 despite a challenging backdrop and price cuts at British Gas, as the company continues to cut its expenditure. Centrica said it is on track to meet full-year expectations despite commodity price falls, lower margins at its power generation business, and a second price reduction at its British Gas unit. Centrica said it is on track to deliver over GBP2.00 billion of adjusted operating cashflow for the full year and said its cost cutting is either on track or ahead of expectations.
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FTSE 100 - LOSERS
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Sports Direct International, down 12%. The sports clothing and equipment retailer posted a 25% rise in interim pretax profit despite revenue only ticking up slightly, mainly due to a big increase in investment income and a better gross margin. Sports Direct said its pretax profit for the 26 weeks to October 25 was GBP187.3 million, up 25% from the GBP149.7 million it made a year earlier, mainly due to the group booking a big gain on its investment income. Underlying pretax profit rose 3.6% to GBP166.4 million from GBP160.6 million, falling short of market expectations of GBP180 million or higher. A report in The Guardian said temporary staff working at Sports Direct's large warehouse operation in Derbyshire are effectively being paid below the minimum wage and working under difficult conditions. The paper said warehouse staff at the group are required to go through a series of searches at the end of each shift, for which they are not paid, yet can have their pay docked for clocking in only a minute late. Though not directly referencing the article, Sports Direct said it had streamlined security operations at the warehouse in order to cut down waiting times for staff leaving the warehouse and said it complies with all legal working requirements. It noted that no warehouse workers are on so-called 'zero hour' contracts.

Old Mutual, down 6.2%. The Anglo-South African financial services group was sold off after ratings agency Standard & Poor's downgraded its rating on its Nedbank banking arm in South Africa, part of a wide-ranging downgrade on its view of the South African banking sector. Investec, another Anglo-South African financial services company, was also hit by the negative note from S&P, down 7.9% in the FTSE 250. Old Mutual also was hit by a downgrade by RBC Capital Markets, which cut its rating on the company to Underperform from Sector Perform.
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FTSE 250 - WINNERS
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Micro Focus International, up 10%. The software company reported a rise in pretax profit for its first half following its acquisition of The Attachmate Group last November, and announced a shake-up of its board as it plans to separate its chairman and chief executive officer roles over the next one to two years. Micro Focus said Kevin Loosemore will continue as its executive chairman until at least April 2018, whilst Stephen Murdoch, current chief operating officer, will join the board from the beginning of February next year as chief executive of Micro Focus. Nils Brauckmann, president and general manager of the SUSE business will be promoted to chief executive officer of SUSE at the same time.

John Wood Group, up 2.9%. The oil services company reiterated its full-year earnings outlook for 2015 alongside its plan to increase its dividend by a "double digit percentage" despite increasingly tough market conditions. John Wood said it is on track to deliver earnings before interest, tax and amortisation of around USD465.0 million for the 2015 calendar year whilst also delivering dividend growth.
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FTSE 250 - LOSERS
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Ocado Group, down 5.6%. The online grocery delivery service said its sales rose in the fourth quarter and for its recently-ended financial year, though its average order size shrunk in the final weeks. Ocado said its total group sales for the 16 weeks to November 29 was GBP381.6 million, up from GBP331.9 million a year earlier, with gross retail sales rising 13% and its average orders per week up to 205,000, a 16% year-on-year rise. But the average order size for the period shrunk to GBP107.16 from GBP109.74, down 2.3%.
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MAIN MARKET AND AIM - WINNERS
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Synectics, up 16%. The surveillance technology and security systems company said it intends to recommend a modest resumed final dividend for its 2015 financial year, as a result of a return to profitability. Synectics expects to report revenue of around GBP68 million for the year to end-November, up from GBP64.6 million a year before. The company said that difficult market conditions in the oil and gas sector are continuing as expected, however, it saw revenue growth of more than 10% in that sector during the year. It still expects it to take "some time" before capital expenditure on major projects in the industry returns to more normal levels.

Nanoco Group, up 16%. The quantum dots and nanomaterials company said it believes 2016 will be a "landmark year" in its development. In a statement ahead of the company's annual general meeting Nanoco said that the transfer of the production of cadmium free quantum dots in South Korea is being accelerated, and it now expects its plan to be ready to support material to meet potential customer's commercial requirements in the first quarter of 2016.
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MAIN MARKET AND AIM - LOSERS
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Imaginatik, down 11%. The software and consultancy company reported a narrowed pretax loss for its first half, as it secured new contracts and contract renewals. It reported a pretax loss of GBP572,000 for the half year to end-September, narrowed from a pretax loss of GBP818,000 a year before, on revenue of GBP2.0 million, up from GBP1.5 million. During the half year the company won contracts with new customers including a pharmaceutical company, a US aviation company, a radiation safety company and an athletic footwear firm. It also secured "high levels" of renewals with existing customers, renewing 14 out of the 17 contracts available for renewal.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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