LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Wednesday.
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FTSE 100 - WINNERS
Sage Group, up 4.9%. The business-management software company has revealed that it is on course to deliver its target of 6% organic revenue growth in 2015, as it saw trading in line with expectations in the first quarter. In the period from October 1 to date, the group said it had seen trading in line with expectations across all regions it operates in.
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FTSE 100 - LOSERS
Royal Bank of Scotland, down 3.2%. Liberum Capital has raised its target price for Royal Bank of Scotland by more than 30%, saying that when the current issues that have put the UK banking giant out of investor favour have been resolved, it has the potential to be highly profitable once again. However, at the same time, investment bank UBS has cut RBS to Sell from Neutral, while lowering its price target to 300p.
British Sky Broadcasting, down 0.4%. Berenberg has cut its price target for BSkyB to 680.00 pence from 750.00p, maintaining its Sell recommendation. While the bank remains confident in the short term, it is concerned about the company's medium-term prospects. BSkyB's failure to renew the UEFA Champions League rights has "opened the door" to increased competition from BT, the bank says. Furthermore, Berenberg now expects 2016/17 Premier League cost inflation significantly higher than originally assumed.
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FTSE 250 - WINNERS
Grainger, up 2.8%. The residential property company said the Royal Borough of Kensington and Chelsea in London has granted detailed planning permission for 84 new homes across two sites in the borough. The two developments will have a gross development value of over GBP110 million in total, and construction is anticipated to commence within a year, Grainger said.
WH Smith, up 2.8%. The company said it delivered a good profit performance in the 20-week period to January 18, as profit margins improved and costs were well managed across the business. The stationer and bookseller said it is still keeping a tight lid on costs, which is helping improve its gross margin.
JD Wetherspoon, up 2.3%. The British pub chain said that total sales and like-for-like sales are both up in its most recent trading quarter, and in the year to date. JD Wetherspoon said that total sales were up 10.6%, for the 12-week period to January 19, with like-for-like sales up 6.7%. In the year to date, which is the 25 weeks to January 19, JD Wetherspoon said that total sales increased by 9%, and like-for-like sales increased by 5.2%.
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AIM - WINNERS
Tristel, up 15%. The company said it expects to report revenue and pretax profit ahead of previously upgraded expectations for the six months ended December 31 2013. The biotechnology company said it had seen a strong first half and expects revenue to be over GBP6.4 million, up from GBP4.4 million in the previous year. The company expects pretax profit to be in excess of GBP700,000, up from an adjusted pretax loss of GBP600,000 in the previous year.
Leni Gas & Oil, up 11%. The company said it has now started mobilisation for the construction of the first drilling sites of its newly approved 30 development well programme at its 100%-owned Goudron Field in Trinidad. It said the first new well at the site will be drilled to roughly 4,000 feet and is targeting two regions of net oil sands in spaces equalling 250 feet and 100 feet.
Cello Group, up 9.1%. The marketing company announced that its 2013 revenues and headline pretax profit are expected to beat market expectations, and a good new business pipeline it achieved in the fourth quarter has set it up for a solid start to 2014. The company said revenues will grow by double-digits, and it has maintained a 20% operating margin. It also cut its net debt to below GBP4.0 million after stronger-than-expected cash conversion.
ServicePower Technologies, up 8.6%. The company has risen after it said that it had seen strong revenue growth during 2013, due to new contracts and client renewals. The software company said it expects revenue of GBP14.0 million, up more than 25% from GBP11.1 million in the previous year. It expects gross profit of GBP6.6 million.
Hydrodec Group, up 8.4%. The clean technology oil re-refining company said it expects to report a 52% increase in revenues for 2013, and underlying EBITDA significantly above the figure for 2012. It expects 2013 revenues to rise about 52% to USD39.7 million, from USD26.1 million in 2012, driven by a 9% increase in revenues from its re-refining business and thanks to its acquisition of lubricant and processed fuel oil company OSS.
W Resources, up 7.8%. The tungsten exploration and development company said final concentrate for production specification tests for La Parrilla tailings project in Spain have shown higher grades of tungsten. The company said final test work at the ALS Chemex Vancouver labs support a concentrate specification of 63% tungsten, significantly higher than the company's target level of 50% tungsten, and 8% tin.
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AIM - LOSERS
Bezant Resources, off 26%. The natural resource exploration and development company said Gold Fields Netherlands Services BV will not be exercising its exclusive option the acquire the company's Mankayan project in the Philippines. Instead, Bezant said Gold Fields plans to focus on its producing Australian assets and its Far Southeast project, four kilometres from the Mankayan site. Under the original option agreement, Gold Fields had until January 31 to elect to exercise its option and pay USD60.5 million to acquire the project.
Great Western Mining, down 8.3%. The company said it has raised, through XCAP Securities, a further GBP1.5 million through a share placing. The mineral exploration company said the placing was for 120 million shares in the company at a price of 1.25 pence per share. The funds will allow the company to start its phase 2 drilling programme on its Target 4 copper-gold prospect in the western US.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
IN BRIEF: W Resources shares to be cancelled from AIM on Thursday
W Resources PLC - tungsten, tin and gold mining and exploration company in Spain and Portugal - Confirms shares will be cancelled from trading on the AIM market in London, effective from Thursday morning. Back in April, W Resources had cited the "unprecedented difficult financial and operating circumstances in which the company finds itself" due to the rise in energy prices. On Wednesday, the company refers to "extremely high liquid natural gas prices that placed an excessive cost burden on the La Parrilla mine in Spain with the further impact of the ongoing truck drivers dispute which caused a shortage of critical spare parts". Also in April, Grant Thornton UK LLP resigned as its nominated adviser and Alternative Resource Capital and Shard Capital as brokers.
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